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

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?


Learning Objectives

Q4. How can organizations use IS to improve processes?Q5. How can IS hinder a process?Q6. How can SOA improve processes?


What are the Fundamental Types of Processes in Organizations?

• Business Process– Sequence of activities for accomplishing a function

• Activities– Tasks within a business process



• 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



• Examples of Processes:

Figure 5-1 Five SequentialProcesses, Resources, Actors, and Roles at the Pizza Shop



• Scope of Processes:

Figure 5-2 Scope andCharacteristics ofBusiness Processes



• Objectives of Processes:

Figure 5-3 ProcessObjectives andMeasures



• Business Process– Activities; resources; actors; roles

• Scope of Processes

• Objectives of Processes


What are Examples of Common Business Processes?

• Inbound Logistics Processes

• Operations Processes

• Outbound Logistics Processes



• Sales and Marketing Processes

• Service Processes

• Human Resource Processes

• Technology Development Processes



Figure 5-5 Value ChainActivities and ProcessExamples


How Can Organizations Improve Processes?

• OMIS Model– Objectives; Measures; and Information Systems

Figure 5-6 Steps in the OMIS Model



• Process Objectives– Specify and Improve

• Process Measures– Metrics



• OMIS Figure 5-7 Options

for Improving the

Objectives of a Process

Figure 5-8 Options forImproving the Measures Of a Process


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



• Non-IS Process Improvements– Add more resources– Change the process structure• Overlaps with IS

Figure 5-10 Non-ISProcess Improvements



• Six-Sigma– Removing causes of defects– Minimizing variability in the process• 99.99966% of output free from defects



• Participants and Diagrams in Process Improvement

• As-is diagrams• Ought-to-be diagrams


How Can an IS Hinder a Process?

• Information Silos– Data exists in isolated functional IS

• Why Information Silos Exist– Data stored in separate databases


How Can SOA Improve Processes?

• SOA: Services-Oriented Architecture– Middleware facilitates communication and data

sharing– Design approach for activities bases on:• Service• Encapsulation• Standards


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


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?


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?


Conclusion

Q4. How can organizations use IS to improve processes?Q5. How can IS hinder a process?Q6. How can SOA improve processes?



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

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