Enterprise Information

Systems
Péter Halász - peter.halasz@live.com
Timetable
8th week: Mid-term exam - 04.03

10th week: Easter holiday - Project deadline - 04.23

11th week: Presentations

12th week: Hungarian national holiday

13th week: Presentations

14th week: Repeating exam

Recap
● Invoice structure
● Invoice data model
● Invoicing processes
● Customer current account data model & processes
● Supplier current account data model & processes
● Digital invoices
So far...
● Basic generic business processes of a SME
● System processes that implement the business processes on a
system level
● Data model that can support the system processes
● Information that can be extracted from the system
Enterprise functions
Sales Procurement

Items & Stock Production

Finance HR
Enterprise functions
Customers Suppliers

CQ&O SQ&O
Items & Stock
Invoicing SCA

CCA
Customers
The ones who buy our goods / services

● Storing customer data

● Identifying customers during other processes
● Data is needed mostly for communication purposes
● Solvency can be used when elaborating prices
● Grouping can help with administrative tasks
● Storing additional data about customers can speed up other
processes (usual payment type - invoice creation)
 Customer transactions

Customers - Data model Customer ID

Year
Customer Sum of transactions Contact person
ID Customer ID

Name Name
Address
Solvency Phone number
Customer ID
Usual payment type Email address
ZIP Code Customer bank
Usual payment due date Post
Country Customer ID
Group code
City Bank Name

Address Account ID
Customers - Processes
● Adding a new customer
○ When?
○ What is the minimum needed data?
○ How to avoid duplication or incorrect data?
● Modifying customer data
● Removing customers
○ Soft or hard delete
● List customers
● Find customers
Enterprise functions
Customers Suppliers

CQ&O SQ&O
Items & Stock
Invoicing SCA

CCA
Suppliers
The ones who provide us with goods

● Storing supplier data

● Identifying suppliers during other processes
● Data is needed mostly for communication purposes
● Grouping can help with administrative tasks
 Supplier transactions

Suppliers - Data model Supplier ID

Year
Supplier Sum of transactions Contact person
ID Supplier ID

Name Name
Address
Usual payment type Phone number
Supplier ID
Usual payment due date Email address
ZIP Code Supplier bank
Group code Post
Country Supplier ID

City Bank Name

Address Account ID
Suppliers - Processes
● Adding a new supplier
○ When?
○ What is the minimum needed data?
○ How to avoid duplication or incorrect data?
● Modifying supplier data
● Removing suppliers
○ Soft or hard delete
● List suppliers
● Find suppliers
Enterprise functions
Customers Suppliers

CQ&O SQ&O
Items & Stock
Invoicing SCA

CCA
Items and Stock
Managing all data and processes related to the company’s items,
including their quantity, value and movements.

Item: every finished, semi-finished product, component and

material that is owned by the enterprise

Stock: the total amount of items or the amount of

a particular item available in a the company's warehouse(s)
Items and Stock - Data model
Item Stock
● Item ID ● Stock ID
● Description ● Item ID
● Amount unit ● Free stock
● Sale price ● Reserved stock
● Sale price timestamp ● Purchase price
● Item group ID ● Warehouse ID
● Minimum stock limit ● Timestamp of last procurement
● VAT rate ● Timestamp of last sale
● Consumption from this year
● Consumption from the year before
● ...
Items and Stock - Data model
Item Stock
● Item ID ● Item ID
● Description ● Free stock
● Amount unit ● Reserved stock
● Unit price ● Warehouse ID
● Unit price timestamp ● Timestamp of last procurement
● Sale price ● Timestamp of last sale
● Sale price timestamp
● Item group ID
● Minimum stock limit
● VAT rate
● ...
Items and Stock - Processes
● Registering a new item
● Receiving
● Dispatching
● Selling
● Returns (customer or supplier)
● Inter-warehouse transfer
● Disposal
● Inventory surplus, deficit
Enterprise functions
Customers Suppliers

CQ&O SQ&O
Items & Stock
Invoicing SCA

CCA
Customer quotations & orders
Quotation: expressing the interest for buying specific items in a
specific amount. The answer for a quotation isn’t considered to
be an official offer.

Purchase order: expressing the intent for buying. When the order
is answered, it is considered to be an official contract between
the client and the enterprise.
Customer Quotation - Data model
● ID ● Request ID
● Customer ID ● Item ID
● Timestamp of request ● Amount
● Responsible ID ● Requested price
● Requested deadline
● Answered price
● Answered deadline
● Status
● Timestamp of answer
Customer Purchase Order - Data model
● Customer purchase order ID
● Customer ID
● Timestamp of order
● Responsible ID
● Customer purchase order ID
● Item ID
● Ordered amount (free)
● Ordered amount (reserved)
● Requested / confirmed deadline
● Timestamp of confirmation
● Status
● Requested / confirmed price
● Fulfilled amount (free)
● Fulfilled amount (reserved)
● Timestamp of fulfillment
CQ&O - Processes
● Register new quotation
● Answer quotation
● Approve quotations
● Search for quotations
● List quotations
● Connect quotations to orders
● Register new order
● Answer order
● Approve order
● Search for orders
● List orders
● Create order by quotations
Enterprise functions
Customers Suppliers

CQ&O SQ&O
Items & Stock
Invoicing SCA

CCA
Supplier quotations & orders
Before ordering the enterprise usually sends out quotations to
more than one supplier, to be able to pick the best offer.

