Silvers steps recommended for modelling

1. Define process scope
2. Create top-level diagram for happy path
3. Add top-level excepton paths
4. Expand subprocesses to show detail at child level
5. Add intermediate message flows to external pools

Definitions

Information System (IS)

A set of components that collect (input), manipulate (process), store (output) and display data and information while providing feedback to meet an objective. (tools to help achieve career goals).

Data

Simple and raw facts; e.g. employee number and total hours worked. Each fact could be stored as a number, audio, image, video or text.

Information

A collection of facts (data) which are organized and processed so that they achieve a greater value/meaning. Keywords: Input, Process, Output and Feedback.

Process

Combining and converting data to useful information is called a process. set of logically related tasks

Knowledge

Awareness and understanding of a set of information, and the ways that information can be made useful to support a specific task or reach a decision.

It requires prior knowledge to be able to define relationships with the raw facts in order to process them in a meaningful way to get information about them. There are specialized knowledge workers (KWs) who works on finding those relationships.

Valuable Information (SCARFS ARE TV):

• Secure: only accessible for authorized users
• Complete: contains all important facts
• Accessible: easily accessible in the right format and at the right time
• Relevant: info must be applicable
• Flexible: info can be used for a variety of purposes
• Simple: info that is concise and not overloaded
• Accurate: info without errors
• Reliable: e.g. reliable sources and methods for collecting data
• Economical: balance info value with production costs
• Timely: info is delivered when needed
• Verifiable: e.g. by checking many sources for same info

System:

set of elements/components that interact to accomplish goals

System Components:

inputs, processing mechanism, outputs, feedback. Knowledge is needed to define relationships among inputs and organize elements.

Types of Information Systems

IS can be manual or computerized.

Businesses can use IS to increase revenues and reduce costs, solve problems and make decisions

Computer Based Information System (CBIS) consist of:

• Hardware
  • computer equipment used to perform input, processing, storage and output activities
• Software
  • programs operating with computer
• Databases
  • organized collection of facts and information
• Telecommunications
  • carry out tasks through computer networks
• People
  • are the most important element in most CBISs
• Procedures
  • the strategies, policies, methods and rules for using a CBIS

Most common types of IS are those designed for electronic and mobile commerce, transaction processing, management information and decision support. They are often integrated in one product and delivered by the same software package.

(those with (chap x) behind can be read about later)

• E-commerce (chap 8)
• Transaction Processing Systems (TPS) (chap 9)
• Workflow systems
  • management software that co-ordinates and monitors interrelated tasks
• Enterprise Resource Planning (ERP) (chap 9)
• Management Information Systems (MIS) (chap 10)
• Decision Support Systems (DSS) (chap 10)
• Artificial Intelligence (AI) (chap 11)
• Virtual Reality (VR) (Chap 11)
• Knowledge Management Systems (KMS) (chap 11)
• Expert Systems (chap 11)

System Development

Creating/modifying business systems

Steps

• Investigate
  • understand problem
• Analysis
  • understand solutions
• Design
  • select and plan best solution
• Implementation
  • place solution into effect
• Maintenance
  • evaluate results of solution
  • check & modify system

Computer literacy: Knowledge of computer systems & equipment.

IS literacy: Knowledge of how and why technology is applied in business.

Overview

A Business Strategy should match the Information Technology Strategy, usually the Business Strategy are done first. The Organizational Infrastructure need to be designed in a way to support the business strategy as well. The same goes for the Information Systems Infrastructure that needs to be designed to support the Information Technology Strategy. Finally, the Organizational Infrastructure needs to correspond with the Information Systems Infrastructure.

Designing Business Processes

Organizational Structures

The way organizational subunits relate to overall organization. Organizational structures are subunits of an organization, and in which way they relate to the overall organization

types of subunits:

• Traditional
  • tree
  • major department heads report to a top-level manager
• Flat
  • reduced level of management layers
  • empowers employees at lower levels of the organization
• Project
  • structure centered on major products/services
• Team
  • structure centered on work teams
• Virtual
  • structure uses individuals, groups, business units in geographically dispersed areas

Definitions

Organizational culture:

the major understanding and assumptions for a business

Organizational change:

how organizations plan for, implement, and handle change

Change model:

representation of change theories that identifies the phases of change

Unfreezing:

ceasing old habits and creating a climate receptive to change

Moving:

the process of learning new methods and systems

Refreezing:

reinforce changes to make the new process accepted

Organizational learning:

adapting to new conditions or altering practices over time

Continuous improvement:

constantly try to improve business processes

Reengineering:

make fundamental changes in the way a company does business (radical redesign)

Technology diffusion:

a measure of how widely technology is spread

Technology infusion:

a measure of how deeply imbedded technology is in an area

Quality:

ability of a product to meet or exceed customer expectations. Techniques used: total quality management and six sigma

