1. INFORMATION SYSTEMS IN
ORGANIZATIONS

2. Week 6 Organizational Systems Week 7 Organizational Systems
Week 1 Intro to MIS
What is MIS?
Week 2 Systems Analysis
Swimlanes
Week 3 Systems Analysis
Data Models
Learn IT! #1
Week 4 Systems Analysis
Decision Trees
Architecture Diagrams
Max Labs 0
Week 5 Exam #1
Week 6 Organizational Systems
ERP
Max Labs 1a & 1b
Week 7 Organizational Systems
Decision Support
Knowledge Management
Week 8 Organizational Systems
SDLC
Digital Innovation
Week 9 Exam #2
Week 10 Organizational Systems
Supply Chain Management Systems
Max Labs 2a & 2b
Week 11 Organizational Systems
Customer Relationship Management Systems
Week 12 Organizational Systems
Platforms
Cloud Computing
Max Labs 3a & 3b
Week 13 Organizational Systems
Artificial Intelligence
Week 14 Review

3. 2.1 Analyzing Organizations as Systems Processes
Systems Analysis
Systems Architecture
2.1.1 Modeling Processes with Swim Lane Diagrams
2.1.2 Data Modeling with ERDs
2.1.3 Modeling Business Rules with Decision Trees
2.1.4 Conceptual Architecture Diagrams

4. Required Reading Wikipedia, Systems Analysis
Wikipedia, Systems Architecture
Systems Architecture Fundamentals – Conceptual, Logical, Physical Designs
A Guide to Process Mapping
An Introduction to Swimlane Diagrams

5. The World is a Collection of Systems
All systems are a mix of people, process, and technology
All systems use information inputs and outputs that create value
MIS professionals create and manage these systems
Before we get into systems analysis and systems architecture, let’s get students thinking about systems in general and that all systems, regardless of how simple or complex they are, regardless of how much or how little technology they utilize all have a number of important things in common. They are all a mix of people, process and technology although the mix can vary radically from one system to the next and they all manipulate information as part of creating value.
MIS people view the world as a collection of systems. This is what we do.

6. IPO: Input, Process, Output
Inputs
Process
Outputs
Can you think of examples of inputs?
Process include save/commit, delete, edit, calculations, queries, and the like.
Outputs include confirmations, printed documents, messages that say you have died of dysentery.

7. Some systems are simple
Temple has more than its share of food trucks. Every student has purchased food from a food truck. Each food truck has their own system. I’m thinking of one food truck down by the Engineering building. It is run by a man and a woman (I am assuming they are husband and wife). The process is very simple, the woman takes the order and passes the order to the man who prepares the items that are made to order (individual sandwiches both hot and cold). The woman picks the items that are not made to order (bottles of soda, chips, etc.). As soon as the man finishes the sandwiches, the woman packs the order, collects the money and hands the order to the customer. The only technology is the little order pad and pencil the woman uses to write down the order. Information includes things like the order and the price list for calculating the total of the order.
Could they increase sales if they had a website where people could place orders/process payments where the orders would just come printing out five minutes before the customer would like to pick their order up?

8. Some are complex
Some systems are complex and use lots of technology. Every student has ordered items from Amazon. Things get much more complex and much more interesting when you consider that many of the items sold on Amazon are actually sold by other companies and that Amazon.Com serves as a storefront for these other companies. What technology is involved in maintaining the catalog of products for Amazon and all of these other companies? What is involves in keeping information about inventory levels current and accurate? Other than the UPS man, how many people are involved? Don’t just think about information but information flows, including financial flows. This all flows through Amazon.Com. How much “effort” does Amazon put out for Max Stores to sell a toaster through Amazon.Com? None, but they make money on every deal!

9. Systems Analysis
The process of studying a procedure or business in order to identify its goals and purposes and create systems and procedures that will achieve them in an efficient way.
Merriam-Webster Dictionary

10. Systems Architecture
Systems Architecture is a generic discipline to handle objects (existing or to be created) called systems in a way that supports reasoning about the structural properties of these objects. Systems Architecture is a response to the conceptual and practical difficulties of the description and the design of complex systems.
–Boris Golden

11. An item is a question that is defined by a teacher by means of the Authoring Tool.
Once defined, the items may be included in a remote test by means of the Remote Test Module.
The students introduce the responses to the items of a remote test by means of the Remote Test Module. These responses are sent to the corresponding scorer to be executed and evaluated.

12. 2.1 Analyzing Organizations as Systems Processes Systems Analysis Systems Architecture Modeling Processes with Swimlane Diagrams Data Modeling with ERDs Modeling Business Rules with Decision Trees Conceptual Architecture Diagrams

13. What is a swim lane diagram?
Swim lane diagrams are a type of process flow diagram that visually illustrate how a business or an organization complete a process.
Each lane represents an actor (which may be an individual, department, division, group, machine, entity, and so on), or even a phase or stage in a process, that is responsible for the activity or work described in the lane.
Swim lane diagrams use special notations to indicate what happens along the process, from inception, to discrete actions and decisions, all the way to its termination.

