2/10/2014

REMINDER

Mid-semester Test will be held in

Lecture Theatre (Level G), Block 15 on
WEDNESDAY 30th OCTOBER 12.30-
14.30

NEW
TEXTBOOK

Business Driven Information Systems

(McGraw-Hill)
Will be available as an eBook, more
information will be posted on myUOWD
soon

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Lecture 2

Dr Shahper Vodanovich
Business Processes, Systems
Information, and Information

“How Would We Do That?

Where’s the Data?”
 Buyers don’t communicate with operations when
negotiating with vendors
 Buyers need data to look at prices and costs of dealing
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with individual vendors

 Need more data and people involved in making
negotiating deals.

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Study Questions
Q1: Why does the GearUp team need to understand business
processes?
Q2: What is a business process?
Q3: How can information systems improve process quality?

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Q4: What is information?
Q5: What data characteristics are necessary for quality
information?

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Q1: Why Does the GearUp

Team Need to Understand
Business Processes?
• Needs to understand its existing processes and to
identify the problems they have.
• Needs to redesign its current processes.
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• Needs to know where and how to save costs?

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EVALUATING BUSINESS PROCESS

• Businesses gain a
competitive edge
when they
minimize costs and
streamline business
processes

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Components of a Business
Process
• Activities – Transform resources and information of one
type into another type
• Decisions – A question that can be answered Yes or No
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• Roles – Sets of procedures

• Resources – People, or facilities, or computer programs
assigned to roles
• Repository – Collection of business records

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EVALUATING BUSINESS PROCESS

• Customer facing process ‐ Business facing process ‐

Results in a product or Invisible to the external
service that is received by customer but essential to
an organization’s external the effective management
customer of the business
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EVALUATING BUSINESS PROCESS

The Order‐to‐Delivery Process

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MODELS: MEASURING
PERFORMANCE
• Business process modeling (or mapping) ‐ The activity
of creating a detailed flow chart or process map of a
work process showing its inputs, tasks, and activities, in
a structured sequence
• Business process model ‐ A graphic description of a
process, showing the sequence of process tasks, which
is developed for a specific
• As‐Is process model
• To‐Be process model
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MODELS: MEASURING PERFORMANCE

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MODELS: MEASURING PERFORMANCE

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MODELS: MEASURING PERFORMANCE

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MODELS: MEASURING
PERFORMANCE

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MODELS: MEASURING
PERFORMANCE

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SUPPORT: CHANGING BUSINESS

PROCESSES WITH MIS

• Workflow – Includes the tasks, activities, and

responsibilities required to execute each step in a
business process 2-17

SUPPORT: CHANGING BUSINESS

PROCESSES WITH MIS

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SUPPORT: CHANGING BUSINESS

PROCESSES WITH MIS

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SUPPORT: CHANGING BUSINESS

PROCESSES WITH MIS

• Types of change an
organization can
achieve, along with
the magnitudes of
change and the
potential business
benefit

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IMPROVING OPERATIONAL BUSINESS

PROCESSES ‐ AUTOMATION

• Customers are demanding better

products and services
• Business process improvement –
Attempts to understand and measure
the current process and make
performance improvements
accordingly
• Automation – The process of
computerizing manual tasks

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IMPROVING OPERATIONAL BUSINESS

PROCESSES ‐ AUTOMATION

Steps in Business Process Improvement

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IMPROVING MANAGERIAL BUSINESS

PROCESSES ‐ STREAMLINING

• Streamlining – Improves business process

efficiencies by simplifying or eliminating
unnecessary steps
• Bottleneck – Occur when resources reach full
capacity and cannot handle any additional
demands
• Redundancy – Occurs when a task or activity
is unnecessarily repeated

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IMPROVING STRATEGIC BUSINESS

PROCESSES ‐ REENGINEERING

• Business process reengineering (BPR) ‐ Analysis and

redesign of workflow within and between enterprises

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IMPROVING STRATEGIC BUSINESS

