AIM

BP.010 BUSINESS AND PROCESS

STRATEGY
<Company Long Name>
<Subject>

Author: <Author>
Creation Date: May 17, 1999
Last Updated: May 28, 1999
Document Ref: <Document Reference Number>
Version: DRAFT 1A

Approvals:

<Approver 1>

<Approver 2>
BP.010 Business and Process Strategy Doc Ref: <Document Reference Number>
May 28, 1999

Document Control

Change Record
1

Date Author Version Change Reference

17-May-99 <Author> Draft 1a No Previous Document

Reviewers

Name Position

Distribution

Copy No. Name Location

1
Library Master Project Library
2 Project Manager
3
4

Note To Holders:

If you receive an electronic copy of this document and print it out, please write your
name on the equivalent of the cover page, for document control purposes.

If you receive a hard copy of this document, please write your name on the front
cover, for document control purposes.

<Subject> Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. DRAFT 1A )
Company Confidential - For internal use only
BP.010 Business and Process Strategy Doc Ref: <Document Reference Number>
May 28, 1999

Contents

Document Control.....................................................................................................................

Introduction................................................................................................................................

High-Level Enterprise Model..................................................................................................

Process Flow Diagram.......................................................................................................
Existing Organization and Roles......................................................................................
Mission Statement..............................................................................................................
Goals and Objectives..........................................................................................................
Business Drivers.................................................................................................................
Core Capabilities and Assessment...................................................................................
Critical Success Factors......................................................................................................
Key Performance Indicators.............................................................................................
Process Clusters, Sequence, and Dependency......................................................................

Initial Change Assessment.......................................................................................................

Process Improvement Projects.................................................................................................

<Improvement Project 1>..................................................................................................
<Improvement Project N>................................................................................................
Business Strategy.......................................................................................................................

Process Strategy.........................................................................................................................

Preliminary Business Case.......................................................................................................

Open and Closed Issues for this Deliverable........................................................................

Open Issues..........................................................................................................................
Closed Issues.......................................................................................................................

<Subject> Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. DRAFT 1A )
Company Confidential - For internal use only
 Doc Ref:

Introduction
The major sections of this document summarize the business and process strategy of
<Company Long Name>. This records the strategy that will be used to improve
business organization and refine the business processes. It addresses the following
issues:

 key industry dynamics

 business objectives
 key opportunities
 analysis of the current situation
 key business issues
 current initiatives related to the proposed solution using Oracle Applications
 financial justification for the solution

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

High-Level Enterprise Model

The enterprise model provides a high-level view of the current processes of the
<Subject of the Implementation>. It documents relevant information that will be
used as a basis for the process improvement work to be carried out as part of the
Business Process Architecture (BP) process of AIM.

Process Flow Diagram

Fin an c ia l Re p orts Qua lity Pla n

Enterprise: Enterprise Description: Enterprise Process Diagram Updated By: Oracle Corporation 12 May, 1999 Rev. 2.0
Pro du c ts / Se rv ic e s
EM IT QM
Re q ue s ts fo r Pro d u c ts / Se rv ic es
In fo rm a tion Qu a lity
Serv ic es Information IT Pla n
M a rke t Data / Ide a s Enterprise Quality
Technology
Management Management
Management
Consumers

Stra te g ic Op e ratio n Pla n

In v oic e s Customers Pro b le m Re so lu tio n

Employees
Pro ble m s / Su pp o rt Iss u es
Pa y m e n ts
Sa les Orde rs

Pro d u ct De v elo p m e n t Qu a lity Da ta

L a b or
Wa g es

HR SM OF PD Pro du c t De s ig n Fe e db a c k
PS
Pos t Sale s
Corre c tio n To Pro du c t Des ig n Qu a lity Data
Human Resource Sales & Market Cu s to m e r In fo rm a tio n Product Post-Sales
Order Fulfillment
Management Management Sa les Orde r Fe ed b a ck Development Service
Sa les Co m m is sio n Da ta Fo rec a s t Da ta

Pro du c ts / Co m p o n e nts
L ab o rAva ila bility
L a b or Re qu ire m e n ts ATP/
CTP
Pay ro ll Inv o ic e Da ta En g in e e rin g
Da ta Sale s Ord e r Da ta Eng in ee rin g
Ch a ng e Ch a ng e
Colle c tio n Da ta Ord e r
M a teria l So u rc e Re q uire m e n ts Re q ue s t
Des ig n

