Process Business Management (PBM)n

  

Business Process and

Information Systems

Development

  Using MIS 4e 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 frst, business processes or information systems? Q5 What are systems development activities? Q6 Why are business processes and systems development difcult and risky? Q7 What are the keys for successful process and systems development projects? Q8 2021?

  Q1: Why Do Organizations Need to Manage Business Processes?

  Activities _{Transform — Resource s— informatio Sets of} resources _{and Decisions Roles— Repositor — facilities, People, or Collectio y— resources type into} n of one _{question es that can A procedur computer programs or business n of informatio n of} and _{answered Yes or No be assigned that are records} another _{to roles type} Business Process Steps in Processing an Order

  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

   Why Does This Process Need Management?

  Processes

• Does not produce desired result, or

  that don’t confusing work or work •Misaligned with organization’s goals, objectives, or competitive strategy well

• Entire process needs to be evaluated

  Change in when new technology changes any technology process activity in a signifcant way

• Market (new customer category),

  Change in product lines, supply chain, company policy, company organization business

  (merger/acquisition), fundamental internationalization, business s environment

   Q2 What Are the Stages of Business Process Management (BPM)?

  as-is model ^{Continuous process}

^improveme

^{nt new model} Scope of Business Process Management

  Q3 How Can BPMN Process Diagrams Help Identify and Solve Process Problems?

• Blueprint for new process and

  Model system components. If models are incomplete and incorrect, business components cannot be created processes correctly.

• Created a standard set of terms

  Object and graphical notations for

  

Manageme documenting business processes

called Business Process nt Group

  Modeling Notation (BPMN), (OMG) documented at . Business Process Management Notation (BPMN) Symbols)

   Group (OMG) Documenting the As-Is Business Order Process: Existing Ordering Process

  Flow of _{messages and data} ^{Process fow or sequence of activities} Check Customer Credit Process

  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.

  Figures 10-5

• Allocations are correct if order is accepted

  and 10-6

• If rejected, allocations are not

  have process freed, and inventory is allocated problems that will not be ordered, and credit is extended for orders not processed

• Possible fx: Defne an independent process for Reject Order

How Can Business Processes Be Improved?

  Change Brute-force structure of approach process

• Don’t change • Without process

  changing resource

• Add more allocations people or equipment • Add resources

Revised Order Process

  Add resources to credit checking and change sequence of inventory and credit checking Fox Lake Wedding Planning and Facilities Maintenance Processes

  Q4: Which Comes First, Business Processes or Information Systems?

• Information systems and business processes are not same thing

  How Are

• Information system are embedded within business

  Business processes,

  Processes

• There are activities in business processes not part of information

  and system

  Informatio

• A business process can utilize

  n Systems zero, one, or more information systems

  Related?

• A particular information system may be used by one or more business processes

Fox Lake Processes Showing IS Components

  Many-to-Many Relationship of Business Processes and Information Systems

  Business Processes First

  Which Comes First?

  Identify _{System Need} Information System First

  Classic Five- Step Systems Developmen t Life Cycle And the Answer Is . . .

• Better to start with business processes
• More likely to result in processes and

  In theory systems that are aligned with the organization’s strategy and direction

• Organizations today take both

  In practice approaches.

  Factor that

• If organization starts with business processes and selects application

  overtakes that works for those processes, most all is of- likely, application has features and functions needed by other business the-shelf processes to be designed in future software Q5 What Are Systems Development Activities?

  SDLC: System Defnition Phase

  How Is System Defnition Accomplished?

• Purpose: Increase revenue from wedding events
• Goals: Eliminate or at least

  Defne reveal schedule conficts scope for and improve maintenance tracking new Fox Lake

• Scope: Specify users or

  system business processes that will be involved, or facilities, functions, and events that will be involved Form a Project Team

  Determine Requirements

  Design System Components

  Implementation Activities

  Conversion types

  1.Pilot

  2.Phased

  3.Parallel

  4.Plunge System Conversion Choices

• Implement entire system in limited portion of business

  Pilot

• Advantage—limits exposure to business if system fails
• System installed in phases or modules

  Phased

• Each piece is installed and tested
• Complete new and old systems run simultaneously

  Parallel

• Very safe, but expensive
• High risk if new system fails, no fall back system

  Plunge

• Only used if new system not vital to company operation

Design and Implementation for the Five Components

  System Maintenance Phase

  Q6:Why Are Business Processes and Systems Development Difcult & Risky?

  Many projects are never fnished. Those that fnish often 2000300 over budget.

  Some projects fnish within budget and on schedule, but never satisfactorily accomplish their goals. Five Major Challenges to Systems Development

  Five Major Challenges to Systems Development (cont’d)

• _{• What specifcally is system to do?}
• How does wedding planner use new _{system to reserve a room or building?}

  Difculty

• _{• What does data entry screen look like?} of _{• How does planner add/reduce facilities} requireme once wedding scheduled? _{• What should system do when a wedding} nts _cancelled? determina _{• Facility schedule system interface with accounting systems? How?} tion _{• Does system need to reserve foor or refrigerator space in restaurant kitchen?}

  

Must create environment where difcult

questions are asked and answered. Five Major Challenges to Systems Development (cont’d) Changing requirements

• Large, long projects aim at moving target

  Scheduling and budgeting difculties

• 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?

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 fnish developing according to the existing plan? Why build an out-of-date system? Can you aford to keep changing the project? Five Major Challenges to Systems Development (cont’d) New staf must be

   trained by

• Brooks’ Law

  productive members who lose “Adding more people to a productivity while project makes the project training new later.” members. 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-ofs
• Manage development challenges

Create a Work-Breakdown Structure (WBS) WBS for Defnition Phase of Order- Entry System

  How Does a Work-Breakdown Structure Drive Project Management?

• Hierarchy of tasks required to complete a project
• Each task ends with deliverables

  Work-

• Documents, designs, prototypes, data models,

  Breakdow database designs, working n data entry screens, etc. Structure

• Identifes task dependencies
• Estimate task duration,

  ( ) cost, and labor needed

• Created with project management software, such

Estimate Time and Costs Avoid major

• License packages that include both

  schedule risks and business processes and information never develop systems components systems and software in-house

• Only loose commitments made regarding completion date and fnal

  “We don’t know” system functionality

  Past projects, if any

• Lines of code and industry or company averages to estimate time required

  Best estimates

Gantt Chart of the WBS for the Defnition Phase of a Project

  Create a Project Plan: Gantt Chart with Resources Assigned

  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 (fnal WBS)

  Adjust Plan via Trade-ofs

  Manage Development Challenges

• Independent groups might reside

  Coordination in diferent locations

• Adding people leads to

  Diseconomies exponential interactions, makes of scale project later

• Set of management policies,

  Confguration practices, tools to maintain control control over resources

  Unexpected •Chance of disruption from unanticipated events events Maintaining

• Pure thought stuf leads to wasted hours, increased costs, poor

  team morale morale over time 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

  Active Review Q1: What is systems development? Q2: Why is systems development difcult and risky? Q3: What are the fve phases of the SDLC? Q4: How is system defnition accomplished? Q5: What is the users’ role in the requirements phase? Q6: How are the fve 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?