business process and information systems development using mis 4e chapter 10
TRANSCRIPT
Business Process and Information Systems
Development
Using MIS 4e Chapter 10
Study Questions
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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
Q1: Why Do Organizations Need to Manage Business Processes?
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Activities—
Transform resources
and information of one type into resources
and informatio
n of another
type
Decisions—
A question that can
be answered Yes or No
Roles—
Sets of procedur
es
Resources—
People, or
facilities, or
computer programs that are assigned to roles
Repository—
Collection of
business records
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Business Process
Steps in Processing an Order
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Processes that don’t work or work well
Change in technologyChange in business fundamentals:
• Market (new customer category), product lines, supply chain, company policy, company organization (merger/acquisition), internationalization, business environmentVideo
Why Does This Process Need Management?
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Video Copyright © 2012 Pearson Education, Inc. Publishing as Prentice
Hall10-6
•Does not produce desired result, or confusing
•Misaligned with organization’s goals, objectives, or competitive strategy
Processes that don’t
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?
Q2 What Are the Stages of Business Process Management (BPM)?
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as-is model
Continuous process
improvementnew
model
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Scope of Business Process Management
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• 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 www.bpmn.org.
Object Management Group (OMG)
Q3 How Can BPMN Process Diagrams Help Identify and Solve Process Problems?
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Business Process Management Notation (BPMN) Symbols)
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Object Management Group (OMG)
Business Process Modeling Notation (BPMN)
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Documenting the As-Is Business Order Process: Existing Ordering Process
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Flow of messages and data
Process flow or sequence of activities
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Check Customer Credit Process
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• 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
10-13Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Brute-force approach
•Don’t change process
•Add more people or equipment
Change structure of
process • Without
changing resource allocations
• Add resources
How Can Business Processes Be Improved?
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Revised Order Process
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Add resources to credit checking and change sequence of inventory and credit checking
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Fox Lake Wedding Planning and Facilities Maintenance Processes
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• 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?
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Fox Lake Processes Showing IS Components
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Many-to-Many Relationship of Business Processes and Information Systems
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Business Processes First
Which Comes First?
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Identify System Need
Information System First
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Classic Five-Step
SystemsDevelopment Life Cycle
10-21
•Better to start with business processes
•More likely to result in processes and systems that are aligned with the organization’s 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 . . .
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Q5 What Are Systems Development Activities?
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SDLC: System Definition Phase
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• 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?
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Form a Project Team
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Determine Requirements
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Design System Components
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Implementation Activities
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Conversion types1.Pilot2.Phased3.Parallel4.Plunge
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System Conversion Choices
10-30Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Pilot
•Implement entire system in limited portion of business
•Advantage—limits 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
Design and Implementation for the Five Components
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System Maintenance Phase
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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 andSystems Development Difficult & Risky?
10-33Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Five Major Challenges to Systems Development
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• 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 (cont’d)
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Changing requirements• Large, long projects aim at moving
targetScheduling 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?• What’s the rate of return on investment?
Five Major Challenges to Systems Development (cont’d)
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Changing Technology
Five Major Challenges to Systems Development (cont’d)
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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?
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Diseconomies of scale• Brooks’ Law
“Adding more people to a project makes the project later.”
Five Major Challenges to Systems Development (cont’d)
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New staff must be trained by productive members who lose productivity while training new members.
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• 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 SuccessfulProcess and Systems Development Projects?
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Create a Work-Breakdown Structure (WBS)
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WBS for Definition Phase of Order-Entry System
• 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)
How Does a Work-Breakdown Structure Drive Project Management?
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•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 don’t know”
Past projects, if any
•Lines of code and industry or company averages to estimate time required
•http://sunset.usc.edu/csse/research/COCOMOII/cocomo_main.html
Best estimates
Estimate Time and Costs
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Gantt Chart of the WBS for the Definition Phase of a Project
10-43Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
Create a Project Plan: Gantt Chart with Resources Assigned
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Sequence of activities that determine earliest completion dateLongest 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
completionMove critical path tasks to noncritical path to shorten project schedule (sometimes)
Baseline WBS (final WBS)
Critical Path Analysis
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Adjust Plan via Trade-offs
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•Independent groups might reside in different locationsCoordination
•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
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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?
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Active Review
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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