Basic Concepts for Understanding Systems

1. 2 Basic Concepts for Understanding Systems

2. Table 2.1 Processing Résumés Using Resumix

3. Table 2.1 Processing Résumés Using Resumix CUSTOMER Manager who needs to hire an employee Applicant who receives responses about a job application Government agency that receives reports about compliance to equal opportunity guidelines

4. Table 2.1 Processing Résumés Using Resumix PRODUCT List of applicants who fit the criteria Selected data items about each applicant Automatically generated rejection letters

5. Table 2.1 Processing Résumés Using Resumix • BUSINESS PROCESS • Major Steps: • Define the criteria for selecting applicants • Receive résumés • Scan résumés and extract data • Select applicants meeting criteria and forward their résumés to the hiring manager • Send out rejection letters • Track the hiring process • Store applicant data for future searches • Rationale: • Instead of finding appropriate candidates by searching through paper résumés, extract the information on the résumés and do the search automatically.

6. Table 2.1 Processing Résumés Using Resumix PARTICIPANTS Human resources employees Manager doing the hiring INFORMATION Description of job opening Scanned résumés converted into a database format List of qualified applicants TECHNOLOGY Résumix software Scanner Unidentified computers

7. Figure 2.1Examples of Models

8. Figure 2.2Viewing a firm as a system

9. Figure 2.3Primary processes for a hypothetical restaurant

10. Figure 2.4Business processes and functional areas of business

11. Figure 2.5Information technology, information systems, and work systems

12. Table 2.2Roles of information Systems within Work Systems Bar code scanners and computers identify the items sold and calculate the bill Work system supported by the information system: Performing customer checkout Aspects of the work system not included in the information system: Establishing personal contact with customers, putting the groceries in bags University registration system permits students to sign up for specific class sections Work system supported by the information system: Registering for classes Aspects of the work system not included in the information system: Deciding which classes to take and which sections to sign up for in order to have a good weekly schedule Word Processing system used for typing and revising chapters Work system supported by the information system: Writing a book Aspects of the work system not included in the information system: Deciding what to say in the book and how to say it

13. Table 2.2Roles of information Systems within Work Systems Interactive system top managers use to monitor their organization’s performance Work system supported by the information system: Keeping track of organizational performance Aspects of the work system not included in the information system: Talking to people to understand their views about what is happening System that identifies people by scanning and analyzing voice prints Work system supported by the information system: Preventing unauthorized access to restricted areas Aspects of the work system not included in the information system: Human guards, cameras, and other security measures

14. Figure 2.6The WCA framework for thinking about any system in business

15. Figure 2.7Who is a toy factory’s customer?

16. Figure 2.8Relationship between data, information, and knowledge

17. Table 2.3Issues Raised by Five Perspectives for Understanding a Work System • ARCHITECTURE • What are the components of the system that performs the work and who uses the work product? • How are the components linked? • How do the components operate together? • PERFORMANCE • How well do the components operate individually? • How well does the system operate? (How well is the work performed?) • How well should the system operate? • INFRASTRUCTURE • What technical and human infrastructure does the work rely on? • In what ways does infrastructure present opportunities or obstacles? • CONTEXT • What are the impacts of the organizational and technical context? • In what ways does the context present opportunities or obstacles? • RISKS • What foreseeable things can prevent the work from happening, • can make the work inefficient, or can cause defects in the work product? • What are the likely responses to these problems?

18. Figure 2.9From work system architecture to customer satisfaction

19. Table 2.4 Architecture, Perspective #1

20. Table 2.4 Architecture, Perspective #1 CUSTOMER Customer’s entire cycle of involvement with the product Requirements Acquisition Use Maintenance Retirement

21. Table 2.4 Architecture, Perspective #1 PRODUCT Components Information content Physical Content Service content

22. Table 2.4 Architecture, Perspective #1 • BUSINESS PROCESS • Process operation: • Processes providing inputs • Sequence and scheduling of major steps • Processes receiving the outputs • Process characteristics: • Degree of structure • Range of involvement • Level of integration • Complexity • Degree of reliance on machines • Linkage of planning, execution, and control • Attention to exceptions, errors, and malfunctions

23. Table 2.4 Architecture, Perspective #1 PARTICIPANTS Formal and informal organization: Job responsibilty Organization chart INFORMATION Major data files in the database: Data organization and access TECHNOLOGY Major components: Hardware Software

24. Table 2.5Performance, Perspective #2

25. Table 2.5Performance, Perspective #2 CUSTOMER Customer Satisfaction

26. Table 2.5Performance, Perspective #2 PRODUCT Cost Quality Responsiveness Reliability Conformance to standards and regulations

27. Table 2.5Performance, Perspective #2 BUSINESS PROCESS Rate of output Consistency Productivity Cycle time Flexibility Security

