1. Enterprise Business Processes and Reporting (IS 6214) MBS MIMAS 2010 / 2011 27 th October 2010 Fergal Carton Business Information Systems

2. Last week More bad data examples … –Disconnect in business is that data is seen as an IT issue –IT people wrong people to own data –Payroll good example of importance of data, employees feel ownership for this –Are employees as concerned by customer data as they would about employee data? –Presence of Excel is a clue to poor data integrity –Over-writing data, poor categorisation of data, same problem! –Good processes mean well organised information : centralised databases Is the data bad or the process bad? –Isn’t it nearly always the process at fault? Yes, but data maintenance boring! –Who benefits / loses from poor data (customer, employee, company)? –Data is money eg. alumni data from St. Josephs Kicking the tyres of a process –What are the conditions under which the process might break down? Sample processes –Can be drawn to differentiate between who is doing what –Differentiate between inputs, roles, outputs and systems Cuisine de France data

3. This week Functional areas and goals –Porters value chain –Conflict can arise around information Basic flows of information and integration Sales order process and Cucina Process mapping exercise Northwind example: –what can you tell about business from data? –Normalisation of data

4. 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?

5. Porter’s value chain (1985)

6. Support versus primary functions Support versus primary business functions –Primary business functions are repetitive –Primary business functions touch customers –Support functions can go on holidays –Support functions can be centralised

7. Functional areas and goals Sales Revenue target achievement within budget Order processingBooked orders within sales period Production planningMinimise inventory levels but avoid stock outs Warehouse mgtRight product available at right time and right place ManufacturingFulfil production schedule with available resources Distribution / logisticsDeliver on time / complete with available resources Customer ServiceCustomer repairs, and on site service within budget Accounting /FinanceRevenue targets within expenditure limits Information SystemsApplication and server uptime with resources Human resourcesAdequate resources available with right skills

8. Examples: Finance: managing the cash flows, providing resources to the firm –sub area: Accounting (books and legal reporting) –sub area: Accounts receivable and payable: deal with suppliers and customers Marketing: promoting the firm and its products Sales: selling the products; dealing with customers –sub area: sales orders –sub area: returns Production: manufacture goods –sub area: purchasing raw material –sub area: quality control

9. Collaboration / Conflict All areas of the firm must exchange info with the others (just like organisations must interact with the outside) Divergence of viewpoints means opportunities for conflict are great Managing same resources / using the same assets but with radically different goals

10. Examples: Quality control versus production: –production want to increase volumes and keep productivity at highest levels –QC want to prevent any “faulty” product to come out of the door In an environment where zero defect is only a remote target => conflict is likely in one organisation, QC were referred to as the Sales Prevention department

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

12. Basic flows Finance Sales Manufacturing

13. Basic flows Finance Sales Manufacturing

14. Inventory = common denominator Finance Sales Manufacturing

15. IS integration: demand & supply Production Distribution Sales X X X

16. Information flows Purchase orders Sales orders Goods Delivery Note (& anomalies) Returns Invoice Credit note Payment

17. Sales or purchase process A commitment by one party to another for –Products –Price, discount –Delivery date The deal confirms the above on an order Efficient communication of order to back office for execution Shipment to customer Receipt of goods, record any anomalies Invoice Paymemt Physical processes Virtual processes

18. Sales order process Provide price / quotation Give commit date for delivery Take order Dispatch goods and invoice Receive payment from customer

19. Background work for Cucina Research fresh bread business –Visit points of sale, note products / categories –Look up Hanrahan’s –Arbutus Breads / ABC Alternative Bread Co. –Think about sales ordering process Sales and purchase process for Cucina Sample product data Process mapping exercise

20. Strengths of process mapping Separates physical from virtual flows Flexible Intuitive Fast Facilitates sharing of ideas Helps define roles and responsibilities Highlights potential for automation –Bottlenecks, delays, errors, redundancy, …

21. Weaknesses of process mapping Biased representation? –Difficult to meet all people involved –Dependent on accuracy of information given by participants –Holes in understanding -> poor process –Doesn’t take into account new processes –Interpreted differently –Consistency in analysis when using multiple analysts –Only maps repetitive processes? –What about manual work? Find right level of abstraction Only theoretical? Complexity / overcomplication

22. How will you use the process map? Spot problems Optimise process Tool to explain / educate Map alternatives Draw “how we would like the process to work”

23. Northwind Data : Products

24. Object-Oriented Systems Development Bahrami © Irwin/ McGraw-Hill Data : Categories