Process Business Management (PBM)n

(1)

Business Process and

Information Systems

Development

(2)

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?

(3)

Q1: Why Do Organizations Need to

Manage Business Processes?

(4)

Steps in Processing an Order

(5)

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

Video

Why Does This Process Need

Management?

(6)

Vide

o

10-6

•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 signifcant way

Change in

technology

•Market (new customer category),

product lines, supply chain, company

policy, company organization

(merger/acquisition),

internationalization, business

environment

Change in

business

fundamental

s

(7)

Q2 What Are the Stages of Business

Process Management (BPM)?

as-is model

Continuous

process

improveme

nt

new

model

(8)

Scope of Business Process

Management

(9)

• 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

Manageme

nt Group

(OMG)

Q3 How Can BPMN Process Diagrams

Help Identify and Solve Process

Problems?

(10)

Business Process Management

Notation (BPMN) Symbols)

Object

Management

Group (OMG)

Business Proc

ess Modeling

Notation (BPM

N)

(11)

Documenting the As-Is Business

Order Process: Existing Ordering

Process

Flow of

messages and

data

Process fow or

sequence of

activities

(12)

Check Customer Credit Process

(13)

• 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 fx: Defne an

independent process for Reject

Order

Figures 10-5

and 10-6

have process

problems

Using Process Diagrams to Identify

Process Problems

(14)

Brute-force

approach

•Don’t change

process

How Can Business Processes Be

Improved?

(15)

Revised Order Process

Add

resources

to credit

checking

and

change

sequence

of

inventory

and credit

checking

(16)

Fox Lake Wedding Planning and

Facilities Maintenance Processes

(17)

• 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

Q4: Which Comes First, Business

Processes or Information

Systems?

(18)

Fox Lake Processes Showing IS

Components

(19)

Many-to-Many Relationship of

Business Processes and Information

Systems

(20)

Business Processes First

Which Comes First?

Identify

System

(21)

Information System First

Classic

Five-Step

Systems

Developmen

t Life Cycle

(22)

•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

of-the-shelf

software

And the Answer Is . . .

(23)

Q5 What Are Systems Development

Activities?

(24)

SDLC: System Defnition Phase

(25)

• Purpose

: Increase revenue

from wedding events

• Goals

: Eliminate or at least

reveal schedule conficts

and improve maintenance

tracking

• Scope

: Specify users or

business processes that will

be involved, or facilities,

functions, and events that

will be involved

Defne

scope for

new Fox

Lake

system

How Is System Defnition

Accomplished?

(26)

Form a Project Team

(27)

Determine Requirements

(28)

Design System Components

(29)

Implementation Activities

Conversion

types

1.Pilot

2.Phased

3.Parallel

4.Plunge

(30)

System Conversion Choices

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

(31)

Design and Implementation for the

Five Components

(32)

System Maintenance Phase

(33)

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.

Q6:Why Are Business Processes and

Systems Development Difcult &

Risky?

(34)

Five Major Challenges to Systems

Development

(35)

• What specifcally 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 foor or

refrigerator space in restaurant kitchen?

Difculty

Must create environment where difcult

questions are asked and answered.

Five Major Challenges to Systems

Development (cont’d)

(36)

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?

• What’s the rate of return on investment?

Five Major Challenges to Systems

Development (cont’d)

(37)

Changing Technology

Five Major Challenges to Systems

Development (cont’d)

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?

(38)

Diseconomies of scal

e

• Brooks’ Law

“Adding more people to a

project makes the project

later.”

Five Major Challenges to Systems

Development (cont’d)

New staf must be

trained by

productive

members who lose

productivity while

training new

members.

(39)

• Create a work-breakdown structure

• Estimate time and costs

• Create a project plan

• Adjust the plan via trade-ofs

• _{Manage development challenges}

Q7: What Are the Keys for Successful

Process and Systems

Development Projects?

(40)

Create a Work-Breakdown Structure

(WBS)

(41)

• 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.

• Identifes task dependencies

• Estimate task duration,

cost, and labor needed

• Created with project

management software, such

as Microsoft Project

Work-Breakdow

n

Structure

(WBS)

How Does a Work-Breakdown

Structure Drive Project Management?

(42)

•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 fnal

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/C

OCOMOII/cocomo_main.html

Best estimates

Estimate Time and Costs

(43)

Gantt Chart of the WBS for the

Defnition Phase of a Project

(44)

Create a Project Plan:

Gantt Chart

with Resources Assigned

(45)

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)

Critical Path Analysis

(46)

Adjust Plan via Trade-ofs

(47)

•Independent groups might reside

in diferent locations

Coordination

•Adding people leads to

exponential interactions, makes

project later

Diseconomies

of scale

•Set of management policies,

practices, tools to maintain

control over resources

Confguration

control

• Chance of disruption from

unanticipated events

Unexpected

events

•Pure thought stuf leads to wasted

hours, increased costs, poor

morale

Maintaining

team morale

over time

Manage Development Challenges

(48)

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?

(49)

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?