Business Studies, asked by cibi9109, 11 months ago

Explain how various system can have a different values to the organization

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Answered by bhaktaabhranil
0

Documenting a Process

Every day, each of us will conduct many processes without even thinking about them: getting ready for work, using an ATM, reading our e-mail, etc. But as processes grow more complex, they need to be documented. For businesses, it is essential to do this, because it allows them to ensure control over how activities are undertaken in their organization. It also allows for standardization: McDonald’s has the same process for building a Big Mac in all of its restaurants.

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For processes that are not so straightforward, documenting the process as a checklist may not be sufficient. For example, here is the process for determining if an article for a term needs to be added to Wikipedia:

Search Wikipedia to determine if the term already exists.

If the term is found, then an article is already written, so you must think of another term.

If the term is not found, then look to see if there is a related term.

If there is a related term, then create a redirect.

If there is not a related term, then create a new article.

This procedure is relatively simple – in fact, it has the same number of steps as the previous example – but because it has some decision points, it is more difficult to track with as a simple list. In these cases, it may make more sense to use a diagram to document the process:

Managing Business Process Documentation

As organizations begin to document their processes, it becomes an administrative task to keep track of them. As processes change and improve, it is important to know which processes are the most recent. It is also important to manage the process so that it can be easily updated! The requirement to manage process documentation has been one of the driving forces behind the creation of the document management system. A document management system stores and tracks documents and supports the following functions:

Versions and timestamps. The document management system will keep multiple versions of documents. The most recent version of a document is easy to identify and will be served up by default.  

Approvals and workflows. When a process needs to be changed, the system will manage both access to the documents for editing and the routing of the document for approvals.

Communication. When a process changes, those who implement the process need to be made aware of the changes. A document management system will notify the appropriate people when a change to a document is approved.ERP Systems

An enterprise resource planning (ERP) system is a software application with a centralized database that can be used to run an entire company. Let’s take a closer look at the definition of each of these components:

A software application: The system is a software application, which means that it has been developed with specific logic and rules behind it. It has to be installed and configured to work specifically for an individual organization.

With a centralized database: All data in an ERP system is stored in a single, central database. This centralization is key to the success of an ERP – data entered in one part of the company can be immediately available to other parts of the company.  

That can be used to run an entire company: An ERP can be used to manage an entire organization’s operations. If they so wish, companies can purchase modules for an ERP that represent different functions within the organization, such as finance, manufacturing, and sales. Some companies choose to purchase many modules, others choose a subset of the modules.  

An ERP system not only centralizes an organization’s data, but the processes it enforces are the processes the organization adopts. When an ERP vendor designs a module, it has to implement the rules for the associated business processes. A selling point of an ERP system is that it has best practices built right into it. In other words, when an organization implements an ERP, it also gets improved best practices as part of the deal!

This has been one of the criticisms of ERP systems:  For organizations that want to continue using their own processes or even design new ones, ERP systems offer ways to support this through the use of customizations.

But there is a drawback to customizing an ERP system: organizations have to maintain the changes themselves. Whenever an update to the ERP system comes out, any organization that has created a custom process will be required to add that change to their ERP. This will require someone to maintain a listing of these changes and will also require retesting the system every time an upgrade is made. Organizations will have to wrestle with this decision: When should they go ahead and accept the best-practice processes built into the ERP system and when should they spend the resources to develop their own processes? It makes the most sense to only customize those processes that are critical to the competitive advantage of the company

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