Case Study

1. Case Study DESCRIPTION OF E-BUSINESS PROCESSES PART I – Business and Process view

2. E-Business-Systematic E-Business E-Procurement E-Organization E-Commerce Business Software My Company Buy-Side/SRM/Supplier Portal ERP-System E-Shop/CRM Kundenportal Business Partner Customer Finance, HR,Procurement, Sales and Distribution Sell-Side(E-Shop) B2B B2C Groupware/CMS/DMS/Enterprise Portal B2B B2E/E2E Supplier Relationship Management (SRM) Customer Relationship Management (CRM) PPS-System Supply Chain Management (SCM) Supply Chain Management (SCM) Research and Development, Operations Legende E-Business View Role/Function Management Application B2B – Business-to-Business B2C – Business-to-Consumer B2E – Business-to-Employee E2E – Employee-to-Employee ERP – Enterprise Resource Planning PPS – Production Planning and Steering SCM – Supply Chain Management SRM – Supplier Relationship Management CMS – Content Management System CRM – Customer Relationship Management DMS – Document Management System

3. TERMS • E-Business supports the connections and processes within a business with its partners, clients, employees and staff by use of electronic media (through Schubert/Wölfle 2000). The term E-Business is most often related to interactive media or respective internet technologies, but includes applications based on other technologies. • E-Commerce is the part of E-Business which is oriented to sales of products and services. The E-Commerce applications provide electronic support of the sale-purchase process, which is classically divided into information and negotiation phases [Schubert 2001]. • E-Procurement consists of electronic support for the procurement process (supplies) in a business (Schubert 2002). While stock modules of the ERP systems are used mainly for direct supplies, the E-Procurement solutions support indirect procurement of supplies.

4. TERMS • E-Organization is focused mainly on electronic support of communication between personnel and employees or between personnel/employees and business counterparts. • Here software packages are used for collaboration with partners (through support by Collaboration Tools or Groupware), project management or recording and accounting of performed activities. In addition, the growing use of company domains, websites and electronic shops (E-Shops), the related growing number of web pages and contributions requires the use of Content Management – core information support systems. • Mobile applications assist travelling partners in their work with clients. They allow remote access to product catalogues and mobile archiving of orders.

5. TERMS • Customer Relationship Management is sales oriented and aimed at covering client demand and satisfaction. The goals standing behind the CRM measures include better engagement with customers and optimization of the client’s Lifetime Values (the total amount of all purchases done by this client). • Supplier Relationship Management is supplies oriented and consists of a concept for support of relations and processes with suppliers. • Supply Chain Management (management of the value producing chain) comprises coordination and long-term strategic cooperation with co-producers over the entire networks of logistics for product development and manufacture. This includes both production and supplies, as well as product and processes innovation. [Schönsleben 2004]

6. Case Studies structure 1 Company 2 Project description 3 IT Solution description 3.1 Business view 1.1 Background 2.1 E-Business in the company strategy 3.2 Process view 1.2 Branch, Products Target groups 3.3 Application view 2.2 ERP-System and E-Business-Software integration 3.4 Technical view 1.3 Vision and Strategy 4 Implementation 5 Experience gained 6 Success factors 4.1 Project management and Processes redesign 5.1 Utilization and Support 6.1 Specifics of the Solution 6.2 Modifications 5.2 Goals fulfillment 4.2 Software solutions and programs 6.3 Lessons Learned Quelle: Schubert, Petra; Wölfle, Ralf (2005): eXperience-Methodik zur Dokumentation von Fallstudien, München, Wien: Carl Hanser Verlag, 2005.

7. 1. Background of the Company, Industrial Sector, Product and Target Group • Background of the company: history, eventual structure of the enterprise, number of employees, turnover, company culture, etc. It should be clarified, who is concerned and what are the internal frame conditions. • Industrial Sector: special facts of the sector, situation related to the competition, development of market potential etc. • Type of product, volume of assortment, specific features, history etc. • Target group, clients with who contact has been made, В2В or В2С, how they have been characterized, specific features etc.

8. All case studies are looked atfrom the four views Business View Involved business partners and their roles, business concept, contracts, strategic and operative targets 1 Process View Detailed business processes, process links among the involved parties, assessment of process quality 2 Application View Overview of business information systems, distribution of functions, place of data storage, integration layers 3 Technical View Involved system components, networks, data transfer 4

9. The Business View • The business scenario shows the added value constellation of the introduced project in an overview. It shows in context of the project e.g. the relevant part of a market, of a supply chain, the cooperation in a affiliated group or only the cooperation of departments in an enterprise. The business scenario shows the involved parties with their roles and the most important processes as well as the links among between these processes. Business View Involved business partners and their roles, business concept, contracts, strategic and operative targets 1 Process View Detailed business processes, process links among the involved parties, assessment of process quality 2

10. Business View and Objective • The business view provides an introduction in the proposed business scenario. It shows to the participants their roles and clarifies cost formation (products and services). It clarifies the concept for the business activity, which is the basis of the scenario. If the described solution has lead to a change in the concept for business activity, this could be pointed out by means of comparison of the situation before and after.

