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please help me answer exercise 3 creating a process in page 369.-(Answered)


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please help me answer exercise 3 creating a process in page 369. Thank you.

Chapter 10



Business Process and Information


Systems Development



?Jeff, we clean the clubhouse restrooms


twice a day . . . in the morning before 7 and again just


before lunch. We?ve been doing that for years. Never


been a problem.? Mike Stone, facilities manager, is


defending his department in a meeting with Jeff Lloyd,


Fox Lake?s general manager, and Anne Foster, manager


of the newly formed wedding events department.


?That?s just great Mike. Just great.? Anne raises her


voice, ?And what if, like on the PAST THREE SATURDAYS, we have two weddings in the afternoon? Do you


think maybe guests at the second wedding would like


clean bathrooms?? Anne is incredulous that she has to


ask for clean bathrooms, of all things. ?It?s your friends


and family at a wedding . . . at Fox Lake! You would hope


the bathrooms will be clean!?


Jeff sits impatiently, he doesn?t like the direction


of this discussion, but he doesn?t know where to take


it . . .





Mike continues. ?Look, Anne, I can hire staff to clean


the bathrooms on whatever schedule you want. I DO


have a budget to pay attention to, however, so I?m not


going to hire people to clean bathrooms that are already


clean because we DIDN?T have two weddings that day.?


?Well, Mike, should we talk about our problem with


the toilet in the ladies room??


?What do you mean??


?I mean for a whole month, we?ve had a toilet that


overflows . . . ?


?Mike, is that right?? Jeff jumps in.


?Look. I don?t have a plumber on staff. Steve?s the


weekend manager. He knows we watch our expenses,


and he?s not going to call a plumber on Saturday, weekend rates and all. So, he?s does the right thing. He goes


over there and tries to fix it himself.?


?Seems like a good response, doesn?t it?? Jeff asks,


wondering where this one is going.



?You?re not going to take your bridal gown into


a Porta Potty.?


?I thought so, too. Saves us money and solves the


problem. Turns out that plumbing equipment was


never designed to have 250 people at an event. It?s


designed for one or two people from the restaurant,


maybe a party of four golfers. Anyway, he fixes the toilet


with spare parts and whatnot and, with that heavy use,


it breaks again, and Anne comes unglued! Besides, if I


had notice, I could bring in some Porta Potties . . . ?


?Mike!!! This is a wedding! You?re not going to take


your bridal gown into a Porta Potty. I CAN?T BELIEVE


I?M HAVING THIS DISCUSSION!!!? Anne is stupefied at


his comment.


Jeff steps in. ?OK, you two. Clearly, we?ve got some


work to do. We?re almost at the end of the big wedding


season. Take a break and then sit down together and


schedule it out. Figure out what it will take to get us


through this year. Mike, let me know if you need more


money and I?ll see what I can come up with. But, I don?t


mean a lot. Meanwhile, I?ll start thinking about a


longer-term solution.?


Next week, Jeff meets in his office with Laura Shen,


who?d been recommended to him as someone who could


help solve the wedding events and facilities problems.


?Laura, I don?t really know what you do. Margaret


Silvester, one of our board members, said you?d helped


with some computer problems at her company, and she


insisted I meet with you. This doesn?t seem like a problem for a computer programmer, though.?


?Jeff, I?m not a programmer. I?m what?s called a


?business analyst.? I know technology, and while I have



written computer programs, that?s not what I do. I specialize in understanding business needs, strategies, and


goals and helping businesses implement systems to


accomplish those needs. Often that involves computerbased systems, but not always.?


?Well, what do you know about us??


?Margaret gave me a quick rundown. You?ve


recently acquired a wedding events business and you?ve


had problems integrating it with the rest of Fox Lake.?


?That?s about right. But, we didn?t acquire a business . . . we hired someone who owned a small business


and she hoped to make it bigger working for Fox Lake. I


was looking for a source of more revenue.?


