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Enterprise Business Processes and Applications (IS 6006)

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Title: What is an Enterprise Wide Application? Author: FAdam Last modified by: FCarton Created Date: 10/5/2004 10:27:17 AM Document presentation format – PowerPoint PPT presentation

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Title: Enterprise Business Processes and Applications (IS 6006)


1
Enterprise Business Processes and
Applications (IS 6006)
  • Masters in Business Information Systems 2008 /
    2009

Fergal Carton Business Information Systems
2
Last week
  • Exercise bank loan process comments
  • Purpose is communication
  • There is no right answer
  • Can over simplify
  • Doesnt take into account human error
  • Can be inflexible not matching reality
  • Flags / metrics in place to monitor performance
  • What does integration mean?

3
This week
  • Feedback on process mapping exercise
  • Basic flows of information
  • Collaboration conflict in an enterprise
  • Information sharing
  • Data integrity issues
  • ERP and integration
  • The zipper
  • Reading on data integrity / integration
  • Monk / wagner hand out
  • Rayport Sviokla paper

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
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

6
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

7
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 gt conflict is likely
  • in one organisation, QC were referred to as the
    Sales Prevention department

8
How can data be shared
  • Face to face
  • Hard copy
  • Soft copy or email
  • Interface between applications
  • Access to a shared database

9
Production planning and forecast
  • In theory, its simple
  • Sales forecast future demand for products
  • Production plan to meet forecast sales
  • But, in real life, there are many contingencies
  • Sales tend to be optimistic
  • Most businesses exhibit seasonality
  • Customers are unpredictable
  • Forecasts are based on average prices
  • Yield may be poor due to quality issues

10
How managers do their work
  • What is happening? Actual
  • What should be happening? Plan
  • What therefore would happen if? What-if?
  • Adjust plan and/or change actual Manage

11
Criteria for information sharing
  • Integrity
  • Timing of information exchange
  • Knowing information is up to date
  • Ownership of data
  • Accountability if information is incorrect,
    incomplete
  • Decision responsibility

12
Virtualisation
  • Virtualisation capturing storing data relating
    to changes in the physical environment in an
    information system
  • A measure of the degree to which information
    systems can reflect business reality
  • Pre-supposes a structure (database), as data
    captured is related to a logical entity

13
ERP hardwires processes
  • Human decisions replaced by data and interfaces
  • An approved sales order triggers the creation of
    an invoice (running Accounts Receivable
    interface)
  • A production schedule triggers the creation of
    work orders
  • A batch release from warehouse triggers quality
    checks
  • A component quality failure triggers purge on all
    inventory
  • An incomplete payment triggers a debit note
  • An unpaid invoice triggers a reminder letter

Increased focus on data!
14
Turning raw data into information value-adding
process
15
Example Supplier payment
Capture at source eg. match physical goods
received to a stock item in the system
16
But business models evolve
  • High margin to high volume
  • Hardware to software service
  • Manufacturing becomes logistics
  • Gap opens between ERP reality

17
Reality and ERP diverge inevitably
  • Impact of gap?
  • Responsiveness
  • (FTE and s/w)
  • Stress
  • BI tools
  • Workarounds

ERP
Systems
Reality
18
Post go-live example
  • There was an awful lot of resources thrown at
    go-live, most of those resources were gone after
    go-live. Trying to get something fixed, it
    wouldnt happen.
  • In order to actually utilize it in a way that
    actually improves our lot, took, is still taking,
    quite a long time, and if you cant do it
    yourself, its even worse, because you cant get
    IS available, at times to do the work.

19
ERP is often single instance
  • Single point of data entry (POs, SOs, )
  • Inventory control
  • Opportunity to re-design processes
  • Single technical platform (support)
  • Common language, common pool of data

Sales
Shipping
Collect cash
Production
Customer information (ship-to, bill-to,
install-at, )
20
Integration example Bank branch
  • What does integration mean in a bank
    perspective?
  • Products
  • Customer services
  • Transaction processing
  • Data model

21
Integration downsides
  • Response times
  • Vulnerability single point of failure
  • Limitations on expansion
  • Dependence on single vendor
  • Flexibility to change system
  • Access to basic information is complicated

22
Who benefits?
  • Finance gain greater visibility
  • Manufacturing?
  • Demand may be too unstable for MRP
  • Production planning needs more nuance
  • ERP is too literal
  • Much planning still done on Spreadsheets
  • Sales need of integration
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