28. Table 2.5Performance, Perspective #2 PARTICIPANTS Skills Involvement Commitment Job satisfaction INFORMATION Quality Accessibility Presentation Prevention of unauthorized access TECHNOLOGY Functional capabilities Ease of use Compatibility Maintainability

29. Table 2.6Comparing Vague Descriptions, Measurements, and Interpretations ACCURACY OF INFORMATION Vague description: The information doesn’t seem very accurate. Measurement: 97.5% of the readings are correct within 5%. Interpretation:This is (or is not) accurate enough, given the way the information will be used. SKILLS OF PARTICIPATION Vague description: The sales people are very experienced. Measurement: Every salesperson has 5 or more years of experience; 60% have more than 10 years. Interpretation:This system is (or is not) approptiate for such experienced people. CYCLE TIME OF BUSINESS PROCESS Vague description: This business process seems to take a long time. Measurement: The three major steps take an average of 1.3 days each, but the waiting time between the steps is around 5 days. Interpretation:This is (or is not) better than the average for this industry, but we can (or cannot) improve by eliminating some of the waiting time. QUALITY OF THE WORK SYSTEM OUPUT Vague description: We produce top quality frozen food, but our customer’s aren’t enthusiastic. Measurement:65% of our customers rate it average or good even though our factory defect rate is only.003% Interpretation: Our manufacturing process does (or doesn’t) seem O.K., but we do (or don’t) need to improve customer satisfaction.

30. Table 2.7Infrastructure, Perspective #3

31. Table 2.7Infrastructure, Perspective #3 CUSTOMER Technical and human infrastructure the customer must have to use the product

32. Table 2.7Infrastructure, Perspective #3 PRODUCT Infrastructure related to information content Infrastructure related to physical content Infrastructure related to service content

33. Table 2.7Infrastructure, Perspective #3 BUSINESS PROCESS Infrastructure related to internal operation of the process Infrastructure related to inputs from other processes Infrastructure re;ated to transferring the product to other processes

34. Table 2.7Infrastructure, Perspective #3 PARTICIPANTS Shared human infrastructure INFORMATION Shared information infrastructure TECHNOLOGY Shared technology infrastructure

35. Table 2.8Context, Perspective #4

36. Table 2.8Context, Perspective #4 CUSTOMER Issues in the customer’s environment that may affect satisfaction or use Business and competitive climate

37. Table 2.8Context, Perspective #4 PRODUCT Substitute products Ways the customer might bypass this type of product altogether

38. Table 2.8Context, Perspective #4 BUSINESS PROCESS Organizational culture Concerns of stakeholders Organizational policies and initiatives Government regulations and industry standards

39. Table 2.8Context, Perspective #4 PARTICIPANTS Incentives Other responsibilities and job pressures INFORMATION Policies and practices regarding information sharing, privacy, etc. TECHNOLOGY Technology policies and practices Technology that may become available soon

40. Table 2.9Risk, Perspective #4

41. Table 2.9Risk, Perspective #4 CUSTOMER Customer dissatisfaction Interference by other stakeholders

42. Table 2.9Risk, Perspective #4 PRODUCT Inadequate or unreliable products Fraudulent products

43. Table 2.9Risk, Perspective #4 BUSINESS PROCESS Operator error Sloppy procedures Inadequate backup and recovery Mismatch between process requirements and participant’s abilities Unauthorized access to computers, programs, data

44. Table 2.9Risk, Perspective #4 PARTICIPANTS Crime by insiders or outsiders Inattention by participants Failure to follow procedures Inadequate training INFORMATION Data errors Fraudulent data Data theft TECHNOLOGY Equipment failure Software bugs Inadequate performance Inability to build common sense into information systems

45. Figure 2.10Steps in systems analysis for business professionals

46. Table 2.10Definitions of Topics in a System Snapshot

47. Table 2.10Definitions of Topics in a System Snapshot CUSTOMER Product used by: Internal or external customers who use or receive direct benefit from the product Other stakeholders: People who have a significant stake in the work system or its product even though they do not use the product directly and do not participate directly in the work system Infrastructure requirements: Infrastructure the customer should have to use the product effectively

48. Table 2.10Definitions of Topics in a System Snapshot PRODUCT Information content: The aspects of the product that consist of information Physical content: The aspects of the product that consist of physical things Service content: The aspects of the product that consist of services performed for specific customers

49. Table 2.10Definitions of Topics in a System Snapshot BUSINESS PROCESS Major steps: Listing the major steps in this business process Rationale: The overriding idea or approach that determined the process would be performed using the current approach rather than another Processes providing inputs: External processes outside the work system that produce inputs of information, physical things, or services needed in order for this business process to operate Processes receiving the product: The customer’s processes that receive and use the product of this work system

50. Table 2.10Definitions of Topics in a System Snapshot PARTICIPANTS People who perform the work Shared human infrastructure INFORMATION Created or modified within this system Received from other work system TECHNOLOGY Technology within the system Shared technology infrastructure