11. Business View and Objectives • In the discussed context, it shows considerable parts of the market scheme, of supply chain, of co-operation in joint venture or only the specific co-operation in a certain field or enterprise. Business scenario shows the participants in their roles, the most important processes in the context, as well as the relations of exchange between these processes. • The business view considers also, what operative and strategic objectives has the contractor been after with this solution and what comparison expenses-benefit has been provided in the project solution.

12. Example a Business View:Purchase of a Machine Manufactory(customer) Engine Builder(supplier) role main process process link sub process requisition sales promotion request / consultation sourcing sales offering offer / order procurement order processing procurement production initiation delivery operations customer service

13. Exercise 1 on Business View • Extend the given business view by a forwarding agency which fulfills the transportation execution in order of the engine builder. • Please mention the processes sales, route planning and transportation execution for the forwarding agency.

14. Exercise 1 on Business View:Purchase of a Machine Manufactory(customer) Engine Builder(supplier) role main process process link sub process requisition sales promotion request / consultation sourcing sales offering offer / order procurement Forwarding Agency Order Processing sales procurement route planning production transport execution initiation delivery operations customer service

15. Process View • After the business scenario has structured the individual business processes in their context, selected processes in the process view are dealt with in more depth. • The process view lights up more precisely selected production processes. According to the possibilities, one should reflect one or two processes by the method of extended process chain, guided by the events. It shows very well the co-ordination of processes and decisions, provided by informatics. The names of reviewed processes should have been already used in the business scenario.

16. Process View: The extended Event-driven Process Chain (eEPC) • The event-driven process chain (EPC) is a method for the representation of business processes in the interaction with information systems. It was developed at the institute for business informatics of the university of Saarland, Germany. [Keller et al. 1992] • The representation of the sequence of the steps (functions) represents the control view of a information system. • The beginning and final states as well as intermediate states of a process are represented in the EPC as events, they are reflected by the data occurrences of the process at run time. • By various explanations a process illustration can be extended by additional views. The extended event-driven process chain (eEPC) can pick up broader aspects of the data view, the organization view and the system view. • The description of an information system in the views control, functions, data and organization represents the ARIS-method (architecture of integrated information systems) developed at university of the Saarland. Keller, G.; Nüttgens, M.; Scheer, August-Wilhelm (1992): Semantische Prozessmodellierung auf der Grundlage „Ereignisge-steuerter Prozessketten (EPK)“, in Scheer, August-Wilhelm (Hrsg.): Veröffentlichungen des Instituts für Wirtschaftsinformatik, Heft 89, Saarbrücken, 1992. http://www.iwi.uni-sb.de/Download/iwihefte/heft89.pdf, Zugriff am 17.12.2003

17. Process View: ARIS – Architecture of Integrated Information Systems View on Organisation View on Data View on Functions View on Controls Quelle: Scheer, August-Wilhelm (1995): Wirtschaftsinformatik, Referenzmodelle für industrielle Geschäftsprozesse, 6. Auflage, Berlin, Heidelberg, New York: Springer, 1995.

18. Notation of the event-drive process chain EPC • The event-driven process chain includes the conditions of a given process as an illustration of the task chain. • The conditions are presented as events, i.e. a certain fact, that has occurred. This fact could be reflected as information in the system of data processing. • The event or events, which start up a given process, may, in accordance with it, represent certain data characteristics (values). For example, decrease of warehouse availability of a given article, at a certain value, may provoke the event “minimum warehouse availability below the established limit” and may cause a process of starting the orders. • And within a give process, every task is started by one or several events. One task contains one or several activities, which are executed with regard to a certain process subject, and pilot it from an inlet to the outlet condition.

19. Notation of the event-drive process chain EPC • Outlet condition is considered as a new event and with the remodeled process subject, every data variable may assume a new value. A task of the type “execution of an order” could lead for example to the creation of a process subject “order” and after the final execution of the task, to assume the condition “the order is executed”. This means that the events may provoke separate tasks, as well as whole processes. Which, in its turn, results in a new event. • Identification of conditions as inlet, outlet or intermediate events, facilitates the division of big main processes into purposeful partial processes. The conditions are suitable for description of process transitions (interface) like these, which are manifested in the course of change of responsibility from one field to another, or in the course of integration of two information systems.

