1. Business Process and Information Systems Development
Using MIS 4e Chapter 10
Business Process and Information Systems Development

2. 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?
Q ?
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3. Q1: Why Do Organizations Need to Manage Business Processes?
Activities—Transform resources and information of one type into resources and information of another type
Decisions—
A question that can be answered Yes or No
Roles—
Sets of procedures
Resources—People, or facilities, or computer programs that are assigned to roles
Repository—Collection of business records
Business Process
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4. Steps in Processing an Order
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5. Why Does This Process Need Management?
Processes that don’t work or work well
Change in technology
Change in business fundamentals:
Market (new customer category), product lines, supply chain, company policy, company organization (merger/acquisition), internationalization, business environment
Video
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6. Why Does This Process Need Management?
Does not produce desired result, or confusing
Misaligned with organization’s goals, objectives, or competitive strategy
Processes that don’t work or work well
Entire process needs to be evaluated when new technology changes any process activity in a significant way
Change in technology
Market (new customer category), product lines, supply chain, company policy, company organization (merger/acquisition), internationalization, business environment
Change in business fundamentals
Video
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7. Q2 What Are the Stages of Business Process Management (BPM)?
Continuous process improvement
new model
as-is model
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8. Scope of Business Process Management
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9. Model business processes
Q3 How Can BPMN Process Diagrams Help Identify and Solve Process Problems?
Blueprint for new process and system components. If models are incomplete and incorrect, components cannot be created correctly.
Model business processes
Created a standard set of terms and graphical notations for documenting business processes called Business Process Modeling Notation (BPMN), documented at
Object Management Group (OMG)
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10. Business Process Management Notation (BPMN) Symbols)
Business Process Modeling Notation (BPMN)
Object Management Group (OMG)
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11. Documenting the As-Is Business Order Process: Existing Ordering Process
Process flow or sequence of activities
Flow of messages and data
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12. Check Customer Credit Process
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13. Using Process Diagrams to Identify Process Problems
Operations Manager allocates inventory to orders as they are processed
Credit Manager allocates credit to customer of orders in process.
Allocations are correct if order is accepted
If rejected, allocations are not freed, and inventory is allocated that will not be ordered, and credit is extended for orders not processed
Possible fix: Define an independent process for Reject Order
Figures 10-5 and 10-6 have process problems
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14. How Can Business Processes Be Improved?
Brute-force approach
Don’t change process
Add more people or equipment
Change structure of process
Without changing resource allocations
Add resources
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15. Revised Order Process
Add resources to credit checking and change sequence of inventory and credit checking
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16. Fox Lake Wedding Planning and Facilities Maintenance Processes
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17. Q4: Which Comes First, Business Processes or Information Systems?
Information systems and business processes are not same thing
Information system are embedded within business processes,
There are activities in business processes not part of information system
A business process can utilize zero, one, or more information systems
A particular information system may be used by one or more business processes
How Are Business Processes and Information Systems Related?
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18. Fox Lake Processes Showing IS Components
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19. Many-to-Many Relationship of Business Processes and Information Systems
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20. Which Comes First? Business Processes First Identify System Need
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21. Information System First
Classic Five-Step Systems
Development Life Cycle
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22. Factor that overtakes all is off-the-shelf software
And the Answer Is . . .
Better to start with business processes
More likely to result in processes and systems that are aligned with the organization’s strategy and direction
In theory
Organizations today take both approaches.
In practice
If organization starts with business processes and selects application that works for those processes, most likely, application has features and functions needed by other business processes to be designed in future
Factor that overtakes all is off-the-shelf software
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23. Q5 What Are Systems Development Activities?
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24. SDLC: System Definition Phase
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25. How Is System Definition Accomplished?
Purpose: Increase revenue from wedding events
Goals: Eliminate or at least reveal schedule conflicts and improve maintenance tracking
Scope: Specify users or business processes that will be involved, or facilities, functions, and events that will be involved
Define scope for new Fox Lake system
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26. Form a Project Team
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27. Determine Requirements
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28. Design System Components
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29. Implementation Activities
Conversion types
Pilot
Phased
Parallel
Plunge
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30. System Conversion Choices
Pilot
Implement entire system in limited portion of business
Advantage—limits exposure to business if system fails
Phased
System installed in phases or modules
Each piece is installed and tested
Parallel
Complete new and old systems run simultaneously
Very safe, but expensive
Plunge
High risk if new system fails, no fall back system
Only used if new system not vital to company operation
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31. Design and Implementation for the Five Components
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32. System Maintenance Phase
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33. Q6: Why Are Business Processes and Systems Development Difficult & Risky?
