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Dr. Chen, Management Information Systems PART IV: Chapter Topics Chapter 10: Business Process & Information Systems Development Two closely related and.

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Presentation on theme: "Dr. Chen, Management Information Systems PART IV: Chapter Topics Chapter 10: Business Process & Information Systems Development Two closely related and."— Presentation transcript:

1 Dr. Chen, Management Information Systems PART IV: Chapter Topics Chapter 10: Business Process & Information Systems Development Two closely related and overlapping themes are examined Chapter 11: Information Systems Management Goal of the chapter is to give an appreciation for the responsibilities of IS management and to be an effective consumer of IS services Chapter 12: Information Security Management Provides an overview of the major components of information systems security 1

2 Dr. Chen, Management Information Systems Fox Lake Chapter 10 Examines how Fox Lake could define new business processes and an information system to support those processes Chapter 11 Investigates what Fox Lake is and is not doing with regard to management of IS resources Chapter 12 Discusses why Fox Lakes information systems are particularly vulnerable to computer misuse and crime 2

3 Dr. Chen, Management Information Systems Chapter 10 Business Process and Information Systems Jason C. H. Chen, Ph.D. Professor of MIS School of Business Administration Gonzaga University Spokane, WA

4 Dr. Chen, Management Information Systems Youre Not Going to Take Your Vera Wang Gown into a Porta Potty. Bathrooms not cleaned on busy Saturdays or repaired on weekends Plumbing not designed for large crowds Didnt think through consequences of wedding events business. Didnt know how wedding business would impact everything else. Business analyst, Laura, hired to help 4

5 Dr. Chen, Management Information Systems 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? Q8: 2022? 5

6 Dr. Chen, Management Information Systems Video The Golden Rules for Managers 119 Incredible Lesson for Leadership Success (2:09) feature=relatedhttp://www.youtube.com/watch?v=pai00rCJSJU& feature=related 6

7 Dr. Chen, Management Information Systems What are Business Process and Business Process Management? Business process: A set of logically related tasks performed to achieved a defined business outcome Business process management (BPM) is a management approach focused on aligning all aspects of an organization with the wants and needs of clients. It is a holistic management approach [1] that promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. [1] Dr. Chen, The Trends of the Information Systems Technology TM -7 7

8 Dr. Chen, Management Information Systems Customer centric Who are the customers? Where are the customers? Their purchasing habits What they need/want? How many they need/want? When they need/want? How to reach them? Demands Products/ Services IS/E-BUSINESS BUSINESS VALUE & FOCUS – IS Perspective SCM CRM BPR ERP Value Business Models & Strategies 8

9 Dr. Chen, Management Information Systems Q1:Why Do Organizations Need to Manage Business Processes? Reasons for change Improve process quality Change in technology Change in business fundamentals –Market –Product lines –Supply chain –Company policy –Company organization –Internationalization –Business environment 9

10 Dr. Chen, Management Information Systems Steps in Processing an Order Fig 10-1: Steps in Processing an Order 10

11 Dr. Chen, Management Information Systems Business Process Management (BPM) Systematic process of creating, assessing, altering business processes (and is an iteration process). Four stages of BPM 1.Create model of business process components Users review and adjust model As-is model documents current process; it is changed to solve process problems 2.Create system components Uses five elements of IS (hardware, software, data, procedures, people) 3.Implement business process 4.Create policy for ongoing assessment of process effectiveness Adjust and repeat cycles 2: What Are the Stages of Business Process Management (BPM)? 11

12 Dr. Chen, Management Information Systems Stages in the BPM Cycle 12 [2] [1] [3] [4] policy creation and assessment Fig 10-2: Stages in the BPM Cycle

13 Dr. Chen, Management Information Systems Q/A 13 T/F: Business Process Management (BPM) is a one-time process for systematically creating, assessing, and altering business processes. Answer: ______ In business process management, once the as-is model is created, the team must ________. A) obtain feedback about implementation B) assess the results of the changes C) create system components D) implement changes in the organization Answer: ________

14 Dr. Chen, Management Information Systems Scope of Business Process Management Fig 10-3: Scope of Business Process Management 14 BPM can apply only to commercial, profit-making organizations but also nonprofit and government organizations

15 Dr. Chen, Management Information Systems Critical for a team to agree on both what is and what ought to be. Must have some notation for documenting processes and one common standard for creating process documentation. Dozens of definitions are used by authors, industry analysts, and software products. Q3: How Can BPMN Process Diagrams Help Identify and Solve Process Problems? 15

16 Dr. Chen, Management Information Systems These differences and inconsistencies can be problematic when two different organizations with two different sets of definitions must work together. Object Management Group (OMG) created a standard set of terms and graphical notations for documenting business processes. That standard, called Business Process Modeling Notation (BPMN), is documented at Need for Standard for Business Processing Notation 16

17 Dr. Chen, Management Information Systems Fig 10-4: Business Process Management Notation (BPMN) Symbols 17

18 Dr. Chen, Management Information Systems Documenting the As-Is Business Order Process: Existing Ordering Process Fig 10-5: Existing Ordering Process 18 Each role in the business process is given its own swim lane.