20. fulfil task 2(with refinement) process link Process View: Elements of theEvent-driven Process Chain (EPC) Process:A process is a specification of a sequence of tasks which is defined for the production of a performance. Every process has a start event and a end event. start Event A control flow Event:An event is an entered condition which is relevant in the respective context. An event can arouse tasks, is, however, passive itself and uses up neither the time nor costs. arouses fulfil task 1 connector Task:A task is a tiedly coherent bundle of activities which contributes to a primary added value with a defined (partial-)performance. A complex task can be shown sophisticatedly in a separate representation. produces OR event B event C Control flow:The control flow describes the temporal and logical dependences of events and tasks. Connectors:Connectors indicate logical operations at process branchings and unitings:AND: and connector / conjunction OR: and/or connector / adjunction XOR: either-/or connector / disjunction DT: decision table [Rosemann 1996] end event D Process link:A process link shows that another process is initiated in this task

21. fulfil task 2(with refinement) process link informationSystem Process View: Elements of the extended Event-driven Process Chain (eEPC) Event-drivenProcess Chain Explanations fororganization andinformation systems Explanations toinformation objectsand input/output document start Event A is representedby organisationalunit is responsiblefor fulfil task 1 generates information object supports information object dependson attribute OR explanation event B event C goods/service produces Information-/Material-Flow end event D

22. Process View Exercice • A commercial enterprise wants to advertise a physical product by advertisements in magazines. The product shall be ordered by phone. • You need a description for the process “call center-ordering acceptance” since you IT supplier must configure his ERP system for it. Please draw a process with the following steps: • Incoming telephone calls are assigned to the processes "ordering acceptance", "customer service", and "telephone switchboard" • Well-known customers with a good credit standing or new customers whose address check is positive can choose between the paying proceedings “payment after invoice” and “credit card payment” • Other customers can choose between “payment in advance” and “credit card payment” • “Ordering acceptance” ends when the process “delivery on invoice” or "delivery after payment in advance" is initiated the process.

23. Telephoneswitchboard customer service by phone ERP system module,distribution telephone system Process View: Example Call Center Ordering Acceptance in a Trading Company (1/2) call-centrereceives a call call-centre Assigning call caller is a customer,but he do not wantto give an order XOR caller is nota customer caller wants to givean order if necessary ` customer taking shoppingbasket, customerand delivery address store Order status = pre-recorded ordering positions delivery address shopping basketand delivery addressis recorded customer isunknown customer is known AND XOR AND

24. process creditcard payment delivery on invoice delivery afterpayment in advance process paymentin advance web-service of anexternal company ERP system modulesdistribution,accounts receivable Process View: Example Call Center Ordering Acceptance in a Trading Company (2/2) AND automaticcredit line check inform customer ongeneral termsand conditions automaticaddress check shows address status AND shows customer available credit line credit line isto low XOR XOR address was confirmed credit line is sufficient address was not confirmed XOR paying proceedings (2) contain the choice between delivery on invoice and credit card payment XOR paying proceeding (1) contains the choice between payment in advance and credit card payment XOR inform aboutpaying proceedings (1) inform aboutpaying proceedings (2) recordcredit card data XOR XOR recorded order credit card data delivery on invoiceis confirmed andreleased changed order XOR status = releases XOR AND AND order is accepted

25. task with refinement process link task with refinement process link 2 lines process link 3 lines 3 lines task with refinement information system Process View:Notation customer orderconfirmation event event2 lines event 3 lines 3 lines task 3 lines 3 lines good/service task 2 lines task ` information object ` information object information object organisational unit information object attribute job OR XOR AND DT information object information object information flow/ flow of goods control flow attribute information object attribute attribute remark information object information object attribute attribute status page 2

26. Exercise on Process View:Recruiting and Applicant Selection • In the given process “recruiting and applicant selection” you assume that always suitable applications come in. • You change the process in such way, that in case no suitable applications come in, the staffing request is checked again and a renewed release of the staffing request must be carried out.

27. posting job Exercise on Process View:Recruiting and Applicant Selection job has to be filled job description HR department collecting requirements job specification Get approval for thethe job posting XOR job posting withoutadvertisementis approved job posting withadvertisementis approved job advertisement Inviting suitablecandidatesto the application. Candidate preselection is done XOR Suitable applications come in.

28. posting job Exercise on Process View:Recruiting and Applicant Selection job has to be filled job description HR department collecting requirements job specification Get approval for thethe job posting XOR job posting withoutadvertisementis approved job posting withadvertisementis approved Checking job posting job advertisement Inviting suitablecandidatesto the application. Candidate preselection is done XOR Suitable applicationsdo not come in. XOR Suitable applications come in.

29. Questions?