Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Margin Source: Michael Porter Costs Revenue Support Activities Primary Activities Firm Infrastructure Human Resource Management Technology development Procurement Inbound logistics Operations Outbound logistics Marketing & Sales Service Porter’s Generic Value Chain

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Sample Sales/Collection Process Events Business Process: Delivering Goods and Collecting Payment Event 1: Marketing Event 2: Take Customer Order Event 3: Ship the Goods Event 4: Collect Payment

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Operating Events Decision/ Management Events Information Events Define and often trigger Trigger Business Process Activities (Events)

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit What happened? When did it occur? Who was involved and what roles did they play? What resources were involved and how much? Where did the event occur? What can go wrong during execution of the event? Essential Characteristics of Business Activities

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit REAL BUSINESS PROCESS MODEL MATRIX Event Business Objective Event Trigger Business Risks Notes

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit McKell’s Retail Sale Store REAL Model Step 2 Checkpoint Sell Merchandise Receive Customer Payment

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Sell Merchandise Customer Register Salesperson Merchandise Receive Customer Payment Cash McKell’s Retail Sale Store REAL Model Step 3 Checkpoint

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Resource Event External Agent (if needed) Internal Agent Location (if needed) Template Without Diamonds Place relationship descriptions on the lines Resource Event External Agent (if needed) Internal Agent Location (if needed)

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Resource Event External Agent (if needed) Internal Agent Location (if needed) Template With Diamonds Place relationship descriptions inside the diamonds Resource Event External Agent (if needed) Internal Agent Location (if needed)

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit McKell’s Retail Sale Store REAL Model Step 5 Checkpoint Sell Merchandise Customer Register Salesperson Merchandise Receive Customer Payment Cash involves Takes place at increases Takes place at internal agent external agent internal agent external agent results in

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Receive Goods from Vendor Inventory Receive Customer Payment Ship Goods to Customer Pay Vendor for Goods Acquire Human Resource Human Resource Repay Lender Acquire Financing Pay for Human Resource Cash Linked Business Process Example (Partial REAL diagram) Resource Decrement (-) Resource Increment (+) Resource Decrement (-) Resource Increment (+) Resource Decrement (-) Resource Increment (+) Resource Decrement (-)

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Cherry Bee Business Processes Supplies and Materials Acquisition/Maintenance/ Payment Process Hire workers Pay workers Sell honey to customer Receive payment for honey sold Labor Acquisition/Maintenance/ Payment Process Conversion Process Sales/Collection Process Purchase supplies Pay for supplies Store Supplies Check hives Extract honey Strain honey Package honey Store honey

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Cherry Bee Business Process Model Matrix

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Cherry Bee REAL Models (without relationship descriptors) Store mat. & supplies Pay for mat. & supplies Vendor Store Materials & Supplies Supply Barn Vendor Hive workers Cherry Bee Store Purchase mat. & supplies Cash Marc Supplies and Materials Acquisition/ Maintenance/ Payment Process Hire workers Pay workers Cash Cherry Bee Store Human Labor Hive Workers Marc Labor Acquisition/Maintenance/ Payment Process Extract honey Check hives Strain honey Package honey Store honey Field Hive Materials & Supplies Honey in Process Supply Barn Packaged Honey Hive Workers Conversion Process Sell honey Collect payment Cash Cherry Bee Store Packaged Honey Customer Marc Sales/Collection Process

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit Call on Customer Submit Bid Negotiate Contract Provide Services Receive Payment Customer Representative Customer Janitor Customer Payments Clerk Services Cash REAL Model of a Service Process (without relationship descriptors)

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit REAL Model of a Not-For-Profit Organization (without relationship descriptors) Greet Victim Interview Victim Assign Room Issue Clothing Issue Personal Care Items Provide Food Help set goals, identify resources Discharge Victim Receptionist Inventory Clerk Personal Counselor Victim Interviewer Shelter Room Clothing Personal Care Items Food Goals, Resource Sources

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C Exhibit REAL Model of a Steel Manufacturing Process (without relationship descriptors) Fuel Iron Ore Limestone Oxygen Alloys Coal Coke Pig Iron Steel Ingots Baker Bake Blast Mix Mill Blast Furnace Blast Furnace Op. Finishing Furnace Finishing Furnace Op. Rolling Mill Milling Operator Finished Steel