Category Archives: ISO 30300 Standards Design

Mar 05 2012
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Automotive Industry, Business Capability, Cloud Ready Business Services, Credit Union, Enterprise Architecture Tiered Logical, Execute the Strategy, General Accounting Accepted Practices Design, Governance by Design, Investment Management, ISO 14000 Design, ISO 30300 Standards Design, ISO 9000 Design, ISO Business Management Series-Design Outcomes, ISO Environmental Certfication Series Design, ISO Risk Management Series - Design, Management Capabilities, Operational Reference Architecture (Global), Retail, Transaction Capabilities

Stakeholders

Investment Management

3rd party finance company who will acquire the liability on behalf of the consumer transferring from the dealership to the lender.

Consumer

A person who has an interest in the offer without any commitment to purchase.

Customer

A person who has made the decision to purchase and offer from a dealership.

Insurance Carrier

Auto insurance liability transfers from the dealership to the customer before leaving with the offer.

Dealership (distribution)

Your distribution channel 1 tier wholesale purchase agreement would transfer liability from the manufacturer in most cases.

In models where (the source) your own organization retains the liability; you should consider your resale model profit value streams and the cost carried across the organization.

Supply Chain (re-distribution)

Assume you are the original manufacturer of the offer; the dealership acts as a broker or an additional location with inventory on-hand.

You acquire finished goods from a wholesaler and re-market the offer to consumers and customers.

 

 

 

Jan 10 2012
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Business Capability, General Accounting Accepted Practices Design, ISO 14000 Design, ISO 30300 Standards Design, ISO 9000 Design, ISO Business Management Series-Design Outcomes, ISO Environmental Certfication Series Design, ISO Risk Management Series - Design, Management Capabilities, Operational Reference Architecture (Global), Sarbanes Oxley Design, Transaction Capabilities

Associated Audit Links

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Jan 04 2012
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Business Process, Cloud Ready Business Services, General Accounting Accepted Practices Design, Governance by Design, ISO 30300 Standards Design, ISO 9000 Design, ISO Business Management Series-Design Outcomes, ISO Risk Management Series - Design, Management Capabilities, Operational Reference Architecture (Global), Resilience-Criticality 1 zero data loss, Sarbanes Oxley Design, Transaction Capabilities

Real World (5) Capability model with BPM, MDM, BMS, for Risk and Financial Integrity-the system design

Define an Offer

An offer represents any grouping of items of any combination and any classification types.

Stakeholders who create>Engineering users by business group assigned to task by business unit type in 1:many offers.

Presentation Layer (model)

A form designed to acquire the business service proposed by Sub-Process Levels 1-5 to enable the operational architecture for management and transactional capabilities.

The highway analogy series designed for Business Management Systems-Level 2

Level 3 in the highway analogy converging the outside in with the Enterprise and Business Architecture for a system designed to error proof your financial transactions.

Offer Visual Sub-Process Level 1 inputs to process outputs to Sub-Process Level 2

A Real World Expectation

Process

The real world expects the items in your accounting system to automatically segment the transactions based on the sales journal which has a direct link to the chart of accounts.  In generally accepted accounting practices (GAAP) this would be a hard rule governed by your corporate policies.

In any change project with any master data or changes to the grouping of the values defined in ERP master records;

a) Party Management Capabilities

b) Offer Management Capabilities

c) Financial Management Capabilities

Secondly, the ability to distinguish between your transaction capabilities must be clearly distinguished and understood by the two distinct stakeholders.

d) Expense Transaction Capabilities

  • An offer would be created and built in the expense transaction records

e) Revenue Transaction Capabilities

  • Your profit would be based on the revenue amount less the expense summarized across all components in the offer. 

In both transaction capabilities you will find the references made at a point in time of the create activity for the transaction capability.  A document type Expense transaction will have an outcome of a purchase order, vendor invoice and vendor payment in Level 2 of the process hierarchy.