Many projects are never finished. Those that finish often 200–300% over budget.
Some projects finish within budget and on schedule, but never satisfactorily accomplish their goals.
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34. Five Major Challenges to Systems Development
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35. Five Major Challenges to Systems Development (cont’d)
What specifically is system to do?
How does wedding planner use new system to reserve a room or building?
What does data entry screen look like?
How does planner add/reduce facilities once wedding scheduled?
What should system do when a wedding cancelled?
Facility schedule system interface with accounting systems? How?
Does system need to reserve floor or refrigerator space in restaurant kitchen?
Difficulty of requirements determination
Must create environment where difficult questions are asked and answered.
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36. Five Major Challenges to Systems Development (cont’d)
Changing requirements
Large, long projects aim at moving target
Scheduling and budgeting difficulties
How long to build it?
How long to create data model?
How long to build database applications?
How long to do testing?
How long to develop and document procedures?
How long for training?
How many labor hours? Labor cost?
What’s the rate of return on investment?
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37. Five Major Challenges to Systems Development (cont’d)
Changing Technology
Do you want to stop your development to switch to the new technology?
Would it be better to finish developing according to the existing plan?
Why build an out-of-date system?
Can you afford to keep changing the project?
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38. Five Major Challenges to Systems Development (cont’d)
Diseconomies of scale
Brooks’ Law
“Adding more people to a project makes the project later.”
New staff must be trained by productive members who lose productivity while training new members.
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39. • Create a work-breakdown structure
Q7: What Are the Keys for Successful Process and Systems Development Projects?
• Create a work-breakdown structure
• Estimate time and costs
• Create a project plan
• Adjust the plan via trade-offs
Manage development challenges
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40. Create a Work-Breakdown Structure (WBS)
WBS for Definition Phase of Order-Entry System
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41. How Does a Work-Breakdown Structure Drive Project Management?
Hierarchy of tasks required to complete a project
Each task ends with deliverables
Documents, designs, prototypes, data models, database designs, working data entry screens, etc.
Identifies task dependencies
Estimate task duration, cost, and labor needed
Created with project management software, such as Microsoft Project
Work-Breakdown Structure (WBS)
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42. Estimate Time and Costs
License packages that include both business processes and information systems components
Avoid major schedule risks and never develop systems and software in-house
Only loose commitments made regarding completion date and final system functionality
“We don’t know”
Past projects, if any
Lines of code and industry or company averages to estimate time required
Best estimates
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43. Gantt Chart of the WBS for the Definition Phase of a Project
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44. Create a Project Plan: Gantt Chart with Resources Assigned
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45. Critical Path Analysis
Sequence of activities that determine earliest completion date
Longest path through network of activities
Tasks dependencies compressed as much as possible
Tasks may be moved to noncritical paths to shorten critical path
Tasks on path, if late, will delay project completion
Move critical path tasks to noncritical path to shorten project schedule (sometimes)
Baseline WBS (final WBS)
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46. Adjust Plan via Trade-offs
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47. Manage Development Challenges
Independent groups might reside in different locations
Coordination
Adding people leads to exponential interactions, makes project later
Diseconomies of scale
Set of management policies, practices, tools to maintain control over resources
Configuration control
Chance of disruption from unanticipated events
Unexpected events
Pure thought stuff leads to wasted hours, increased costs, poor morale
Maintaining team morale over time
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48. Q8: 2021?
Continuing focus on aligning business processes and information systems with business strategy, goals, and objectives
Computer systems will be more easily changed and adapted in the future
Emergence of new software vendor business models
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49. Active Review Q1: What is systems development?
Q2: Why is systems development difficult and risky?
Q3: What are the five phases of the SDLC?
Q4: How is system definition accomplished?
Q5: What is the users’ role in the requirements phase?
Q6: How are the five components designed?
Q7: How is an information system implemented?
Q8: What are the tasks for system maintenance?
Q9: What are some of the problems with the SDLC?
How does the knowledge in this chapter help Fox Lake and you?
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