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PART IV: Chapter Topics

PART IV: Chapter Topics. Chapter 10: Business Process & Information Systems Development Two closely related and overlapping themes are examined Chapter 11: Information Systems Management

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PART IV: Chapter Topics

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  1. PART IV:Chapter Topics Chapter 10: Business Process & Information Systems Development • Two closely related and overlapping themes are examined Chapter 11: Information Systems Management • Goal of the chapter is to give an appreciation for the responsibilities of IS management and to be an effective consumer of IS services Chapter 12: Information Security Management • Provides an overview of the major components of information systems security

  2. Fox Lake Chapter 10 • Examines how Fox Lake could define new business processes and an information system to support those processes Chapter 11 • Investigates what Fox Lake is and is not doing with regard to management of IS resources Chapter 12 • Discusses why Fox Lake’s information systems are particularly vulnerable to computer misuse and crime

  3. Chapter 10Business Process and Information Systems Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane, WA 99258 chen@jepson.gonzaga.edu

  4. “You’re Not Going to Take Your Vera Wang Gown into a Porta Potty.” • Bathrooms not cleaned on busy Saturdays or repaired on weekends • Plumbing not designed for large crowds • Didn’t think through consequences of wedding events business. • Didn’t know how wedding business would impact everything else. • Business analyst, Laura, hired to help

  5. Study Questions Q1: Why do organizations need to manage business processes? Q2: What are the stages of Business Process Management (BPM)? Q3: How can BPMN process diagrams help identify and solve process problems? Q4: Which comes first, business processes or information systems? Q5: What are systems development activities? Q6: Why are business processes and systems development difficult and risky? Q7: What are the keys for successful process and systems development projects? Q8: 2022?

  6. Video • The Golden Rules for Managers 119 Incredible Lesson for Leadership Success (2:09) • http://www.youtube.com/watch?v=pai00rCJSJU&feature=related

  7. What are Business Process and Business Process Management? • Business process: A set of logically related tasks performed to achieved a defined business outcome • Business process management (BPM) is a management approach focused on aligning all aspects of an organization with the wants and needs of clients. It is a holistic management approach[1] that promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. http://en.wikipedia.org/wiki/Business_process_management TM -7 Dr. Chen, The Trends of the Information Systems Technology

  8. IS/E-BUSINESS Demands Products/ Services What they need/want? How many they need/want? When they need/want? How to reach them? BUSINESS VALUE & FOCUS –IS Perspective Customer centric • SCM • CRM • BPR • ERP Value Who are the customers? Where are the customers? Their purchasing habits Business Models & Strategies

  9. Q1: Why Do Organizations Need to Manage Business Processes? • Reasons for change • Improve process quality • Change in technology • Change in business fundamentals • Market • Product lines • Supply chain • Company policy • Company organization • Internationalization • Business environment

  10. Steps in Processing an Order Fig 10-1: Steps in Processing an Order

  11. 2: What Are the Stages of Business Process Management (BPM)? • Business Process Management (BPM) • Systematic process of creating, assessing, altering business processes(and is an iteration process). • Four stages of BPM • Create model of business process components • Users review and adjust model • “As-is model” documents current process; it is changed to solve process problems • Create system components • Uses five elements of IS (hardware, software, data, procedures, people) • Implement business process • Create policy for ongoing assessment of process effectiveness • Adjust and repeat cycles

  12. Stages in the BPM Cycle [2] [1] [3] [4] policy creation and assessment Fig 10-2: Stages in the BPM Cycle

  13. Q/A T/F: Business Process Management (BPM) is a one-time process for systematically creating, assessing, and altering business processes. Answer: ______ In business process management, once the as-is model is created, the team must ________. A) obtain feedback about implementation B) assess the results of the changes C) create system components D) implement changes in the organization Answer: ________

  14. Scope of Business Process Management Fig 10-3: Scope of Business Process Management BPM can apply only to commercial, profit-making organizations but also nonprofit and government organizations

  15. Q3: How Can BPMN Process Diagrams Help Identify and Solve Process Problems? • Critical for a team to agree on both what is and what ought to be. • Must have some notation for documenting processes and one common standard for creating process documentation. • Dozens of definitions are used by authors, industry analysts, and software products.