14. How to map a swim lane diagram
A circle signifies the starting and ending of an event in the process A rectangle represents an activity in the process. A diamond represents a decision that must be made. Arrows indicate the flow of the process. A cylinder represents stored data.

15. What are some critical business processes?
Order to Cash (O2C)
Procure to Pay (P2P)
Marketing Campaigns
Company Payroll
Point of Sale
Manufacturing

16. Example: Order to Cash (O2C)
The process starts when the customer contacts Sales to place an order. The person in Sales creates the sales order. As part of doing this the person in sales first checks to see if the customer has enough available credit to cover the order. They do this by looking up the customer’s credit on a report that is generated by Accounting and sent to Sales every Monday morning. If the customer doesn’t have enough available credit then the person in sales notifies the customer who can then either update or cancel their order. Next the person in sales checks to see if the items being ordered are in stock. They do this by checking a report on inventory that the Warehouse created at the end of each day. If the items being ordered are not in stock then the person in Sales notifies the customer who can then update or cancel their order. If the report indicates the items are in stock then the order goes to the Warehouse where the workers there will pick the order. Since Sales is looking at a report that is only updated at the end of each day, there is a chance that they accepted an order for an item that is not really in stock. If that is the case the Warehouse notifies Sales who then notifies the customer who can update or cancel their order. Once the people in the warehouse pick the order, the people in Accounting have to make sure that the customer actually has enough credit to cover the order. Since the people in Sales use a credit report that is generated on Monday morning, there is a chance that the information on the credit report is old. If the customer doesn’t have enough available credit then Accounting notifies Sales who then notifies the customer who can then choose to update or cancel their order. If the customer has enough available credit then their available credit is reduced by the total cost of the order and the warehouse is notified and they pack and ship the order. As soon as the order is shipped the people in the warehouse notify accounting and accounting generates and sends the invoice to the customer. When the customer pays the invoice the people in Accounting increase the customer’s available credit by the amount of the payment, they post the payment and we’re done.
Have the student read this long, wordy narrative that describes the O2C process. This is long and boring and it is difficult to remember all of the steps, especially when you need to flip to the next slide for the second half of the process. After the students fall asleep reading this narrative then work through the swimlane diagrams and discuss which one is easier to understand and remember.

17. This high-level diagram basically shows who does what and when as part of the order to cash process. On the next slide we will have a much more detailed diagram.

18. This more complex swim lane diagram will be used again when we cover ERP systems. This represents the O2C process when they still used separate legacy systems for order processing, order fulfillment and accounting. While each of these separate systems made each team more efficient, they don’t optimize the process for the organization as a whole. There is lots of non-value added work in here which are a result of these legacy systems.
The biggest issues have to do with maintaining credit limits in the accounting information system and sending a report to Sales about credit limits every Monday morning. The credit information gets stale and Sales is possibly accepting orders and picking orders (only to be stopped before the order is packed and shipped) from customers who have over-extended their credit or denying sales to customers who have paid their bills.
The other issue is that inventory is maintained by the Warehouse in the inventory management system and sending reports to Sales at the end of every day. Sales may be selling inventory that was already sold earlier in the day.
The purposed of this slide is to show the students a more complex swim lane diagram and to show that it can clearly document a more complex process. We can introduce the story of this dysfunctional O2C process here and then come back to it during the ERP section of the course.

20. Activity: Process Decomposition with Swim Lane Diagrams - 1

21. Activity: Process Decomposition with Swim Lane Diagrams – 2

22. Activity: Process Decomposition with Swim Lane Diagrams – 2

24. Activity: Data Modeling with Entity Relationship Diagrams – 1

25. Activity: Data Modeling with Entity Relationship Diagrams – 2

26. 2.1 Analyzing Organizations as Systems Processes Systems Analysis Systems Architecture Modeling Processes with Swimlane Diagrams Data Modeling with ERDs Modeling Business Rules with Decision Trees Conceptual Architecture Diagrams

27. Required Reading Ultimate Guide to ER Diagrams
Entity Relationship Diagram Examples

28. What is an ERD?
An Entity Relationship Diagram (ERD) is a visual representation of organized data (relational database).
An entity is a person or thing of interest to the business, such as a client, inventory item, transaction, or employee.
A relationship is a logical connection between entities, such as a client orders an item, or an employee processes a payment.

29. Primary ERD Symbols (Chen Notation)
Entity (noun)
Example: Customer
Attribute (belongs to an entity)
Example: Item price
Relationship (logical connection)
Example: Pays

30. Mindy walks into a Whole Foods and buys organic fair trade body wash
Mindy walks into a Whole Foods and buys organic fair trade body wash. At the point of sale, the system is updated with information about Mindy, including her full name, loyalty card, and zip code. The store also records which items were purchased, including details like item description, item number, and price.