?So, what?s the problem??


?Facilities, mostly. We had some issues about using


membership data for marketing, but not serious ones.


The big problems are sharing facilities, timely maintenance, and tracking repairs. And, these wedding events


stress us in ways we?re not used to. The crew at the


restaurant can serve up a few burgers and fries to the


club members, but when we start putting high-end


caterers into their kitchen space, well, like I said, it?s


stressful . . . ?


?I might be able to help. Did you see this coming


when you started wedding events??


?No, not really. We just thought we could use our


buildings for weddings . . . I didn?t understand how it


would impact everything else.?


?Well, let me talk with your key people for a bit, and


I?ll get back to you with some ideas and a proposal.?



Study Questions





Why do organizations need to manage business








What are the stages of Business Process


Management (BPM)?






How can BPMN process diagrams help identify


and solve process problems?






Which comes first, business processes or


information systems?






What are systems development activities?






Why are business processes and systems


development difficult and risky?






What are the keys for successful process and


systems development projects?












Suppose Fox Lake had hired you instead of Laura. How would you proceed? According


to Jeff, ?The big problems are sharing facilities, timely maintenance, and tracking


repairs.? How would you address these problems? What would you advise Fox Lake to


do? Would you start by creating a spreadsheet or a database to schedule maintenance?


If so, how would Fox Lake use either to solve these problems? Or, would you start by


creating some sort of information system that has procedures for scheduling the use of


facilities? Or, would you begin with a business process, say the process of planning


weddings, and work from there to the need for information systems, and from there to


the need for a spreadsheet or a database?


To answer these questions, we will address two major themes in this chapter:


business process management and information systems development. The


two themes are closely related and overlap in important ways. We begin in Q1


through Q3 by describing the need for process management, the stages in the


business process management cycle, and BPMN, a notation used for documenting


business processes.


Next, in Q4, we investigate the relationship of processes and systems by asking


the question: Which should organizations create first? The response to that question


sets up the discussion of systems development activities in Q5 and the challenges


and keys to success in development projects in Q6 and Q7. We?ll wrap up this chapter


with a discussion of how information systems careers are likely to change between


now and 2021.



Q1 Why Do Organizations Need


to Manage Business Processes?


In order to discuss process design, we will extend the definition of business processes


that we used in Chapter 3. Here we will define a business process as a network of


activities, repositories, roles, resources, and data flows that interact to accomplish a


business function. As stated in Chapter 3, activities are collections of related tasks that


receive inputs and produce outputs. A repository is a collection of something; an


inventory is a physical repository and a database is a data repository. The new terms in


this definition are roles, which are collections of procedures, and resources, which are


people or computer applications that are assigned to roles. Finally, a data flow is the


movement of data from one activity or another or from an activity to a repository, or


the reverse.


To make this more clear, you can think of roles as job titles. Example roles are


salesperson, credit manager, inventory supervisor, and the like. Thus, an organization


might assign three people (resources) to the salesperson role, or it might create an


information system (resource) to perform the credit manager role.


To better understand this definition, consider a simple, but common, example.



A Sample Ordering Business Process


Suppose that you work in sales for a company that sells equipment and supplies to the


hotel industry. Your products include hotel furniture, cleaning equipment, and


supplies, such as towels and linens and staff uniforms. Processing an order involves


the five steps shown in Figure 10-1. You are one of many people (resources) that


perform the salesperson role.


As a salesperson, you do not perform all of the activities shown; rather, you


orchestrate their performance. You are the customer?s representative within


the firm. You ensure that the operations department verifies that the product is





Q1 Why Do Organizations Need to Manage Business Processes?






available and can be delivered to the customer on the requested schedule. You


check with accounting to verify the credit required to process the order, and you


check with your boss, a sales manager, to approve any special terms the customer


might request (discounts, free shipping, extended return policy, etc.). We will


document this process further in Q2.



Why Does This Process Need Management?


