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

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Presentation on theme: "Business Process and Information Systems Development Using MIS 4e Chapter 10."— Presentation transcript:

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

2 Study Questions Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 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 2021? 10-2

3 Q1:Why Do Organizations Need to Manage Business Processes? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 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 10-3 Business Process

4 Steps in Processing an Order 10-4 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

5 Processes that dont 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 Why Does This Process Need Management? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-5

6 Video Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-6 Does not produce desired result, or confusing Misaligned with organizations goals, objectives, or competitive strategy Processes that dont 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 Why Does This Process Need Management?

7 Q2 What Are the Stages of Business Process Management (BPM)? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall as-is model Continuous process improvement new model 10-7

8 Scope of Business Process Management Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-8

9 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) Q3 How Can BPMN Process Diagrams Help Identify and Solve Process Problems? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-9

10 Business Process Management Notation (BPMN) Symbols) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Object Management Group (OMG) Business Process Modeling Notation (BPMN) 10-10

11 Documenting the As-Is Business Order Process: Existing Ordering Process Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Flow of messages and data Process flow or sequence of activities 10-11

12 Check Customer Credit Process Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-12

13 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 Using Process Diagrams to Identify Process Problems Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

14 Brute-force approach Dont change process Add more people or equipment Change structure of process Without changing resource allocations Add resources How Can Business Processes Be Improved? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

15 Revised Order Process Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Add resources to credit checking and change sequence of inventory and credit checking 10-15

16 Fox Lake Wedding Planning and Facilities Maintenance Processes Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-16

17 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? Q4: Which Comes First, Business Processes or Information Systems? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-17

18 Fox Lake Processes Showing IS Components Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-18

19 Many-to-Many Relationship of Business Processes and Information Systems Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-19

20 Business Processes First Which Comes First? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Identify System Need

21 Information System First Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Classic Five- Step Systems Development Life Cycle 10-21

22 Better to start with business processes More likely to result in processes and systems that are aligned with the organizations 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 And the Answer Is... Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-22

23 Q5 What Are Systems Development Activities? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-23

24 SDLC: System Definition Phase Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-24

25 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 How Is System Definition Accomplished? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-25

26 Form a Project Team Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-26

27 Determine Requirements Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-27

28 Design System Components Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-28

29 Implementation Activities Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Conversion types 1.Pilot 2.Phased 3.Parallel 4.Plunge 10-29

30 System Conversion Choices Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Pilot Implement entire system in limited portion of business Advantagelimits 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

31 Design and Implementation for the Five Components Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-31

32 System Maintenance Phase Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-32

33 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. Q6:Why Are Business Processes and Systems Development Difficult & Risky? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

34 Five Major Challenges to Systems Development Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-34

35 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. Five Major Challenges to Systems Development (contd) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

36 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? Whats the rate of return on investment? Five Major Challenges to Systems Development (contd) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-36

37 Changing Technology Five Major Challenges to Systems Development (contd) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 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? 10-37

38 Diseconomies of scale Brooks Law Adding more people to a project makes the project later. Five Major Challenges to Systems Development (contd) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall New staff must be trained by productive members who lose productivity while training new members

39 Create a work-breakdown structure Estimate time and costs Create a project plan Adjust the plan via trade-offs Manage development challenges Q7: What Are the Keys for Successful Process and Systems Development Projects? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-39

40 Create a Work-Breakdown Structure (WBS) Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall WBS for Definition Phase of Order-Entry System

41 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)WBS How Does a Work-Breakdown Structure Drive Project Management? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-41

42 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 dont know Past projects, if any Lines of code and industry or company averages to estimate time required MOII/cocomo_main.htmlhttp://sunset.usc.edu/csse/research/COCO MOII/cocomo_main.html Best estimates Estimate Time and Costs Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-42

43 Gantt Chart of the WBS for the Definition Phase of a Project Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

44 Create a Project Plan: Gantt Chart with Resources Assigned Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-44

45 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) Critical Path Analysis Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-45

46 Adjust Plan via Trade-offs Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-46

47 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 Manage Development Challenges Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-47

48 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 Q8: 2021? Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 10-48

49 Active Review Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 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? 10-49


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