2. Recommendations PlanExecuteEvaluate Management Process Business Processes Information Processes Data Managing Business and Information Processes Rules Trigger Measures Resources Objectives Opportunities/Risks

3. Information processes Trigger Information System Response Report (in many forms) Decision Making Needs of Information Customers Business events Information System Response Record (event data) Maintain (agent, resource, location data) Information processes Trigger Processes that Trigger Information System Responses

4. Acquisition / Payment Process Regardless of the type of good or service being acquired, the following are typical operating events in the acquisition / payment business process: Request goods or services. Order goods or services. Receive and inspect goods or services. Store and/or maintain goods. Pay for goods or services. Return goods. Some organizations : may order the events differently, may use a subset of the events, or may add more detailed events.

5. Sales/Collection Process Although there is some diversity across the types of goods and services sold, the sales/collection process typically includes the following events: Receive an order for goods or services. Select and inspect goods or services to be delivered. Prepare goods or services for delivery. Deliver goods or services. Receive payment for goods or services. Accept customer returns of goods. Some organizations : may order the events differently, may use a subset of the events, or may add more detailed events.

6. Conversion Process Finally, examples of some of the more general activities in the conversion process include: Assembling. Growing. Excavating. Harvesting. Basic manufacturing (e.g., metals, woods, and chemicals). Finished manufacturing (e.g., tools, instruments, and components). Cleaning. Transporting. Distributing. Providing (e.g., power, water, protection, and communication). Educating. Discovering (e.g., research and development).

7.  Analyzing the Standish market, competitors, and customers.  Deciding what pizzas to place on Golden’s menu.  Determine if the cooked pizza is correct for the customer presenting his/her copy of the order form.  Receive customer pizza order.  Receive customer payment.  Make pizza.  Box pizza.  Give pizza to customer. Decision/ManagementOperating EventsInformation Events  Record customer order.  Calculate order amount.  Mark order “Paid.”  Give customer copy of order.  Give cook copy of order.  Tape order to pizza box.  Remove copy of order from box.  Send order copies to accounting. Process Analysis: Golden Pizza Trigger  Generate a customer analysis report.  Generate a report of sales by pizza type.  Generate a gross margin analysis.  Generate a report of lost sales due to the 20 minute guarantee. Trigger

8. Developing a REAL Business Process Model REAL Business Process Modeling is a formal method of identifying and representing the essential characteristics that collectively describe business processes and events. The title REAL is an acronym for Resources, Events, Agents, and Locations. Preparing a REAL Business Process Model requires you to identify strategically significant business activities and essential characteristics about these business activities (see Exhibit 2-4).

9. Exhibit 2-4 Real Business Process Model Matrix Strategically relevant events What happened? How is each event executed and why is it executed.? Date/Time When did each event occur? Internal and external agents What roles are performed and who/what agents perform the roles in executing each event? Resource(s) What kinds of resources were involved and how much was used?. Location Where did the event occur? Risks What can go wrong in executing the event?

10. EVOLUTION OF AIS MODELING Stage 1 Manual Systems Stage 2 Automated Systems Stage 3 Event Driven Systems Bias: Generate financial statements Bias: Generate financial statements Bias: Support Planning, Controlling & Evaluating Activities for Various Information Customers

11. Changing the Design Focus is built on three underlying premises : Information technology enables the design and implementation of semantically modeled systems - systems that more closely resemble reality. Today's users expect a more complete and accurate representation of reality from which to draw information. We are no longer constrained by the human inability to record, maintain, and report large volumes of details about business events.

12. Changing the Design Focus is built on three underlying premises : Information technology enables the design and implementation of semantically modeled systems - systems that more closely resemble reality. Today's users expect a more complete and accurate representation of reality from which to draw information. We are no longer constrained by the human inability to record, maintain, and report large volumes of details about business events.

13. Business event analysis involves thinking about : What happened? When? What resources were involved and how much? Where did it occur? Who was involved and what roles did they play? What are the risks involved and how can we control these risks? Why?

14. We are able to satisfy multiple views by the data we collect : What happened? When? What resources were involved and how much? Where did it occur? Who was involved and what roles did they play? We also identify the risks involved and devise a plan for controlling risks as events occur.

15. A Model of Business Events What happened? When did it happen? Who was involved? What resources were involved? Where did it occur? Event Stewardshi p Resource External Participant Location

16. REAL Business Process Models: A Basis for Defining the Data Repository Customer Places Order Ship Merchandise Receive Payment Salesperso n Merchandis e Shipping Clerk Carrier Custome r Payment Clerk Cash Package Catalog Center Distributio n Center Customer Returns Merchandis e Returns Clerk

17. CATALOG-CENTER(Center#, Name, Address, Telephone,... MERCHANDISE(Item#, Item-Description, Color, Size,.., Current-Cost, Current-Price, QOH... CUSTOMER-PLACES-ORDER(Order#, Time, [Center#], [SP#], [Customer#], [Shipment#], Ship-to-Instructions, Confirmation#, Tax,... SALESPERSON(Salesperson-ID, Name, Address,... Commission-Rate, Marital-Status,... CUSTOMER(Customer#, Name, Address, Phone,... SHIP-MERCHANDISE(Shipment#, Time, [Customer#], [Packer#], [Carrier#], [Ship- Clerk#], [Dist-Ctr#], [Pmt-Receipt#], CARRIER(Carrier#, Name, Address, Rate, Performance-Score,... SHIPPING-CLERK(Ship-Clerk#,... DISTRIBUTION-CENTER(Dist-Ctr#, Name, Address,... An Event-Driven Data Repository

18. PACKAGE(Package#, Weight, [Shipment#], Shipping-Cost CASH(Acct#, Description, Balance,... RECEIVE-PAYMENT(Pmt-Receipt#, Time, [Customer#], [Cust-Pmt-Clrk#], [Acct#], Amt,... CUSTOMER-PAYMENT-CLERK(Cust-Pmt-Cler#,... RETURN-MERCHANDISE(Return#, [Customer#], [Returns-Clrk#], [Center#], Time,... MERCHANDISE-ORDER([Item#],[Order#], Qty-Ordered, Order-Price, Order- Cost,... MERCHANDISE-SHIP([Item#], [Shipment#], Qty-Shipped,... MERCHANDISE-RETURN([Item#], [Return#], Qty-Returned,... An Event-Driven Data Repository

19. We Can Apply This Same Approach to Any Other Business Processes Buy a machine Sell a service Build a car Hire an employee Teach a class Make steel Buy merchandise...

20. IT: The Enabler Posting Machines Check Writers General Ledger and Sub-Systems