Everything that one can manage in an organization will be a business function; however, everything that one can perform will be a business process. Moreover, a business function can comprise different business processes; however, a business process will never consist of business functions, and will only comprise more business processes. Furthermore, a business process will always have an input component, as well as an output section that make it a process.
In the past, conventional organizations were focusing on functional departments for the management; however, studies indicated that a number of business processes usually cut across functional lines internally that resulted in a paradigm shift, essential for efficient managers, and thus, managers are now putting efforts to manage their teams while focusing on business processes, rather than business functions. One of the crucial reasons of split by business process is involvement of various departments and individuals in a single process that results in cutting across of functional lines. It is an observation that this horizontal focus on business processes has enabled efficient managers to improve their processes while ensuring customer value in the organization, a significant benefit of this paradigm shift.
Think of the last time you bought a pair of shoes. How does this process of buying those shoes cut across the store’s various functional lines? What information from your receipt would need to be available to the business functions? Which business functions would need that information?
A significant objective of ERP is alignment of business projects/processes with strategic aims of the organization. In other words, major aim of implementing ERP is the enhancement and improvement of key metrics that requires proper flow of information from one functional department to another, and this is