Transcript What is an Enterprise Wide Application?

Enterprise Business
Processes and Applications
(IS 6006)
Masters in Business Information Systems 2008 / 2009
Fergal Carton
Business Information Systems
Enterprise Business
Processes and Applications
•
What are business processes?
•
Integration and standardisation
•
What are enterprise applications (ERP / CRM / SCM)?
•
Historical perspectives on enterprise applications
•
Single instance implementations
•
Project management (Gap analysis, resources, …)
•
The role of business intelligence tools
•
Conclusions: the future of business integration
Lecturer contact details
Name:
Phone:
Office:
E-mail:
University College Cork
Coláiste na hOllscoile Corcaigh
Fergal Carton
021-490 3734
Room 2.113, ORB
[email protected]
Course Objective
To understand the key processes
underlying modern organisations and
how enterprise wide systems support
these processes
Marking scheme (draft)
• A group assignment
– Worth 20%
• An individual assignment
– Worth 20%
• Written exam, May / June
– (worth 60%)
Recommended reading
• Mary Sumner, 2005, Enterprise Resource
Planning, Pearson / Prentice Hall
• Ellen Monk and Bret Wagner, 2006,
Concepts in Enterprise Resource
Planning, 2nd ed, Thomson
This week
•
•
•
•
•
What is a business process?
Physical and virtual processes
Meaning of integration?
What is an enterprise application?
Why automate business processes?
A process is …
• a systematic series of actions directed to
some end: to devise a process for
homogenizing milk.
• a continuous action, operation, or series of
changes taking place in a definite manner:
the process of decay.
To process means …
• to treat or prepare by some particular
process, as in manufacturing.
• to handle (papers, records, etc.) by
systematically organizing them, recording
or making notations on them, following up
with appropriate action, or the like: to
process mail.
In business, a process is …
• A sequence of tasks which completes one
cycle of any business activity
– Manufacturing a product
– Selling a product
– Purchasing raw material
– Creating a Fixed Asset Register
– Paying a supplier
– Shipping a product
–…
Job shop vs. assembly line
•
•
•
•
•
Quality vs. quantity
Car manufacturer
Sprinkler systems
Computer storage products
…
A process requires …
•
•
•
•
•
Someone to carry it out …
Some parameters …
Some master data …
Some communication …
Some deadlines …
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
…
Exercise
•
•
•
•
•
Pick a business idea
Describe customer requirements
How these requirements can be met?
What processes will the business need?
What are the characteristics of a process?
Process characteristics
•
•
•
•
•
Has to meet a particular requirement
Has to be sustainable
Should be efficient
Clear responsibilities
Uses information systems intelligently
Process mapping criteria
•
•
•
•
•
Represents a transformation
Must be clear: one A4 sheet
Should eliminate ambiguity
Workflow or automation
Has rules
What is wrong with on-line
purchase process?
•
•
•
•
•
Don’t get to meet anyone
Don’t get guarantee of after sales service
Not building any goodwill
Prefer to hand money over to a person
Don’t learn anything
Porters value model
Mapping business activity into
processes
1.0 Develop New
Products &
Features
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
3
.
0
S
2
o
.
u
0
r
P
c
o
e
s
&
i
M
t
f
i
g
o
.
n
I
&
2.1 Develop marketing
3.1 Develop nstrategic
strategy S
supplier v
e
relationships
e
2.2 Develop product
l
strategy l
3.2 Identify, nqualify
t
and select
2.3 Launch new
supplierso
products &
r
features
3.3 Plan rqmts
y for
product, spares,
2.4 Develop &
subassemblies &
conduct marketing
components
programs
3.4 Procure product,
2.5 Establish strategic
spares,
alliances &
subassemblies &
partnerships
components
2.6 Acquire, qualify
3.5 Expedite, receive
and refer leads
and disposition
2.7 Develop
materials
proposals, solicit
3.6 Manage the
orders and close
product RMA
deals
process
3.7 Approve and pay
6
4
.
.
5
0
0
.
E
F
0
x
u
S
e
l
e
c
f
r
.
i
v
P
l
i
l
l
c
a
S
e
n
a
A
n
l
f
i
e test & 5.1 Preparetsvcs and 6.1 Develop strategic
4.1 Assemble
n
e
integrates
spares strategy
plans and
g
r
productsO
establishC
5.2 Remotely
r
m
operating
y goals
4.2 Received&
monitork
processeorders
customer
6.2 DevelopcBudgets
t
l
product
r
4.3 Allocate,
6.3 Manageethe
performance;
configure & ship
BRM process
diagnose &
customer orders
remedy problems
4.4 Install, establish
5.3 Provide postfinal
installation
configuration
customer service
and test
equipment at
5.4 Manage customer
customer site
warranty and
maintenance
4.5 Bill & collect
programs
money
5.5 Provide customer
training &
education
7
.
0
S
u
p
p
o
r
t
E
n
t
e measure
7.1 Forecast,
r
and report
p &
financial
r goals
operating
i
7.2 Procure
s capital
items/leases
&
e
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
What does integration mean?
–
All users access the application via a web browser
–
Information can shared between different parts of
the business
–
Users follow the same training programme
–
The data is stored in an array of database tables
What does integration mean?
•
Hardware
–
–
–
–
•
Software
–
–
–
–
•
iPhone (PDA + phone + media player)
Car engine (self diagnostics, GPS, …)
Printer + scanner + photocopiers + fax
VLSI: inetgration of different circuits onto one chip
Outlook (Email + Calendar + Contacts)
MS .net development suite (front-end tools, programming,
connectivity wizards)
Google (browser + content management)
Adobe (document and workflow)
Data
–
–
Inventory and Sales need access to Product file
Engineering and planning need access to BOM
Integration example: Bank branch
• What does integration mean in a bank
perspective?
• Products
• Customer services
• Transaction processing
• Data model
•…
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
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
Family of applications
•
•
•
•
Enterprise Resource Planning systems
Supply Chain Management
Customer Relationship Management
Other more specialised applications such
as planning, warehouse management …
• Merging into ERPII / XRP –encompassing
all aspects of the business
A Complete Family Tree
Late 90’s
CRM Early 00’s
SCM
Logistics
Electronic
Invoicing
Electronic
Marketplaces
Contract
Management
Early 00’s
ERP II
Sales Force
Automation
Contract
Management
Customer Service
& Support
Marketing
Automation
Documentation
Management
Product Data Management
New Product Introduction
Engineering Change Orders
Collaborative Product Design