Strategic Information system MIT-M Chiangmai University IS requirement

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1 Strategic Information system MIT-M Chiangmai University IS requirement
ครั้งที่ 6 วันที่ 22 กุมภาพันธ์ 2557

2 Strategic Planning for Information Resources
Influence on Information Resources Information resources and IS strategy Business strategy Influence on Business Strategy 2-2

3 กลยุทธ์ธุรกิจ กับ กลยุทธ์สารสนเทศ
Information resources and IS strategy มีผลกระทบต่อ Business strategy มีผลกระทบต่อ The Business layer reflects a view of what the business must do in the future in terms of its organisation structure & business processes The Information represents what must be “known” to effectively execute the processes The Applications serve to support process functionality and bring information to the process The IT Infrastructure enables access to information and execution of activities Business Information Applications IT Infrastructure

4 ความสัมพันธ์ระหว่างแผนกลยุทธ์ธุรกิจและ แผนกลยุทธ์สารสนเทศและเทคโนโลยีสารสนเทศ
ผลกระทบและ โอกาส IT Business Strategy ทิศทางธุรกิจ Business Decisions Objectives & Direction Change การสนับสนุน การให้เป็นแนวทาง IS Strategy การเป็นโครง สร้างพื้นฐาน IT Strategy วิธีการนำ IT มาใช้ IS/IT ที่ต้องการ Business Based Demand Oriented Application Focused Activity Based Supply Oriented Technology Focused การกำหนดความ ต้องการ และลำดับ ความสำคัญ

5 Demand /Supply and Innovation Planning Practices
Business Strategic Plan (Demand) (Strategic intention) IT Capability (Potential for new business directions) Innovation Demand/ Supply IT (Strategy for the Supply of IT) Business Units and Processes (Strategic Agenda for use of IT)

6 Strategic Alignment Model
External Business External IT External Strategic Fit Internal Business Internal IT Internal Business IT Functional Integration Each block is characterized by different factors.

7 Mini-Case Example: Strategic Alignment at Medtronic, Inc.

8 Business System Planning
วิสัยทัศน์องค์กร วิสัยทัศน์ IS องค์กร Part A Part B Part C พันธกิจขององค์กร พันธกิจของ IS กลยุทธ์ขององค์กร กลยุทธ์ของ IS ระบบสารสนเทศ กลยุทธ์ทางธุรกิจ ระบบสารสนเทศ เชิงกลยุทธ์ Business Challenges CSF + Problem IS Projects Organization - Structure - Resources Business System Planning IS/IT Trend IT Architecture Budget Organization - Structure - Resources IT Management Strategy เทคโนโลยีสารสนเทศ Project Plan IT Master Plan

9 Why we exist? Change environment Disruptive Emerging New reality Strategic alignment model System thinking Business + IT Strategy Who are you? Personnel mastery Digital age Strategic Information System Strategic thinking General environment Scenario External driving forces Opportunities/ Threat Geographic environment Strength ?Weakness Resources based Internal driving forces Business Opportunities Life cycle / Opportunities driven TOWS matrix Strategic Planning What business to be in? GE matrix (market/Business strength) Core Business (Product /Service) Mission statement Strategic Direction Where to go? Strategic issue / Critical success Challenge + Mission statement Vision statement How to get there ? Strategic Positioning Business concept Business Model Product Positioning Product Portfolio BCG + Product/Market Matrix Business Strategy How to compete ? Generic model 5 Forces’+ Value chain Business Process Model IS Strategy Direction for business Implication for IS/IT Strategy IS Model Support business Need and Priorities IS Requirement IS Process / Data/Functional model Infrastructure /service IT application / Architecture / technology /Infrastructure How can be delivered IT requirement IT innovation IT Strategy IT Project IS/IT Project management

