richard d. irwinaccounting, information technologies, and business solutions by hollander, denna,...

Richard D. IrwinAccounting, Information Technologies, and Business Solutions by Hollander, Denna, and Cherrington C

Exhibit 2 - 1

Margin

Source: Michael Porter

Costs

Revenue

Supp

ort

Act

ivit

ies

Primary Activities

Firm Infrastructure

Human Resource Management

Technology development

Procurement

Inboundlogistics Operations

Outboundlogistics

Marketing& Sales

Service

Porter’s Generic Value Chain


Exhibit 2 - 2

Sample Sales/CollectionProcess Events

Business Process: Delivering Goods and Collecting Payment

Event 1: Marketing

Event 2: Take Customer Order

Event 3: Ship the Goods

Event 4: Collect Payment


Exhibit 2 - 3

OperatingEvents

Decision/Management

Events

InformationEvents

Define andoften trigger

Trigger Trig

ger

Business Process Activities (Events)


Exhibit 2 - 4

•What happened?•When did it occur?

•Who was involved and what roles did they play?•What resources were involved and how much?

•Where did the event occur?•What can go wrong during execution of the event?

Essential Characteristics of Business Activities


Exhibit 2 - 5

REAL BUSINESS PROCESS MODEL MATRIX

EventBusinessObjective

EventTrigger

BusinessRisks

Notes


Exhibit 2 - 6

McKell’s Retail Sale Store REAL ModelStep 2 Checkpoint

SellMerchandise

ReceiveCustomerPayment


Exhibit 2 - 7

SellMerchandise

CustomerRegister

Salesperson

Merchandise


Cash



Exhibit 2 - 8

Resource

Event

External Agent

(if needed)

InternalAgent

Location(if needed)

Template Without Diamonds Place relationship descriptions on the lines

Resource

Event

External Agent

(if needed)

InternalAgent

Location(if needed)


Exhibit 2 - 9

Resource

Event

ExternalAgent

(if needed)

InternalAgent

Location(if needed)

Template With Diamonds Place relationship descriptions inside the diamonds

Resource

Event

ExternalAgent

(if needed)

InternalAgent

Location(if needed)


Exhibit 2 - 10


SellMerchandise

CustomerRegister

Salesperson

Merchandise


Cash

involves

Takes

plac

e at

increa

ses

Takes

place at

internal

agent

externalagent

internal agent

exte

rnal

agen

t

results in


Exhibit 2 - 11

ReceiveGoods from

Vendor

Inventory


Ship Goodsto Customer

Pay Vendorfor Goods

AcquireHuman

Resource

Human Resource

Repay Lender

AcquireFinancing

Pay forHuman

Resource

Cash

Linked Business Process Example (Partial REAL diagram)

Resource Decrement (-)

Resource Increment (+)








Exhibit 2 - 12

Cherry Bee Business Processes

Supplies and Materials Acquisition/Maintenance/

Payment Process

• Hire workers

• Pay workers

• Sell honey to customer• Receive payment for honey sold

Labor Acquisition/Maintenance/

Payment Process

ConversionProcess

Sales/CollectionProcess

• Purchase supplies

• Pay for supplies

• Store Supplies

• Check hives

• Extract honey

• Strain honey

• Package honey

• Store honey


Exhibit 2 - 13 Cherry Bee Business Process Model Matrix

EventInternalAgents

ExternalAgents Resources Locations

BusinessObjectives

EventTrigger

Purchase mat.& supplies

Pay for mat.& supplies

Hire workers

Pay workers

Store mat.& supplies

Check hives

Extract honey

Strain honey

Package honey

Store honey

Sell honey

Collect payment

manager (Marc) potentialworkers

cashier (Marc),hive workers

vendors

vendors

hive workers

purchasingagent (Marc)

payablesclerk (Marc)

hive workers

hive workers

hive workers

hive workers

hive workers

store worker(Marc)

cashier (Marc) customers

customers

human labor

cash

materials &supplies

cash

materials &supplies

hives,mat. & supplies

hives, honey,mat. & supplies

honey,mat. & supplies

honey, mat. & supplies

packaged honey

packaged honey

cash

vendor store

Cherry Beestore

Cherry Beestore

at Cherry Beeor vendor store

supply barn

field

field

supply barn

supply barn

supply barn

Cherry Beestore

Cherry Beestore

Have mat. & supplies on hand when needed, pay lowest prices..

Timely payment for supplies to maintain vendor goodwill...

Store materials & supplies in a safe, convenient location

Hire skilled, dependable workers at a fair rate ...

Pay only for services received,pay in a timely manner....

Make sure hives are healthy and prepared for production..

Extract all the honey at the rightpoint in time without waste...

Produce clean honey for sale...

Package honey in containersthat promote a long shelf life...

Store honey in a safe, convenient location until needed at store...

Sell quality honey for a fair price as quickly as possible ...

Collect payments from customers in a timely manner ...

need forlabor

payment forservices due

need for mat.& supplies

purchase of mat.&supplies

purchase of mat.&supplies

beginning ofspring

hive full ofhoney

extractedhoney

honey wasstrained

honey waspackaged

customer enters store

sale ofhoney


Exhibit 2 - 14 Cherry Bee REAL Models (without relationship descriptors)

Store mat.& supplies

Pay for mat.& supplies

Vendor Store

Materials &Supplies

Supply Barn

Vendor

Hive workers

Cherry Bee Store

Purchase mat. & supplies

Cash

Marc

Supplies and Materials Acquisition/Maintenance/ Payment Process

Hireworkers

Pay workers

Cash

Cherry BeeStore

HumanLabor

HiveWorkers

Marc

Labor Acquisition/Maintenance/Payment Process

Extract honey

Check hives

Strain honey

Package honey

Store honey

Field

Hive

Materials &Supplies

Honey in Process

Supply Barn

PackagedHoney

Hive Workers

Conversion Process

Sell honey

Collect payment

Cash

Cherry BeeStore

PackagedHoney

Customer

Marc

Sales/Collection Process


Exhibit 2 - 15

Call onCustomer

Submit Bid

NegotiateContract

Provide Services

Receive Payment

Customer Representative

Customer

Janitor

CustomerPayments Clerk

Services

Cash

REAL Model of a Service Process (without relationship descriptors)


Exhibit 2 - 16REAL Model of a Not-For-Profit Organization

(without relationship descriptors)Greet Victim

Interview Victim

Assign Room

Issue Clothing

Issue PersonalCare Items

Provide Food

Help set goals, identify resources

Discharge Victim

Receptionist

InventoryClerk

PersonalCounselor

Victim

Interviewer

Shelter

Room

Clothing

Personal Care Items

Food

Goals, Resource Sources


Exhibit 2 - 17REAL Model of a Steel Manufacturing Process

(without relationship descriptors)

Fuel

Iron Ore

Limestone

Oxygen

Alloys

Coal

Coke

Pig Iron

Steel Ingots

BakerBake

Blast

Mix

Mill

BlastFurnace

Blast Furnace Op.

FinishingFurnace

Finishing Furnace Op.

RollingMill

MillingOperator

FinishedSteel

richard d. irwinaccounting, information technologies, and business solutions by hollander, denna,...

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