Swinburne University of Technology INF20030 Enterprise Systems Lecture PDF

Cloud Approaches for Enterprise Systems LECTURE TWO Acknowledgement of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Owners of the land on which Swinburne’s Australian campuses are located in Melbourne’s east and outer-east, and pay our respe...

Cloud Approaches for Enterprise Systems LECTURE TWO Acknowledgement of Country We respectfully acknowledge the Wurundjeri People of the Kulin Nation, who are the Traditional Owners of the land on which Swinburne’s Australian campuses are located in Melbourne’s east and outer-east, and pay our respect to their Elders past, present and emerging. We are honoured to recognise our connection to Wurundjeri Country, history, culture, and spirituality through these locations, and strive to ensure that we operate in a manner that respects and honours the Elders and Ancestors of these lands. We also respectfully acknowledge Swinburne’s Aboriginal and Torres Strait Islander staff, students, alumni, partners and visitors. We also acknowledge and respect the Traditional Owners of lands across Australia, their Elders, Ancestors, cultures, and heritage, and recognise the continuing sovereignties of all Aboriginal and Torres Strait Islander Nations. Lecture Overview CHARACTERISTICS: Standards and standardisation Integration and data redundancy ES data types ES business processes Data privacy IMAGE: https://www.indiamart.com/proddetail/erp- management-software-12454160348.html Enterprise challenges One of the greatest challenges in larger enterprises is producing a consistently positive customer/client experience. Comprehensive and real-time data storage, in conjunction with the use of ERPs, provides the ability to improve standardization of the customer/client experience … driven by data differences Where there is no one consistent view of data – every department has a different view of data Standards "A standard is a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose." - ISO They are designed to ensure products, services and systems are reliable and consistent. They are based on industrial, scientific and consumer experience and are regularly reviewed to ensure they keep pace with new technologies and requirements. Why Are Standards Important ? Standards ensure consistency of essential features of goods and services, Quality Reliability, Compatibility, Interoperability … Standards codify (latest) technologies and facilitate their transfer. Standards are reliable source of knowledge and points of references. Standards helps avoiding reinventing the wheel. Standards Classifications By the Scope International standards are developed by ISO, IEC, and ITU. Regional standards are prepared by a specific region, such as the European Union, joint Australian/New Zealand standards. National standards can be developed by a national standards body (like Standards Australia) or other accredited bodies. By the Usage de facto standards: followed by informal convention or dominant usage. de jure standards: part of legally binding contracts, laws or regulations. Voluntary standards which are published and available for people to consider for use. ES provides standardisation in 3 areas Data Standardisation Process Standardisation Technical Standardisation Data standardisation > Content Data Presentation Consistent user interfaces Multi-level Dashboards Standard graphs and charts Signs and Symbols Format: Store Business Data in a Usable and Consistent Format Data Structure Data Provenance Data Size > Retention and disposal Master Data Management Technical Standards Provide inter-connectability, enabling communication between devices and enterprises Communication and Networks Protocols (Internet vs Intranet) IPv4 vs IPv6 Security Encryptions Https Public and Private keys Technological Platforms e.g. Cloud-based Systems Mobile Communications Standard Business Process Make procedures and processes consistent in organizations. Avoid different practices to do the same process. Avoid loss of productivity (loss reductions) Change of a company’s culture Increasing transparency Increase interoperability Ensure Regulatory Compliance Business Process Standardisation Challenges & Risks CHALLENGES: Setting Standards (Teams, Committees) Communicating Standards (Training, Workshops) Establishing adherences (Other Standards, Policies, Processes, Procedures) Encouraging the continuous improvement of standards (Change of culture) RISKS: Too much dos and don’ts Lack of organizational readiness Organizational Culture Organizational Maturity Management Styles and Values Existing policies Poor communications Not enough time for planning and training Bad choice of EPR or poor design and implementation ES data types  There are three key types of ES data Ie Document describing an event eg purchase order, sales order Ie Counters always changing eg inventory, cash balance Ie Descriptors