10 มอบหมายงาน งานกลุ่ม ไปทบทวนปรับงานที่ทำตามแนวทางลำดับหัวข้อที่กำหนด
งานกรณีศึกษา ให้ไปค้นคว้ากรณีศึกษาบริษัทที่ใกล้เคียงกับ Dummy Project ของกลุ่มว่าเขาเอา IS/IT อะไรมาใช้ในการสร้างความได้เปรียบในการแข่งขันของบริษัท ส่ง 22 กุมภาพันธ์ก่อน 16 น. มอบหมายเพิ่ม Business Process model และ IS Process Model

11 หัวข้อวันนี้ คำถามเชิงกลยุทธ์ เตือนประโยชน์จากการค้นคว้าเดี่ยว ที่ต้องรวมสรุปเอกสารงานค้นทั้งหมดส่ง งานกลุ่ม วิเคราะห์ 5 Forces’ Value chain วันนี้มาดูการวิเคราะห์การนำเอา IS/IT มาใช้กับกลยุทธ์ธุรกิจ คือการนำมาใช้กับวิเคราะห์ 5 Forces’ Value chain ในแง่ของ IS/IT เขียน Business Process และ IS process มอบหมายงานกรณีศึกษา

12 กรอบแนวทางการทำงาน Dummy Project
จุดมุ่งหมาย ปรัชญา ของการทำธุรกิจ วิเคราะห์สภาพแวดล้อมทั่วไป PESTLE สรุปภาพอนาคตทั้งด้านธุรกิจและด้าน IT ใน 5 ปีข้างหน้า และระบุ O/T ออกมาอย่างน้อย 3-5 ปัจจัย วิเคราะห์สภาพแวดล้อมภายใน (เชียงใหม่) ว่ามีฐานทรัพยากรอะไรที่สำคัญ และระบุ S/W ออกมาอย่างน้อย 3-5 ปัจจัย สร้างกลยุทธ์การหาธุรกิจที่น่าสนใจเข้าไปทำด้วย TOWS Matrix คัดเลือกธุรกิจที่น่าสนใจและตรงกับจุดมุ่งหมาย ปรัชญาการทำธุรกิจของเรานำมาวิเคราะห์ด้วย GE Matrix โดยนำเอาวงจรชีวิตสินค้า วงจรชีวิตธุรกิจและวงจรชีวิตของเทคโนโลยีมาประกอบการพิจารณาด้วย ระบุธุรกิจที่สนใจออกมา 1 ธุรกิจ พร้อมทั้งระบุตัวสินค้าหลัก/บริการหลักให้ชัดเจน เขียนออกมาเป็น Mission statement มีรายละเอียดดังนี้ ปรัชญาธุรกิจ ตัวสินค้า/บริการ ตลาดเป้าหมาย ลูกค้าเป้าหมาย Supplier คู่แข่งขัน

13 กรอบแนวทางการทำงาน Dummy Project ต่อ
7. หาข้อท้าทายที่จะรับมือปัจจัยแรงกดดันจากภาพอนาคต ประมาณอย่างน้อย 4-5 ข้อ ท้าทายขึ้นไป 8. นำเอาข้อท้าทายกับ Mission statement มากำหนดวิสัยทัศน์ Vision Statement 9. วิเคราะห์แนวคิดธุรกิจ Business Concept ระบุให้ชัดเจนถึงคุณค่าที่ได้รับ Value Proposition นำมาเขียนเป็น Business Model Canvas 10. จาก Mission statement และ Business model นำมากำหนดการวางตำแหน่งธุรกิจ ด้วยMatrix ตัวสินค้ากับลูกค้า ทุกอย่าง บางอย่าง ทุกคน บางคน 11. นำไปวิเคราะห์ด้วย BCG และ Product /Market Matrix เขียนลูกศรเชื่อมโยง

