INFS1602 Chapter 5

ENTERPRISE INFORMATION SYSTEMS

Core Business Processes

Order to Cash: Selling a product or service. Sub processes involved are creating a customer record; checking the customer’s creditworthiness; creating an order; checking and allocating stock; picking, packing and shipping; invoicing and collecting payment.

Procure to Pay: Procuring goods from external vendors. Sub processes involved include price and terms negotiations, issuing of the purchase order, receiving the goods, and receiving and paying the invoice.

What is the make to order process?Make to Order: Entails make to stock and make to order. Raw materials, subcomponents and accessories are procured based on forecasts, but actual manufacturing does not start until sales orders are received (a pull based approach); in extreme cases, even design and engineering start only when an order is received.

Difference between make to stock and make to order is that stock one is for commodities and order is used for highly customisable goods or big ticket items.

Process Sales Order Design/Engineer ProductProcure InputsSchedule ProductionProductionQuality ControlShip Product

Enterprise Systems

An integrated suite if business applications for virtually every department, process, and industry, allowing companies to integrated information across operation on a company wide basis using one large database.

ES allows a central repository common to all corporate users to store information. ES along with common user interface, allows to seamlessly share, no matter where the user is located or who is using the application.

Supporting Business Processes

A system that communicates across organisational boundaries is sometimes referred to as an inter-from one company’s operations to another.

Integrated Enterprise Systems

ERP Enterprise Resource Planning Systems.

What are three most common core ERP components focusing on internal operations?

(1) Financial Management Components to support accounting, financial reporting, performance management, and corporate governance.

(2) Operations Management Components to simply, standardise, and automate business processes related to inbound and outbound logistics, product development, manufacturing, and sales and service.

(3) Human Resources ManagementComponents to support employee recruitment assignment tracking, performance reviews, payroll, and regulatory requirements.

Service Oriented ArchitectureSOA approach allows multiple services to be orchestrated to handle the individual tasks associated with the order process and could be changed relatively easily of the business process changes.

(1) Re-usability: a service should be usable in many different applications.(2) Inter-operability: A service should work with any other service.(3) Componentisation: A service should be simple and modular.

Understanding and utilise the keys to successfully implementing enterprise systemsExperience with ES implementations suggest that there are some problems that can be avoided and/or should be managed carefully. Organisations can avoid common implementation problemsby :

(i) securing executive sponsorship(ii) getting necessary help from outside experts(iii) thoroughly train users(iv) take a multi-disciplinary approach to implementations(v) looking beyond ERP

Lecture Notes:

3 Key alternatives for the implementation of re-designed business processes:

-Business process outsourcing-Commercial package customisation-In-house development