that don’t change eg product number, customer id SOURCE: http://bi-insider.com/posts/types-of-enterprise-data-transactional-analytical-master/ Much of the discussion in ES focusses on Masterdata and removing data duplication across the enterprise These two short videos will help explain the differences between data types https://www.youtube.com/watch?v=V0pwf_H7Vwk https://www.youtube.com/watch?v=Iv9P5D6yj30 RUN TIME: 2:38min RUN TIME: 3:30min Examples of key ES transactional data PO SO WO PS PURCHASE SALES WORK PRODUCTION ORDER ORDER ORDER SCHEDULE DD I SR CN DELIVERY INVOICE SCRAP CREDIT DOCKET REPORT NOTE Each transactional document places a “digital twin” of events that have taken place in the enterprise © Managing Data flow in Enterprise Systems: Masterdata and Transactional Data 19  Role of the Purchase Order and Sales Order linking processes between companies BUYER SELLER SIDE SIDE The P.O. The S.O. 20 Processes Processes convert inputs into outputs SOURCE: https://awebcity.com/what-are-the-factors-for-the-success-of-product-production-planning/ Enterprises convert inputs into products for customers SOURCE: https://ctmfile.com/sections/background/trade-financial-supply-chain-management High level picture of a simple supply chain SOURCE: “Introduction to Supply Chain Management” Distribution Planning and Control pp 3-43| David Frederick Ross ES provide standard organisation processes within & between enterprises “A process is a lateral or horizontal organizational form, that encapsulates: interdependence of tasks, roles, people, business units and functions, required to provide a product or service” A business process is comprised of : people who conduct the process, tools they use to assist them, procedures they follow and flows of material and information between the various people, groups and sub-activities According to GARTNER: A workflow consists of an orchestrated and repeatable pattern of business activity Tasks, information are passed from one agent to another for action, according to a set of procedural rules. Enabled by the systematic organization of resources into processes Transform materials, provide services, or process information  EXAMPLE: Business workflow using swimlane approach Swimlane chart for employee recruitment SOURCE: https://conceptdraw.com/a3196c3/preview Why workflows are important Improve productivity Make processes transparency Enable faster business reaction Improve accountability Enable companies to streamline and speed up internal processes by reducing manual entry and request handling Reduce errors and re-work Reduce risk of improperly approved requests, contracts, hires, etc. Improve compliance with audit trails Increase output and increase productivity The core business processes in ES Six Core Business Processes in ES (Okrent & Vokurka, 2004) 1.Quote-to-Cash* 2.Procure-to-Pay 3.Plan-to-Perform 4.Manage Production 5.Product Life Cycle 6.Manage Finances Other processes include: 1.Order-to-Cash (* part of #1 above, and more commonly used for when product price is fixed) 2.Hire-to-Retire 3.Customer Relationship Management M. D. Okrent and R. J. Vokurka, “Process mapping in successful ERP implementations”, Industrial Management & Data Systems, 2004  Hire-to-Retire Key process components : Masterdata to uniquely identify the resource. Analytical data Transaction data that records events to change the resources, such as development training 29 Customer Relationship Management CRM lets organisations to store and manage customer information (e.g. contact info, accounts, leads) in a central database. CRM covers a broad set of applications that enable organisations to manage critical business processes like customer interaction, marketing, customer support. CRM creates information assets. There a number of core processes within CRM systems Enterprise Asset Management (EAM) is a including: comparable process for : The process of identifying potential leads/prospects factories, machines and vehicles uniquely identified in masterdata Understanding customers’ needs and trends For which a transaction record of each Nurturing customers and supporting the sales process maintenance event is held Ensuring relationships with customers are maintained GRAPHIC SOURCE: Jocovic, Melovic, Vatin and Murgul, “Modern business strategy Customer Relationship Management in the area of civil engineering,” Applied Mechanics and Materials 2014 they are offered and encourage to repeat business.  