1. Enterprise Business Processes and Reporting (IS 6214) MBS MIMAS 2009 / 2010 Wednesday 4 th November Fergal Carton Business Information Systems

2. Last week Importance of revenue recognition Homework: could Apple use one system? –Use statistics based on registration (75%) to calculate revenue –Registration process to connect physical goods to customer –Serial numbers identify a unique product What is integration? –Joining of revenue and supply cycles –Where sales order (virtual) meets goods (physical) –Systems interpret between sales and production Sales versus Finance view ERP integration of demand and supply Sales and manufacturing nomenclature Monk and Wagner, Chapters 3 and 4

3. This week Basic flows of information Integration framework Sales and Purchase processes An Post Delivery Record Form Background work for Cucina Process mapping assignment: 25 th Nov

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

6. Basic flows Finance Sales Manufacturing

7. Basic flows Finance Sales Manufacturing

8. Inventory = common denominator Finance Sales Manufacturing

9. ExecutionScheduling ControlPlanning Performance visibility ActualPlan Resource visibility Physical Virtual Integration Framework

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

11. 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

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

13. Purchase order process Obtain price / quotation Create purchase order Get approval for expenditure Receive goods and delivery note Receive invoice Make payment to supplier

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

15. 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, …

16. 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

17. 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”

18. An Post Delivery process

20. 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 assignment