When you joined the firm, they taught you to follow this process, and you?ve been


using for it two years. It seems to work, so why does it need to be managed? The


fundamental answer to this question is that processes are dynamic and often need to


be changed. This need can arise because a process doesn?t work well, because of a


change in technology, or because of a change in some business fundamental.



Processes That Don?t Work Well


The most obvious reason for changing a process is that it doesn?t work. The process


does not produce the desired result, or it is so confused, with everyone following their


own personal way of getting things done, that it is only good fortune when desired


outputs are produced, now and then. Businesses with such broken processes cannot


survive, and, consequently few processes are such complete failures. More common


are processes that work, but not very well.


For example, according to Figure 10-1, salespeople verify product availability


before checking customer credit. If checking availability means nothing more than


querying an information system for inventory levels, that sequence makes sense. But


suppose that checking availability means that someone in operations needs not only


to verify inventory levels, but also to verify that the goods can be shipped to arrive on


time. If the order delivery is complex, say the order is for a large number of beds that


have to be shipped from three different warehouses, an hour or two of labor may be


required to verify shipping schedules.


After verifying shipping, the next step is to verify credit. If it turns out the customer has insufficient credit and the order is refused, the shipping-verification


labor will have been wasted. So, it might make sense to check credit before checking





Figure 10-1


Steps in Processing an Order



















Customer Credit








Special Terms










CHAPTER 10 Business Process and Information Systems Development



Similarly, if the customer?s request for special terms is disapproved, the cost of


checking availability and credit is wasted. If the customer has requested special terms


that are not normally approved, it might make sense to obtain approval of special


terms before checking availability or credit. However, your boss might not appreciate


being asked to consider special terms for orders in which the items are not available or


for customers with bad credit.


Another reason that processes don?t work well is that they are misaligned with the


organization?s goals, objectives, or competitive strategy. If, for example, the vendor


has chosen a low-cost strategy, then taking the time to verify shipping dates may be


at odds with that competitive strategy. The labor to verify shipping dates will raise


sales costs and may prohibit the vendor from providing the lowest possible prices to


its customers.


As you can see, it?s not easy to determine what process structure is best. The need


to monitor process effectiveness and adjust process design, as appropriate, is one


reason that processes need to be managed.



Change in Technology


Changing technology is a second reason for managing processes. For example, suppose the equipment supplier in Figure 10-1 invests in a new information system that


enables it to track the location of trucks in real time. Suppose that with this capability


the company can provide next-day availability of goods to customers. That capability


will be of limited value, however, if the existing credit-checking process requires 2


days. ?I can get the goods to you tomorrow, but I can?t verify your credit until next


Monday? will not be satisfying to either customers or salespeople.


Thus, when new technology changes any of a process?s activities in a significant


way, the entire process needs to be evaluated. That evaluation is another reason for


managing processes.



Change in Business Fundamentals


A third reason for managing business processes is a change in business fundamentals.


A substantial change in any of the following factors might result in the need to modify


business processes:


















Market (e.g., new customer category, change in customer characteristics)


Product lines


Supply chain


Company policy


Company organization (e.g., merger, acquisition)




Business environment



To understand the implications of such changes, consider just the sequence of


verifying availability and checking credit in Figure 10-1. A new category of customers


could mean that the credit-check process needs to be modified; perhaps a certain category of customers is too risky to be extended credit. All sales to such customers must


be cash. A change in product lines might require different ways of checking availability. A change in the supply chain might mean that the company no longer stocks some


items in inventory but ships directly from the manufacturer instead.


Or, the company might make broad changes to its credit policy. It might, for example, decide to accept more risk and sell to companies with lower credit scores. In this


case, approval of special terms becomes more critical than checking credit, and the


sequence of those two activities might need to be changed.


Of course, a merger or acquisition will mean substantial change in the organization and its products and markets, as does moving portions of the business offshore or


engaging in international commerce. Finally, a substantial change in the business


environment, say, the onset of a recession, might mean that credit checking becomes


vitally important and needs to be moved to first in this process.



