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.

2 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

3 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

4 Options for Obtaining Information Systems

5 System Construction Structured process moving through steps Problem decomposition Problems broken up into simpler, smaller pieces

6 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

7 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

8 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

9 Phase 1: Systems Identification, Selection and Planning

10 Evaluation Criteria for Systems Projects Usually multiple criteria examined for each project

11 Phase 2: Systems Analysis Designers gain understanding of current processes

12 System Analysis

13 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

14 Phase 3: System Design

15 Phase 4: System Implementation Transformation of design into a working information system

16 System Conversion and installation What are advantages and disadvantages of each of these approaches?

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

18 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

19 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

20 Why Business Processes? An understanding of business processes indicates where Information Technology can fit in How to understand business processes Process modeling Process characteristics

21 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

22 DFD Symbols

23 Simple DFD Example Buying Groceries - Context diagram Shopper Store Buy groceries Grocery needs Order/Payment Bill

24 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

25 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

26 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

27 Degree of Structure Imposing structure via Information Technology easier when the task is structured Computers 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

28 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

29 Level of Integration Responsiveness and collaboration between activities  Synergy How well the groups work together Too high: causes gridlock Too low: creates inefficiencies

30 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

31 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

32 Degree of Reliance on Machines Too high Participants no longer understand the business process When mistakes occur, there is no recourse Too low Leave participants with mundane work Missed opportunities for greater efficiency through automation

33 Prominence of Planning and Control Too high Not enough attention on execution Resources are wasted Too low Inconsistency in the process and poor quality Unresponsive to customer requirements

34 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 it on list? Put item In cart Items on list > 0? Check shelf For next item Checkout Yes No Start End

35 Attention to errors and exceptions Too high Catering too much to all possible conditions can be a waste of resources Increases system complexity Too low Every time something unexpected happens it can shut down the process Unexpected conditions simply never get processed, resulting in poor quality

36 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

37 Prototyping, RAD and OOA&D

38 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?

39 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

40 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?

41 End-User Development Growing sophistication of users Actual future users of the system are the system’s developers Application development may be faster No need to rely on external entities

42 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