Return of Investment (ROI):

profits generated as a percentage of the investment in IS

Earning growth:

the increase in profit

Technology Acceptance Model (TAM)

• theory that models how users come to accept and use a technology.
• specifies factors that can lead to better attitudes about the IS.

when users are presented with a new technology, two factors influence their decision about how and when they will use it:

• Perceived usefulness (PU)
• Perceived ease-of-use (PEOU)

Major stage in use of IS

• Cost reduction and productivity
• Competitive advantage
• Performance-based management

Multistage Model

• Search & identification
• Selection and negotiation
• Purchasing products and services electronically
• Product and service delivery
• After-sales service

Challenges

1. Define effective e-commerce model and strategy
   1. Components of successful e-commerce model
      1. Community
      2. Content
      3. Commerce
   2. Dealing with consumer privacy concerns
   3. Overcoming consumers lack of trust
   4. Overcome global issues

Mobile-Commerce (M-Commerce)

relies on use of wireless devices

Advantage of E-&M-Commerce

• Reduce cost
• Increase accuracy
• Speed flow of goods and information
• Improve customer service

Stages of decision making

• Intelligence stage
  • Identify and define potential problems or opportunities
• Design stage
  • Develop alternative solutions to the problem and evalute their feasability
• Choice stage
  • Select a course of action

Problem solving add 2 steps to decision making:

• Implementation stage
  • Put solution into effect
• Monitoring stage
  • Evaluate the implementation

Models

Programmed decision:

Made using a rule/procedure

Non-programmed (ad hoc):

Decisions deal with unusual/exceptional situations

Optimization model:

Finds the best solution

Satisficing model:

Finds good, not necessarily the best, problem solution

Heuristics:

Commonly accepted guidelines/procedures that usually find a good solution

Transaction Processing Systems (TPS)

Organized collection of people, procedures, software, databases and devices used to record completed business transactions.

Transaction: Any business-related exchange such as payments to employees, sales to customers, or payments to suppliers

Information concepts are applied to routing, repetible and ordinary business transactions. TPS functions are built into an ERP (enterprise resource planning) system.

Enterprise Resource Planning (ERP)

Real-time monitoring of business functions. ERP configures all aspects of the IS environment to support how the firm runs its business.

ERP system:

a set of integrated programs that can replace many applications.

Supply Chain Management (SCM)

Plan, execute and control all activites involved in raw material sourcing and procurement. Convert raw materials to finished products, and warehousing and deliver finished product to customer. The processes included are: sales forecasting, sales and operations plan, demand management, detailed scheduling, materials requirement planning, purchasing, production and sales ordering.

Customer Relationship Management (CRM)

A system that helps a company manage all aspects of customer encounters, including marketing and advertising, sales, customer service after the sale, and programs to retain loyal customers. That is, understanding and anticipating the needs of current and potential customers.

Management Information Systems (MIS)

Organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers.

• Provides info & support for effective decision-making and feedback on daily operations
• The insight provided helps control, organize and plan more effectively and effeciently
• Helps an organization to achieve its goals

Input TPS and ERP systems

Output

• Scheduled reports
• Demand reports
• Drill down reports
  • provide detailed data about a situation

Decision Support System (DSS)

Organized collection of people, procedures, software, databases and devices used to help make decisions that solve problems.

• used for problem-specific decision making for semi-structured and unstructured problems
• used at all levels in an organization

Group Support System (GSS)

Consists of most DSS elements + software for providing group support

Executive Support Systems (ESS)

Special case of DSS, designed to support higher-level decisions (strategic planning)

Knowledge Management System (KMS)

Collection of people, procedures, software, databases and devices used to create, store, and use the organization's knowledge and experience. These systems are known as computer-based information systems (CBIS).

Effective KMS based on learning new knowledge and changing procedures and approaches as a result

Artificial Intelligence (AI)

computers with ability to mimic/duplicate the functions of the human brain

Expert systems

use heuristics to arrive at conclusions and make suggestions

Virtual Reality (VR)

enables users to move and react in a computer simulated environment

Levels and main perspectives

BPMN for process modeling

• BPMN: Business Process Model and Notation. Leading standard for mdeling in BPM.
• Business process: A set of activities performed in an organization, coordinated to jointly realize a business goal.

Three Levels of Use:

Level 1:

Descriptive modeling - geared towards simply documenting the process flow

Level 2:

Analytical modeling - more accurate with respect to exceptions and events. Supports qualitative and quantitative analysis

Level 3:

Executable modeling - graphical models that can be transformed into XML-based specifications that drive process engines

Enterprise Architecture Frameworks

Enterprise Architecture Modeling