Quote-to-Cash 31 SOURCE: https://appsource.microsoft.com/blogs/apttus-quote-to-cash-helps-manufacturers-streamline-sales  Order-to-Cash Sales and Distribution (SD) Module: Traditional Representation 32 SOURCE: http://www.meltemplates.com/sample-template/making-ex-v-are-you-ready-to-decide-png-business-process-transformation-checklist-decision-making-checklist-ex-v-are-you-ready-jpg/  Procure-to-Pay 33  Plan-to-Perform Advanced ES may include S&OP or IBP process linking multiple functional modules together 34 SOURCE: http://implementconsultinggroup.com/inspiration/tools-and-methods/implementing-sop/  Plan-to-Produce 35 RMIT University© NEW PRODUCT INTRODUCTION – DATA OUTPUTS Product Life Cycle (PLC) process End product code Life of product – start and end date End product details eg size and weight Components and their source Bill of Material (BOM) ie a recipe on how to make Routing ie sequence of machines used to make product Type of product Make to order Assemble to order Make to stock Batch size to make product – minimum & multiple Replenishment Quantity – stock level to be maintained Location in Warehouse to put product once made 36 SOURCE: https://www.slideshare.net/SoftwareAG/3-iwbpphilipsfinal3  For more on Operations Management & Supply Chain Operations Management Management of the chain of supply https://www.youtube.com/watch?v=leMOReAE2hk&t=104s https://www.youtube.com/watch?v=Mi1QBxVjZAw 37 SCOR model is a useful model to understand businesses of all types SCOR model to describe supply chains PLAN SOURCE MAKE DELIVER RETURN ENABLE SOURCE: Gordon Stewart, (1997) "Supply‐chain operations reference model (SCOR): the first cross‐industry framework for integrated supply‐chain management", Logistics Information Management, Vol. 10 Issue: 2, pp.62-67 Data privacy & confidentiality Data, Facts, Truth, Information and Evidence critical distinction is between facts and truth Truth Reality behind the facts Facts Available data and presents incomplete snapshots of events. Sometimes the facts may obscure the truth (perhaps deliberately) Data Data can be use to create information Information Informs, and can support process of decision making Evidence facts that support conclusion of the decisions made DATA Integrity, Reliability & Authenticity Integrity Data integrity is an important component of an organisation’s (industry) responsibility to ensure safety, efficacy, and quality of products & services Data integrity violations may lead to regulatory actions(e.g. warning letters, consent decrees, financial penalties) Reliability The extent to which one can rely on the source of the data and the data itself Consistency is the main measure of reliability. the reputation of the source is critical. Authenticity Authenticity, is linked to the data’s mode, form, and state of transmission, and to the manner of its preservation Relies on methods that ensure that the data is not manipulated or altered Data is precisely as reliable as it was when made, received, and set aside Data authenticity and the transmission of data through enterprise systems The mode of transmission of data is the method by which data is communicated over space or time. The more secure the method of transmission, the higher the guarantee that the data received is what it purports to be. Authenticity is best ensured by guaranteeing that data maintains the same form through transmission, both across space and through time. What is an Audit Trail? Secure, computer-generated, time-stamped electronic record that allows for reconstruction of events relating to the creation, modification, or deletion of an electronic data Chronology: who, what, when & why of the recorder data Track actions at the data or system level Prevent data from being lost or obscured What does the Audit Trail capture? Privacy and confidentiality The terms 'privacy' and 'confidentiality' are commonly used interchangeably. However, they are related but not identical concepts. Privacy The right to control access to oneself includes physical and digital privacy. Confidentiality Relates to information only. It is a duty that aims to protect the agent, and potentially the wider community, against harms. Privacy and Security Security and privacy are closely related concepts and technologies Privacy is about: ability to decide about your data ability to be confident that those decisions are respected. Security is about accessing data including private data. Relationship can be similar, orthogonal or conflicting.  An organisation must not collect sensitive Sensitive data information about an individual unless— "sensitive data" means data about an individual's: (a) the individual has consented; or (b) the collection is required under law; or (a) racial or ethnic origin; or (c) the collection is necessary to prevent or (b) political opinions; or lessen a serious and imminent threat to the (c) membership of a political association; or life or health (d) religious beliefs or affiliations; or (e) philosophical beliefs; or (f) membership of a professional assoc.; or (g) membership of a trade union; or (h) sexual preferences or practices; or (i) criminal record Data & Privacy Principles VICTORIA, Australia Principle 1—Collection An organisation must not collect personal information unless the information is necessary for one or more of its functions or activities. Principle 2 - Use and Disclosure