Enterprise Business Processes and Reporting (IS 6214) MBS MIMAS 2009 / 2010 Wednesday 28 th October Fergal Carton Business Information Systems

Last week Buy process –Use of Excel is universal Problems of using Excel? –Tracability of transactions –Debate centres on source of data, not issues Importance of revenue recognition Apple Sales processes –Local point of sale systems –Upload to central data warehouse –Reporting from data warehouse

This week Homework: could Apple use one system? Basic flows of information Sales versus Finance view What is integration? ERP integration of demand and supply Sales and manufacturing nomenclature Integration framework

Revenue recognition Goods must be shipped In some countries, goods must be received Sold does not mean cash collected Why would price differ between list and paid? –Discount –Error –...

Single system for Apple? Pros –Real-time reporting –Standardisation of reporting format –Rules for revenue recognition established –One technology, one set of skills –...

Single system for Apple? Cons –Cost –Distributors / retailers have own EPOS –Maintenance and global support –Technical latency (poor response time) –...

Single system for Apple? Other solutions? –Interface from other systems? –Web based interface? –EDI? –...

Basic flows of information Organisations are organised in a number of functional areas They carry out complementary missions They interact and collaborate in managing the organisation What are they called? What are their goals?

Basic flows Basic flows of information in business Finance – cash Sales – orders, customers Manufacturing – suppliers, raw materials

Sales vs. Finance views Sale concluded, revenue = € x Cash collected, receipt = € y Discount level? Good payer? Paid in full? Paid when?

Basic flows Finance Sales Manufacturing

Basic flows Finance Sales Manufacturing

Inventory = common denominator Finance Sales Manufacturing

What is integration?

ERP integration: demand & supply Production Distribution Sales X X X

Model names (sales)

Model numbers (manufacturing)

ExecutionScheduling ControlPlanning Performance visibility ActualPlan Resource visibility Physical Virtual Integration Framework