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Week 6: Internal Information Systems. MIS 2101: Management Information Systems Douglas M. Schutz. Based on material from Information Systems Today: Managing in the Digital World , Leonard Jessup and Joseph Valacich , Pearson Prentice Hall, 2007
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Week 6: Internal Information Systems MIS 2101: Management Information Systems Douglas M. Schutz Based on material from Information Systems Today: Managing in the Digital World, Leonard Jessup and Joseph Valacich, Pearson Prentice Hall, 2007 Also includes material by David Schuff, Paul Weinberg, Cindy Joy Marselis, Munir Mandviwalla, and Mart Doyle.
Learning Objectives • Identify the steps used by organizations to manage the development of information systems • Describe each major phase of the system development process • Understand the concepts of Business Process Modeling • Understand development options
Learning Objectives • Identify the steps used by organizations to manage the development of information systems • Describe each major phase of the system development process • Understand the concepts of Business Process Modeling • Understand development options
Looking at Business Processes • Business process is an activity that is performed to create value/reach business goals • Business Process Management (BPM) • Redesign business processes using MIS systems • Dramatic improvements in performance measures e.g. quality, cycle time, cost • Legacy term: Business Process Reengineering (BPR), Hammer and Champy, 1993
Process Model – Part of Analysis • Formal method of representing how business system operates. • Illustrates processes /activities performed and how data moves among them • Used to document current system or proposed system • Identify business processes and break them down • Can help identify inefficiencies • Can help identify where using MIS systems can improve efficiency (bottom line) and/or create revenue (top line)
System Design - Examples Interfaces Forms Databases Reports
Learning Objectives • Understand the steps used by organizations to manage the development of information systems • Describe each major phase of the system development process • Understand the concepts of Business Process Modeling • Understand development options
Why Business Processes? • An understanding of business processes indicates where MIS systems fit in • How to understand business processes • Process modeling • Process characteristics
Buy groceries Simple DFD Example • Context Diagram • What is the process? • What are “Shopper” and “Grocery Store”? Grocery Store Shopper Bill Grocery needs Order/Payment
DFD Components - Process • Process: activity or function performed for specific business reason • May be manual or computerized • Starts with verb and ends with noun • i.e. “Create Appointment”, “Register Patient” • 1 process relates to 1 activity • Every process must have 1 output data flow • Each process USUALLY has at least one input data flow
DFD Components – Data Flow • Date Flow: single piece of data or logical collection of several pieces of information • Noun and description • i.e. “Patient name”, “patient demographics” • Data flow always come from or go to a (what?) with an arrow showing the direction of information.
DFD Components – Data Store • Data Store: Collection of data stored in some way which is described in the physical model • Noun • Depiction of data with respect to a Data Store: • If data flow comes from a data store: information is retrieved from the data store. • If data flow goes into a data store, information is (what?) to the data store. • When a process updates a data store (retrieves record from data store, updates information, stores update), data flows in and out of the data store
DFD Component – External Entity • External entity: person, group, organization, or external system that interacts with a process of a system – normally someone who uses the info from the system to perform other processes or decide info added to the system • Noun with name • May or may not be part of the organization
DFD and Business Processes • Normally a business process is too complex to be described in 1 DFD • so process model composed of set of DFDs • First DFD describes overall system = Context Diagram • Context diagram is then decomposed into series of DFD • each representing a lower level of detail. • Balancing • ensures information presented in the DFD at one level is represented in the next level DFD
Context Diagram • Context Diagram displays context of business process • Always depicted as (how many?) process(es) with data flows to/from external entities • Data stores not shown
Level 0 Diagram • Displays all the process at the first level numbering including: • Data stores • External entities • Data flows • Depicts high level processes and how they are interrelated
Level 1 DFD • Decomposition of Level 0 DFD showing more detail of process • The level above a given process is called a parent • The level below a given process are called a what?
Flowcharts • Describe sequence and logic of procedures • Used after DFDs are established • Describe the mechanics of a process
Flowcharts Yes No Is it on list? Items on list > 0? Yes Check shelf For next item Put item In cart Start No Checkout End
Simple Activity Diagram Easy to create Easy to explain to users Extremely valuable!
Process Characteristics – Key Decisions Required 1. Degree of structure 2. Range of involvement 3. Level of integration 4. Rhythm 5. Complexity 6. Degree of reliance on machines 7. Prominence of planning and control 8. Attention to errors and exceptions
1. Degree of Structure • The degree of predetermined correspondence between input and output • How much flexibility is built into the process? • What are the three degrees of structure?
1. Degree of Structure • Imposing structure via MIS systems is easier and more effective when the (what?) is structured. • Too high: can be stifling and hamper productivity • Too low: can lead to poor quality and chaos
2. Range of Involvement • Organizational span of people involved in a business process • Do people just “do their jobs” or is their effect on other participants considered? • Too high: decisions never get made because everyone has input • Too low: decisions aren’t made with the “big picture” in mind
3. Level of Integration • Responsiveness and collaboration between activities Synergy • How well the groups work together • Too high: causes gridlock • Too low: creates inefficiencies
4. Rhythm • Rhythm is the frequency and timing of what in a process? • Important when considering E-Business because of 24x7x365 schedule • Too high: hard to adapt to changing business needs • Too low: hard to perform process efficiently
5. Complexity • How many elements a system contains and the number and nature of their interactions • Manage complexity through standardization • Too high: difficult to understand and manage • Too low: not flexible enough to accommodate needs of the system
6. Degree of Reliance on Machines • Too high • Participants no longer understand the business process • When mistakes occur, there is no recourse • Too low • Leave participants with mundane work • Missed opportunities for greater efficiency through automation
7. Prominence of Planning and Control • Too high • Not enough attention on execution • Resources are wasted • Too low • Inconsistency in the process and poor quality • Unresponsive to customer requirements
8. Attention to errors and exceptions • Remember the grocery shopping flowchart • This example could not accommodate the situation where a product is out of stock Yes No Is it on list? Items on list > 0? Yes Check shelf For next item Put item In cart Start No Checkout End