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Business Processes and Process Modeling MIS 2101: Management Information Systems 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, and Cindy Joy Marselis.

Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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Page 1: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

Business Processes and Process ModelingMIS 2101: Management Information Systems

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, and Cindy Joy Marselis.

Page 2: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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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

Describe process characteristics and design tradeoffs

Understand development options

Page 3: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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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

Describe process characteristics and design tradeoffs

Understand development options

Page 4: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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Options for Obtaining Information Systems

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System Construction

Structured process moving through steps

Problem decomposition Problems

broken up into simpler, smaller pieces

Page 6: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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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

Describe process characteristics and design tradeoffs

Understand development options

Page 7: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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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

Describe process characteristics and design tradeoffs

Understand development options

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Steps in the Systems Development Process

Systems development life cycle (SDLC) Arrows flowing down represent flow of information Arrows flowing up represent the possibility of returning to a prior

phase

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Phase 1: Systems Identification, Selection and Planning

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Evaluation Criteria for Systems Projects

Usually multiple criteria examined for each project

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Phase 2: Systems Analysis

• Designers gain understanding of current processes

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System Analysis

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Looking at Business Processes

A business process is an activity that creates value

Business Process Reengineering is the redesign of business processes using Information Technology

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Phase 3: System Design

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Phase 4: System Implementation

Transformation of design into a working information system

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System Conversion and installation

What are advantages and disadvantages of each of these approaches?

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System Maintenance

Typically starts after software is installed The largest part of system development effort occurs at this

stage

Page 18: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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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

Describe process characteristics and design tradeoffs

Understand development options

Page 19: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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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

Describe process characteristics and design tradeoffs

Understand development options

Page 20: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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Why Business Processes?

An understanding of business processes indicates where Information Technology can fit in

How to understand business processesProcess modelingProcess characteristics

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Process Model – Part of Analysis

Formal method of representing how business system operates.

Illustrates processes or activities performed and how data moves among them

Can use process mode to document current system or proposed system

Identifying business processes and breaking them down Can help identify inefficiencies Can help identify where Information Technology can

improve efficiency

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DFD Symbols

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Simple DFD Example

Buying Groceries - Context diagram

Shopper StoreBuy groceries

Grocery needsOrder/

Payment

Bill

Page 24: Business Processes and Process Modeling MIS 2101: Management Information Systems Based on material from Information Systems Today: Managing in the Digital

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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

Describe process characteristics and design tradeoffs

Understand development options

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Process Characteristics – Key Decisions Required

Degree of structure Range of involvement Level of integration Rhythm Complexity Degree of reliance on machines Prominence of planning and control Attention to errors and exceptions

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Degree of Structure

The degree of predetermined correspondence between input and output

How much flexibility is built into the process? The degrees

Structured – very well defined, easy to determine success

Semi-structured – not always the same, some judgment required

Unstructured – not well defined, hard to determine what success means

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Degree of Structure

Imposing structure via Information Technology easier when the task is structuredComputers are not as effective with

unstructured tasks (Decision Support Systems)

Too high: can be stifling and hamper productivity

Too low: can lead to poor quality and chaos

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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

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Level of Integration

Responsiveness and collaboration between activities Synergy

How well the groups work together Too high: causes gridlock Too low: creates inefficiencies

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Rhythm

Frequency and timing of transactions 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

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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

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Degree of Reliance on Machines

Too highParticipants no longer understand the

business processWhen mistakes occur, there is no recourse

Too lowLeave participants with mundane workMissed opportunities for greater efficiency

through automation

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Prominence of Planning and Control

Too highNot enough attention on executionResources are wasted

Too lowInconsistency in the process and poor

qualityUnresponsive to customer requirements

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Attention to errors and exceptions

Remember the grocery shopping flowchart This example could not accommodate the situation

where a product is out of stock

Is iton list?

Put itemIn cart

Items on list > 0?

Check shelfFor next item

Checkout

Yes

Yes

No

No

Start

End

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Attention to errors and exceptions

Too highCatering too much to all possible conditions

can be a waste of resourcesIncreases system complexity

Too lowEvery time something unexpected happens

it can shut down the processUnexpected conditions simply never get

processed, resulting in poor quality

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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

Describe process characteristics and design tradeoffs

Understand development options

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Prototyping, RAD and OOA&D

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External Acquisition vs building

Purchasing an existing system is similar to the process of deciding which car best meets your needs

When is it appropriate?

When is it not appropriate?

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Initial steps in External Acquisition

1. System identification, selection and planning

2. Systems analysis

3. Development of a request for proposal

4. Proposal evaluation

5. Vendor selection

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Outsourcing Turning over responsibility for some or all of an

organization’s IS development and operations to an outside firm

Your IS solutions may be housed in their organization Your applications may be run on their computers They may develop systems to run on your existing

computers (within your organization) They may replace functions in your organization. . . .

Even the CIO! When is outsourcing appropriate? When is it not?

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End-User Development

Growing sophistication of users Actual future users of the system are

the system’s developers Application development may be

fasterNo need to rely on external entities

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End-User Development Pitfalls

Users may not be aware of important standards Need for adequate

documentation Built-in error checking Testing

Potential lack of continuity