19 Dr. Chen, Management Information Systems Fig 10-6: Check Customer Credit Process 19

20 Dr. Chen, Management Information Systems Q/A 20 T/F: In a BPMN process diagram, the swim-lane layout is used to simplify process diagrams and to draw attention to interactions among components of the diagram. Answer: ________ BPMN: Business Process Management _________ Notation

21 Dr. Chen, Management Information Systems Using Process Diagrams to Identify Process Problems Process problems 1.Operations Manager allocates inventory to orders as processed 2.Credit Manager allocates customer credit for orders in process. Allocations correct, if order accepted If rejected, allocations not freed, inventory still allocated and credit extended for orders not processed Possible fix: Define an independent process for Reject Order (UYK#3 p.383) 21

22 Dr. Chen, Management Information Systems How Can Business Processes Be Improved? 1.Add more ________ Adds costs unless efficiencies of scale 2.Change _______ structure Reduce work and costs Increase costs and increase effectiveness to offset 3. _________ 22

23 Dr. Chen, Management Information Systems Fig 10-7: Revised Order Process 23

24 Dr. Chen, Management Information Systems Fig 10-8: Fox Lake Wedding Planning and Facilities Maintenance Processes 24

25 Dr. Chen, Management Information Systems Q4: Which Comes First, Business Processes or Information Systems? Fig 10-9: Fox Lake Processes Showing IS Components 25

26 Dr. Chen, Management Information Systems Fig 10-10: Many-to-Many Relationship of Business Processes and Information Systems 26

27 Dr. Chen, Management Information Systems Build Business Processes First Fig 10-11: BPM and Systems Development 27 Starting from processes and working toward Information Systems (IS) is likely to work well for the business process under consideration, but will cause problems later, for other processes that use the same IS. next stage [2] [1] [3] [4] policy creation and assessment

28 Dr. Chen, Management Information Systems Build Information System First Fig 10-12: Classic Five-Step Systems Development Life Cycle 28 This development process makes business processes a poor step-child of the IS development process as BP can include many activities that are not part of the IS.

29 Dr. Chen, Management Information Systems Why systems development is needed? While you may be able to purchase an off-the-shelf software program, you wont be able to do that with information systems. Here are some of the reasons why: You must construct or adapt procedures to fit the business and the people who will be using the system. You cant buy procedures. People must be trained to use the information system effectively. You cant buy that. Users must take ownership of their system. Thats the single most important criterion for the success of an information system. Information system maintenance involves two things: Fixing a system to make it do what it should have done in the first place, or Adapting it to changing requirements. 29

30 Dr. Chen, Management Information Systems 30 Systems Development Is Not Just for Techies Establishing the systems goals, setting up the project, and determining requirements require business knowledge and management skill. Tasks such as building computer networks and writing computer programs require technical skills. Developing the other components requires nontechnical, human relations skills.

31 Dr. Chen, Management Information Systems 31 Nontechnical, Human Relations Skills Required Creating data models requires the ability to interview users and understand their view of the business activities. Designing procedures, especially those involving group action, requires business knowledge and an understanding of group dynamics. Developing job descriptions, staffing, and training all require human resource and related expertise. Coordinated teamwork of both specialists and nonspecialists with business knowledge.

32 Dr. Chen, Management Information Systems 32 How Do Businesses Use the SDLC Process? 1.Systems definition Managements statement of objective and goals for new system 2.Requirements analysis Identify features and functions 3.Component design (hardware, software, network) Based on approved user requirements 4.Implementation Purchase, build, test, and convert to new system 5.System maintenance (fix or enhance) Repair, add new features, maintain See steps.html

33 Dr. Chen, Management Information Systems Another Factor: Off-the-Shelf Software If starting with business processes first –Likely to choose package for processes being developed, but not for later processes If starting with information systems first –Likely to choose package that works for all users, but, business processes will get short shrift. 33

34 Dr. Chen, Management Information Systems And the Answer Is... In theory: Better to start with ___________________ More likely to result in processes and systems that are aligned with the organizations strategy and direction In practice: Organizations take both approaches Off-the-shelf software: Start with business processes and select off-the- shelf application that works for those processes Why? 34

35 Dr. Chen, Management Information Systems And the Answer Is... In theory: Better to start with ___________________ More likely to result in processes and systems that are aligned with the organizations strategy and direction In practice: Organizations take both approaches Off-the-shelf software: Start with business processes and select application that works for those processes 35

