Enterprise Business Processes and Reporting (IS 6214) MBS MIMAS 2009 / 2010 Wednesday 14 th October Fergal Carton Business Information Systems

Last week Definition of business processes Good and bad processes? –Registration as a MIMAS student at UCC –Returning goods eg. A-Wear Can technology help? –Use of bar-coding on products –What happens when product doesn’t scan –What should the process be? –What is the advantage of the technology? –Technology imposes data integrity norms Post code proposals

This week Sample processes Porters model (conceptual) EMC process (real) Apple Sales exercise Post code proposals review

Sample processes … Registering as a student Buying and using top-up credit for phone Registering as a user for on-line services Getting educated Moving house …

Process fit depends on business model Volume vs. margin (quality vs. quantity) Car manufacturer –Morgan versus Toyota Sprinkler systems –Standard but demand for custom growing Computer storage products –Custom but demand for standard growing Business models evolve!

Fergal Carton / AFISCert CSM / IS1813 / IT in the Supply Chain Processes = information + goods + € Customer –Sales ordersinformation –Shipments goods –Invoiceinformation –Paymentscash –Returns and repairsinformation & goods Suppliers –Purchase ordersinformation –Deliveriesgoods –Delivery discrepanciesinformation & goods –PPV information –Invoiceinformation –Supplier paymentscash

Porter’s value chain (1985)

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

Sample business processes Sell –Lead to quotation to order Manufacture –Plan –Buy –Make –Deliver Finance –Bill customers and collect cash –Approve and pay suppliers –Close period –Report on performance

2. Position and Sell 3. Source and Manufacturing Inventory 4. Fulfill Sales Order 5. Service Aftermarket 1.1.Conceive new products and features (PDS) 1.2.Design New Products and Features 1.3.Build prototype for feasibility study and business case 1.4.Develop microcode and establish test processes 1.5.Integrate new product into organization 1.6.Manage the product life cycle 2.1.Develop marketing strategy 2.2.Develop product strategy 2.3.Launch new products and features 2.4.Develop and conduct marketing programs 2.5.Establish strategic alliances and partnerships 2.6.Acquire, qualify and refer leads 2.7.Develop proposals, solicit orders and close deals 3.1.Develop strategic supplier relationships 3.2.Identify, qualify and select suppliers 3.3.Plan requirements for product, spares, subassemblies and components 3.4.Procure product, spares, subassemblies and components 3.5.Expedite, receive and disposition materials 3.6.Manage the RMA process 4.1.Assemble, test and integrate products 4.2.Receive and process orders 4.3.Allocate, configure and ship customer orders 4.4.Install, establish final configuration and test equipment at customer site 4.5.Bill and collect money 5.1.Prepare services and spares strategy (RSL and field location) 5.2.Remotely monitor customer product performance; diagnose and remedy problems 5.3.Provide post- installation customer service 5.4.Manage customer warranty and maintenance programs 5.5.Provide customer training and education 1. Develop New Products and Features EMC business processes

ERP Fit ERP poses Questionable Issues ERP poses Significant Issues Not part of initial scope 1.0 Develop New Products & Features 2.0 Position & Sell2.0 Position & Sell 2.0 Position & Sell2.0 Position & Sell 4.0 Fulfill Sales Order4.0 Fulfill Sales Order 4.0 Fulfill Sales Order4.0 Fulfill Sales Order 5.0 Service Aftermkt5.0 Service Aftermkt 5.0 Service Aftermkt5.0 Service Aftermkt 6.0 Exec. Planning Cycle6.0 Exec. Planning Cycle 6.0 Exec. Planning Cycle6.0 Exec. Planning Cycle 7.0 Support Enterprise7.0 Support Enterprise 7.0 Support Enterprise7.0 Support Enterprise 3.0 Source & Mfg. Inventory3.0 Source & Mfg. Inventory 3.0 Source & Mfg. Inventory3.0 Source & Mfg. Inventory 3.1 Develop strategic supplier relationships 3.2 Identify, qualify and select suppliers 3.3 Plan rqmts for product, spares, subassemblies & components 3.4 Procure product, spares, subassemblies & components 3.5 Expedite, receive and disposition materials 3.6 Manage the product RMA process 3.7 Approve and pay 1.1 Conceive new products 1.2 Design New Products & Features 1.3 Build Prototype for feasibility study & business case 1.4 Develop software & establish test procedures 1.5 Integrate new product into organization 1.6 Manage the product life cycle 2.1 Develop marketing strategy 2.2 Develop product strategy 2.3 Launch new products & features 2.4 Develop & conduct marketing programs 2.5 Establish strategic alliances & partnerships 2.6 Acquire, qualify and refer leads 2.7 Develop proposals, solicit orders and close deals 4.1 Assemble test & integrate products 4.2 Receive & process orders 4.3 Allocate, configure & ship customer orders 4.4 Install, establish final configuration and test equipment at customer site 4.5 Bill & collect money 5.1 Prepare svcs and spares strategy 5.2 Remotely monitor customer product performance; diagnose & remedy problems 5.3 Provide post- installation customer service 5.4 Manage customer warranty and maintenance programs 5.5 Provide customer training & education 6.1 Develop strategic plans and establish operating goals 6.2 Develop Budgets 6.3 Manage the BRM process 7.1 Forecast, measure and report financial & operating goals 7.2 Procure capital items/leases & other goods & services 7.3 Recruit, hire & retain employees 7.4 Deliver total compensation to employees 7.5 Acquire product patents & copyrights 7.6 Plan for and Deliver facility & infrastructure requirements ERP Fit with core processes

Buy process

PostCode proposal issues Ease of use emphasis Separation of tasks –Acquire addresses –Classify Process descriptions –Sortation / Delivery –New addresses Interface to what? –Use existing coding classification or not? –Interface to other systems? Significant coding or not? Where is tacit knowledge, how is it transferred? Does information have value, and, if so, to whom?

Existing coding? Unique identifiers related to things associated with address –People (PPS Number System) –Phone (Telephone Number) –Cars (Registration) –... Unique identifiers related to address –Geographic location (GPS) –Geographic location (PON) –Ordnance survey co-ordinates –... Unique identifiers related to area –County Reference –Parish District –DED Reference / Electoral Poll –Post Office Number –Postal Districts –Global post code system –...

Post code stakeholders Sources of data An Post Private Delivery Services Classification systems Emergency services Direct mail Interfaces to other systems EU regulations Post code Ireland Who owns code? Adding new codes?

Sample Irish Business Addresses

Apple sales process An increasing range of channels –Apple stores (eg. ATMac, Penrose Wharf) –Apple.com –Major accounts (Dixons, Curry’s, Fnac, HMV, Virgin, …) –Retailer (Tesco, O2 stores, Argos, …) –Indirect distributor (Russian market?) –… An increasing range of products –iTunes –iTunes gift cards –iPods –iTouch –Accessories for all media players and phones –Notebooks –Desktops –iPhones –Service –Software –…

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)