# Introduction ##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.

__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 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. __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__ - __I__nvestigate - understand problem - __A__nalysis - understand solutions - __D__esign - select and plan best solution - __I__mplementation - place solution into effect - __M__aintenance - 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. # Organization and Organization Systems __Define "Organization"__ - Formal collection of people and other resoures established to accomplish goals - A system - Constantly uses money, people, materials, machines and other equipment, data, information, and decisions. ## 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. ### Porter's "5 powers" model 1. Potential threat of new entrants 1. Switching costs 2. Access to distribution channels (e.g. app stores) 3. Economy of scale 2. Bargaining power of buyers 1. Buyer selection 2. Switching costs 3. Differentiation (Tapping new markets, e.g. selling customizable shoes) 3. Bargaining power of suppliers 1. Selection of supplier 2. Threat of backward integration 4. Threat of substitute products 1. Redefine products and services 2. Improve price/performance 5. Industry competitors ## Designing Business Processes ### Value Chain Model Series of activities that include inbound logistics, warehouse & storage, production and manufacturing, finished product storage, outbound logistics, marketing and sales, and customer service. A concept that reveals how organizations can add value to their products. In the same way that a car is made in different steps on a conveyour belt, the business process can be modelled in steps with the Value Chain Model. All the processes can then be split in to components with different steps for different parts. __Cons__: - It doesn't support the functional view of the business ## 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 - Project - structure centered on major products/services - Team - structure centered on work teams - Virtual - structure uses individuals, groups, business units in geographically dispersed areas ### Creating a virtual team Reason for changing the structure: _example_: Medical health organization. Instead of every patient having one doctor to relate to, they have multiple doctors or experts. Reasons: - Increasing complex clinical care - More co-morbidity - More focus on pateint-centred care - Mode part-time healthcare professionals - Extramuralisation of care ##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 habbits and creating a climate receptive to change __Moring__: : 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 #E-Commerce Business transactions executed electronically between companies, consumers or the public sector. ##Multi stage 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 in use of wireless devices ##Advantage of E-&M-Commerce - Reduce cost - Increase accuracy - Speed flow of goods and information - Improve customer service #Decision Making Phase ##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 #Systems ##Transaction Processing Systems (TPS) Cross-functional information systems used to record completed business transactions. Information concepts are applied to routing, repetible and ordinary business transactions. TPS functions are built into an ERP (enterprise resource planning) system. ###Methods - Batch processing - transactions are accumulated and processed as a single unit - OLTP _(on-line transaction processing)_ - Each transaction is processed immediately ###Objectives - Process data generated by and about transactions - Maintaing a high degree of accuracy and integrity - Produce timely documents & reports - Increase labour efficiency - Help provide increased service - Help build & maintain customer loyalty - Achieve competitive advantage - Act as main link between the organization and external entities ###Activities - Data collection - Capture/gather data necessary to complete transaction - Data editing - Check data for validity and completeness - Data correction - re-enter data not typed or scanner properly - Data manipulation - perform calculations on business transactions, classifying data, sorting, summarising - Data storage - update database with new transaction - Document production & reports - generating output ##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 ###Advantage - Elimination of costly, inflexible legacy systems - Improvement of work processes - Increase in access to data for operational decision making - Upgrade of technology infrastructure ###Disadvantage - Expense and time in implementation - Difficulty implementing change - Difficulty integrating with other systems - Risks in using one vendor - Risk of implementation failure ##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. ##Customer Relationship Management (CRM) Understand and anticipate the needs of current and potential customers. Capture and view data about customers to improve communications. ##Management Information Systems (MIS) - 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 ###Characteristics - Provide reports with fixed and standard formats - Produce hard-&soft-copy reports - Use internal data stored in computer system - Allow end user to develop their own custom reports - Require user requests for reports developed by systems personnel ###Functional Aspects - Financial MIS - provides financial information - Manufacturing MIS - monitor & control the process of converting raw materials to finished goods - Marketing MIS - supports