Corporate Compliance Using Lawson ProcessFlow and Smart Notification

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Corporate ComplianceUsing Lawson ProcessFlow
and Smart Notification
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Understanding the Law
The Sarbanes-Oxley Act established new and
enhanced standards for corporate accountability,
as well as severe penalties for corporate
wrongdoing. Good corporate governance and ethical
business practices are now the law.
Primary Areas of Regulation under Sarbanes-Oxley
Disclosure Controls Internal Controls
Designed to ensure that required disclosed information is recorded, processed, summarized, and reported within the time periods specified by the SEC. Include controls and procedures to help ensure that the required disclosed information is accumulated and communicated to management to allow timely decisions regarding required disclosure. Controls that pertain to the preparation of financial statements for external purposes that are fairly presented in conformity with generally accepted accounting principles.
Designed to ensure that required disclosed information is recorded, processed, summarized, and reported within the time periods specified by the SEC. Include controls and procedures to help ensure that the required disclosed information is accumulated and communicated to management to allow timely decisions regarding required disclosure. Preservation Controls
Designed to ensure that required disclosed information is recorded, processed, summarized, and reported within the time periods specified by the SEC. Include controls and procedures to help ensure that the required disclosed information is accumulated and communicated to management to allow timely decisions regarding required disclosure. Designed to ensure that all audit records, material financial transactions, related communications, working papers, and other data, is preserved, protected from alteration, and readily available.
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Sarbanes-Oxley Relevant Sections

• Section 404
• Requires management to annually
• State their responsibility for establishing and
  maintaining an adequate internal control
  structure and procedures for financial reporting
• Conduct an assessment of the effectiveness of the
  companys internal controls and procedures for
  financial reporting
• Requires the independent auditor to
• Attest to managements assertion (requires a
  framework such as COSO)
• Section 409
• Real Time Disclosures
• Issuers are required to disclose to the public,
  on an urgent basis, information on material
  changes in their financial condition or
  operations. These disclosures are to be presented
  in terms that are easy to understand supported by
  trend and qualitative information of graphic
  presentations as appropriate.

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Internal Control Framework

• The COSO Framework
• COSO identifies five components of internal
  control that need to be in place and integrated
  to ensure the achievement of each of the three
  main objectives.
• Monitoring
• Information Communication
• Control Activities
• Risk Assessment
• Control Environment

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Primary Areas of Focus

• Control Activities
• Completion of the documenting of internal
  controls
• Testing and implementing internal controls
• Sustaining internal control implementations
• Implementation of system based controls
• Monitoring
• Timely review of reports
• Internal audit function
• Proactive notification of material events
• Information and Communication
• Single version of the truth
• Timely distribution of information

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Lawson Solutions

• Base Systems
• Financials, Procurement, HR/Payroll
• Expense Management, Time Management, etc
• Reporting Analytics
• ProcessFlow - System based controls and approvals
• Lawson ProcessFlow provides a means of
  implementing documented internal controls
• System based controls
• Audit trails are created and can be reported on
• Smart Notification - Proactive Monitoring and
  Reporting
• Time or data event based
• Monitor data for material events
• Root cause analysis

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Functionality comparison with Process Flow

• Capability Smart Notes Process Flow
• Notifications with rich, actionable content?
  Yes - Focus No
• End-user subscribe and customize model?
  Yes No
• Dynamic links into Lawson applications?
  Yes No
• Delivery to a wide range of devices? Yes
  No
• Monitors data from both Lawson and
• non-Lawson systems? Yes No
• Ability to define and monitor complete
• processes / workflow? No
  Yes - Focus
• Ability to automatically route workflow
• requests? No Yes
• Perform automated steps based on
• workflow decisions? No Yes

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ProcessFlow
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Lawson ProcessFlow - Packaging

• ProcessFlow Standard
• Every Lawson release 8 customer receives
  ProcessFlow Standard at no charge
• ProcessFlow Standard is delivered with the 8.0.X
  Environment
• ProcessFlow Professional
• Saleable version of ProcessFlow
• Full-capability version of ProcessFlow
• ProcessFlow Solutions
• No charge, licensed products 28 pre-built
  processes (flows)
• Available to every ProcessFlow Standard or
  Professional customers
• Will operate with either ProcessFlow Standard or
  Professional

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ProcessFlow Standard

• Can build processes (flows) from scratch using
  the ProcessFlow Designer
• Can not build processes from scratch that contain
  any of these three nodes
• UserNode
• HR UserNode
• Work Object Node
• Can operate and configure processes that contain
  any of these three nodes

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ProcessFlow Professional

• Full-capability version of ProcessFlow
• Can build processes (flows) from scratch that
  contain any node in the ProcessFlow Designer
• Can build processes from scratch for multi-step,
  multi-user review and approval
• Job requisition
• Salary increase
• Purchase requisition
• Etc.
• Can build processes from scratch that contain
  these three nodes
• UserNode
• HR UserNode
• Work Object Node

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Types of Triggers (Standard or Professional)
Automatic Initiate ProcessFlow as a by-product of a Lawson application Action. e.g. requisition is released, employee expense approved . . .

