Enterprise Business Processes and Reporting

(IS 6214)

MBS MIMAS

6th Jan 2010

Fergal CartonBusiness Information Systems

Covered last term

o Definition of business processeso Different aims of organisational functionso Key information resources shared by those functions o Significance of data integrityo Benefits of integration and standardisation o Enterprise systems (ERP): benefits and challengeso Revenue and expenditure cycles and accountingo Reporting and data access in the enterpriseo The role of business intelligence toolso Advanced Excel features for data manipulationo Data import, data parsing, data export. o Data functions (database, pivot table, formulae, …)

… and discussed in class

• New Post Code exercise• Good and bad processes• Role of information technology in processes • Apple sales and reporting processes• Integration of demand and supply cycles• Importance of data integrity• Revenue recognition• Physical and virtual elements of processes• Process analysis from narrative (PCB)• Sales process for Cucina: assessment

This week

• ERP system sample screens

• ERP and control

• Evolution of ERP

• Integration is a question of design

• Main modules

• First IS 6216 class on Friday 8th Jan, AL1

SAP R/2SAP R/2

• SAP created in 1972 in Germany (Walldorf) SAP created in 1972 in Germany (Walldorf) (Bavaria) by 5 ex-IBM programmers(Bavaria) by 5 ex-IBM programmers

SAP R3 V1.0SAP R3 V1.0

SAP R3 V4.7SAP R3 V4.7

Oracle v 11.3Oracle v 11.3

ERP : it’s about control

• Revenues Sales Orders

• Costs Purchase Orders

• Profitability P&L

Finance: eyes on the road ahead and on the rear-view mirror

• Control of costs and revenues• Report on results to directors

and shareholders• Plan expenditure (budgets)• Pay suppliers (including

employees!)• Collect cash from customers• Manage cash flow and

currency exposure• Plan for financing

requirements (eg. acquisitions)

DeliverCustomerMakeSupplier

1950’s: unlimited demand

DeliverCustomerMakeSupplier

Bill of materials links demand to supply

Raw materials Finished goods

Plan, buy

Bill of materials

DeliverCustomerMake

Buy

Supplier

Plan

1960’s : inventory costs money!

DeliverCustomerMake

Buy

Supplier

Plan

MRP

1960’s : inventory costs money

MRP II

Sell

CustomerMake

Buy

Supplier

Plan

MRP

Deliver

1970’s : first wave of integration

MRP II

Sell

CustomerMake

Buy

Supplier

Plan

MRP

Deliver

1980’s : sales order processing

SOP

MRP II

Sell

CustomerMake

Buy

Supplier

Plan

MRP

Deliver

1990’s : back-office integration

ERP

Accounting & Finance Human Resources

Degrees of integration

• Integration is a matter of organisational design as well as procedure– first degree: people talk to one another (informal)– Second degree: exchange of documents– Third degree: integrated systems shared by

several functional areas– Fourth degree: single integrated system shared by

the whole firm

• Substantial preliminary work is required for setting this up

Plan

Buy

Make

Deliver

Bill and collect

Approve & Pay

Report results

Sell

Install

Maintain

Recruit

Manage

Reward

Manufacturing

Finance Sales / CS HR

Market

DevelopBudget

Management informationProduct

s

Cash Customers

People

•Integrated data (single point of entry)

Managers require information

Key modules