Week7-INFS1000-S1-2010-preview - INFS1000 Digital Business...

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Unformatted text preview: INFS1000: Digital Business Innovation Week 7: Business Process Management Before we start... ... some organisational matters: INFS1000: Digital Business Innovation 2 INFS1000 Course layout Main concepts Lab classes 1 IS Introduction 1 Five components of IS, IT vs. IS, “business first” No lab classes 01/03/10 2 Business Processes 2 BP definitions & components, Role of BPs for business, Role of info, process automation No lab classes 08/03/10 3 Competitive Advantage 3 Structure of a business (functional vs. process view), value chain, industry structures, strategy Team work & collaboration 15/03/10 4 Databases & Information 5 Database definition & role, tables & relationships, Forms, Reports, Queries, ERD introduction Project management 22/03/10 5 Data Modeling (ERD) practice ER modeling (Chen’s Notation) Data Modeling (ERD) 29/03/10 6 BIS Ethical Issues / 4 Dimensions of Info. Ethics, Ethical dilemmas, judging dilemmas, making decisions Data Modeling (ERD) 12/04/10 7 Business Process Mgmt 7 Role of BPM, Scope, BPMN, Process change/ innovation, cross-functional systems Data Modeling (ERD) 19/04/10 8 (ANZAC Day) / (ANZAC Day) Database Design 26/04/10 9 Process Modeling (BPMN) / practice process modeling (BPMN) Database Design 10 E-Commerce 8 B2B vs. B2C, examples, challenges & benefits, role of IS in EC-based innovation Process Modeling (BPMN) 11 Business Intelligence 9 BI model, business data architecture, DW vs. transactional databases, Role of BI for business Project work 12 Collab. & Knowledge M. CE 2/4 Platforms for team collaboration, Enterprise 2.0, Knowledge Sharing, Content Management Project work 13 Wrap up & Exam prep UoS Evaluations, Repetition, Exam overview Lab Presentation Business innovation Business transformation IS and the organisation Ch Data & information Topic INFS1000: Digital Business Innovation CE 7 / <EXAM> 03/05/10 10/05/10 17/05/10 24/05/10 31/05/10 3 Learning objectives: At the end of this workshop you will have a much better understanding of… ›  Fundamental BIS concepts: -  Business Process Management (BPM) -  Understand the importance of BPM for modern organisa=ons -  What is BPM? What is its role? How does it work? -  Understand the role of Business Process Modeling Nota=on (BPMN) in BPM. ›  Applied knowledge: -  Learn the basic symbols of BPMN -  Learn to read and interpret BPMN models -  Create a simple BPMN model (Homework) ›  Reading guide: Textbook chapter 7 (only Q1 ­Q5, not Q6,Q7) INFS1000: Digital Business Innovation 4 Agenda for today 1. Repetition W6: BIS Ethics 2. Activity: Finish Homework ($RU Ethics) 3. Business Process Management 4. Activity: Learning to read Process Models INFS1000: Digital Business Innovation 5 A More precise figure… Information Privacy Information Accessibility Ethics IS Ethics Information Accuracy Law Information Property INFS1000: Digital Business Innovation 6 A model for ethical reasoning in BIS (Turban, 2005) ›  The model we use to analyse an ethical issue is based on a model by Turban (2005). It is based on a hierarchy of ethical reasoning grounded in ethical theories ›  We follow the following five steps: 1.  Iden=fy and clearly state the ethical dilemma 2.  Iden=fy the underlying BIS ethical issue (info. Privacy, property, accuracy, accessibility) 3.  Iden=fy the main stakeholders 4.  State your proposed ac=on and its possible effects on the main stakeholders (is it fair and just?) 5.  State your reasons for what you proposed Adopted from (Turban, 2005) INFS1000: Digital Business Innovation 7 Agenda for today 1. Repetition W6: BIS Ethics 2. Activity: Finish Homework ($RU Ethics) 3. Business Process Management 4. Activity: Learning to read Process Models INFS1000: Digital Business Innovation 8 Activity W6(3): Finish Homework Based on part 4 of $RU text ›  Kerrie is worried about how $RU deals with client data and documents once everything is kept electronically. ›  Analyse BIS ethical issues and write a short report -  You will be given a brief period of =me to finish and improve your homework. -  There won‘t be enough =me to a`empt the homework in class up 2 marks. INFS1000: Digital Business Innovation 9 Agenda for today 1. Repetition W6: BIS Ethics 2. Activity: Finish Homework ($RU Ethics) 3. Business Process Management 4. Activity: Learning to read Process Models INFS1000: Digital Business Innovation 10 REMEMBER? Characteristics of well-designed Business Processes ›  Complete -  Well ­designed BPs include all ac=vi=es necessary to achieve the business goal. ›  