  16. Need for Standard for Business Processing Notation • These differences and inconsistencies can be problematic when two different organizations with two different sets of definitions must work together. • Object Management Group (OMG) created a standard set of terms and graphical notations for documenting business processes. • That standard, called Business Process Modeling Notation (BPMN), is documented at www.bpmn.org.

  17. Fig 10-4: Business Process Management Notation (BPMN) Symbols

  18. Documenting the As-Is Business Order Process: Existing Ordering Process Each role in the business process is given its own swim lane. Fig 10-5: Existing Ordering Process

  19. Fig 10-6: Check Customer Credit Process

  20. BPMN: Business Process Management _________ Q/A Notation T/F: In a BPMN process diagram, the swim-lane layout is used to simplify process diagrams and to draw attention to interactions among components of the diagram. Answer: ________

  21. Using Process Diagrams to Identify Process Problems • Process problems • Operations Manager allocates inventory to orders as processed • Credit Manager allocates customer credit for orders in process. • Allocations correct, if order accepted • If rejected, allocations not freed, inventory still allocated and credit extended for orders not processed • Possible fix: Define an independent process for Reject Order (UYK#3p.383)

  22. How Can Business Processes Be Improved? • Add more ________ • Adds costs unless efficiencies of scale • Change _______ structure • Reduce work and costs • Increase costs and increase effectiveness to offset • _________

  23. Fig 10-7: Revised Order Process

  24. Fig 10-8: Fox Lake Wedding Planning and Facilities Maintenance Processes

  25. Q4: Which Comes First, Business Processes or Information Systems? Fig 10-9: Fox Lake Processes Showing IS Components

  26. Fig 10-10: Many-to-Many Relationship of Business Processes and Information Systems

  27. Build Business Processes First [2] next stage [1] [3] [4] policy creation and assessment Starting from processes and working toward Information Systems (IS) is likely to work well for the business process under consideration, but will cause problems later, for other processes that use the same IS. Fig 10-11: BPM and Systems Development

  28. Build Information System First This development process makes business processes a poor step-child of the IS development process as BP can include many activities that are not part of the IS. Fig 10-12: Classic Five-Step Systems Development Life Cycle

  29. Why systems development is needed? • While you may be able to purchase an off-the-shelf software program, you won’t be able to do that with information systems. Here are some of the reasons why: • You must construct or adapt procedures to fit the business and the people who will be using the system. You can’t buy procedures. • People must be trained to use the information system effectively. You can’t buy that. • Users must take ownership of their system. That’s the single most important criterion for the success of an information system. • Information system maintenance involves two things: • Fixing a system to make it do what it should have done in the first place, or • Adapting it to changing requirements.

  30. Systems Development Is Not Just for Techies • Establishing the system’s goals, setting up the project, and determining requirements require business knowledge and management skill. • Tasks such as building computer networks and writing computer programs require technical skills. • Developing the other components requires nontechnical, human relations skills.

  31. Nontechnical, Human Relations Skills Required • Creating data models requires the ability to interview users and understand their view of the business activities. • Designing procedures, especially those involving group action, requires business knowledge and an understanding of group dynamics. • Developing job descriptions, staffing, and training all require human resource and related expertise. • Coordinated teamwork of both specialists and nonspecialists with business knowledge.

  32. How Do Businesses Use the SDLC Process? • Systems definition • Management’s statement of objective and goals for new system • Requirements analysis • Identify features and functions • Component design (hardware, software, network) • Based on approved user requirements • Implementation • Purchase, build, test, and convert to new system • System maintenance (fix or enhance) • Repair, add new features, maintain See http://www.learn.geekinterview.com/it/sdlc/sdlc-methodology-steps.html

  33. Another Factor: Off-the-Shelf Software • If starting with business processes first • Likely to choose package for processes being developed, but not for later processes • If starting with information systems first • Likely to choose package that works for all users, but, business processes will get short shrift.

  34. And the Answer Is . . . • In theory: • Better to start with ___________________ • More likely to result in processes and systems that are aligned with the organization’s strategy and direction • In practice: • Organizations take both approaches • Off-the-shelf software: • Start with business processes and select “off-the-shelf”application that works for those processes • Why?