Manual Initiate ProcessFlow as an explicit result of an employee action. e.g. Employee presses a button, . . .

Scheduled Initiate ProcessFlow in a Time-based or repeatable Way.
ProcessFlow Start
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ProcessFlow Inbasket

• Delivered with both ProcessFlow Standard and
  ProcessFlow Professional
• Two versions
• Web/HTML Inbasket
• Lawson Portal based Inbasket
• Both versions of Inbasket have same functionality
• Both versions of Inbasket only require a web
  browser connected to internet/intranet for access
• Only difference is deployment method
• Reviewers and approvers in ProcessFlow do NOT
  need to be set-up as Lawson applications users
• Unlimited number of end users

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How Do You Build a ProcessFlow?
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ProcessFlow Designer

• A Graphical User Interface (GUI) to define a
  process
• Simulate the process at design time
• Upload the process on the ProcessFlow Server
  Repository for server side execution

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ProcessFlow Designer Nodes

• Activity Nodes
• AGS, DME (Internet Object Services, IOS)
• Email
• Message Builder
• Work Object Creator
• Web Run
• Can be used to integrate with non-Lawson,
  web-addressable applications
• User Action
• HR User Action
• Logical Nodes
• Branching - conditional channeling of data
• Iteration - looping over defined sub-graph
• Assign basic mapping of variables

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ProcessFlow Designer Salary Change Approval
Can NOT use ProcessFlow Standard to build a
process from scratch that includes the User
Node(s)
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ProcessFlow Metrics

• Track how long to complete each step in a
  multi-step, multi-level review and approval
  workflow process
• Metrics are stored in the database powering the
  Lawson applications
• Answer questions to identify bottlenecks
• How long does it take to approve purchase
  requisitions greater than 1,000 by store, by
  region?
• Can be analyzed by
• Lawsons Enterprise Performance Management
  products
• Lawson Smart Notification
• Other reporting and analysis tools

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How do I Receive ProcessFlows?
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When to use ProcessFlow Web/HTML Inbasket?

• Can be assigned per end user
• Reviewers and approvers that do not use the
  Lawson Portal, i.e., LID users, non-Lawson
  application users
• Non-organizational reviewers and approvers
• Supplier or vendor personnel
• Customer personnel
• Low-frequency reviewers and approvers
• Example HTML templates delivered by Lawson
• Very customizable
• Modified with any HTML editor
• HTML skills required

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When to use Lawson Portal based ProcessFlow
Inbasket?

• Can be assigned per end user
• Reviewers and approvers that do use the Lawson
  Portal
• High-frequency reviewers and approvers
• Integrated user experience with Lawson Portal
• Quicker and easier to implement
• Only need to turn on Lawson Portal based
  ProcessFlow Inbasket flag in each persons RD30
  Lawson web user record
• Very customizable with Lawson Design Studio
• Can be modified with any HTML/JavaScript editor
• Do not need Lawson Design Studio
• HTML/JavaScript skills required

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ProcessFlow Example
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Business Problem

• New and Returning Employee Security Set-up
• Employees initiated the request for access
• Time consuming process
• An average of 60 - 80 new hires or returning
  employees each bi-weekly pay cycle
• Small security division staff

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Problem Resolution

• Used ProcessFlow Professional (or Standard) to
  Automate Security Set-up Process
• Identifies all new or returning employees
• Verifies Status Code and Process Level
• Creates the user personal profile and web name
  (RD30) record
• Creates the interface file for use by the current
  Lightweight Directory Access Protocol (LDAP)
  account creation system
• Emails the employee or HR office the logon
  information

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Example
This process can be built from scratch with
ProcessFlow Standard

• PHR008 Security Flow

Note no User Nodes, HR User Nodes, or Work Object
Nodes
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Smart Notification
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Smart Notification

• Proactively monitors data, filters out noise, and
  automatically delivers important information
• Simplifies and guarantees reporting, analysis and
  information dissemination
• Eliminates uncertainty

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Smart Notification makes it easy
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Smart Notification
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In-Context Application Links
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Functionality comparison with Process Flow

• Capability Smart Notes Process Flow
• Notifications with rich, actionable content?
  Yes - Focus No
• End-user subscribe and customize model?
  Yes No
• Dynamic links into Lawson applications?
  Yes No
• Delivery to a wide range of devices? Yes
  No
• Monitors data from both Lawson and
• non-Lawson systems? Yes No
• Ability to define and monitor complete
• processes / workflow? No
  Yes - Focus
• Ability to automatically route workflow
• requests? No Yes
• Perform automated steps based on
• workflow decisions? No Yes

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