IS 11 and 12 Business Process Design SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE SYSTEMS DEVELOPMENT AND ORGANIZATIONAL CHANGE Process o Logically related tasks which produce specific business results o A repeated pattern of purposeful activity o Process ingredients Activities Actors Goals Resources Rules what is allocated when o Important because they determine Your internal staffing needs What software you should buy and implement to optimally support them How you connect your processes to those of external partners vendors service providers How well you achieve your KPIs Rationalization of procedures often found in programs for making a series of continuous quality improvements in products services and operations o Total Quality management males achieving quality an end in itself and the responsibility of all people and functions within an organization o Six Sigma a specific measure of quality representing 3 4 defects per million opportunities Business Process Redesign business processes are analyzed simplified and redesigned reorganized workflows combining steps to cut waste and eliminate repetitive paper intensive tasks o More ambitious than rationalization requiring a new vision of how the process is to be organized Paradigm shift involves rethinking the nature of the business and the nature of the organization o Most of the times they fail because of the extensive organizational change they require still pursued by many corporations since the rewards are equally high BUSINESS PROCESS REDESIGN Business process management provides a variety of tools and methodologies to analyze existing processes design new processes and optimize those processes o Used by firms to manage business process redesign o Never concludes since it requires continual change o Steps Identify process for change Analyze existing processes Designing the new process Implement the new process Continuous measurement ACTIVITY DIAGRAM similar to the traditional flowchart shows activities carried out by system or organization as a whole Additional features o Can show which actors perform each step o Can show concurrent activities Elements of activity diagrams o Action a task carried out during the activity box o Flow a transition from one activity to another arrow o Decision offers several possible next steps to be chosen by the actor diamond o Fork join allows several branches of a process to all happen at once Using activity diagrams o Think about actions are they necessary Are they missing o Think about swim lanes who should do what o Think about decisions too complicated Too simple o Think about concurrency can we do more than one thing at once Processes in OM and IS o Both operations and IS experts design and analyze processes o Operations o IS Focus on physical goods flowing through manufacturing process Seek to reduce cycle time increase efficiency Focus on information flows Seek to deploy IT to cut costs and improve outcomes o Diagrams used very similar Boxes represent steps Diamond represents decisions o Diagrams differ due to different goals o Each diagram is a different tool in your toolkit STAPLE YOURSELF TO AN ORDER Order management cycle offers managers the opportunity to look at their company through a customer s eyes to see and experience transactions the way the customer does Three critical problems with OMC o Horizontal and vertical gaps o Poor order prioritizing o Inaccurate cost estimation and pricing Steps in OMC cycle 1 Order planning 2 Order generation 3 Costs estimation and pricing potential for greater profits makes it worth it 4 Order receipt and entry 5 Order selection and prioritizing o Order based pricing is difficult and requires extensive thinking and deliberate executing but the o Additionally important gains can be made depending on how orders are prioritized how they decide which orders receive faster more complete attention 6 Scheduling 7 Fulfillment 8 Billing 9 Returns and claims 10 Postsales service o The actual precision of the product or service o Major problem it is designed to serve needs and interest of company not customer o Plays an important roe le in all the element s of a company s profit equation customer value What customers want is to have their orders handled quickly accurately and cost effectively Fixing the OMC Analysis Draw your OMC and chart the gaps o Visual tools make it possible for people in different functions and levels to accept the OMC as a price and costs tangible entity o Look at the OMC from the customer s views o Successful companies state their goals are satisfied customers higher profits and sustainable competitive advantage without compromising any of these elements System Focus Put the pieces together move across boundaries o The most powerful tool managers can use is interdepartmental investment in projects o Computer technology is a crucial tool for integrating many steps in the OMC Political Strategy Staple yourself to an order o In most businesses managers can learn more from salespeople customer service reps production schedulers and shippers than from a customer s CEO Benefits of fixing OMC Experience improved customer satisfaction o Most OMCs perform worst when demand is greatest which means that the largest number of customers experience service at its poorest quality Interdepartmental problems will recede o When OMC is not working it both reflects and causes monumental internal strife in a company Companies will improve their financial performance IS 13 Technology Infrastructure INFORMATION TECHNOLOGY INFRASTRUCTURE set of physical software required to operate enterprise Service platform perspective more accurate view of value of investments o Perspective refers to analyzing the actual services enabled by new technology tools EVOLUTION OF IT INFRASTRUCTURE general purpose mainframe minicomputer computing personal computers client server networks enterprise computing cloud computing Mainframe era o Period of very centralized computing under professional programmers and system operators o Manufacturer of hard software provided all elements of infrastructure Minicomputer Era o Offered powerful machines at lower prices than mainframes o Made decentralization possible customized to certain needs of different departments Personal Computer Era o Wintel PC standard desktop personal computer o Rise of personal software tools word processors spreadsheets etc Client Server Era services capabilities o Clients desktops laptops that are networked