product development, distribution, pricing decisions, promotions and sales forecasting - Human resource MIS - Concerned with activities related to employees and potential employees - Accounting MIS - Provides info on accounts payable, accounts receivable, payroll, etc. ##Decision Support System (DSS) - used for problem-specific decision making for semi-structured and unstructured problems - used at all levels in an organization ### Characteristics - Provide rapid access to information - Handle large amounts of data from different sources - Provide report & presentation flexibility - Offer both textual and graphical orientation - Support drill-down analysis ###Capabilities - Support for problem-solving phases - A specific DSS might support only one or few phases _(See decision making phase)_ - Support for various decision frequencies - Ad Hoc DsS - concerned with situations that come up only a few times - Institutional DSS - Concerned with decisions that occur many times - Support for different problem structures - Highly structured problems - Straight forward, requiring known facts and relationships - Semistructured/unstructured problems - more complex - Support for various decision-making levels - DSS can provide help for managers at various levels within the organization ###Components - At the core - Database management system - allows qualitative analysis on data - Model base - Allows quantitative analysis on onternal/external data - Dialogue manager - Allows users to access & manipulate a DSS using common business terms ###Differs from MIS - Type of problems solved - Support given to users - Decision emphasis and approach - Type, speed, output and development of the system used __Comparison:__ || __Factor__ || __DSS__ || __MIS__ || || Problem type || Unstructured problems || Structured problems || || Users || Users have more control || Users have less control || || Support || People still make the decisions || Some MISs make automatic decisions || || Emphasis || Actual decision-making styles || Emphasises info only || || Approach || Direct support system that provides interactive reports || Indirect support system that uses regular reports || || System || The equipment is on-line and related to real time || Weekly printed reports won't provide immediate results || || Speed || Less time to develpp and better able to respond || Longer response time || || Output || Usually screen, with ability to generate printed reports || Oriented towards printed reports || || Development || Users are more directly invovled in its development || Often several years old || ## Group Support System (GSS) consists of most DSS elements + software for providing group support ###Characteristics - Special design - special procedures, devices and approaches are needed - Ease of use - Flexibility - Support different approaches and integrate different perspective into a common view - Decision-making Support - Delphi approach - Group decision makers are geographically dispersed - Brainstorming ##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 ###Objective - Achieve organizational objectives - Assist of medical diagnosis - Assist in designing and developing other computer systems ###Characteristics - Learn from experience and apply knowledge acquired from experience - Handle complex situations - Solve problems when important information is missing - Determine what is important - React quickly and correctly to new situations - Understand visual images - Process & manipulate symbols - Be creative & imaginateive - Use heuristics ###Brain Computer Interface (BCI) directly connect the human brain to a computer and have human though control computer activities, which will allow people to control computers and artificial arms/legs through though alone ###Major brances - Expert systems - give the computer ability to make suggestions and act like an expert in a certain field - Robotics - mechanical devices perform tasks that require precision - Vision Systems - Permits computers to capture, store & manipulate visual images. _fingerprints, identify people_ - Natural Language Processing - Allows computer to understand and react to statements and commands made in a "natural" language - Learning systems - computer changes how it functions/reacts to situations based on feedback it receives - Neural networks - simulate the functioning of a human brain - can process many pieces of data at once and learn to recognize patterns ##Expert systems use heuristics to arrive at conclusions and make suggestions ###Characteristics - Explain their reasoning/suggested solution - Display intelligent behavior - Draw conclusions from complex relationships - Provide portable knowledge - Deal with uncertainty ### Capabilities - Strategic goal setting - Expert systens can suggest strategic goals and explroe the impact of adopting them - Planning - Can investiage the impact of plans - Design - Use design principles, understanding of procedures and design rules to assign in design - Decision making - Suggest alternatives ways of looking at problems and logical approaches to decision making - Quality control and monitoring - can monitor systems and propose solutions to system problems - Diagnosis - expert systems can anaylse test results and patient symptons ###When to use - Provide high payoff/reduce downside risk - capture and preserve irreplaceable human expertise - Develop a system more consistent than human experts - Provide expertise needed at many locations at the same time - Provide expertise that is expensive/rare - Develop a solution faster than human experts can - Prodive expertise needed for