An organisation must not use or disclose personal information about an individual for a purpose (the secondary purpose) other than the primary purpose of collection Principle 3 - Data Quality An organisation must take reasonable steps to make sure that the personal information it collects, uses or discloses is accurate, complete and up to date. Principle 4 - Data Security An organisation must take reasonable steps to protect the personal information it holds from misuse and loss and from unauthorised access, modification or disclosure. Principle 5 - Openness An organisation must set out in a document clearly expressed policies on its management of personal information. The organisation must make the document available to anyone who asks for it. Principle 6 - Access and Correction Individuals have a right to seek access to their personal information and make corrections, subject to some limited exceptions, such as where access would pose a threat to the life or health of any individual. Principle 7 - Unique Identifiers Organisations cannot adopt or share unique identifiers (i.e. a number or other code associated with an individual’s name, such as a driver’s license number) except in certain circumstances, such as where the adoption of a unique identifier is necessary for that organisation to carry out one of its functions. Principle 8 – Anonymity If it is lawful and feasible, organisations must give individuals the option of not identifying themselves (i.e. remaining anonymous) when they engage with the organisation. Principle 9: Trans-border Data Flows An organisation may not transfer personal information outside Victoria unless the recipient of the information is subject to privacy standards that are similar to the IPA, or in other limited circumstances. Principle 10-Sensitive Information An organisation can only collect sensitive information in restricted circumstances. Analysing ethical issues & Ethical Business Decision Making The first step in analysing ethical/moral issues is obvious but not always easy Get the facts This first step is the most important and the most overlooked step in analysing ethical issues Is having the facts enough? Facts by themselves ONLY tell us what is; They do not tell us what ought to be In addition to the facts, resolving an ethical issue and making at ethical decision requires an appeal to values. There are five different approaches to values to make ethical decisions 5 different approaches to make ethical decisions Approach Brief explanation From: Utilitarian provides greatest balance of good over evil ie choose 19th action with greatest benefits and least harm Century Rights respects moral rights of everyone, eg privacy Kant People are free and have the right to choose freely Fairness of treats everyone in the same way, without favouritism or Aristotle Justice discrimination Favoritism: giving benefits to some people without a justifiable reasons for singling them out Discrimination: imposing burdens on people who are no different from those on whom burdens are not imposed Common focuses on governing systems (e.g. policies & rules) on Good which the community depends and is beneficial to all. eg public safety, sustainable environment Virtue centres on ideas (virtues) to which we should strive. e.g. Honesty, courage, integrity, … ie the kind of person do I become in making this decision? Once we have ascertained the facts, ask 5 questions to make an ethical decision: 1. What benefits and what harms will each course action produce, and which alternative will lead to the best overall consequences? 2. What moral right do the affected parties have and which courses of action best respects those rights? 3. Which course of action treats everyone the same, except where there is a morally justifiable reasons not to, and does not show favouritism and discrimination? 4. Which course of action advances the common good? 5. Which course of action develop moral virtue? This method is merely meant to help identify most of the important ethical considerations. It is not meant to provide an automatic solution to ethical decision making. What does this mean to us as Managers? What data is collected ? Public vs Private (confidential) How and where is data kept secure ? At the business, in country or remotely offshore Data security – can the data be removed eg with USB memory Who has access to the data? Within the business External to the business How data is used Are decisions made using data collected ? Are customers aware how their collected data will be used ? Audit trail Is person accessing and changing data recorded by date Managing Data and Process SOURCE: https://www.slideshare.net/FulcrumWay/webinar-feb-19-2014-effective-access-controls-r2 Mini Case Study Making a simple product Requires considerable components to be sourced And assembled according to standard instructions (business process) in ES to meet customer requirements