Visual Aide in a transaction scenario for an expense transaction

These three records (a recorded event transaction activity) will be factored into your cost of goods for any offer.  The compilation of any items purchased for the build of the offer.  In having this understanding you can publish the header detail in expectation of each transaction to ensure consistency and fewer opportunities for failures in your cost of goods calculations.  Each of these records are part of the expense line on your financial statements.

A revenue transaction should offset the expense in any scenario involving the Offer Management Capabilities

People

Objective definition of accuracy-The real world perspective in the case of an offer would be based on the way your offer maps to the technology market segment.

  • Your executives and the board of directors for your company will expect to see and care about the real world.  
  • Your customers care about the real world
  • Your suppliers care about the real world

Subjective definition is going to be described as Fit for Purpose based on your employees preference by function.

  • Your functional stakeholders across your company will care about the Fit for Purpose

Technology

Every feature must be captured and reflect the way the chart of accounts segments the values without any values not stored in the master financial management records.

to use standards defined by international definitions.

The real world expects the items to be systematically managed using the accounting setup in your ERP system by combining the Financial Management Capability to classify and re-use business unit department codes to acquire the way the business process records are captured in ERP operational reports.

Technology in the real world

Anytime an organization invest in a new technology solution; the expectation from a business sponsor would be to acquire the features and capabilities as designed and promoted.

Anytime the use of agile approaches to implementations are used; you have no way of ever testing the implementation or features.

In a real world scenario; you can test your accounting system or any technology application acquired from a 3rd party supplier and your technical implementation by the way your canned reports (features in every 3rd party application) reflects the business process and people inputs to the application as designed.   This action would be the most effective test for any software implementation value to the business.  the event transactions

Offer Management Setup

Generic Objects in your offer(s) allows you to realize Agility and streamline your accounting systems for the best re-use.

Take this test by asking the following technology focused company and the way to define atomic items.

  • Can you find value in a power cord without the device?
  • Can you use the cables on an existing device when built for a specific device family?

Universal or Generic Objects

  • Objects are typically known as hard bundles or unstructured items-the items cannot be unstructured.
  • Objects should default the power and communication requirements based on the end country mapped to the location code segment 2 in many financial management capabilities.
  • Objects are considered unstructured items, they cannot be decomposed from a device with an intent to have value.
  • Objects are not revenue generating types and therefore have no value in the item master.
  • Objects are defaults on the BOM of the device.
  • Objects are not going to influence the pricing on an offer when a single price is used for the presentation of a system or bundle.
  • Objects never change the margin calculation on the system or bundles.

Object Parts

  • Maintenance contract items are not in the item master.
  • Objects may be sold as a parts in maintenance contract models.


Example Hardware Objects

  • Power cords, cables and similar universal with local requirements
  • Objects are included in the price of a device.

Example Software Objects

  • Objects are a fundamental part of the use of a device, internal operating software (IOS) of the type without any features.
  • A license for the IOS download capability isn’t an actual paper or product for a shipment to receive into inventory, rather the HOW an entitled user acquires the software systematically.
  • Objects of the IOS types are NOT add on features rather the basic software allowing the device to register a warranty and allow connectivity with other devices.
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Jan 03 2012
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Business Capability, Business Process, Cloud Ready Business Services, Enterprise Architecture Tiered Logical, Execute the Strategy, General Accounting Accepted Practices Design, Governance by Design, ISO 14000 Design, ISO 30300 Standards Design, ISO 9000 Design, ISO Business Management Series-Design Outcomes, ISO Environmental Certfication Series Design, ISO Risk Management Series - Design, Management Capabilities, Operational Architecture, Operational Reference Architecture (Global), Relies on Management Capabilities to Create, Resilience, Resilience-Criticality 1 zero data loss, Run the Business, Sarbanes Oxley Design, Transaction Capabilities, Waste Defect Threat

Quality Reference Architure

Real World Perspectives

Business Stakeholder Hierarchy;

Agility by design

  1. Board of Directors
      1. Executives
        1. Officers (C-Level Executives)
          1. Trustees (Policy and Procedure roles)
            1. Stewards (Management Capabilities)
              1. Custodians (IT)

Business and Enterprise Architecture Dependency

  1. Event Driven Architecture – Physical Architecture

Leveraging a logical grouping through the transition from current state to future state works for this solution to be realized and adopted while proving the value to the business.  Your executive audience defined in the Real World perspective should be your primary audience for buy-in.

