Economic University Ho Chi Minh City

College of Technology and Design

School of Business Information Technology

Enhancing Business
Process Using IS
Lecturer: Dr. Bùi Xuân Huy
Email: [email protected]
Agenda

Introduction

Classification of business processes

Enterprise Systems
IS improve the quality of business process
Chapter 4 Keys to successfully implementing enterprise system

Core Business Processes & Organizational Value Chains

A
Enterprise Resource Planning Systems

A
Keys to successfully implementing enterprise system
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Textbook

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Reference Sources
• shopee.com
• www.thegioididong.com
• www.amazon.com

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Objectives
❑After learning this lesson, you will be able to explain
✓ what the basic types of business process are?
✓ how business process varies by organizational scope?
✓ what the core business processes that are common in organizations are?
✓ how IS improve the quality of business process

You also can describe

✓ what enterprise systems are and how they have developed?
✓ what enterprise resource planning systems and how they help to improve internal business
process?
✓ what the keys to successfully implementing enterprise system are?

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Introduction

Value
Chains

Industry Information
Procedures
Structure Systems

Competitive
Strategy

Reference: Using MIS & IS Today

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Recall… what the business process is?

Reference: Using MIS Reference: IS Today

Order Fulfillment Process

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Classification of business processes

Structured
Unstructured Inter-enterpise

By structure
Enterprise

Workgroup

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Structured & unstructured business processes

Structure Business Processes Unstructured Business Processes

Support operational & structured Support strategic & less structured managerial
managerial decisions and activities decision and activities
Standardized Less specific, fluid
Usually formally defined & documented Usually informal
Exceptions rare and not tolerated Exceptions frequent & expected
Human judgment & creation is not required Human judgment & creation required
Process structure changes slowly & with Adaptive processes that change structure rapidly
organizational agony & readily

Reference: Using MIS

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Workgroup business processes – Workgroup IS
Workgroup Example Business Processes
Sales & Marketing Lead Generation
Lead Tracking
Customer Management
Sales Forecasting
Accounting Account Receivable
Account Payable
Cash Management
Human resources Recruiting
Compensation
Assessment
….
Reference: Using MIS
A workgroup information system:
• exists to support one or more processes within a workgroup
• is also called functional information system
• has functional application also called software component (recall five components of IS)

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Problems of workgroup IS

Source: Using MIS

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Enterprise business processes
• Can you describe Sale Order Fulfillment process at a TGDĐ shop?

Person

Steps performed

Departments

Processing time

• You try to describe one other enterprise business process

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Enterprise business processes
• span many departments in an organization.
• difficult to change
• changes must be carefully planned and cautiously implemented, and users given
considerable training.
• enterprise information system supports one or more enterprise business processes

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 silos system
Standalone system Legacy system

Workgroup IS

Enterprise IS
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 Workgroup IS & Enterprise IS

Information flows in standalone systems

Integrated information flow in enterprise IS

Source: Using MIS

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Inter Enterprise business process
• Can you describe what happen when you purchase goods on Shopee?

Steps performed

Organization

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Inter Enterprise Information Systems
• span two or more independent organizations
• exceedingly difficult to change
• any change requires cooperation and performed via meeting, contract and
sometimes litigations.
• inter enterprise information system supports one or more inter enterprise business
processes

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Enterprise IS vs Inter enterprise IS

Information flow in enterprise IS/internally focus system

Information flow in inter enterprise IS/externally focus system

Source: Using MIS
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IMPROVING BUSINESS PROCESSES THROUGH ENTERPRISE
SYSTEMS

Value
Chains

Industry Information
Procedures
Structure Systems

Competitive
Strategy

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Benefits of Enterprise Information Systems

Availability Lead time

of for
information production

Interaction
throughout Vendor
the intergration
organization
Operating
Reduce Inventory
Improve expenses

compliance
with
Customer
standards,
interaction IS cost
rules, and
regulations

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Cost of Enterprise Information Systems

Travel &
training

Ongoing Business
customization Process
& integration studies

Cost

Hardware,
Project Software
governance Licenses,
maintenance

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Core Business Processes & Organizational Value Chains

Source: IS Today
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Core Business Processes

Order to Cash
directly make revenue

Procure to Pay

Make to Stock/Order

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Order to Cash – Procure to Pay
Order to Cash

Create Pick, Prepare

Check Create Allocate Collect
Customer Pack & & Send
Credit Order Stock Payment
Record Ship Invoice

Procure to Pay

Negotiate Issue
Receive Receive Settle
Price Purchase
Goods Invoice Payment
&Terms Order

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Make to Order – Make to Stock
Make to Order

Process Design/
Procure Schedule Quality Ship
Sales Engineer Production
Inputs Production Control Product
Order Product

Make to Stock

Procure Schedule Quality Stock

Production
Inputs Production Control Product

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Recall – From value chains to procedure

Value
Chains

Industry Information
Procedures
Structure Systems

Competitive
Strategy

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Order to Cash – Value Chain

Create Pick, Prepare

Check Create Allocate Collect
Customer Pack & & Send
Credit Order Stock Payment
Record Ship Invoice

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Procure to Pay– Value Chain

Negotiate Issue
Receive Receive Settle
Price Purchase
Goods Invoice Payment
&Terms Order

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Make to Order – Value Chain

Process Design/
Procure Schedule Quality Ship
Sales Engineer Production
Inputs Production Control Product
Order Product

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Make to Stock – Value Chain

Procure Schedule Quality Stock

Production
Inputs Production Control Product

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Value Chain activities in service industries
• What are products in service industries?
• What is difference between products in service industries and manufacturing
industries?
• What processes do not exist or are not important in the service industries?

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Enterprise Resource Planning Systems
one size for all

vendor bears all cost Packaged off-the-shelf software

vendor makes the changes & distribute

Software

fit to unique requirements of each business

Customized
organization bears all cost
need to be maintained internally

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Enterprise Resource Planning Systems

Upgraded

Vanilla/Blueprint Customized
software software

Customized

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Enterprise Resource Planning Systems

Business Processes
(ISO)
View of management

View of Information
ERP Technology
Enterprise Resource Planning

Software

Data

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Keys to successfully implementing enterprise system

Secure executive sponsorship

Thoroughly train users Get help from outside experts

Evolve the implementation Multi-disciplinary approach

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