31. Entity Relationship Diagram (ERD)

33. 2.1 Analyzing Organizations as Systems Processes Systems Analysis Systems Architecture Modeling Processes with Swimlane Diagrams Data Modeling with ERDs Modeling Business Rules with Decision Trees Conceptual Architecture Diagrams

34. Required Reading Wikipedia, Business Rules What is a Decision Tree?
Business Analyst Training on How to Use Decision Trees
Investigative Architecture: The Conceptual Diagram

35. Business Rules
A business rule defines and constrains processes and actions.
Free shipping on orders over$50
Once you leave a review for your host, you will be able to see their review of you as a guest
Quantity-based pricing rules
Income bracket rules
Decision trees will help with the more complex situations

36. How to map a decision tree
A condition is represented by a diamond-shaped node Possible condition values are represented by branches The actions (outcomes) are represented by rectangles

37. 12 pounds x $2.00/pound = $24.00 Messy Business Rules
Shipping charges are a function of the package weight, shipping method, and, destination. Domestic orders can be shipped via air or surface.
Air shipments cost $2.00/lb with a $20.00 minimum and a maximum of 50 lbs. Over 50 lbs the cost is $ plus $1.00/lb for every pound over 50.
Surface shipping prices vary based on whether the shipment is to the same state or to a different state.
Within the same state the charge is $1.00/lb with a $5.00 minimum and a maximum of 60 lbs. Over 60 lbs the charge is $60.00 plus $0.25 for every pound over 60.
Surface to another state is $1.00/lb with a $7.00 minimum and a maximum of 60 lbs. Over 60 lbs the cost is $60.00 plus $0.50/lb for every pound over 60.
International shipments cost $4.00/lb ($40 minimum) for shipments up to 60 lbs. Over 60 lbs the cost is $ plus $2.00/lb for every pound over 60.
How much will it cost to ship a 12-pound package from Philly to California via air?
12 pounds x $2.00/pound = $24.00

38. How much will it cost to ship a 12 pound package from Philly to California via surface?
12 pounds x $1.00/pound = $12.00

40. ? Conceptual Diagraming Sell the idea Refined Later Marketing View
Big Picture
Guide the Architect
Informal/Lightweight

41. Where are We?

42. Case in Point (Trading Platforms)
Electronic trading systems are typically proprietary software (etrading platforms or electronic trading platforms), running on COTS hardware and operating systems, often using common underlying protocols, such as TCP/IP.
Exchanges typically develop their own systems (sometimes referred to as matching engines), although sometimes an exchange will use another exchange's technology (e.g. e-cbot, the Chicago Board of Trade's electronic trading platform, uses LIFFE's Connect system), and some newer electronic exchanges use 3rd-party specialist software providers (e.g. the Budapest stock exchange and the Moscow Interbank Currency Exchange use automated trading system originally written and implemented by FMSC, an Australian technology company that was acquired by Computershare, and whose intellectual property rights are now owned by OMX).
Exchanges and ECNs generally offer two methods of accessing their systems –
an exchange-provided GUI, which the trader runs on his or her desktop and connects directly to the exchange/ECN, and
an API which allows dealers to plug their own in-house systems directly into the exchange/ECN's.
From an infrastructure point of view, most exchanges will provide "gateways" which sit on a company's network, acting in a manner similar to a proxy, connecting back to the exchange's central system.
ECNs will generally forego the gateway/proxy, and their GUI or the API will connect directly to a central system, across a leased line.
Many brokers develop their own systems, although there are some third-party solutions providers specializing in this area. Like ECNs, brokers will often offer both a GUI and an API (although it's likely that a slightly smaller proportion of brokers offer an API, as compared with ECNs), and connectivity is typically direct to the broker's systems, rather than through a gateway.
Investment banks and other dealers have far more complex technology requirements, as they have to interface with multiple exchanges, brokers and multi-dealer platforms, as well as their own pricing, P&L, trade processing and position-keeping systems. Some banks will develop their own electronic trading systems in-house, but this can be costly, especially when they need to connect to many exchanges, ECNs and brokers. There are a number of companies offering solutions in this area.
Just to contrast the simplicity of the model with the definition from the text

45. have

46. Example: Conceptual Architecture Diagram
Users
Interface
Processes
Resources De
System Admin
Desktop
Textbook Content
Import From Publishers
Professor
Web
Define Course
Course Content Database
Students
Phone App
Use Study Aids

47. Users Interface Processes Resources Detect, Measure and Report Episode
Patient
Analyze Episodes
and Adjust
Treatment Plan
Physician
Track Covered
Procedures and
Episodes
Event Monitoring
And Reporting
Database
Insurer
Report Event
via Text
Loved
Ones