Chapter 5 Using IS to Improve Processes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-1

Learning Objectives Q1. What are the fundamental types of processes in organizations? Q2. What are examples of common business processes? Q3. How can organizations improve processes? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-2

Learning Objectives Q4. How can organizations use IS to improve processes? Q5. How can IS hinder a process? Q6. How can SOA improve processes? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-3

What are the Fundamental Types of Processes in Organizations? Business Process – Sequence of activities for accomplishing a function Activities – Tasks within a business process Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-4

What are the Fundamental Types of Processes in Organizations? Resources – Items necessary to accomplish an activity Actors – Resources who are either human or computers Role [Automated or Manual Process] – Subset of activities in a business process performed by a particular actor Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-5

What are the Fundamental Types of Processes in Organizations? Examples of Processes: Figure 5-1 Five Sequential Processes, Resources, Actors, and Roles at the Pizza Shop Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-6

What are the Fundamental Types of Processes in Organizations? Scope of Processes: Figure 5-2 Scope and Characteristics of Business Processes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-7

What are the Fundamental Types of Processes in Organizations? Objectives of Processes: Figure 5-3 Process Objectives and Measures Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-8

What are the Fundamental Types of Processes in Organizations? Business Process – Activities; resources; actors; roles Scope of Processes Objectives of Processes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-9

What are Examples of Common Business Processes? Inbound Logistics Processes Operations Processes Outbound Logistics Processes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-10

What are Examples of Common Business Processes? Sales and Marketing Processes Service Processes Human Resource Processes Technology Development Processes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-11

What are Examples of Common Business Processes? Figure 5-5 Value Chain Activities and Process Examples Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-12

How Can Organizations Improve Processes? OMIS Model – Objectives; Measures; and Information Systems Figure 5-6 Steps in the OMIS Model Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-13

How Can Organizations Improve Processes? Process Objectives – Specify and Improve Process Measures – Metrics Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-14

How Can Organizations Improve Processes? OMIS Figure 5-7 Options for Improving the Objectives of a Process Figure 5-8 Options for Improving the Measures Of a Process Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-15

How Can Organizations Use IS to Improve Processes? Three Ways IS Improve Processes – Improve efficiency or effectiveness of activities – Provide linkages across activities – Improve control of the process Figure 5-9 Options for Improving the use of IS in a Process Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-16

How Can Organizations Use IS to Improve Processes? Non-IS Process Improvements – Add more resources – Change the process structure Overlaps with IS Figure 5-10 Non-IS Process Improvements Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-17

How Can Organizations Use IS to Improve Processes? Six-Sigma – Removing causes of defects – Minimizing variability in the process % of output free from defects Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-18

How Can Organizations Use IS to Improve Processes? Participants and Diagrams in Process Improvement As-is diagrams Ought-to-be diagrams Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-19

How Can an IS Hinder a Process? Information Silos – Data exists in isolated functional IS Why Information Silos Exist – Data stored in separate databases Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-20

How Can SOA Improve Processes? SOA: Services-Oriented Architecture – Middleware facilitates communication and data sharing – Design approach for activities bases on: Service Encapsulation Standards Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-21

How Can SOA Improve Processes? Service – Repeatable task that a business needs to perform Encapsulation [Modules – Objects] – Hides data within containers so that services can communicate Standards – Standardized formats for data exchange Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-22

How Can SOA Improve Processes? Figure 5-16 Example Independent Encapsulated Services Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-23

Ethics Guide Vehicle Tracking System – Process Improvement or Privacy Problem? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-24

Conclusion Q1. What are the fundamental types of processes in organizations? Q2. What are examples of common business processes? Q3. How can organizations improve processes? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-25

Conclusion Q4. How can organizations use IS to improve processes? Q5. How can IS hinder a process? Q6. How can SOA improve processes? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-26

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 5-27