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PART IV: Chapter Topics. Chapter 10: Business Process & Information Systems Development Two closely related and overlapping themes are examined Chapter 11: Information Systems Management

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part iv chapter topics
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
fox lake
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 Lake’s information systems are particularly vulnerable to computer misuse and crime
chapter 10 business process and information systems

Chapter 10Business Process and Information Systems

Jason C. H. Chen, Ph.D.

Professor of MIS

School of Business Administration

Gonzaga University

Spokane, WA 99258

chen@jepson.gonzaga.edu

you re not going to take your vera wang g own into a porta potty
“You’re 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
  • Didn’t think through consequences of wedding events business.
    • Didn’t know how wedding business would impact everything else.
  • Business analyst, Laura, hired to help
study questions
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?

video
Video
  • The Golden Rules for Managers 119 Incredible Lesson for Leadership Success (2:09)
  • http://www.youtube.com/watch?v=pai00rCJSJU&feature=related
what are business process and business process management
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.

http://en.wikipedia.org/wiki/Business_process_management

TM -7

Dr. Chen, The Trends of the Information Systems Technology

slide8

IS/E-BUSINESS

Demands

Products/

Services

What they need/want?

How many they need/want?

When they need/want?

How to reach them?

BUSINESS VALUE & FOCUS –IS Perspective

Customer

centric

  • SCM
  • CRM
  • BPR
  • ERP

Value

Who are the customers?

Where are the customers?

Their purchasing habits

Business Models & Strategies

1 why do organizations need to manage business processes
1: 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

My teaching philosophy:

Learning to Learn and

Learning to Change

(e.g., Creating Web Pages)

steps in processing an order
Steps in Processing an Order

Fig 10-1: Steps in Processing an Order

2 what are the stages of business process management bpm
2: What Are the Stages of Business Process Management (BPM)?
  • Business Process Management (BPM)
    • Systematic process of creating, assessing, altering business processes(and is an iteration process).
  • Four stages of BPM
    • Create model of business process components
      • Users review and adjust model
      • “As-is model” documents current process; it is changed to solve process problems
    • Create system components
      • Uses five elements of IS (hardware, software, data, procedures, people)
    • Implement business process
    • Create policy for ongoing assessment of process effectiveness
      • Adjust and repeat cycles
stages in the bpm cycle
Stages in the BPM Cycle

[2]

[1]

[3]

[4] policy creation and assessment

Fig 10-2: Stages in the BPM Cycle

slide13
Q/A

T/F: Business Process Management (BPM) is a one-time process for systematically creating, assessing, and altering business processes.

Answer: ______

FALSE

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: ________

C

scope of business process management
Scope of Business Process Management

Fig 10-3: Scope of Business Process Management

BPM can apply only to commercial, profit-making organizations but also nonprofit and government organizations

q3 how can bpmn process diagrams help identify and solve process problems
Q3: How Can BPMN Process Diagrams Help Identify and Solve Process Problems?
  • 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.
need for standard for business processing notation
Need for Standard for Business Processing Notation
  • 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 www.bpmn.org.
slide17

Fig 10-4:

Business

Process

Management

Notation

(BPMN)

Symbols

documenting the as is business order process existing ordering process
Documenting the As-Is Business Order Process: Existing Ordering Process

Each role in the business process is given its own swim lane.

Fig 10-5: Existing Ordering Process

slide20

BPMN: Business Process Management _________

Q/A

Notation

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: ________

TRUE

using process diagrams to identify process problems
Using Process Diagrams to Identify Process Problems
  • Process problems
      • Operations Manager allocates inventory to orders as processed
      • 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#3p.383)
how can business processes be improved
How Can Business Processes Be Improved?
  • Add more ________
    • Adds costs unless efficiencies of scale
  • Change _______ structure
    • Reduce work and costs
    • Increase costs and increase effectiveness to offset
  • _________

resources

process

Do both

q4 which comes first business processes or information systems
Q4: Which Comes First, Business Processes or Information Systems?

Fig 10-9: Fox Lake Processes Showing IS Components

build business processes first
Build Business Processes First

[2]

next stage

[1]

[3]

[4] policy creation and assessment

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.

Fig 10-11: BPM and Systems Development

build information system first
Build Information System First

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.

Fig 10-12: Classic Five-Step Systems Development Life Cycle

why systems development is needed
Why systems development is needed?
  • While you may be able to purchase an off-the-shelf software program, you won’t 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 can’t buy procedures.
    • People must be trained to use the information system effectively. You can’t buy that.
    • Users must take ownership of their system. That’s 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.
systems development is not just for techies
Systems Development Is Not Just for Techies
  • Establishing the system’s 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.
nontechnical human relations skills required
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.
how do businesses use the sdlc process
How Do Businesses Use the SDLC Process?
  • Systems definition
    • Management’s statement of objective and goals for new system
  • Requirements analysis
    • Identify features and functions
  • Component design (hardware, software, network)
    • Based on approved user requirements
  • Implementation
    • Purchase, build, test, and convert to new system
  • System maintenance (fix or enhance)
    • Repair, add new features, maintain

See http://www.learn.geekinterview.com/it/sdlc/sdlc-methodology-steps.html

another factor off the shelf software
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.
and the answer is
And the Answer Is . . .
  • In theory:
    • Better to start with ___________________
    • More likely to result in processes and systems that are aligned with the organization’s 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?

business processes

slide35
Q/A

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: ______

D

slide36
SDLC
  • What does SDLC stand for?
    • Systems Development Life Cycle
  • List the phases of SDLC
    • Analysis
    • Design
    • Implementation
    • Maintenance
4 what are systems development activities
4: What Are Systems Development Activities?
  • Systems definition
    • Management’s statement of objective and goals for new system
  • Requirements analysis
    • Identify features and functions
  • Component design (hardware, software, network)
    • Based on approved user requirements
  • Implementation
    • Purchase, build, test, and convert to new system
  • System maintenance (fix or enhance)
    • Repair, add new features, maintain

Analysis

4 what are systems development activities1
4: What Are Systems Development Activities?