traning and development ###Components expert systems consists of a collectino of integrated and related components - Knowledge Base - stores all information, data, rules, cases and relationships used by expert system - the purpose is to hold relevant facts and information for the specific expert system - Inference Engine - Component delivering the expert advice - must find the right facts, interpretations and rules and assemble them - Explanation Facility - Indicates all facts and rules used in reaching conclusion - Knowlegde Acquisition facility - the part providing the means of capturing and storing components of the knowledge base - User interface - permite to develop and use own expert system to decision maker  ##Virtual Reality (VR) enables users to move and react in a computer simulated environment # Modeling of Information Systems A model highlights the essentials of the reality. It is quicker and cheaper to make than the full artifact, but still similar, so that it often is possible to spot consequences of decisions. ## Levels and main perspectives ### Levels: - Conceptual: Universe of Discourse - Logical: IS without reference to technology - Physical: IS with reference to technology ### Perspectives: - Process (function) - Structure (data) ## 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: : Executablemodeling - graphical models that can be transformed into XML-based specifications that drive process engines ### BPMN Level 1 Descriptive Modeling - our focus in this course __Steps:__ 1. Determine Process Scope 2. The High-Level Map 3. Top-Level Process Diagram 4. Child-Level Expansion 5. Add Message Flows # Enterprise Architecture The main reason to develope an Enterprise Architecture is to get an overview of data flow and IS, and to identify possible economic gains in the various process steps in the business. ## Enterprise Architecture Frameworks ### Zachman Is a __framework__ that provides a formal way of defining an enterprise. It consists of a matrix intersecting six communication questions with five levels of concretisation. (What, Where, When, Why, Who, How. And Contextual, Conceptual, Logical, Physical, Detailed). The Zachman Framework is not a methodology because it does not specify methods for collecting and managing the information it describes. It is rather an ontology; a schema for organizing architectural artifacts. ### TOGAF Or the _Open Group Architecture Framework_, is a high level __approach__ framework to designing, planning, implementating and governing an enterprise information architecture. It is modeled at 4 levels: _Business, Application, Data, Technology_. ## Enterprise Architecture Modeling ### ArchiMate Is an enterprise architecture __modeling language__. It supports the description, analysis and visualization of architecture within business domains in an unambiguous way. It distinguishes itself from other languages, (UML) and (BPMN), by its enterprise modelling scope (?). # Abbreviations | Glossary An alphabetical list of abbreviations used in the course. || AI || Artificial Intelligence || || ATM || Automatic Teller Machine || || B2B || Business-to-business || || B2C || Business-to-consumer || || BI || Business Intelligence || || BRP || Business Process Reengineering || || C2C || Consumer-to-consumer || || CA || Certificate Authority || || CAD || Computer-Aided Design || || CAM || Computer-Assisted Manufacturing || || CBIS || Computer-Based Information System || || CEO || Chief Executive Officer || || CFO || Chief Financial Officer || || CGI || Computer-Generated Image || || CIM || Computer-Integrated Manufacturing || || CIO || Chief Information Officer || || CKO || Chief Knowledge Officer || || COP || Communities Of Practice || || CRM || Customer Relationship Management || || CROSS || Consensus Ranking Organizational-Support System || || CTO || Chief Technology Officer || || DBMS || DataBase Management System || || DRM || Digital Rights Management || || DRP || Disaster Recovery Plan || || DSS || Decision Support System || || EIS || Executive Information System || || EMR || Electronic medical record || || EOQ || Economic Order Quantity || || ERM || Electronic Records Management || || ERP || Enterprise Resource Planning || || ESS || Executive Support System || || FMC || Flexible Manufacturing System || || FTC || Federal Trade Comission || || G2B || Government-to-business || || G2C || Government-to-consumer || || G2G || Government-to-government || || GIS || Geographic Information System || || GSS || Group Support System || || HMD || Head-Mounted Display || || HR || Human Resource || || HRMIS || Human Resource MIS || || ICU || Intensive Care Unit || || IM || Instant Messaging || || JIT || Just-In-Time || || KMS || Knowledge Management System || || KW || Knowledge Worker || || LAN || Local Area Network || || MIS || Management Information System || || MMS || Model Management System || || MRO || Manufacturing, Repair and Operations || || MRP || Material Requirements Planning || || OLTP || Online Transaction Processing || || ROI || Return of investment || || ROP || ReOrder Point || || S&OP || Sales and Operation Plan || || SaR || Sense and Respond || || SCM || Supply Chain Management || || SMEs || Small and Medium-size Enterprises || || SMS || Short Message Service || || SSL || Secure Sockets Layer || || TAM || Technology Acceptance Model || || TCO || Total Cost of Ownership || || TM || Text Messaging || || TOE || Technology, Organization and Environment || || TPS || Transaction Processing System || || TQM || Total Quality Management || || WAP || Wireless Application Protocol || || WML || Wireless Markup Language ||