Business Processes,

Analytics, and Enterprise

Systems: Introduction
Chris Forman
General Information
Instructor
Chris Forman
Office: Warren Hall 375D
Office Phone: 607-255-0787
Office Hours: T 12:15pm-1:15pm and by
appointment
Introductions
Name
School/program
Interest in taking this course
Related courses or work you may have
done related to business processes or
enterprise systems
Goals for today
Motivation for course

Grading and expectations

The objectives of this course

What do you think this course
is about?
What does this mean?

Source: Brynjolfsson and Hitt (1998)

Organizational assets such as business processes
are a big share of total IT investment

Information
Technology
Capital
(10%)

Technologica
l Intangible
Complement Assets are
s (15%) more
important in
Organizationa
l Assets (75%) the
Including Information
Human Capital, Economy
Business
Processes,
Culture

Source: Brynjolfsson, Fitoussi, and Hitt (2007)

ERP projects frequently run over budget and
may not achieve planned benefits

Source: Panorama Consulting (2016)

Goal for this course
How can we most effectively combine enterprise IT
and business process change to see benefits in our
organization?

How can we transform the data generated by

enterprise software systems into insights that will
improve business processes and organizational
decision-making?
Learning Outcomes

Outcome 1: Use enterprise systems and business

process change to improve operations within an
organization.
Outcome 2: Use enterprise data to make better
management decisions.
Outcome 3: Identify conditions when information
technology and associated complementary investments
can be used to obtain strategic advantage.
Outcome 4: Apply frameworks to overcome common
challenges that occur during a process change effort.
Outcome 5: Develop effective skills in communicating
managerial decisions and organizational results.
Organization of Course

Business Process Redesign

and Reengineering

Implementation and Use of

Enterprise Systems

Translating Enterprise System

Data into Information for
Managerial Decisions
Goals for today
Motivation for course

Grading and expectations

The objectives of this course

Course Materials

Course packet available from HBSP

ERP Simulation Game book (about C$50)
Available for download
Will provide further details on how to access
next week
Materials available on Blackboard
Course handouts (slides, case questions, etc.)
Optional readings (background materials,
news clippings, etc.)
Grading

Individual
Discussion Questions 20 %
Class Participation 20 %
Simulation Peer Evaluation 10%
Team
Simulation Financial Performance 10 %
Simulation Strategy 15 %
Simulation Presentation 10 %
Simulation Analytics Tools 15%
 ERP Simulation Game

In groups of 4-5 students, each

team operates a make-to-stock
manufacturing plant that has to
interact with the suppliers and
customers by sending and
receiving orders, delivering their
products and completing the
whole cash-to-cash cycle
Using standard reports,
participants have to make
business decisions to ensure the
profitability of their operation
Teaching objectives
To develop a hands-on
understanding of the concepts
underlying enterprise systems
To experience the tangible
benefits of enterprise
integration firsthand
To apply analytical tools to the
transactional data embedded
in ERP systems
Welcome to your new job!
Make-to-stock Muesli Manufacturing
Muesli Cereals
Integrated business processes:
Without ERPsim
Integrated business processes: With
ERPsim
How we will play simulation

An introductory set of three rounds where teams will

play against one another but the results do not count
toward grade
A deeper investigation into two topics
The impacts of ERP systems on the production planning
process
Using the data in ERP systems to make better decisions
Several additional rounds of play to tie it all together
Grading for Simulation

Individual
Simulation Peer Evaluation 10%
Team
Simulation Financial Performance 10 %
Simulation Strategy 15 %
Simulation Presentation 10 %
Simulation Analytics Tools 15%
 Discussion Questions - Cases

For each of two cases (CPOE and TSG Hoffenheim)

there will be a set of discussion questions to be
completed individually
Purpose is to help you to think about issues in the case
prior to class discussion
2-3 questions per assignment, answer for each should
be about one paragraph
Students who make serious attempt will generally
receive full credit
This will be due prior to discussions of these two cases
 Discussion Questions
Modeling Assignment

One additional assignment that will be an application of

EPC modeling
Will provide a description of a business process and you
will provide a diagram for it
We do this because it will help you to understand
benefits and implications of ERP systems
This will be due after the unit on process redesign and
reengineering
Groups

Please form your groups by Thursday, March 30

Maximum of five people

There will be an opportunity to evaluate your other

group members at the end of the semester
Explanation of peer evaluations
Class Participation

Evaluated because active participation is mandatory to

do well in this course
Participation evaluated on a 10-point scale after each
class
Outstanding participation (9-10 points)
Good participation (8 points)
Adequate participation (6-7 points)
Attends class but is disruptive (0-5 points)
Goals for today
Motivation for course

Grading and expectations

The objectives of this course

Goal for this course
How can we most effectively combine enterprise IT
and business process change to see benefits in our
organization?

How can we transform the data generated by

enterprise software systems into insights that will
improve business processes and organizational
decision-making?
Process Definition
Process: A set of activities to produce output for customer/market

Focus: How, not just what

Organizational Structure: Cross functional teams

Business Proposal Commitment Configuration Credit Delivery Billing Collection

Processes

Business Sales Manufacturing Finance Logistics Functions

Order Management
Other examples?
Goal for this course
How can we most effectively combine enterprise IT
and business process change to see benefits in our
organization?

How can we transform the data generated by

enterprise software systems into insights that will
improve business processes and organizational
decision-making?
Three varieties of work-changing IT

IT Definition Characteristics Examples??

Category

Function IT IT that assists Can be adopted

with the without complements
execution of Impact increases when
discrete tasks complements in place

Network IT IT that Doesnt impose

facilitates complements
interactions Doesnt specify tasks
Use is optional
Enterprise IT that Imposes complements
IT specifies throughout
business organization
processes Defines tasks
Use is mandatory
Source: McAfee (2006)
What types of changes does
enterprise IT bring about?
Design and redesign of business processes: multi-step
business processes executed as intended each time

Standardization of work flows: Business processes can

be replicated and redistributed cheaply

Monitoring of activities and events: Managers can get a

precise and current picture of whats happening
throughout the enterprise
Goal for this course
How can we most effectively combine enterprise IT
and business process change to see benefits in our
organization?

How can we transform the data generated by

enterprise software systems into insights that will
improve business processes and organizational
decision-making?
What are the different styles of
business intelligence?
 5 styles of business intelligence

Source: The 5 Styles of Business Intelligence: Industrial-Strength Business Intelligence, A White Paper Prepared by MicroStrategy,
Inc.
5 styles of business intelligence

Enterprise Reporting Broadly deployed pixel-perfect report formats for

operational reporting and scorecards/dashboards targeted at information
consumers and executives.

Cube Analysis OLAP slice-and-dice analysis of limited data sets, targeted at

managers and others who need a safe and simple environment for basic data
exploration within a limited range of data.

Ad Hoc Query and Analysis Full investigative query into all data, as well
as automated slice and- dice OLAP analysis of the entire database down to the
transaction level of detail if necessary. Targeted at information explorers and
power users.

Statistical Analysis and Data Mining Full mathematical, financial,

and statistical treatment of data for purposes of correlation analysis, trend
analysis, financial analysis and projections. Targeted at the professional
information analysts.

Alerting and Report Delivery - Proactive report delivery and alerting to

very large populations based on schedules or event triggers in the database.
Targeted at very large user populations of information consumers, both internal
Goals for today
Motivation for course

Grading and expectations

The objectives of this course

Next time

Business process redesign and reengineering