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Enterprise information systems can be used to enhance core business processes. These systems support the integration of several business activities. Generally, we see five different functional areas in a company:MarketingManufacturing and operationsAccounting and financeSupply chain managementHuman resourcesCustomers do not care about the how but only care that things are done such that they are satisfied. A firm has to monitor its revenues and expense etc. When generating revenue there are several core business processes involved:Order-to-cash The process that is associated with selling a service or product.Procedure-to-pay All the processes associated with procuring goods from external sellers.Make-to-stock and make-to-order The first is the process where goods are produced based on forecasts and stocked in warehouses. The second is the process where raw materials, accessories and subcomponents are procured based on forecasts but where the actual manufacturing only starts when the order is received.Companies want to optimize their core business processes to gain or sustain competitive advantage. The value chain is defined as the activities that add value to the end product. The activities of the value chain can support business processes.Core activities are the activities occur in the functional areas of the organization that process inputs and outputs. Core activities include:Marketing and sales activitiesManufacturing and operations activitiesCustomer service activitiesInbound logistics activitiesOutbound logistics activitiesInbound logistics consists of the activities associated with receiving and stocking raw materials, products and parts. Outbound logistics consists of distributing the end products.Core activities can take place because of support activities. Support activities include:...
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