Integrated Business Processes with ERP Systems

Integrated Business Processes with ERP Systems covers the key processes supported by modern ERP systems. This textbook is designed for use as both a reference guide and a conceptual resource for students taking ERP-focused courses using SAP. It examines in depth the core concepts applicable to all ERP environments, and it explains how those concepts can be utilized to implement business processes in SAP systems. Students will gain a deep appreciation for the role of enterprise systems in efficiently managing processes from multiple functional perspectives. Examples of both positive and negative issues associated with enterprise systems are integrated throughout the chapters to illustrate the concepts with real-world experiences.

1 Introduction to Business Processes 1

The Functional Organizational Structure 2

Business Processes 4

Global Bike Incorporated (GBI) 15

How to use This Book 16

2 Introduction to Enterprise Systems 23

Enterprise Systems 23

Data in an Enterprise System 29

Reporting 37

3 Introduction to Accounting 49

Organizational Data 51

Master Data 52

Key Concepts 58

Processes 61

Reporting 72

4 The Procurement Process 83

Organizational Data 84

Master Data 89

Key Concepts 95

Process 102

Reporting 119

5 The Fulfillment Process 127

Organizational Data 128

Master Data 139

Process 145

Credit Management Process 167

Reporting 170

6 The Production Process 179

Master Data 182

Process 196

Reporting 215

7 Inventory and Warehouse Management Processes 221

Inventory Management 222

Organizational Data in Warehouse Management 234

Master Data in Warehouse Management 239

Processes in Warehouse Management 242

Reporting 257

8 The Material Planning Process 269

Master Data 271

Process 285

Reporting 304

9 Process Integration 315

Procurement, Fulfi llment, and IWM Processes 318

Procurement, Fulfi llment, Production, and IWM Processes 332

Index 349

Simha R. Magal, Ph.D., is professor of management (MIS) and director, ERP initiative, in the Seidman College of Business at Grand Valley State University. He received his doctorate from the University of Georgia. His primary research interests include e-business and enterprise systems. Dr. Magal’s articles have appeared in such publications as MIS Quarterly, Journal of MIS, and Information and Management, among others, and he has served on the editorial boards of several journals. Dr. Magal has taught courses related to business processes and enterprise systems that utilize SAP for more than a decade. He is an SAP-certified associate consultant and a TERP10 academy instructor.

Jeffrey Word, Ph.D., is vice president of product strategy at SAP AG. He is responsible for defining SAP's future product strategy and for fostering product innovation within SAP. Dr. Word has worked for several Global 1000 companies in the high-tech industry for nearly 20 years, specializing in business consulting and IT strategy. At SAP, he has driven the evolution of the company’s enterprise technology strategy, with a special focus on corporate process improvement initiatives and services-based IT architecture design. Dr. Word earned his Ph.D. in information systems at Manchester Business School in England.

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Integrated Business Processes with ERP Systems is an exciting new text that covers the key business processes supported by modern ERP systems. This book, along with the accompanying dynamic WileyPLUS online learning environment, is designed to serve as both a reference guide and a conceptual resource for students taking ERP-focused courses. It examines the core concepts applicable to all ERP environments in depth, and it explains how those concepts are executed in the world's leading ERP system, SAP® ERP.

Integrated Process Approach
Magal & Word approach ERP topics using an integrated process perspective of the firm. Each business process is discussed within the context of its execution across functional areas in the company, with special emphasis on the role of data in managing the coordination between activities and groups. Students will gain a deep appreciation for the role of enterprise systems in efficiently managing business processes from multiple functional perspectives.

Active Learning
Consistent with the focus on the process perspective of business operations, this book and the accompanying online supplements are designed to actively engage students through multiple learning activities. Students will be required to apply the concepts covered in the text both to real-world situations and to the running case study used in their hands-on exercises. In this way, students can literally experience what each employee in a process must do, what data they need, and how their actions impact other people in the company.

Running Case Study
Many key examples, demonstrations, and assignments incorporated throughout the book are based on a fictional company, Global Bike Incorporated (GBI). GBI exists virtually in the GBI ERP system, which is used to provide students with hands-on experience with executing the various processes in SAP® ERP. Students will become intimately familiar with GBI's operations and will develop a deep appreciation for the real-world importance of the process concepts in the course.

Real-world Examples
In addition to the integrated approach and the GBI case study, Integrated Business Processes with ERP Systems includes multiple scenarios from diverse industries that demonstrate how businesses actually utilize ERP capabilities. Real-world experiences associated with enterprise systems—both positive and negative—are integrated throughout the chapters to illustrate the key concepts.

WileyPLUS resources include the complete book online, recorded demonstrations of each key process activity, and interactive hands-on assignments using the SAP® ERP system.

"Supported by SAP® " This book has been written with the support of SAP AG and the SAP University Alliances program to provide participating universities with an exceptional reference manual and rich conceptual resource for ERP courses using SAP software. Through this program, students will complete hands-on exercises in and gain deep exposure to the capabilities of the latest release of SAP® ERP. For more information about the SAP University Alliances program, please visit: http://uac.sap.com.

The authors invite students and instructors to ask questions, make comments, and communicate directly with the book team on the following website: www.extrabandwidth.com/forum.