Q2 What Are the Stages in Business Process Management (BPM)?



Q2 What Are the Stages in Business


Process Management (BPM)?


The factors just discussed will necessitate changes in business processes, whether the


organization recognizes that need or not. Organizations can either plan to develop


and modify business processes, or they can wait and let the need for change just


happen to them. In the latter case, the business will continually be in crisis, dealing


with one process emergency after another.


Figure 10-2 shows the basic activities in business process management (BPM), a


cyclical (recurring) process for systematically creating, assessing, and altering


business processes. This cycle begins by creating models of business processes. The


business users who have expertise and are involved in the particular process (this


could be you!) adjust and evaluate those models. Usually teams build an as-is model


that documents the current situation and then changes that model to make adjustments necessary to solve process problems.


Given the model, the next step is to create system components. Those components have the five elements of every information system, although some are entirely


automated (no people and procedures) and some are entirely manual (no hardware or


software). Next, needed business processes or changes to existing business processes


are implemented.


Well-managed organizations don?t stop there. Instead, they create policy, procedures, and committees to continually assess business process effectiveness. The


Information Systems Audit and Control Association has created a set of standard


practices called COBIT (Control Objectives for Information and related Technology)


that are often used in the assessment stage of the BPM cycle. Explaining these


standards is beyond the scope of this discussion, but you should know that they exist.


See for more information.


When the assessment process indicates that a significant need for change has


arisen, the BPM cycle is repeated. Adjusted and new process models are developed,


and components are created, implemented, and assessed.


Effective BPM enables organizations to attain continuous process improvement.


Like quality improvement, process improvement is never finished. Process effectiveness is constantly monitored, and processes are adjusted as and when required.


Business process management has the same scope as discussed for information


systems in Chapter 7: functional, cross-functional, and interorganizational. As


shown in Figure 10-3, BPM becomes more difficult as the scope of the underlying


processes increases.


Finally, do not assume that business process management applies only to


commercial, profit-making organizations. Nonprofit and government organizations


Figure 10-2


Stages in the BPM Cycle



Create Components



Model Processes



Implement Processes



Assess Results









CHAPTER 10 Business Process and Information Systems Development











BPM Role






Business process resides


within a single business





Accounts payable



BPM authority belongs to a single


departmental manager who has


authority to resolve BPM issues.






Business process crosses into


multiple departments within


a single company.



Customer relationship


management (CRM);


enterprise resource


management (ERP)



BPM authority shared across several or


many departments. Problem resolution


via committee and policy.






Business process crosses into


multiple companies.



Supply chain management (SCM)



BPM authority shared by multiple


companies. Problem resolution via


negotiation and contract.



Figure 10-3


Scope of Business Process





have all three types of processes shown in Figure 10-3, but most of these processes are


service-oriented, rather than revenue-oriented. Your state?s Department of Labor, for


example, has a need to manage its processes, as does the Girl Scouts of America. BPM


applies to all types of organizations.



Q3 How Can BPMN Process Diagrams


Help Identify and Solve Process Problems?


One of the four stages of BPM, and arguably the most important stage, is to model


business processes. It is so important because such models are the blueprint for the


new process and system components. If models are incomplete and incorrect, components cannot be created correctly. In this question, you will learn standard notation


for creating process documentation.



Need for Standard for Business Processing Notation


As stated, we define a business process as a network of activities, repositories, roles,


resources, and data flows that interact to accomplish a business function. This definition is commonly accepted, but unfortunately dozens of other definitions are used


by other authors, industry analysts, and software products. For example, IBM, a key


leader in business process management, has a product called WebSphere Business


Modeler that uses a different set of terms. It has activities and resources, but it uses


the term repository more broadly than we do, and it uses the term business item for


data flow. Other business-modeling software products use still other definitions and


terms. These differences and inconsistencies can be problematic, especially when


two different organizations with two different sets of definitions must work together.


