BSP Study Steps

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Business System Planning

1970s IBM initial works on BSP, it waspreviously for internal use only.

1981, IBM issued and made available tocustomers.

Later, this method became an importanttool for many organizations.


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Business System Planning is a methodfor

analyzing,defining anddesigning

an information architecture of anorganization.


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It is a very complex method dealing withdata, processes, strategies, aims andorganizational departments which areinterconnected.


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BSP brings new approach to design aninformation architecture and its goals are to:understand the issues and opportunities with thecurrent applications and technical architecturedevelop a future state and migration path for thetechnology that supports the enterpriseprovide business executives with a direction anddecision making framework for IT capital expendituresprovide information system (IS) with a blueprint fordevelopment



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BSP procedure contains 15 steps whichare classified into 3 main sectionsaccording to their functions.1. Preparation2. Analytical3. Final

BSP Steps


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1 Preparation1.1 Obtain authorization for the study

1.2 Study preparation1.3 Study beginning

BSP Steps


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2 Analytical2.1 Define the business strategy2.2 Define the business processes2.3 Define the data classes2.4 Analyse current information support2.5 Discuss the analysis results withmanagement2.6 Issue the analysis results

BSP Steps


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3 Final3.1 Define the information architecture

3.2 Establish priorities for IS development3.3 Verify the impact of study to ISmanaging

3.4 Next procedure proposal3.5 Results presentation3.6 Next procedure

BSP Steps


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1.Preparation1. Obtain authorization for the study

The very first step of BSP is to obtainauthorization for the study frommanagement or a departmentinterested in this study. There is no useto proceed in the study without thisdocument. There is number of roles

which have to agree on purpose andrange of the study.


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1.Preparation1. Obtain authorization for the study

The roles are following:Management member (Director)

operates as a sponsor or a team leader

Verifies, approves final results of the study Sponsor

provides with the financial support for the study Team leader

chooses and leads the team members (4-7 prsns)coordinates activitiesguarantees early documentationhas 8 weeks to carry out the study (usually more)presents final results to the management


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1.Preparation2. Study Preparation

The team leader is responsible for thispart and its goal is to:

set time planget all the necessary documentschoose managers for interview

ensure meeting and interview spaceinform team members about:

fundamental functions of the organizationdata processing level of the organization


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1.Preparation2. Study Preparation

Final product of this step:A Leading study book

The book contains:all the necessary information mentionedabove,

concrete study schedule, documentsrelating to IT, diagrams, etc.


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1.Preparation3. Study Beginning

Its Initiated with a Kick-off meeting where:sponsor presents

the main purpose of the studyexpected results of the study

team leader presentsresults of previous partplan of the study

IT manager presents

the present state of ISrole of IS within the organization

After this meeting the preparation part of theproject is finished and we can proceed to the

analytical part of the study.


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2.Anlytical1. Define the business strategy

Adaptation to the customers desiresCentrally planned reservations, stock, customers paymentsCheck-in improvementMaterial movement improvementNoise reductionPaperless processesProduct portfolio expansionPresentation improvementAdvertising improvementReduction of commitment losses

Reduction of material costsRelations with business partners improvementStock management improvementSimplification customers order cycle

Transport coordination


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Team is responsible for creating the mainprocesses from these strategic targets.

The final output = Strategy / OU matrix.Strategy = particular strategic targetsmentioned above.Organizational Units = particulardepartments of the organization (i.e.production, business, marketing, etc.). Everysingle department is considered to have aresponsibility for each strategic target.a cross [*]= primary responsibility.

a slash [/] = partial responsibility.


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Strategy / OU Technical Administration Operational Transport Marketing IT dept

Paperlessprocesses

X X X X X X

Transportcoordination

X X X X

NoiseReduction

X / X

Check-inimprovement

X X

Newcustomers

X X

MMimprovement

X


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2.Anlytical2. Define the Business Processes

There are several business processes(activities) within every organization.

Choose the most relevant ones which areprofitable for the organization, and selectthe department which is responsible forthe particular process.Here are some examples of businessprocesses:


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Contacts creationInvoicingMonitoringPlane coordinationPlane serviceRegistration of a new customer

Service reservationEmployee training

Transfer

Car rental


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The final output of this step are twomatrices:

1. Processes / OU2. Processes / Strategy.


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Process /OU

Operational

Technical Administration Transport IT Dept. Marketing

Training X X X X X X

Monitoring X X X X

PlaneCoordination

X X

Plane Service / X X

Reservation X X X


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PROCES/STRATEGY

Paperless Process

TransportCoordination

Check-inImprovement

NoiseReduction

NewCustomers

Training X X X X

PlaneCoordination

X X X X

Plane Service X X X

Reservation X X

Monitoring X / X


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2.Anlytical3. Define Data Classes

It is necessary to create data classes (DC,Entities) which represent data classes of the particular organizational units. Thereare usually about 30-60 data classesdepending on the size of the organization.Future IS is about to use databases based

on these data classes.