14 กรอบแนวทางการทำงาน Dummy Project ต่อ
วิเคราะห์ 5 Forces สภาพแวดล้อมการแข่งขันในธุรกิจที่เลือกมา ระบุปัจจัยของแรงกดดันที่มีผลกระทบต่อการแข่งขัน มาประมาณ 4-6 แรงมาเป็น Key issue ดูว่าแต่ละ Key issue นั้น IT มาช่วยในการสร้างขีดความสามารถในการแข่งขันได้หรือไม่ อย่างไร นำเอา Key issue แต่ละตัวมาหา ปัจจัยสำเร็จที่สำคัญ Critical Success Factor ใน Primary / Secondary Activities ใน Business Value chain แล้วดูว่า activities นั้น เอา IT มาช่วยสร้างคุณค่าให้กับกระบวนการ ธุรกิจของเราได้อย่างไรบ้างโดยต้องสอดคล้องกับกลยุทธ์การแข่งขัน Generic Model ที่ไปตอบ Business Concept ที่วางไว้ 14. นำเอาผลที่ได้ในแต่ละ activities มาบูรณาการ เป็นภาพรวม IS/IT ของ Value chain

15 กรอบแนวทางการทำงาน Dummy Project ต่อ
นำเอาหลักการของ Business Process model มาเขียน Business Process โดยมองตามกระบวนการตั้งแต่ความต้องการของลูกค้าที่รับเข้าจนถึงผล สุดท้ายความพึงพอใจที่ลูกค้าได้รับ 16. เขียน Process และ Data ออกมา เป็น Process /Entity Matrix นำเอาหลักการของ IS Process Model มาเขียน IS Process ที่สอดรับกับ กระบวนการธุรกิจในข้อ 15 เขียน IS Function และเขียน IS /Entity Matrix ออกมา

16 Competitive Advantage
Business Strategy How to compete ? Generic model 5 Forces’+ Value chain Business Process Model Threat of New Entrants Bargaining Power of Suppliers of Buyers Relative of Unions, Governments, etc. Potential Threat of Substitute Products or Services Industry Competitors Rivalry Among Existing Firms Other Stakeholders Buyers Substitutes Suppliers Competitive Advantage Uniqueness Perceived by the Customer Low Cost Position Industry Low Cost Differentiation Differentiation Focus Cost Focus Target Market Niche

17 Porter’s Competitive Forces Model
Chapter 13

18 Key issues What are the key forces at work in our competitive environment? Are there underlying forces (SLEPT analysis?) contributing to this? Is it likely that these forces will change? If so how and why? How do our competitors stand? How do WE stand? What can be done to influence these forces?

19 Critical (Key) Success Factors
CSFs are aspects of strategy where you must provide better value and beat the competition Competences needed in activities which underpin each critical success factor Performance standards for these determine how competitive advantage will be achieved Advantage lost by competitor performance & CSFs changing

20 Potential IS Contributions
Profit Margin Infrastructure Planning Models Human Resource Skills & Experience Databases Technology Computer-Aided Design Procurement On-line parts ordering Elapsed Time - Value added time cost Automated Warehouse Inbound Logistics Check Clearing Operations Point of Sale Scanners Outbound E-Commerce Marketing & Sales Remote Equipment Servicing Service Support Activities Primary Activities

21 Inbound Logistics Inbound Logistics
Highly Efficient Systems to Link Suppliers’ Products with the Firm’s Production Processes Located in Close Proximity with Suppliers Inbound Logistics 23

22 Human Resource Management Technological Development
Operations Efficient Plant Scale to Minimize Mfg. Costs Timing of Asset Purchases Policy Choice of Plant Technology Organizational Learning Relatively Few Management Layers to Reduce Overhead Firm Infrastructure Human Resource Management Effective Training Programs to Improve Worker Efficiency and Effectiveness MARGIN Technological Development Investments in Technology in order to Reduce Costs Associated with Manufacturing Processes Procurement Frequent Evaluation Processes to Monitor Suppliers’ Performances Efficient Plant Scale to Minimize Manufacturing Costs Delivery Schedule that Reduces Costs Small, Highly Trained Sales Force Service Inbound Logistics Outbound Logistics Selection of Low Cost Transport Carriers Products Priced to Generate Sales Volume Operations Operations Timing of Asset Purchases MARGIN Policy Choice of Plant Technology Efficient Order Sizes Organizational Learning 24