36 Dr. Chen, Management Information Systems Q/A 36 Which of the following is true for the relationship between business processes and information systems? A) Developing information systems before business processes ensures that all activities are considered in the development process. B) Information systems incorporate all business process activities, and hence should be developed before business processes. C) Starting from processes and working toward information systems is the best option to anticipate future demands and new business processes. D) Starting with processes and working toward systems is more likely to result in processes and systems that are aligned with the organization's strategy and direction. Answer: ______

37 Dr. Chen, Management Information Systems SDLC What does SDLC stand for? Systems Development Life Cycle List the phases of SDLC Analysis Design Implementation Maintenance 37

38 Dr. Chen, Management Information Systems 38 4: What Are Systems Development Activities? 1.Systems definition Managements statement of objective and goals for new system 2.Requirements analysis Identify features and functions 3.Component design (hardware, software, network) Based on approved user requirements 4.Implementation Purchase, build, test, and convert to new system 5.System maintenance (fix or enhance) Repair, add new features, maintain Analysis

39 Dr. Chen, Management Information Systems 4: What Are Systems Development Activities? Fig 10-13: BPM Provides Requirements for Systems Development 39 [1] [2] [4] [3a] [3b] [5] (Feasibility Study) What is it and Why it is important?

40 Dr. Chen, Management Information Systems Define System Goals and Scope Fig 10-14: SDLC: System Definition Phase 40

41 Dr. Chen, Management Information Systems 41 How Is System Definition Accomplished? 1.(b.) Define scope for new system Defined by customers, users involved, business processes impacted, physical location, functional area Clear definition of scope simplifies Requirements determination Coordination and other work

42 Dr. Chen, Management Information Systems 42 Assess Feasibility Dimensions of feasibility ______ feasibility Approximated, back-of-the-envelope analysis Purpose: eliminate infeasible ideas early Consider cost of previous projects, operational and labor costs __________ feasibility Ball park estimate __________ feasibility Is it technically likely to meet needs? _____________ feasibility Fit with customs, culture, charter, legal requirements of organization ___________________ feasibility Is the proposed system legally? Cost Schedule Technical Organizational

43 Dr. Chen, Management Information Systems Systems Definition/Investigation (Feasibility Study) Operational Feasibility Schedule Feasibility Economic Feasibility Technical Feasibility Can we afford it?Will it be accepted? Does the IT capability exist? Will it be completed by the deadline? Legal and Contractual Feasibility Is the proposed system legally? Organizational Feasibility (Is it a good fit – objective of the organization 43 What are new from the last slide?

44 Dr. Chen, Management Information Systems 44 Form a Project Team Typical three personnel on a development team are: Manager (or mangers for larger projects) Specialist: System analysts Programmers Software testers or, other functional specialist such as accounting, finance, and marketing Users: Users must be involved in most of SDLC phases Depending on nature of project, team may also include hardware and communications specialists, database designers and administrators, and other IT specialists.

45 Dr. Chen, Management Information Systems 45 Form a Project Team Team composition changes over time. During requirements definition, the team will be heavy with systems analysts. During design and implementation, it will be heavy with programmers, testers, and database designers. During integrated testing and conversion, the team will be augmented with testers and business users.

46 Dr. Chen, Management Information Systems 46 Business and Systems Analysts Business Analysts Someone who are well versed in Porters models, organizational strategy, and system alignment theory and who also understand the proper role for technology. IS professionals who understand both business and technology. They are active throughout the systems development process and play a key role in moving the project through the systems development process. Systems analysts integrate the work of the programmers, testers, and users.

47 Dr. Chen, Management Information Systems Fig 10-15: Focus of Personnel Involved in BPM and Systems Development 47

48 Dr. Chen, Management Information Systems Fig SDLC: Requirements Analysis Phase System Analysts are IS professionals who understand both business and technology. The most important phase in the SDLC process is to determine system requirements. If the requirements are wrong, the system will be wrong. Seven activities occur in this phase as the diagram shows. Users are a critical part of this phase. They must approve the requirements before moving to the next phase. Phase Two: Requirements Analysis 48

49 Dr. Chen, Management Information Systems Phase Three: Component Design: Design Tasks Pertain to Each of the Five IS Components Fig 10-17: SDLC: Component Design Phase All five components require attention in the design phase: HardwareDetermine the specifications and evaluate alternatives against the requirements. Purchase it, lease it, or lease time from hosting service ProgramsDecide whether to use off-the-shelf software, off-the-shelf with alterations, or custom-developed software. DatabaseConvert the data model to a database design. ProceduresDesign procedures for users, operations personnel, and for normal, backup, and failure recovery tasks. PeopleDesign job descriptions for users and operations personnel. You may have to add new jobs or alter existing jobs. 49

50 Dr. Chen, Management Information Systems Q/A 50 T/F: If a project involves off-the-shelf programs, then little database design needs to be done. Answer: ________

51 Dr. Chen, Management Information Systems Phase Four: Implementation 51 Fig 10-18: SDLC: Implementation Phase Focuses on implementing the system and includes the tasks of building each of the five system components testing the system and converting users to the new system.

