MI0038 Enterprise Resource Planning
Master of Business Administration- MBA Semester IV
MI0038- ENTERPRISES RESOURCE PLANNING
(Book ID: B1964)
Question 1
Explain the relationship between business functions and business processes in the insurance sector
Answer:
A business function refers to an activity that an enterprise performs to realise its pre-determined goals and objectives. You can also define a business function as a series of rationally interrelated activities or tasks performed by an enterprise in order to obtain the desired results. Generally, an enterprise classifies similar activities into groups to simplify work, increase efficiency, and allocate resources effectively. For example, activities, such as recruitment, performance appraisal, and compensation management, come under the human resource function of an enterprise. Business functions are broadly categorised into two types:
Internal Business Functions: Refer to business functions that are performed within an enterprise. For example, sales, production, human resource, etc.
External Business Functions: Refer to those business functions that are performed by an external enterprise or agency. For example, public relations, market research, etc.
Each business functions consists of numerous business processes/activities. A business process is defined as a set of activitiesperformed in a sequence to produce a valuable output from the availableinputs. Let us consider the previous example to establish a relationship between a business function and a business process. The marketing function of an enterprise includes activities (processes) such as budgeting,planning, market research, demand forecasting, pricing, packaging, advertising, and distribution. Similarly, the human resource function of anbenterprise comprises activities such as recruitment, compensation management, and performance evaluation.
There can be three types of business processes, which are as follows:
Management Processes: Involve processes that are carried out
MI0038- ENTERPRISES RESOURCE PLANNING
(Book ID: B1964)
Question 1
Explain the relationship between business functions and business processes in the insurance sector
Answer:
A business function refers to an activity that an enterprise performs to realise its pre-determined goals and objectives. You can also define a business function as a series of rationally interrelated activities or tasks performed by an enterprise in order to obtain the desired results. Generally, an enterprise classifies similar activities into groups to simplify work, increase efficiency, and allocate resources effectively. For example, activities, such as recruitment, performance appraisal, and compensation management, come under the human resource function of an enterprise. Business functions are broadly categorised into two types:
Internal Business Functions: Refer to business functions that are performed within an enterprise. For example, sales, production, human resource, etc.
External Business Functions: Refer to those business functions that are performed by an external enterprise or agency. For example, public relations, market research, etc.
Each business functions consists of numerous business processes/activities. A business process is defined as a set of activitiesperformed in a sequence to produce a valuable output from the availableinputs. Let us consider the previous example to establish a relationship between a business function and a business process. The marketing function of an enterprise includes activities (processes) such as budgeting,planning, market research, demand forecasting, pricing, packaging, advertising, and distribution. Similarly, the human resource function of anbenterprise comprises activities such as recruitment, compensation management, and performance evaluation.
There can be three types of business processes, which are as follows:
Management Processes: Involve processes that are carried out