  35. And the Answer Is . . . • In theory: • Better to start with ___________________ • More likely to result in processes and systems that are aligned with the organization’s strategy and direction • In practice: • Organizations take both approaches • Off-the-shelf software: • Start with business processes and select application that works for those processes

  36. Q/A Which of the following is true for the relationship between business processes and information systems? A) Developing information systems before business processes ensures that all activities are considered in the development process. B) Information systems incorporate all business process activities, and hence should be developed before business processes. C) Starting from processes and working toward information systems is the best option to anticipate future demands and new business processes. D) Starting with processes and working toward systems is more likely to result in processes and systems that are aligned with the organization's strategy and direction. Answer: ______

  37. SDLC • What does SDLC stand for? • Systems Development Life Cycle • List the phases of SDLC • Analysis • Design • Implementation • Maintenance

  38. 4: What Are Systems Development Activities? • Systems definition • Management’s statement of objective and goals for new system • Requirements analysis • Identify features and functions • Component design (hardware, software, network) • Based on approved user requirements • Implementation • Purchase, build, test, and convert to new system • System maintenance (fix or enhance) • Repair, add new features, maintain Analysis

  39. 4: What Are Systems Development Activities? [1] [2] [3a] [3b] (Feasibility Study) What is it and Why it is important? [4] [5] Fig 10-13: BPM Provides Requirements for Systems Development

  40. Define System Goals and Scope Fig 10-14: SDLC: System Definition Phase

  41. How Is System Definition Accomplished? • (b.) Define scope for new system • Defined by customers, users involved, business processes impacted, physical location, functional area • Clear definition of scope simplifies • Requirements determination • Coordination and other work

  42. Assess Feasibility Dimensions of feasibility • ______ feasibility • Approximated, “back-of-the-envelope” analysis • Purpose: eliminate infeasible ideas early • Consider cost of previous projects, operational and labor costs • __________ feasibility • Ball park estimate • __________ feasibility • Is it technically likely to meet needs? • _____________ feasibility • Fit with customs, culture, charter, legal requirements of organization • ___________________ feasibility • Is the proposed system legally? Cost Schedule Technical Organizational

  43. Economic Feasibility Systems Definition/Investigation (Feasibility Study) What are new from the last slide? Operational Feasibility Can we afford it? Will it be accepted? Schedule Feasibility Technical Feasibility Will it be completed by the deadline? Does the IT capability exist? Organizational Feasibility Legal and Contractual Feasibility (Is it a good fit – objective of the organization Is the proposed system legally?

  44. Form a Project Team • Typical three personnel on a development team are: • Manager (or mangers for larger projects) • Specialist: • System analysts • Programmers • Software testers • or, other functional specialist such as accounting, finance, and marketing • Users: • Users must be involved in most of SDLC phases • Depending on nature of project, team may also include hardware and communications specialists, database designers and administrators, and other IT specialists.

  45. Form a Project Team • Team composition changes over time. • During requirements definition, the team will be heavy with systems analysts. • During design and implementation, it will be heavy with programmers, testers, and database designers. • During integrated testing and conversion, the team will be augmented with testers and business users.

  46. Business and Systems Analysts • Business Analysts • Someone who are well versed in Porter’s models, organizational strategy, and system alignment theory and who also understand the proper role for technology. • IS professionals • who understand both business and technology. • They are active throughout the systems development process and play a key role in moving the project through the systems development process. • Systems analysts integrate the work of the programmers, testers, and users.

  47. Fig 10-15: Focus of Personnel Involved in BPM and Systems Development

  48. Phase Two: Requirements Analysis • System Analysts are IS professionals who understand both business and technology. • The most important phase in the SDLC process is to determine system requirements. If the requirements are wrong, the system will be wrong. Seven activities occur in this phase as the diagram shows. • Users are a critical part of this phase. They must approve the requirements before moving to the next phase. Fig 10-16 SDLC: Requirements Analysis Phase

  49. Phase Three: Component Design:Design Tasks Pertain to Each of the Five IS Components • All five components require attention in the design phase: • Hardware—Determine the specifications and evaluate alternatives against the requirements. Purchase it, lease it, or lease time from hosting service • Programs—Decide whether to use off-the-shelf software, off-the-shelf with alterations, or custom-developed software. Fig 10-17: SDLC: Component Design Phase • Database—Convert the data model to a database design. • Procedures—Design procedures for users, operations personnel, and for normal, backup, and failure recovery tasks. • People—Design job descriptions for users and operations personnel. You may have to add new jobs or alter existing jobs.

  50. Q/A T/F: If a project involves off-the-shelf programs, then little database design needs to be done. Answer: ________

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