Minimal -  Well ­designed BPs do not include unnecessary ac=vi=es (cost efficiency). ›  Well ­structured -  Ac=vi=es in a well ­designed BP are structured in a logical sequence ›  Embedded -  Well ­designed BPs connect and interact with other BPs in the organisa=on in effec=ve and efficient ways. ›  Outcome of a well ­designed business process is: -  increased effec=veness (value for the customer) -  increased efficiency (less cost for the company). INFS1000: Digital Business Innovation 11 Q1: Why Is Business Process Management Important to Organisations? ›  Every business needs/has business processes ›  Processes change over =me: nothing stays the same ofen deliberate changes for the sake of improvements! ›  Business Process Management (BPM) -  Systema=c process of crea=ng, assessing, and improving business processes -  BPM applies to all organisa=ons (including not ­for ­profit and government agencies/ departments) -  Involves four stages INFS1000: Digital Business Innovation 12 Four stages of BPM 1.  Create a model of the current business process -  -  -  “As ­is” model documents the current process Business users (that is YOU!) review and adjust the model; it is changed to solve process problems The result is a “to ­be” model new process 2.  Create System Components -  -  Create or alter Informa=on Systems to support/facilitate new process Uses the 5 elements of IS (hardware, sofware, data, procedures, people) 3.  Implement new business process -  Change the way the organisa=on operates, train people 4.  Create policy and procedures to assess process effec=veness on an ongoing basis -  Adjust and repeat cycles (repeat the steps) INFS1000: Digital Business Innovation 13 Q2: How Does BPM Vary in Scope? ›  BPM varies with the scope and size of the process 1.  Func=onal Processes -  Ac=vi=es in a single department or func=on -  BPM easier at this level -  Problem is that may lead to “islands of automa=on” -  Example: Campaign management (in marke=ng) 2.  Cross ­Func=onal Processes -  Ac=vi=es across/among many business departments -  Eliminate or reduce isolated systems and data -  Example is Customer rela=onship management (CRM) INFS1000: Digital Business Innovation 14 Q2: How Does BPM Vary in Scope?(cont’d) 3.  Interorganisa=onal Processes -  Ac=vi=es that cross organisa=onal boundaries -  Business processes that involve ac=vi=es in another business or organisa=on -  Examples are supply chain management (SCM), credit card transac=on processing -  More difficult than func=onal and cross ­func=onal systems -  Requires nego=a=on, contracts, li=ga=on to resolve conflicts between organisa=ons INFS1000: Digital Business Innovation 15 Process modelling ›  What is process modelling? Why do we need it? -  The ac=vity of represen=ng business processes = crea=ng process models ›  Process modelling is of increasing importance. ›  Organisa=ons increase their level of sophis=ca=on in process modelling due to complex BPs ›  There is high demand for a modelling standards (tools) to provide a common planorm for documen=ng processes ›  INFS1000: Digital Business Innovation 16 Q3: How does Business Process Modelling Notation (BPMN) document Business Processes? ›  A number of standards have been developed to support process modelling: -  Petri Nets -  Event ­driven Process Chains (EPC) -  Business Process Modelling Nota=on (BPMN) ›  BPMN = a standard set of terms and graphical nota=ons for documen=ng business processes  ­> create models -  as ­is models and to ­be models INFS1000: Digital Business Innovation 17 What is BPMN? ›  What the developers of the standard say (OMG 2005): -  “The Business Process Modeling Nota=on (BPMN) provides businesses with the capability of defining and understanding their internal and external business procedures through a Business Process Diagram, which will give organiza=ons the ability to communicate these procedures in a standard manner.” ›  Benefits: -  Models will be understandable across various organiza=ons and modellers. -  Model exchange across tools and engines will be facilitated -  Fragmenta=on of the discipline will be reduced INFS1000: Digital Business Innovation 18 An example: Majestic River Ventures (MRV) ›  Conduct river ­rafing adventures ›  Highly compe==ve industry -  Compe==on on price and differen=a=on ›  MRV small company -  Differen=ates within a region providing high quality adventures -  Office in Melbourne run by owner -  Warehouse in Bright managed by Harry Munsen INFS1000: Digital Business Innovation 19 BPMN Symbols (Textbook) INFS1000: Digital Business Innovation 20 Top-Level Business Processes at MRV   The process starts