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There are severalexamples of dataclasses:

BranchCustomerEmployeeInvoiceLoadPlane

Purchase orderService CatalogSupplier

Vehicle


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The final output of this step are threematrices:

1. Data classes / Processes,2. Data classes / Strategy and3. Data classes / OU.


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DC /PROCESS

Monitoring Training PlaneCoordination

PlaneService

Reservation

Plane X X

Employee / X /

Customer X

Load X

Supplier / / X


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2.Anlytical3. Define Data ClassesDC /STRATEGY

TransportCoordination

PaperlessProcess

NoiseReduction

NewCustomers

Check-inImprovement

Customer X X X

Supplier / X

Plane / X

Load X /

Employee / /


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DC / OU Operational

IT Dept. Administration Transport Marketing

Plane X

Customer X X

Load X /

Supplier /

Employee / / / / /


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2.Anlytical4. Analysis current inform. support

During this step are also defined informationsubsystems which plays an important role inthe other two matrices called IS / Entities and

IS / Activities. There are now four matriceswhich are used to create the informationalcross. Its main aim is to catch the mostimportant dependencies and responsibilities

within the organization and can also lead toappropriate elimination of redundancies.


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2.Anlytical5 . Discuss the analysis results with management

Team debates on up to now achieved resultswith the management.

The main purpose of this step is to:consider all the matrices and informational crossconfirm presumptions relatind to processes anddatasfill in the missing information

reveal deficiencies within the organizationestablish future priorities

The final output of this part strongly dependson the quality of prepared question.


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2.Anlytical6. Issue the analysis results

All created documents are gatheredduring the preceding analysis. Thesedocuments serve as a base for the

future information architecture. Theorganization classifies and dissects allthe came out problems. There isprepared a list of causes and theireffects for each problem and all theproblems are put into the relation withthe future IS.


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3.Final1. Define the inform. architecture

The main goal: To define the information architecture of the organization. It is necessary toconnect all the information subsystemsto the logical complex.

There is usually used the matrixProcesses / Data classes in order to findappropriate subsystems.


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3.Final1. Define the inform. architecture

Organization then generally:reorder processes according to the productor service life cyclereorder data classes to get the squares"creates" along the main diagonaleventually aggregates processes and dataclasses into logical groups which thencreate particular information subsystems


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3.Final2. Establish priorities for IS develop.

Which IS implement first? There are criteria (i.e. costs,development time, etc.) which shouldlead to establish the right order of system implementation.


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3.Final2. Establish priorities for IS develop.

There are always subsystems with thehighest priority which are about to beanalyzed more deeply.

The information are presented to thesponsor who can decide whichinformation subsystems will be

developed and which not.

3 Final


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3.Final3. Verify the impact of study to ISmanaging

There should be carried out a studyabout IS from the view of their planningand managing. Once the organizationhas finished the work on processes anddata classes it should explore the mainfunctions of the system and their goals.

There can arise unexpected difficultieswhich are about to be eliminated.

3 Final


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3.Final3. Verify the impact of study to ISmanaging

The final output of this step are:

* a list of requested changes inparticular departments* a calculation of costs necessary to

re/built the IS


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3.Final4. Next procedure proposal

There are final recommendations andrealization plan for the organizationduring this step. It considers informationarchitecture, IS managing and thesequence of information subsystemsdevelopment.

Important parts of the plan procedureare expected costs, profits, a schedulefor future activities.


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3.Final5. Results presentation

This step contains the final agreementof all interested parties (team,management, sponsor). All theinterested parties should agree on thefuture actions.


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3.Final6. Next procedure

This is the final part of BSP. Theorganization should establish all theparticular responsibilities during theproject implementation. There is usuallya control commission which ensures theconsistency across the IS.


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3.Final6. Next procedureBSP, in addition to its value for ISplanning, also made two other importantintellectual contributions:* It helped introduce the process view of the firm. The popular Business ProcessRe-engineering of the 1990s was built

on this concept.* It pointed out the need to de-coupledata from the applications that use

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