PROCESSES ‐ REENGINEERING

• A company can improve the way it travels the road by

moving from foot to horse and then horse to car
• BPR looks at taking a different path, such as an airplane
which ignore the road completely
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IMPROVING STRATEGIC BUSINESS

PROCESSES ‐ REENGINEERING

Progressive Insurance Mobile Claims Process

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THE FUTURE: BUSINESS PROCESS

MANAGEMENT

• Business process
management (BPM) – Focuses
on evaluating and improving
processes that include both
person‐to‐person workflow
and system‐to‐system
communications

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Q3: How Can Information Systems

Improve Process Quality?

• Dimension of Process Quality

• Effectiveness:
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• Business process enables organization to accomplish its strategy.

• Efficiency
• Ratio of benefits to costs
• Costs – time and infrastructure

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Using Information Systems to

Improve Process Quality

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Q4: What Is Information?

1. Knowledge derived from data, where data is defined as
recorded facts or figures
2. Data presented in a meaningful context
3. Processed data, or data processed by summing,
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ordering, averaging, grouping, comparing, or other

similar operations
4. A difference that makes a difference

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Where Is Information?
• Graph is not, itself, information
• Graph is data you and others perceive, use to conceive
information
• Ability to conceive information from data determined by

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cognitive skills
• People perceive different information from same data

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Most Important Part of Any

Information System
 YOU!
 Quality of your thinking, your ability to conceive
information from data, determined by your cognitive
skills
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 Information is value you add to information systems.

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Q5: What Data Characteristics Are

Necessary for Quality Information?

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How Does the Knowledge In

This Chapter Help You?

• Be able to document GearUp’s business processes, and

explain in a professional way how GearUp should
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develop new or adjust existing information systems

• Think about similar issues you will likely encounter in
your career.

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Ethics Guide: Egocentric vs.

Empathetic Thinking (summary)

• Egocentric thinking
• Centers on self

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• Someone who considers his or her view as “the real
view” or “what really is”
• Empathetic thinking
• Considers their view as one possible interpretation
and actively works to learn what other people are
thinking

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Egocentric Thinking
•“Professor Vodanovich, I couldn’t come to class last Monday.
Did we do anything important?”
•Egocentric Thinking Approach
• Implies student isn’t accountable for his/her actions
• Implies professor lectured on nothing important
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• Doesn’t take into account professor’s view of absences

• Assumes professor has time to rehash class discussions and
activities one-on-one
• Puts responsibility on professor to remember everything said
in class

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Empathetic Thinking
• Important skill in all business activities
• Skilled negotiators always know what other side wants;
effective salespeople understand customers’ needs
• Buyers who understand problems of their vendors get

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better service

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Guide: Understanding
Perspectives and Points of
View
• Everyone speaks and acts from a personal perspective.
• Everything we say or do is based on and by that point of view.
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• Conflicting perspectives can all be true.

• Ability to discern and adapt to perspectives and goals of
others will make you much more effective.

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Ethics Guide: Understanding

Perspectives and Points of View
(cont’d)
• You buy a new laptop and it fails within a few days.
Repeated calls to customer support produce short-

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term fixes, but your problem continues.
• Three plausible reasons for the problem
1.Customer service does not have data about prior
customer contacts.
2.Customer support reps recommended a solution that
did not work.
3.Company is shipping too many defective laptops.

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Guide: Understanding
Perspectives and Points of
View (cont’d)
• A “problem” is a perceived difference between what is and
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what ought to be
• Development team needs a common definition and
understanding of problem in order to communicate
• What can a development team do to create common
definitions and understanding?

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Active Review
Q1: Why does the GearUp team need to
understand business processes?
Q2: What is a business process?
Q3: How can information systems improve

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process quality?
Q4: What is information?
Q5: What data characteristics are necessary
for quality information?

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