52 Dr. Chen, Management Information Systems 52 System Conversion Approaches 1. Pilot Implement entire system in limited portion of business MRV uses system for selected customers. Advantage: limits exposure to business if system fails 2. Phased System is installed in phases or modules. Each piece is installed and tested. 3. Parallel Complete new and old systems run simultaneously Very safe, but expensive 4. Plunge (or direct) High risk if new system fails, no old system to fall back on Only used if new system is not vital to company operation

53 Dr. Chen, Management Information Systems Installation Conversion Methods: 4 Ps Old System New System Old System New System Old System New System Old System New System Parallel Pilot Phased Plunge/ Direct Cut-over time 53

54 Dr. Chen, Management Information Systems Design and Implementation for the Five Components Fig 10-19: Design and Implementation for the Five Components 54

55 Dr. Chen, Management Information Systems SDLC: System Maintenance Phase (5) Fig 10-20: 55

56 Dr. Chen, Management Information Systems Causes of Information Systems Failures 35+ years of research on causes of information systems failures 1.Lack of user __________ 2.Unclear, incomplete, and inconsistent ___________ 3.Changing requirements and specifications Many businesses __________ research findings involvement. requirements. ignore

57 Dr. Chen, Management Information Systems 57 Q6:Why Are Business Processes and Systems Development Difficult & Risky? SDLC ________ Sequence of nonrepeated phases It rarely works smoothly, causing development team to go back and forth, raising costs and delaying project Requirements documentation difficulty Business requirements sometimes change making documented requirements incomplete or obsolete Analysis paralysisprojects spend so much time on documentation that it hampers progress Scheduling and budgeting difficulties Time and cost estimates for large project are usually way off People who make initial estimates know little about how long it will take or cost 10-57

58 Dr. Chen, Management Information Systems Q6. Why Are Business Processes and Systems Development Difficult & Risky? (cont.) Changing Technology While the project is underway, technology continues to change. Diseconomies of Scale As development teams become larger, the average contribution per worker decreases. Brooks Law: Adding more people to a late project makes the project later. 58

59 Dr. Chen, Management Information Systems Fig 10-21: Major Challenges to System Development 59 1a 1b 2 3 4

60 Dr. Chen, Management Information Systems Q7: What Are the Keys for Successful Process and Systems Development Projects? Create a work-breakdown structure (WBS) –Break project into smaller tasks until each task is small enough to estimate and manage –Every task results in deliverables Estimate time and costs Create a project plan Adjust the plan via trade-offs Manage development challenges 60

61 Dr. Chen, Management Information Systems Fig 10-22: Create a Work- Breakdown Structure (WBS) 61

62 Dr. Chen, Management Information Systems Gantt Chart of the WBS for the Definition Phase of a Project 62

63 Dr. Chen, Management Information Systems Create a Project Plan: Gantt Chart with Assigned Resources & Critical Path 63

64 Dr. Chen, Management Information Systems Project Triangle (Project Management Trade-offs) Time Cost Scope (Requirements) The objective of the PM is to define projects scope realistically and ultimately deliver quality of product/service on time, on budget and within scope. The center of project triangle is ________

65 Dr. Chen, Management Information Systems 65 Trade-Offs in Requirements, Cost, and Time? Balancing development drivers 1.Requirements (scope) 2.Cost 3.Time Trade-offs 1.Elaborate requirements increase costs and time 2.Time can be reduced to a point w/o adding costs 3.Increasing time may reduce or increase costs 4.If schedule needs to be shortened, two alternatives available: reduce requirements or add labor 5.Adding more people creates diseconomies of scale (Brooks Law)

66 Dr. Chen, Management Information Systems Adjust Plan via Trade-offs: Trade-offs Among Requirements, Schedule, and Cost? Insert Figure here (Figure CE19-2 in Experiencing MIS 2/e) 66

67 Dr. Chen, Management Information Systems Manage Development Challenges Critical Factors 1.Coordination 2.Diseconomies of scale 3.Configuration control 4.Unexpected events 5.Team morale 67

68 Dr. Chen, Management Information Systems Q8: 2022? 1.Users more knowledgeable and demanding 2.More agile systems using SOA and other techniques 3.More Cloud-based development 4.Emergence of new software vendor business models 68

69 Dr. Chen, Management Information Systems End of Chapter 10 69


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