FM Pay a b le s / Pa y m e n ts
PR PF MM Raw M ate ria ls & WIP
OP
In v oic e for
Financial Pay m en t Planning and Materials Fin is h ed Go od s Ope ra tio n s
Procurement Operations Qu a lity Data
Management Forecasting Management
M a teria l Re q u ire m e nts
Pro d u cts Tran s p orta tion
(Dro p Sh ip) Pla n

Ex tern a l
Rep o rts Pic k in g / Sh ip p ing Da ta Carrier
Exte rn al
Rep o rts
M a teria l Qu a lity Da ta

Stockholders
Suppliers M a te rials /Sup p lie s

Purc h as e
Ord e rs
Regulatory / Pay m en ts
StatutoryAgencies
Sh ipp e d Sa le s Ord e rs
Cos ts
Sta tu tory / Reg u lato ry Pos t Sale s Billin g a n d Co s ting Data
Re p ortin g
Legend:
Tem p o ra l
Eve n t Eve n t Pro ce s s Ste p
M a n u al Au tom a ted Ex p an d a ble Dec is ion Da ta Sto re ExternalAgent
Pro ce s s Ste p Pro c e ss Ste p Su b -p ro c es s
Na v ig a tion

Cop y righ t © 1 9 9 8 Ora c le Co rp o ra tio n , All rig hts re se rv ed

Existing Organization and Roles

Mission Statement

Goals and Objectives

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

Business Drivers

Core Capabilities and Assessment

Critical Success Factors

Key Performance Indicators

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

Process Clusters, Sequence, and Dependency

List the process clusters relevant to <Subject of the Implementation> and provide
the rationale for grouping process components into these clusters, focusing on
common elements between components.

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

Initial Change Assessment

The initial change assessment provides a high-level view of the implications, in
terms of changes on cost, business performance, and working practices of the
<Subject of the Implementation>.

Work

People

Organizational Structure

Organizational Culture

Physical Layout

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

Process Improvement Projects

This section of the document lists all of the existing process improvement projects of
<Company Long Name>.

<Improvement Project 1>

Scope

Sequence and Dependency

Expected Duration

Chief Objectives for the Project Phase

Potential Team Constituency

<Improvement Project N>

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

Business Strategy
The business strategy document the actions for strengthening <Company Long
Name>’s competitive position, satisfying customers, and achieving performance
targets.

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

Process Strategy
The process strategy focus on <Company Long Name>’s strategy for improving its
business processes and aligning them with the applications to be implemented.

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

Preliminary Business Case

The preliminary business case provides a business case to justify the business and
process strategy at a high-level.

Savings Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Total

Reduction in Inventories - $8,100 $1,200 $1,344 $1,505 $12,149
Leverage Purchasing Power of the Organization - $135 $135 $151 $169 $190 $780
Customer Retention - $490 $549 $615 $688 $2,342
Expediting - $1,100 $1,232 $1,380 $1,545 $5,257
Productivity Gains - - $4,500 $5,040 $5,645 $6,322 $21,507
- - - - - - $0
- - - - - - $0
- - - - - - $0
- - - - - - $0
- - - - - - $0
Total Savings

Costs
SAMPLE $0

Year 0
$135

Year 1
$14,325

Year 2
$8,172

Year 3
$9,153

Year 4
$10,251

Year 5
$42,036

Total
- - - - - - $0
Training and Personnel Cost $800 $1,400 - - - - $2,200
Application costs $1,800 - - - - - $1,800
Implementation Services $1,200 $3,300 - - - - $4,500
Hardware and Network $500 $335 - - - - $835
Maintenance and Support of packaged software - $880 $880 $880 $880 $880 $4,400
Total Costs $4,300 $5,915 $880 $880 $880 $880 $13,735

Initial Costs (Capital) = $13,735

Average Net Cash Flow = $5,660

Return On Investment (ROI) = 206%

Net Present Value (NPV) = $34,480

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only
 Doc Ref:

Open and Closed Issues for this Deliverable

Open Issues

ID Issue Resolution Responsibility Target Date Impact Date

Closed Issues

ID Issue Resolution Responsibility Target Date Impact Date

Open and Closed Issues for this Deliverable

File Ref: 425196709.doc (v. )
Company Confidential - For internal use only