with the Trip Scheduler resource performing the Register Clients ac=vity   The process generates the Client Roster and Special Requests data   Now try to interpret the rest of the process diagram. INFS1000: Digital Business Innovation 21 Business Process with Three Swim Lanes MRV ›  We can convert the diagram into a swim ­lane layout showing the ac=vi=es performed by each resource INFS1000: Digital Business Innovation 22 MRV Assemble & Ship Equipment Process ›  We will use this process as an example to show how improvements can be made INFS1000: Digital Business Innovation 23 Changing a Process by Altering Process Structure ›  Majes=c Rivers Ventures example -  Equipment manager was=ng =me picking up regular and special equipment at different =mes from the same warehouse -  Equipment and Logis=cs Manager creates an integrated picking list to minimise travel =me and speed up picking equipment INFS1000: Digital Business Innovation 24 Changing a Process by Altering Process Structure INFS1000: Digital Business Innovation 25 Q5: What Role do Information Systems play in Business Processes? ›  Informa=on systems play an important role in implemen=ng business processes -  Implement business process ac=vi=es -  Implement the whole process -  Maybe manual, automated, or mixed informa=on systems INFS1000: Digital Business Innovation 26 IS Alternatives for Implementing the Register Clients Activity Alterna=ves for Register Clients ac=vity for MRV: ›  En=rely manual -  Using word processor to record data, prepare documents of client roster and special requests list ›  Manual and partly automated -  Use spreadsheet or database applica=on to accomplish above ac=vi=es, plus determine trip availability, collect deposits and trip payments ›  En=rely automated—create Register Client system -  Clients use Internet to register and pay for trips INFS1000: Digital Business Innovation 27 Information Systems for Facilitating Linkages Among Activities ›  Informa=on systems, par=cularly with databases, help link ac=vi=es ›  Majes=c Rivers Ventures example -  Create database applica=on to track equipment, loca=on, status -  New ac=vity “Process Equipment Database” -  Updates database from Register Clients, Assemble & Ship, Restore Equipment ac=vi=es -  The trip scheduler can reserve special equipment and be no=fied if not available INFS1000: Digital Business Innovation 28 Equipment Database Resource Completely Automated Figure 7 ­11 INFS1000: Digital Business Innovation 29 BPMN: our set of symbols Events Start event Artefact Data object End event Transa=on details Timer event Connections Activities Process flow Ac=vity Acvtivity Ac=vity Sub process X Parallel Fork/Join Exclusive Decision/ Merge INFS1000: Digital Business Innovation Lane 1 Lane 2 + Pool Gateways Pool & Swim Lanes Pool + Message flow 30 A little Example ›  The Order Management process is triggered by the recep=on of a purchase order from a customer. The purchase order has to be checked against the stock re the availability of the product(s) requested. Depending on stock availability the purchase order may be confirmed or rejected. If the purchase order is confirmed, the goods requested are shipped and an invoice is sent to the customer. INFS1000: Digital Business Innovation 31 The Process model No Available? Yes INFS1000: Digital Business Innovation 32 Agenda for today 1. Repetition W6: BIS Ethics 2. Activity: Finish Homework ($RU Ethics) 3. Business Process Management 4. Activity: Learning to read Process Models INFS1000: Digital Business Innovation 33 Activity W7(2): Read and interpret BPMN ›  Learning Objec=ves: -  Learning to read Business Process Modeling Nota=on -  Getng Ready for Design Ac=vi=es ›  describing its meaning. -  Op=onal: Can you spot any problems with the processes as depicted in the models? INFS1000: Digital Business Innovation 34 The key ‘take-aways’ for today What is BPM? ›  Business Process Management is the systema=c design, crea=on, assessment and redesigning of business processes -  Rela=onship between BPM and Informa=on Systems ›  Process modelling as a main ac=vity of represen=ng business processes ›  BPMN as a nota=on for crea=ng process models ›  Process models as a vehicle to bring about change to the way the organisa=on works INFS1000: Digital Business Innovation 35 Activity W7(3) Homework: Model simple BPMN INFS1000: Digital Business Innovation 36 ...
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This note was uploaded on 08/18/2011 for the course INFS 1000 taught by Professor Dr.kairiemer during the Three '10 term at University of Sydney.

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