After a supplier confirmed our order, we are in an official

contractual relationship.
Supplier Purchase Order - Data model
● Supplier purchase order ID
● Supplier ID
● Timestamp of order
● Responsible ID
● Supplier purchase order ID
● Item ID
● Ordered amount (free)
● Ordered amount (reserved)
● Requested / confirmed deadline
● Timestamp of confirmation
● Status
● Requested / confirmed price
● Fulfilled amount (free)
● Fulfilled amount (reserved)
● Timestamp of fulfillment
SQ&O - Processes
● Create new quotation ● Create new order
● Send quotation ● Send order
● Search for quotations ● Approve order
● List quotations ● Search for orders
● Connect quotations to orders ● List orders
● Create order by answered
quotation
Enterprise functions
Customers Suppliers

CQ&O SQ&O
Items & Stock
Invoicing SCA

CCA
Invoicing
The handover of goods is the fulfillment. Legal regulations
require the enterprise to give an invoice after fulfillment. The
customer should and is allowed to only pay according to the
invoice.

The delivery note was introduced because in practise the

location of the invoice and the handover was not the same. This
way the origin of the goods can be tracked back.
Enterprise functions
Customers Suppliers

CQ&O SQ&O
Items & Stock
Invoicing SCA

CCA
Customer Current Accounts
When a customer chooses the transfer payment method a debit
is created towards the client. This has to be strictly tracked. In
order to keep track of this debt, we create a current account for
the purchase.

To compensate the debt, the customer transfers money to the

enterprise’s account, which is one of the action types of current
accounts.
Supplier Current Accounts
The enterprise can also choose transfer as payment type. To
manage our debts towards the suppliers the EIS has to be able to
handle the supplier current accounts.

Quite similar to CCA, but in this case we initiate the transfers.

What next
● We’ll get a little bit more concrete
● Assuming a computer system
● Step up/down to the system level from the business level
● Computer based EIS processes, data models, etc.
System service functions
The information system that implements our business processes
has to be extended with service functions that can:

● Optimize the system's behaviour

● Fix some of the recurring problems
● Make the system more fail-safe
● Warn the administrators about (possible) faults
System service functions
The reason of those faults can be

● Software failure
● Hardware failure
● Human mistake
System service functions - Classification
● Time-controlled
○ Periodic tasks
● Event-controlled
○ Tasks, that should be completed on a specific event
○ Hollywood principle (“Don’t call us, we’ll call you”)
System service functions - Examples
● Archiving
● Indexing
● Restoring
● Yearly tasks
● Populate connection tables
● Daily closing
● Controls
Archiving
By the amount of the archived data

● Full
● Incremental

Finding a good interval is a hard task. Usually the type of the

enterprise specifies it.

Where to store archives?

Indexing
A database index is a data structure that improves the speed of
data retrieval operations on a database table at the cost of
additional writes and storage space to maintain the index data
structure. Indexes are used to quickly locate data without having
to search every row in a database table every time a database
table is accessed. Indexes can be created using one or more
columns of a database table, providing the basis for both rapid
random lookups and efficient access of ordered records.
Restoring
● Availability, integrity, reliability
● Business Continuity Planning
● Disaster recovery plan
● Snapshots of the whole system
Controls Control

Decision

Analyzing

Risks Supervision
Control - Definition
Rules, processes and structures that were created in order to
support the enterprise to reach its business goals and avoid the
undesirable events.
IT Control
Determining all the desired results and goals in the IT field that
can be supported by control processes.

● Validity check
● Authentication
● Authorization
● Identification
● …
Control indicators
Concrete numbers that define the success of the control
functions. Determined mostly by the QA team.

● Critical Success Factors (CSF)

● Key Goal Indicators (KGI)
● Key Performance Indicators (KPI)
Confidentiality - User management
Principle: users can only access information that is enough for
them to proceed with their daily work. No more, no less.

Tasks

User groups

Role profiles
Communication with external partners
● Classical paper and mail based
● Telephone line based (FAX)
● Digital
○ EDI (Electronic Data Interchange)
○ Digital Business Operations
■ B2C, B2B, B2G, B2E, Marketplace, etc.
Electronic Data Interchange (EDI)
● Standard messages
● The enterprise codes and decodes its messages to those
standards
● The EDI provider takes the responsibility of transferring the
message without and takes care of integrity
● WebEDI
Electronic Data Interchange (EDI)
Enterprise A Enterprise B

EDI Interface EDI Interface

EDI Provider
E-Business
Any kind of business or commercial transaction that includes
sharing information across the internet. Electronic commerce
focuses on the use of ICT to enable the external activities and
relationships of the business with individuals, groups and other
businesses or e business refers to business with help of internet
i.e. doing business with the help of internet network.
E-Business
● Selling goods
● Giving customer support
● Providing services
● Social media
● Search
E-Business models
● Business To Customer (B2C)
● Business To Business (B2C)
● Business To Governance (B2G)
● …
E-Business concerns
● Bugs
● Hackers
● Privacy
● Secure transactions
Conclusion
● Recap of the business functions so far
● Service functions
● Controls
● Connection with external parties
● E-Business
Thank you for your attention
Example questions
● What are service functions? Name a few!
● How can you classify service functions?
● What is archiving?
● What are controls?
● What is EDI?
● What is E-Business?