Invoiceless Payment System Case Study

Question 1

(i) (a) Creating an Invoiceless Payment System.

(b) Deploying Information Technology (computers) to support the Business procedures

(ii) (a) Invoiceless paying system

An invoiceless Payment system is the process of paying supplier automatically upon receipt and validation of material that have been received in accordance with the terms of the contract but without requiring a supplier invoice.

Taking Ford Motor Company 's invoiceless system, When a purchased item is received and validated in the system, it sets up an automatic payment.

However, before many organizations implemented this initiative , there accounting units were responsible for;

1. logging a purchase and processing the vendor invoices.

2. Filing and maintaining

Question 2

A business process is an action or set of activities, which has both direct and indirect effect on the customer. Many organization have Business processes built in their systems such as in manufacturing, order processing, invoice generation, bill payment and customer services and these can be re-engineered to improve performance and results.

Therefore Business Process Reengineering is defined as;

“The fundamental re-thinking and radical re-design of business processes to bring about dramatic improvements in performance.” (Hammer, M. and Stanton, S.A,1995)

By definition, to bring about these dramatic improvements the existing business processes in the organization have to be re-designed and the following steps are involved,

BPR implementation entails that all business processes,Job descriptions,management systems,structure and work flow in an organisation including underlying assumptions and beliefs should be re-disigned to achieve vivid improvements in vital areas such as cost, quality, service, and turnaround time through the enabling use of information

Having the management obligation for change, ICT comes into the BPR at implementation stage. Looking at a typical organization were there are many branches for instance marketing, sales, enquiry, manufacturing, Dispatch etc that could be in various locations with physical barriers to communication , for a typical procedure to start and be concluded, it will have to go through this chain of branches or departments. Therefore, if the processes involved are manual in nature, activities would take a long time to complete as the tools and communication needs are insufficient to cope with the Whole cycle involved thus compromising on the final services or products rendered to the