Business_Processes_and_Data_Flow_pwc_1_

Business Processes and Data Flow ITSS 3300

• Supplemental Material: Laudon, Dennis, Wixom, Roth, et al.

Course Objectives

• Evolving Nature of IS and IT

  • Understanding roles in modern organizations.

• Business Processes

  • Describe, model, and apply information technologies in business.

• IS in Business

  • Knowledge of data management, information technology, enterprise systems, information systems management, and business intelligence.

Business Processes

• Definition: Sets of activities and routines that involve flows of material, data, information, and knowledge.

  • Can be functional or cross-functional.

• Characterization: Seen as collections of business processes, which can be either assets or liabilities.

Structured vs. Dynamic Processes

• Structured Processes:

  • Support operational and managerial decisions.

  • Characteristics:

    • Standardized.

    • Formally defined.

    • Rare exceptions tolerated.

    • Slow structural changes.

  • Examples: Order entry, payroll, customer returns.

• Dynamic Processes:

  • Support strategic and less structured decisions.

  • Characteristics:

    • Less specific and fluid.

    • Informal, frequent exceptions.

    • Quick adaptation to changes.

  • Examples: Collaboration, social networking.

Process Attributes

• Attributes based on studies from Kogan and Muller (2006):

  • Structured: Predefined, multiperson, repeatable.

  • Dynamic: Unstructured, single-use, ad hoc, not business critical.

Examples of Business Processes

• Sales and Marketing: Identifying prospects.

• Human Resources: Producing payroll.

• Finance and Accounting: Creating financial statements.

• Supply Chain: Maintaining inventory levels.

• Manufacturing/Production: Assembling products.

IT Improvement in Business Processes

• Efficiency Gains:

  • Automating manual steps.

  • Enhancing speed and quality.

  • Monitoring process activities.

• New Process Enablement:

  • Changing information flow.

  • Supporting new business models.

Process Model Goals

• Understand real process flows versus expected flows.

• Identify contributing factors to flow variations.

• Determine measurements for inputs, outputs, duration.

• Enhance communication requirements and workflows.

• Identify IT effects on workflows.

Business Process Modeling Fundamentals

• Key Questions:

  1. What is the overall purpose and outcome of the process?

  2. Who participates in the process?

  • Departments and individuals involved.

  3. How is success measured (e.g., time, quality)?

Documenting Business Processes

• Key Elements to Include:

  • Tasks (Inputs/Outputs).

  • Decisions (Alternative choices).

  • Sequencing/Flows (Temporal representation).

  • Identity (Roles and responsibilities).

Business Process Modeling Techniques

• Graphic Representation: Utilize BPMN standards.

• Common Tools:

  • Microsoft Visio

  • LucidChart

  • Microsoft PowerPoint

  • Rational Software Modeler.

Basic Shapes and Symbols in Modeling

• Essential Elements:

  • Start/End: Defines process boundaries.

  • Activity/Process: Represents tasks.

  • Gateway/Decision: Indicates branching points.

  • Data Store: Holds information.

  • Swim Lanes: Show who performs activities.

Process Mapping & Swim Lanes

• Example of Filling an Order:

  1. Place Order

  2. Build It

  3. Receive and Check Order

  4. Ship It

Advanced Process Mapping

• Who and When Mapping:

  • Timeline representation of activities by participant.

  • Focus on efficiency gains.

Business Process Redesign

• Business Process Management (BPM): Improve, optimize, and manage processes.

  • Steps include identifying, analyzing, designing, implementing, and measuring processes.

Problem Solving in Business Processes

• Key Personnel: Business analysts and knowledgeable stakeholders are crucial for fixing workflow issues.

Example Process: Purchasing a Book

• Traditional book purchase process vs. redesigned online process.

• Steps includes: Searching, buying, and fulfillment.

Improving Process Quality

• Metrics to Assess:

  • Efficiency (outputs vs. inputs).

  • Effectiveness (alignment with organizational strategy).

• Improvement Strategies:

  • Change structure and resources of the process.

  • Ensure quality data before process execution.

Data Flow Diagrams (DFD)

• Purpose: Show data communication throughout process activities.

  • Key Elements:

    • Process activity.

    • Data flow between processes and stores.

    • External entities interacting with the process.

Information Silos in Organizations

• Problems Identified:

  • Data duplication, inconsistency, isolation, and inefficiencies.

• Examples:

  • Issues within Sales, Accounting, and Marketing.

Solutions for Information Silos

• Strategies: Integrate databases and improve application management to prevent silo issues.

Modeling Tools**

• Lucidchart: Online modeling tool available for free.

• Microsoft Visio: Potentially available for students depending on software licenses at UTD.

Summary: Importance of Process Mapping

• Clarifies roles and inputs/outputs.

• Enhances understanding of activities and their sequences.

• Aids in identifying communication flows and inefficiencies for process improvement.