Enterprise Business Processes and Reporting (IS 6214) MBS MIMAS 6 th Jan 2010 Fergal Carton Business Information Systems

Covered last term oDefinition of business processes oDifferent aims of organisational functions oKey information resources shared by those functions oSignificance of data integrity oBenefits of integration and standardisation oEnterprise systems (ERP): benefits and challenges oRevenue and expenditure cycles and accounting oReporting and data access in the enterprise oThe role of business intelligence tools oAdvanced Excel features for data manipulation oData import, data parsing, data export. oData functions (database, pivot table, formulae, …)

… and discussed in class New Post Code exercise Good and bad processes Role of information technology in processes Apple sales and reporting processes Integration of demand and supply cycles Importance of data integrity Revenue recognition Physical and virtual elements of processes Process analysis from narrative (PCB) Sales process for Cucina: assessment

This week ERP system sample screens ERP and control Evolution of ERP Integration is a question of design Main modules First IS 6216 class on Friday 8 th Jan, AL1

SAP R/2 SAP created in 1972 in Germany (Walldorf) (Bavaria) by 5 ex-IBM programmersSAP created in 1972 in Germany (Walldorf) (Bavaria) by 5 ex-IBM programmers

SAP R3 V1.0

SAP R3 V4.7

Oracle v 11.3

ERP : it’s about control RevenuesSales Orders CostsPurchase Orders ProfitabilityP&L

Finance: eyes on the road ahead and on the rear-view mirror Control of costs and revenues Report on results to directors and shareholders Plan expenditure (budgets) Pay suppliers (including employees!) Collect cash from customers Manage cash flow and currency exposure Plan for financing requirements (eg. acquisitions)

Deliver CustomerMakeSupplier 1950’s: unlimited demand

Deliver CustomerMakeSupplier Bill of materials links demand to supply Raw materials Finished goods Plan, buy Bill of materials

Deliver CustomerMake Buy Supplier Plan 1960’s : inventory costs money!

Deliver CustomerMake Buy Supplier Plan MRP 1960’s : inventory costs money

MRP II Sell CustomerMake Buy Supplier Plan MRP Deliver 1970’s : first wave of integration

MRP II Sell CustomerMake Buy Supplier Plan MRP Deliver 1980’s : sales order processing SOP

MRP II Sell CustomerMake Buy Supplier Plan MRP Deliver 1990’s : back-office integration ERP Accounting & FinanceHuman Resources

Degrees of integration Integration is a matter of organisational design as well as procedure –first degree: people talk to one another (informal) –Second degree: exchange of documents –Third degree: integrated systems shared by several functional areas –Fourth degree: single integrated system shared by the whole firm Substantial preliminary work is required for setting this up

Plan Buy Make Deliver Bill and collect Approve & Pay Report results Sell Install Maintain Recruit Manage Reward ManufacturingFinanceSales / CSHR Market DevelopBudget Management information ProductsCashCustomersPeople Integrated data (single point of entry) Managers require information

Key modules