Chapter 7 In Class Notes Flashcards
(51 cards)
is a network of activities that
generate value by transforming inputs into outputs
Business process
Activities can be performed by:
– Humans
– Humans augmented by computer systems
– Computer systems, only
Formally defined, standardized
processes that involve day-to-day operations (e.g.
accepting a return, placing an order, purchasing raw
materials, etc.)
Structured process
Flexible, informal, and adaptive
processes that generally involve strategic and less
specific managerial decisions and activities
Dynamic process
How Do Structured Processes Differ from
Dynamic Processes?
Structured processes support operational and structured managerial decisions and activities and Standardized, and usually formally defined and documented and exceptions rare and not well tolerated and process structure changes slowly and with organizational agony. Example is customer returns, order entry, purchasing, and payroll. Dynamic supports strategic and less structured managerial decision and activities, less specific, fluid, usually informal, exceptions frequent and expected and adaptive processes that change structure rapidly and readily. Examples are collaboration, social networking, ill-defined, and amgibuous situations.
Can Information Systems Serve Both
Structured and Dynamic Processes?
The focus of this chapter is on structured processes
and information systems, but the answer is absolutely
YES!
Common Departmental Information
Systems (Goals of Org. Unit) 6 of them
Sales and marketing Operations Manufacturing Customer Service Human Resources Accounting
How Do Structured Processes Vary by Scope? What are the 3 different scopes?
- Departmental
- Enterprise
- Inter-enterprise
What is the fox lake example of the Departmental one?
Scheduling of ground keeping
What is the fox lake example of the Enterprise one?
Charging of membership fees
What is the fox lake example of the Inter-enterprise one?
Ordering of restaurant supplies from supplies
What are the characteristics of the Departmental Scope?
10 to 100 of users; procedures understood within group; problem solutions within group; data duplication among departments; somewhat difficult to change
What are characteristics of Enterprise?
100 to 1000s of users; procedures formalized; problem solutions affect enterprise; data duplication minimized; very difficult to change.
What are characteristics of the Inter enterprise Scope
1000s of users; procedures formalized; problem solutions affect multiple organizations; controlled data duplication; difficult to change; inter-organization IS required
Q2: How Can Information Systems
Improve Process Quality?
“Processes are the fabric of organizations; they are
the means by which people organize their activities to
achieve the organization’s goals…process quality is
an important, possibly the most important,
determinant of organizational success.”
Two Dimensions of Process Quality
- Process efficiency
2. Process effectiveness
What is process efficiency?
ratio of process outputs to inputs
What is process effectiveness?
How well a process achieves organizational strategy
Ways to improve process quality (3 ways)
– Change process structure
– Change process resources
– Change both
How Can Information Systems Improve
Process Quality while
• Performing an activity
– Partially automated vs. completely automated
Islands of Automation (a.k.a.
information silos
Islands of Automation (a.k.a. information silos)
• Information silos are not a problem until processes begin to
use and store data about the same entities (duplicate data).
• Ongoing evaluation and short and long term strategic thinking
is needed…
• If we have information silos, is that an inherent or natural part
of our business, or is it an indication of lack of focus?
(Depends)
– VCs inherently do this and do it well.
– At the same time, some of the worst merger & acquisition
deals of all time were ones where the company was
swinging for the fence
How Do Information System Silos Arise? 4 ways
– Data isolated in islands of automation
– Different department goals
– Different personal and workgroup needs
– Duplicate data as organization grows
Eliminating Duplicated Data
• Two Options:
– Eliminate duplicated data is to store a single copy of
the data in a shared database, and revising business
processes and applications to use that database
(enterprise information system)
– Allow the duplication, but to manage it to avoid problems
• Impractical?
