Enterprise resource planning and business processes

Information Technology

Define Departmental Processes, Enterprise Processes and Inter-Enterprise Process and Describe Their Characteristics

Departmental Processes -- The departmental processes are designed for optimization of efficiency of the department and for the purpose of achieving targets of the department. (Wilkins, 2011, paraphrased) Characteristics include the "sub-optimization of real value creation and 'island' IT solutions. These processes are reported to be "redundant to functional management" and to result in the creation of conflict. (Wilkins, 2011, p. 12)

Enterprise Process -- the IT enterprise process framework is reported to be a "mechanism for harmonizing process disparity and managing the associated complexities." (Snyder, 2007, p. 1) It is reported to use "five architected views" including those of: (1) alignment; (2) process interdependence; (3) governance; (4) organizational operations; and (5) process traceability. (Snyder, 2007, p. 1)

C. Inter-Enterprise Processes: these processes are those unique to the specific enterprise and are such that may or may not integrated with other enterprise processes. (BP Management, 2013, paraphrased) The characteristics of the Inter-Enterprise Processes are the differences they retain one from the other.

II. Define ERP. What is the Purpose of an ERP System? Describe the Process of an ERP Information System.

A. ERP -- ERP is the abbreviation for 'Enterprise Resource Planning'. This is a process by "which a company manages and integrates the important parts of its business." (Investopedia, 2014, p. 1)

B. Purpose of an ERP System -- The purpose of the ERP management information system is to integrate areas such as planning, purchasing, inventory, sales, marketing, finance, human resources, etc." (Investopedia, 2014, p. 1)