     2. Business Process Architecture Life Cycle

Business Process Life Cycle

Value

The ability to predict your impact on all projects; whether discreet or non-discreet introduces a concrete manner in which to base decisions.

The ability to reduce the unknowns by introducing known relationships in order to ensure interoperability and fewer issues caused by change.

    3. Document to Record Management

  1. A document refers to the intent of planned activities.
  2. A record provides the results of the planned activities in facts.

   4. Transactional Capabilities Dependency

Value

The ability to define both reference and tiered application, storage and security for different risk appetites.

The ability to re-use the first entries and publish the customer expectations as headers to each of the various documents to make sure threading of the records.

The ability to confine each stakeholder audience Fit for Purpose to ensure quality standards based on the purpose.

Systems Thinking

Threading the business process dependencies across two primary operational requirements your asking for capabilities that allow your functional groups to perform activities for any transaction types as follows;

  1. Expense Transaction Capabilities
  2. Revenue Transaction Capabilities

Each of these two transaction types are considered the Level 2 capability in a (5) capability modeled for the real world.  The Real World will summarize these event transactions that have changed between a document to a record in electronic form at the completion of each transaction.

Graphical Perspective of the Enterprise Business Data in the Real World Model

The above graphic supplies the Enterprise Architecture components for your primary Priority with zero data loss.

When you understand the way the functional support model is designed in a Real World scenario; you can look at the term and begin to take a defensive position or you can understand the term isn’t going to make a difference.  The “Stickiness” and the way it recovers and protects the companies executives “the get out of jail free card” isn’t something functional leaders are threatened with a jail term based on someones preference?

find predictive ways to execute for re-use and systemic impact and dependency governance by design of an event driven architecture.

An event driven architecture predicts the flow of information and records enriched by the first entries to build a system model versus quantified maturity systems.

Assume the graphical presentation above begins at the top of the photo; as you move down the page; you begin a vertical flow of your records that publish or can be acquired by your Data Warehouse.  The only condition; the record must remain without any backend modification to the transaction record.  Electronic records seem to have been misunderstood from an audit worthy record retention perspective.  The real world will restore this vital record retention requirement by promoting the use of canned reports in your applications for operational recovery time objectives and assurance of no data loss.

  • New Risk Management Standard -ISO 30300 and 30301 November 12, 2011.
  • Zero data loss – original records capturing the FACT‘s around any expense or revenue transaction inclusive of the related children to the two types of financial statement components.
  • Sarbanes Oxley further details the granular dimensions in GAAP, to re-confirm the translation between accepted practices with real audit tracking of the dimensions that prove or disprove audit worthiness against the two financial requirements.

In lay men terms any responsible employee at any company in any industry should aspire to have confidence in their performance contributing to the companies bottom line and whenever possible to contribute to top line revenue growth.

If you do not classify the operational architecture as your critical to recover and maintain zero downtime for these activities you will be at risk for losing your accuracy and therefore become questionable for your validity in reporting to your external regulatory and watch dog oversight stakeholders.

  • What good would your resources be if they were unable to perform their duties?
    • You are losing money for every minute they are unable to perform their general responsibilities.
  • What resources have the most to lose?
    • Those who interface with your customers
    • The same customers who will want to be assured and ready to test your ability to recover based on their activities with your company.
    • The resources who interface with your suppliers;
    • The supplier needs your payments for goods or services delivered and they will need assurance that you have the same amount on the books as they expect.
  • The two stakeholders represented above are going to be the same audience for your expense and revenue transaction workflows.
    • Therefore this reference architecture focuses on the life cycle of both expense and revenue transactions in capabilities that are basic in the real world and become more functional in the Fit for Purpose layers below.
    • The real world must map the primary values that pertain to the published and validated audit reports going into ERP; based on the life cycle flow and header published to enable choices and limited responses from any business service that leads us into the way IT will supply capabilities in bundled solutions.
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