Accordingly, a software-industry standards organization called the Object Management Group (OMG) created a standard set of terms and graphical notations for


documenting business processes. That standard, called Business Process Modeling


Notation (BPMN), is documented at A complete description of


BPMN is beyond the scope of this text. However, the basic symbols are easy to


understand, and they work naturally with our definition of business process. Hence,


we will use the BPMN symbols in the illustrations in the chapter. All of the diagrams


in this chapter were drawn using Microsoft Visio, which includes several BPMN


symbol templates. Figure 10-4 summarizes the basic BPMN symbols.



Documenting the As-Is Business Order Process


Figure 10-5 shows the as-is, or existing, order process introduced in Figure 10-1. First,


note that this process is a model, an abstraction that shows the essential elements of


the process but omits many details. If it were not an abstraction, the model would be



Q3 How Can BPMN Process Diagrams Help Identify and Solve Process Problems?








Activity (+ indicates subprocess defined)



Decision or Gateway






Process flow


Message flow


Other processes add new equipment


and record the arrival of repaired equipment






as large as the business itself. This diagram is shown in swim-lane layout. In this


format, each role in the business process is given its own swim lane. In Figure 10-5,


there are five roles and hence five swim lanes. All activities for a given role are shown


in that role?s swim lane. Swim-lane layout simplifies process diagrams and draws


attention to interactions among components of the diagram.


Two kinds of arrows are shown. Dotted arrows depict the flow of messages and


data flows. Solid arrows depict the flow or sequence of the activities in the process.


Some sequence flows have data associated with them as well. According to


Figure 10-5, the customer sends an RFQ (request for quotation) to a salesperson


(dotted arrow). That salesperson prepares a quotation in the first activity and then


(solid arrow) submits the quotation back to the customer. You can follow the rest of


the process in this diagram. Allocate inventory means that if the items are available


they are allocated to the customer so that they will not be sold to someone else.


Diamonds represent decisions and usually contain a question that can be


answered with yes or no. Process arrows labeled Yes and No exit two of the points of


the diamond. Three of the activities in the as-is diagram contain a square with a plus


(+) sign. This notation means that the activity is considered to be independent of this


process and that it is defined in greater detail in another diagram.


For example, the Check Customer Credit subprocess is shown in Figure 10-6. Note


the role named CRM in this subprocess. In fact, this role is performed entirely by an information system, although we cannot determine that fact from this diagram. Again, each


role is fulfilled by some set of resources, either people or information systems, or both.



Using Process Diagrams to Identify Process Problems


The processes shown in Figures 10-5 and 10-6 have problems. Before you continue,


examine these figures and see if you can determine what they are.


The problems in these processes involve allocations. The Operations Manager


role allocates inventory to the orders as they are processed and the Credit Manager


role allocates credit to the customer of orders in process. These allocations are correct


as long as the order is accepted. However, if the order is rejected, these allocations are






Figure 10-4


Business Process Management


Notation (BPMN) Symbols






CHAPTER 10 Business Process and Information Systems Development



Figure 10-5


Existing Ordering Process



not freed. Thus, inventory is allocated that will not be ordered, and credit is extended


for orders that will not be processed.


One fix (several are possible) is to define an independent process for Reject Order


(in Figure 10-5 that would mean placing a box with a + in the Reject Order activity) and


then designing the Reject Order subprocess to free allocations. Creating such a


diagram is left as exercise 3 in Using Your Knowledge (page 369).



Q3 How Can BPMN Process Diagrams Help Identify and Solve Process Problems?



How Can Business Processes Be Improved?


The two major dimensions of business process effectiveness are performance and


cost. Process designers can increase the performance of a business process in three


fundamental ways. First, they can add more resources to the roles of a given process


without changing its structure. This is the brute-force approach: add more people,


equipment, or systems to the existing way of doing business. Such a change alwa...


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