Description of this paper

Loading

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

Description

Instant Solution ? Click "Buy button" to Download the solution File


Question

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 . . .

 

328

 


 

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

 

Q1

 


 

Why do organizations need to manage business

 

processes?

 


 

Q2

 


 

What are the stages of Business Process

 

Management (BPM)?

 


 

Q3

 


 

How can BPMN process diagrams help identify

 

and solve process problems?

 


 

Q4

 


 

Which comes first, business processes or

 

information systems?

 


 

Q5

 


 

What are systems development activities?

 


 

Q6

 


 

Why are business processes and systems

 

development difficult and risky?

 


 

Q7

 


 

What are the keys for successful process and

 

systems development projects?

 


 

Q8

 


 

2021?

 


 

329

 


 

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

 

330

 


 

Q1 Why Do Organizations Need to Manage Business Processes?

 


 

331

 


 

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

 

availability.

 


 

Figure 10-1

 

Steps in Processing an Order

 


 

Hotel

 


 

Prepare

 

Quotation

 

Verify

 

Availability

 

Customers

 


 

Check

 

Customer Credit

 


 

Orders

 


 

Approve

 

Special Terms

 

Process

 

Order

 


 

332

 


 

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)

 

Internationalization

 

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 www.isaca.org/cobit 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

 


 

333

 


 

334

 


 

CHAPTER 10 Business Process and Information Systems Development

 

Scope

 


 

Description

 


 

Example

 


 

BPM Role

 


 

Functional

 


 

Business process resides

 

within a single business

 

function.

 


 

Accounts payable

 


 

BPM authority belongs to a single

 

departmental manager who has

 

authority to resolve BPM issues.

 


 

Cross-functional

 


 

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.

 


 

Interorganizational

 


 

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

 

Management

 


 

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 www.bpmn.org. 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?

 

Start

 


 

End

 


 

Activity (+ indicates subprocess defined)

 


 

Decision or Gateway

 


 

Data

 


 

Process flow

 

Message flow

 

Other processes add new equipment

 

and record the arrival of repaired equipment

 


 

Annotation

 


 

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

 


 

335

 


 

Figure 10-4

 

Business Process Management

 

Notation (BPMN) Symbols

 


 

336

 


 

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...

 

Paper#9210200 | Written in 27-Jul-2016

Price : $19
SiteLock