[1]

[2]

[3a]

[3b]

(Feasibility Study)

What is it and Why it is important?

[4]

[5]

Fig 10-13: BPM Provides Requirements for Systems Development

define system goals and scope
Define System Goals and Scope

Fig 10-14: SDLC: System Definition Phase

how is system definition accomplished
How Is System Definition Accomplished?
  • (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
assess feasibility
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

Legal and Contractual

systems definition investigation feasibility study

Economic

Feasibility

Systems Definition/Investigation (Feasibility Study)

What are new from the last slide?

Operational

Feasibility

Can we afford it?

Will it be accepted?

Schedule

Feasibility

Technical

Feasibility

Will it be completed by

the deadline?

Does the IT

capability exist?

Organizational

Feasibility

Legal and

Contractual Feasibility

(Is it a good fit –

objective of the organization

Is the proposed

system legally?

form a project team
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.
form a project team1
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.
business and systems analysts
Business and Systems Analysts
  • Business Analysts
    • Someone who are well versed in Porter’s 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.
phase two requirements analysis
Phase Two: Requirements Analysis
  • 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.

Fig 10-16 SDLC: Requirements Analysis Phase

phase three component design design tasks pertain to each of the five is components
Phase Three: Component Design:Design Tasks Pertain to Each of the Five IS Components
  • All five components require attention in the design phase:
    • Hardware—Determine the specifications and evaluate alternatives against the requirements. Purchase it, lease it, or lease time from hosting service
    • Programs—Decide whether to use off-the-shelf software, off-the-shelf with alterations, or custom-developed software.

Fig 10-17: SDLC: Component Design Phase

  • Database—Convert the data model to a database design.
  • Procedures—Design procedures for users, operations personnel, and for normal, backup, and failure recovery tasks.
  • People—Design job descriptions for users and operations personnel. You may have to add new jobs or alter existing jobs.
slide49
Q/A

T/F: If a project involves off-the-shelf programs, then little database design needs to be done.

Answer: ________

TRUE

phase four implementation
Phase Four: Implementation
  • 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.

Fig 10-18: SDLC: Implementation Phase

system conversion approaches
System Conversion Approaches
    • Pilot
      • Implement entire system in limited portion of business
      • MRV uses system for selected customers.
      • Advantage: limits exposure to business if system fails
  • Phased
      • System is installed in phases or modules.
      • Each piece is installed and tested.
  • Parallel
      • Complete new and old systems run simultaneously
      • Very safe, but expensive
  • 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
installation conversion methods 4 ps

Cut-over time

Old System

New System

Old System

New System

Old System

New System

Old System

New System

Installation Conversion Methods: 4 Ps

Parallel

Pilot

Phased

Plunge/

Direct

design and implementation for the five components
Design and Implementation for the Five Components

Fig 10-19: Design and Implementation for the Five Components

causes of information systems failures
Causes of Information Systems Failures
  • 35+ years of research on causes of information systems failures
    • Lack of user __________
    • Unclear, incomplete, and inconsistent ___________
    • Changing requirements and specifications
  • Many businesses __________ research findings

involvement.

requirements.

ignore

q6 why are business processes and systems development difficult risky
Q6: Why Are Business Processes andSystems Development Difficult & Risky?

Waterfall

  • 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 paralysis”—projects 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
q6 why are business processes and systems development difficult risky cont
Q6. Why Are Business Processes andSystems 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.
slide58

1a

1b

2

3

4

Fig 10-21: Major Challenges to System Development

q7 what are the keys for successful process and systems development projects
Q7: What Are the Keys for SuccessfulProcess 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
project triangle project management trade offs
Project Triangle(Project Management Trade-offs)

Cost

Time

The center of project triangle is

QUALITY

Scope (Requirements)

The objective of the PM is to define project’s scope realistically and ultimately deliver quality of product/serviceon time, on budget and within scope.

trade offs in requirements cost and time
Trade-Offs in Requirements, Cost, and Time?
  • Balancing development drivers
    • Requirements (scope)
    • Cost
    • Time
  • Trade-offs
    • Elaborate requirements increase costs and time
    • Time can be reduced to a point w/o adding costs
    • Increasing time may reduce or increase costs
    • If schedule needs to be shortened, two alternatives available: reduce requirements or add labor
    • Adding more people creates diseconomies of scale (Brooks’ Law)
adjust plan via trade offs trade offs among requirements schedule and cost
Adjust Plan via Trade-offs:Trade-offs Among Requirements, Schedule, and Cost?

Insert Figure 10-12 here (Figure CE19-2 in Experiencing MIS 2/e)

manage development challenges
Manage Development Challenges

Critical Factors

  • Coordination
  • Diseconomies of scale
  • Configuration control
  • Unexpected events
  • Team morale
q8 2022
Q8: 2022?
  • Users more knowledgeable and demanding
  • More agile systems using SOA and other techniques
  • More Cloud-based development
  • Emergence of new software vendor business models