23 Human Resource Management Technological Development
Outbound Logistics Firm Infrastructure Delivery Schedule that Reduces Costs Human Resource Management Selection of Low Cost Transport Carriers MARGIN Technological Development Efficient Order Sizes Procurement Frequent Evaluation Processes to Monitor Suppliers’ Performances Delivery Schedule that Reduces Costs Small, Highly Trained Sales Force Interrelationships with Sister Units Effective Product Installations to Reduce Frequency and Severity of Recalls Service Outbound Logistics Outbound Logistics Selection of Low Cost Transport Carriers Products Priced to Generate Sales Volume Marketing & Sales MARGIN Efficient Order Sizes National Scale Advertising Interrelationships with Sister Units 25

24 Human Resource Management Technological Development
Marketing & Sales Firm Infrastructure Small, Highly Trained Sales Force Human Resource Management Products Priced to Generate Sales Volume MARGIN Technological Development Procurement Global Scale Advertising Service Inbound Logistics Outbound Logistics Marketing & Sales Marketing & Sales Operations MARGIN 26

25 Human Resource Management Technological Development
Service Firm Infrastructure Effective Product Installations to Reduce Recalls Human Resource Management MARGIN Technological Development Procurement Service Service Inbound Logistics Outbound Logistics Marketing & Sales Operations MARGIN 27

26 Human Resource Management Technological Development
Firm Infrastructure Human Resource Management MARGIN Technological Development Procurement Procurement Service Inbound Logistics Procurement Outbound Logistics Marketing & Sales Operations MARGIN Systems and Procedures to Find the Lowest Cost Products to Purchase Raw Materials Frequent Evaluation Processes to Monitor Suppliers’ Performances 28

27 Human Resource Management MARGIN Technological Development
Firm Infrastructure Human Resource Management MARGIN Technological Development Technological Development Procurement Technological Development Service Easy-to-Use Manufacturing Technologies Investments in Technology in order to Reduce Costs Associated with Manufacturing Processes Inbound Logistics Outbound Logistics Marketing & Sales Operations MARGIN 29

28 Human Resource Management Human Resource Management MARGIN
Firm Infrastructure Human Resource Management Human Resource Management MARGIN Technological Development Human Resource Management Procurement Consistent Policies to Reduce Turnover Costs Effective Training Programs to Improve Worker Efficiency and Effectiveness Service Inbound Logistics Outbound Logistics Marketing & Sales Operations MARGIN 30

29 Human Resource Management Technological Development
Firm Infrastructure Firm Infrastructure Human Resource Management Support Activities MARGIN Technological Development Firm Infrastructure Cost Effective MIS Systems Simplified Planning Practices to Reduce Planning Costs Relatively Few Management Layers to Reduce Overhead Procurement Service Outbound Logistics Marketing & Sales Inbound Logistics Operations MARGIN 31

30 IT-business alignment: multiple angles
It’s not just about “building stuff that the business will use” Business Investment in capability Change capabilities, limitations Change implications Delivery of value IT © Macehiter Ward-Dutton

31 The IS/IT Strategic Model
The building blocks of the strategy formulation and planning framework

32 แสดงกิจกรรมและเรียนรู้
B2 Value Chain Firm Infrastructure (Accounting, Finance, Administrator) Human Resource Management Research & Development Technology ปัจจัยรับเข้า พันธมิตรเครือข่าย เตรียมกิจกรรม เรียนรู้และสวนสนุก แสดงกิจกรรมและเรียนรู้ ตลาด/ขาย บริการ Procurement Input Business partner Service Process Preparation Service delivery Sale Service After sale Customer Development Quality Control

33 Business process Applications Data The challenge Activities, processes The business The real world doesn’t “decompose” nicely – and IT isn’t just about things you build in-house © Macehiter Ward-Dutton

34 The Strategic Alignment Model
Business I/T Distinctive Competencies Governance Scope Systemic Technology Business Strategy I/T Strategy Processes Skills Administrative Strategic Fit Organizational I/T Infrastructure Infrastructure Functional Integration Structure Architecture

