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Enterprise Business Processes and Applications ( IS 6006 ). Masters in Business Information System s 2008 / 2009. Fergal Carton Bu siness Information Systems. Last week. Characteristics of a process: Sustainability Efficiency Quality versus quantity
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Enterprise Business Processes and Applications(IS 6006) Masters in Business Information Systems 2008 / 2009 Fergal Carton Business Information Systems
Last week • Characteristics of a process: • Sustainability • Efficiency • Quality versus quantity • How does it react under duress (eg. school run) • Exercise: getting a loan • Current crisis related to inter-bank dealings • Issues in loan process • Cost / efficiency of credit checking? • Relationship with bank manager? • Risk assessment relies on non-structured information • Process relies on data integrity • Eg. purpose of loan often not validated
This week • Exercise: bank loan • Meaning of integration? • What is an enterprise application? • Family of applications • Some reading
Getting a loan • Apply for loan • Provide personal profile information • Run checks on credit worthiness • Calculate repayment capability • Check references and liquidity • Obtain collateral • Interview • Approve loan • Lodge cash to account
What is wrong with current banking processes? • Risk taking is highly rewarded in investment banking? • Huge bonus payments for winners (€1m+) • Over focus on credit targets? • Poor insurance of bad debt, or re-sold insurance? • Loss of tracability of original transactions? • Repackaging credit loses granularity? • Totally virtual, no physical element? • Didn’t vet customers?
Process mapping criteria • Represents a transformation • Must be clear: one A4 sheet • Should eliminate ambiguity • Workflow or automation • Has rules
“Kicking the tyres” of a process • What is unique about this process? • Is there seasonality? • What happens to the process under duress? • What are customers complaining about? • What are competitors doing? • Is the business model changing? • Is the way of doing business evolving?
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 • iPhone (PDA + phone + media player) • Car engine (self diagnostics, GPS, …) • Printer + scanner + photocopiers + fax • VLSI: inetgration of different circuits onto one chip • Software • 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
SCM Logistics Electronic Invoicing Electronic Marketplaces Contract Management Late 90’s CRM Early 00’s Sales Force Automation Contract Management Customer Service & Support Marketing Automation Documentation Management Early 00’s ERP IIProduct Data Management Engineering Change Orders New Product Introduction Collaborative Product Design A Complete Family Tree