1. The outputs of the order process are reports of credit holds, customer invoice when product is delivered and paid for, processing the product order, inventory check (product availability), shipping instructions, and reports of back orders. The Diagram: The diagram starts off with one of the business processes called sales. A customer faxes, mails or calls in an order to the company.
The order is taken down by a representative who manually takes down mandatory information required for the order on an order pad, such as: customer name, customer identification number shipping/billing address, product number, product description, quantity, and shipping instructions. All customer information that is taken down is required to process the order. The representative accesses the firm’s order entry system and checks the inventory and location for each product that is ordered. The representative will access the company’s entry system and check the inventory for each product ordered.
While taking down the information, the representative checks the availability of the product to the warehouse nearest to the customers shipping address. If the product is not available at the closest warehouse, a check is done for the next closest warehouse to find the product. While searching for availability, a credit check is performed before each order by the Accounting department. If the credit is approved, an invoice will be generated by Accounting and the Sales department will get the okay to process the order, pending the delivery date. If denied, the customer will have a credit hold status and will be contacted regarding it.
The credit hold will be forwarded to the credit department and the customer service representative will receive a daily report on orders placed on credit hold. The product will not be shipped, until payment is received. When payment is received by Accounting, the order is processed and the delivery date is then communicated, pending warehouse availability. Once this process is done, a delivery date is determined by the representative. If the order is processed via phone only, the representative communicates with the customer when the product will be delivered and shipped.
Once the product availability is confirmed the warehouse will check the availability, find the product, get the product off the shelf, and type it into the system to show the product has been shipped and needs to be restocked. Essentially, the sales businesses processes are repeated over throughout the order process. It appears as though the business processes are all affected influenced by sales, due to sales taking an increasing role in the manufacturing and accounting processes. The representative suggests a delivery date of four to five business days.
If the customer would prefer an earlier delivery, the representative checks the order entry system to see the warehouse nearest in location to the customer shipping address. This check appears to be redundant as orders are generally delivered from the nearest location to the customer. Orders which written by hand on an order pad are collected together and put manually into the order entry system. The order entry system rejects orders with missing information. Some orders are not immediately put into the system depending on their delivery date. The system performs a credit check on the customers.
Customers are separated and treated differently based on the health of their credit. A report is generated and sent daily to the Credit Department and representatives. The firm also faces a problem due to lack of standards. Different business units use different identification systems for the same products. 2. The areas of the business processes outside of the order process are marketing and human resources. With no information systems human resources ability to hire other employees will be diminished due to the fact that they would have no way to evaluate an applicants credentials.
Within the Human resources dept, if the company has an inefficient IT infrastructure would be nearly impossible to evaluate job performance. If a company is selling a product and customer satisfaction is low the ability for the marketing department would be difficult. This would make it harder for the marketing department to expand the company’s growth. In essence a bad reputation would hurt their business as this would lower their ability to stay completive with other companies that offer better services. 3.
The process that can be made more efficient is the communication process between across all business process mainly an IT system “Information systems automate different steps that were normally done manually”. The existing order process could be made more efficient if the firm implemented the use of a fully integrated information system organization wide. The order process would improve and move faster if there were less cross checks and more automation. An example of this would be checking the client’s credit, writing invoices would be made obsolete.
A good information system would allow information to flow through all the business process as individuals and business processes would be able to access the information needed to make informed business decisions. A good IT infrastructure would take sequential step and allow processes to be done simultaneously while in the same sequence. As a result, the company would become more profitable as they would continue to remain competitive with other companies that offer similar services, customer satisfaction would be high, and new business models could evolve to obtain short and long terms goals and objectives.
In our opinion, a centralized database would be the cornerstone for creating a more effective business processes. The use of an e-commerce web portal sitting on the firm’s information systems would be ideally suitable in the improvement of the existing order process. The web portal will give the customers all the information they need to make an order, present a form in a set format for the customer to fill, and submit the information after it makes sure that the customer fills out all required fields.
This will prevent the system from rejecting orders down the line due to incomplete information. The firm should avoid giving the customers the option of shipping in less than the standard time; unless in extreme cases. This will lead to less partiality and more fair treatment of customers. The order process also benefits from this because there is no strain on the system resulting from orders with rush deliveries. In order to better satisfy the customer, the firm should give the option to cancel orders in the case that they do get backordered.
Individually this would provide customers with more control and create consistency within the system. With a new IT infrastructure the information can be equally distributed amongst each business processes. This allows each individual business process to control their respective areas as well as looking into other parts of the business and obtain data in real time. 4. The firm should use the enterprise software for its new order process. The particular enterprise software the firm would choose would be Oracle.
Oracle is a relational database management system adapted for enterprise solutions. With this new database it makes it easier on the customer and on the firm because with its grid computing with more self-management and automation. The Oracle Enterprise Software makes it easier for the customer to “innovate faster with confidence using Real Application Testing, manage more data for less with advanced table partitioning and compression, securely protect data and enable compliance with total recall of data, and Integrate 3D spatial and rich media content into business processes.