35 Components of Strategic Alignment Model (Henderson & Venkatraman)

36 Organization Strategy Fusion
I/T Infrastructure Business Strategy Organization Infrastructure Combination of: I/T Infrastructure Strategy Perspective I/T Organizational Infrastructure Perspective Organization Strategy Fusion I/T Strategy

37 Business & IT – Strategic Alignment
Business Strategy Growth & Customers Market & Competition Operational Efficiency Performance Analysis & Decision Support IT Strategy Platforms Budget & TCO Vendors Initiatives & Projects Resources & Skills 7

38 IS Application Portfolio
Strategic High Potential Applications which Applications which are critical to may be of important sustaining future in achieving future business strategy success Applications on which Applications which are the organisation valuable but not critical currently depends for success for success Key Operational Support Developed from Ward Fig., 1.8 which is sourced from McFarlan

39 The Context for IS/IT Strategy: External Context

40 Alignment – Breakdown & Translation (EXAMPLE)
No. Strategic Business Objective Goals IT Initiative / Solution 1 Profitable Growth Increased Market Share Awareness Coverage CRM – Pre-Sales, Marketing & Sales Analytics Increased Profitability CRM – Gross Profit Confirmation for incentives Reduce Errors via CRM product configurator rules Business Performance Transparency Enhanced analysis & reporting capabilities (BI / Pro-forma reporting prior to quote approval) 2 Cost Reduction Business Transaction Efficiency SAP Dealer Portal: Order & Vehicle Mgmt. life-cycle CRM: Streamlined quoting and transition to order management DBMS Integration Offline Productivity TMQS CRMToday Shared Services IT Shared Services Utilize Global Licensing Balanced IT Resource Model (in-house vs. consulting) Standard IT Application Platform Consolidation of customer and partner websites onto single Enterprise Portal platform 3 Mergers & Acquisitions Standardized Processes & Flexible IT Platform Expandable and open (integration) technology platform 24

41 B3.1 Critical Success Factors
Firm Infrastructure (Accounting, Finance, Administrator) Human Resource Management Research & Development Technology Procurement Input Business partner Process and / Service preparation Service Delivery Marking & Sales Service After sale

42 Value Chain Analysis Inbound Logistics Operations •
Assessing the PRIMARY Activities in the Value Chain ( from Table 4-1) Inbound Logistics Materials control system Inventory control system Raw material handling and warehousing • Operations Equipment comparison to competitors Plant layout Production control system Level of automation in production processes •

43 Value Chain Analysis Outbound Logistics Marketing and Sales
Assessing the PRIMARY Activities in the Value Chain (continued) ( from Table 4-1) Outbound Logistics Timeliness and efficiency of finished products delivery Warehousing of finished products • Marketing and Sales Marketing research Sales promotions and advertising Alternative distribution channels Competency and motivation of sales force Organization’s image of quality Organization’s reputation Brand loyalty of customers Domination of various market segments •

44 Value Chain Analysis Customer Service •
Assessing the PRIMARY Activities in the Value Chain (continued) ( from Table 4-1) Customer Service Customer input for product improvements Handling of customer complaints Warranty and guarantee policies Employee training in customer education & service issues Replacement parts and services •

45 Technological Development
Value Chain Analysis Assessing the SUPPORT Activities in the Value Chain ( from Table 4-2) Procurement Alternate sources for obtaining needed resources Timeliness of resources procurement Procurement of large capital expenditure resources Lease-versus-purchase decisions Long-term relationships with reliable suppliers • Technological Development R&D activities in product and process innovations Relationship between R&D and other departments Meeting deadlines in technological development activities Quality of labs and other research facilities Qualifications of lab technicians and scientists Creativity and innovation in organizational culture •