The Oracle Database also benefits the firm by “protecting from server failure, site failure, human error, and reduces planned downtime; secures data and enables compliance with unique row-level security, fine-grained auditing, transparent data encryption and total recall of data; high-performance data warehousing, online analytic processing, and data mining; easily manages entire lifecycle of information for the largest of databases. This database systems makes life easier for everyone, the firms customers and employees can be happy. 5. The impact this lack of functionality might have on the firms order processing is that the firm will not have an updated inventory it will not be in real time, so it will hurt the firm business because there will be a lot of mistaken inventory and if we are out of stock of something we will not know because it will look like we actually still have the product on shelf so that will lead us to dissatisfied customers.
Not being able to check customer records to see which qualify for sales tax exemptions is a big problem for the firm because they will charge the customer with taxes when they are actually exempt for it so the firm will get a lot of customer complains which will lead to a lot of stress for employees working for the firm.
Having the systems assign a date for backorder of items that are currently out of stock rather than the original date that was given to the customer will cause a lot of confusion for the customers because they think the order is ready a certain date but it really is not ready and they will call the firms customer service representatives and ask them why they order hasn’t been shipped yet. The firm probably can determine how serious this problem is by the amount of complains we get from both the firms employees and customers.
The questions the firm should probably ask are why the system doesn’t update the inventory daily or real time. Why the system doesn’t automatically saves the customers full information including the sales tax exempt? Why does the system generates a different back order date than what was originally given to the customer? When will there be a service pak or a software update that will fix these flaws in the system? How can we fix the current situation with the system? With the new enterprise system software we implemented there is a less room for error.
Oracle protects from server failure, site failure, and human error. It also has a high performance data warehousing which would make it a lot easier to store inventory and get up to date numbers. Oracle”. Oracle. 02/14/2008 . “Oracle Database”. Wikipedia. 02/14/2008 . Sutton, Mark. “Bonyan Group selects SAP to help drive international growth “. Bonyan Group. 2/17/2008 . Laudon, K. C. and J. P. (2006, 2007) Management information systems: managing the digital firm. 10th ed. Pearson Prentice Hall.
SAP enterprise solutions – SAP enterprise solutions can help out our company by making it efficient to empower and connect people, manage and deliver information, integrate and adapt processes, Run and optimize IT, and consolidate and govern IT. SAP Solutions will provide the ability for people to empower and connect people. It will make the companies operating processes run efficient and smooth. It allows better ways to coordinate content and improve customer satisfaction as well as improve quality and production.
SAP solutions can accommodate specific business activities so in this case they can create better ways to communicate products available and delivery dates, credit reports. Therefore, product information will be quicker and improve the quality which is important since we are a consumer driven economy so customer satisfaction is important. Enterprise systems will allow the company to manage product data management more efficiently which will be key when accessing product availability. SAP systems solution will allow this company to have one main database to store product availability and closest warehouses to shipping address.
SAP solutions and services allow companies to integrate and adapt processes. Create a better service oriented environment because there system as of now seems as a distributed database and I think they need a centralized database so that the flow of information is quicker and more efficient for shipping/delivery, warehouse management. Overall, The flow of information will be smoother and more efficient with SAP software solutions. A centralized database that stores data and allows easier accessibility to that data.
Customers will appreciate user oriented system and better communication so that they will have an idea/tracking about their purchase. Question 3. We believe that this company is in dire need for an enterprise system. Enterprise systems “collect data from various key business processes in manufacturing and production, finance and accounting, sales and marketing, and human resources and storing the data in a single central data repository. This makes it possible for information that was previously fragmented in different systems to be shared across the firm and for different parts of the business to work more closely together” (pg. 1 MIS). Therefore, the addition of an enterprise system will eliminate useless manual steps and create an efficient product ordering and shipping service. Everything begins with the enterprise system. First a customer will call, fax, email, or mail an order in which will be received and input into the system electronically by a sales representative. Once that information has been input, the information flows to the enterprise system where it will dissect the necessary information for the other business processes which in this case are accounting and manufacturing.
The product request will be sent to manufacturing while name, address, account number will be sent to accounting simultaneously to be checked for approval or denial. Manufacturing will confirm product availability and wait for approval to package and ship the product. Once product is shipped, inventory will be replenished by manufacturing at the same time informing accounting of products being bought so that accounts payable and receivables know what is going on.
Once the product is shipped by manufacturing, the enterprise system will relay that information to the sales department allowing them to track the shipment and eventually confirming product has been delivered either by a follow-up phone call or a confirmation email. Overall, the enterprise system will create an efficient company that flows smoothly. All of the businesses processes will be informed simultaneously about the progress on the product delivery request.