46 Human Resource Management
Value Chain Analysis Assessing the SUPPORT Activities in the Value Chain (continued) ( from Table 4-2) Human Resource Management Recruiting, selecting, orienting, and training employees Employee promotion policies Reward systems to motivate and challenge employees Absenteeism and turnover Union-organization relations Employee participation in professional organizations Employee motivation, job commitment, and satisfaction •

47 Value Chain Analysis Firm Infrastructure •
Assessing the SUPPORT Activities in the Value Chain (continued) ( from Table 4-2) Firm Infrastructure Identification of external opportunities and threats Accomplishing goals with strategic planning system Coordination and integration of value chain activities Low-cost capital expenditures & working capital funds IS support for strategic and operational decisions Relationships with stakeholders Public image as a responsible corporate citizen •

48 Example Value Chain Uses of information systems to add value
Customer Service Response System Uses of information systems to add value Electronic Data Interchange Link between Suppliers and Dealers Website with Online Ordering, etc Inbound Logistics Operations Outbound Logistics Sales & Marketing Service Computer Aided Manufacturing Product R&D, Technology, and System Development Computer Aided Software Engineering Human Resource Management Project Management Software General Administration Accounting/ Financial Decision Support Software

49 Support activities Primary activities MIS-Text Book pg.50
Admin. & Mng. :Decrease reporting & administrating tasks Human Resources: Work force planning Technology: POS , ATM Procurement: Electronic Ordering System Inbound Logistics Operations Outbound Logistics Sales & Marketing Service -Electronic Ordering System - Increasing Selling Space -POS -ATM - Home Delivery - WEB Site - Customer Database -The Sears Charge Card - Repair Services Primary activities MIS-Text Book pg.50

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53 B3.1 Critical Success Factors
Learning Center Learning Technology (E-tracking) Firm Infrastructure (Accounting, Finance, Administrator) Human Resource Management Research & Development Technology Procurement Knowledge (KMS) Input Business partner Process and / Service preparation Service Delivery Marking & Sales Service After sale Knowledge transfer (e-book/e-learning)

54 B4 IS/IT Strategies and IS/IT Project
IS Strategy 1:พัฒนา KM / E-learning Objective 1: เพื่อให้มีการสร้างฐานองค์ความรู้และถ่ายทอดองค์ความรู้ IS/IT Projects Business Benefit Knowledge Base Management System องค์ความรู้ขององค์กร E-Book/E-Learning เกิดการถ่ายทอดความรู้สู่ชมชนโดยสามารถเรียนรู้ด้วยตัวเองได้ E-Tracking บริหารจัดการข้อมูลสัตว์

55 Information Systems Planning
Develop Strategies Design IT Arch- itecture Tactics Create Vision Determine Drivers Assess IT Architecture Best Practices Strategic Opportun- ities Technology Platform Re- engineer Technology Implementation Plans Data Resources Specific Needs Business Vision Gap Assess- ment Business/IT Strategies Application Portfolio Investment Plans Existing Capabil- ities IT Organ- ization Organization Transformation Plans Customer Needs Long-Range Position Needs Partners Needs

56 Business Process Modelling
What is a business process It is the way a company handles a business request, eg. a loan request in a bank, or an incoming order in a shipping company. It is nothing concrete, it is the way people and systems interact to handle a business request. What is a model of a business process An abstraction of the way people an systems interact to handle a business request described in some kind of language, eg. UML Activity diagrams. A simplified view of the complex reality Externalization and formalization of knowledge and expertise within applications and minds.

57 Business Process Modelling
Real business process Model of business process

58 DFD

59 IT support for business processes
System types Business process types Business value Collaborative Production Adhoc Administrative Repetition

60 IT support for business processes
Building blocks in a workflow Collect info Asses Risk Request approval Reject Approve Activities Control flow Amount >10.000? Otherwise Risk low? Request approved? Conditions Age: 36 Amount: Yearly income: Data

61 IT support for business processes
Architecture of a Workflow management System workflow definition tool analysis tools process definition resource classification simulation WFS DBS administrator workflow engine EDI resources cases in-basket application environment

62 IT support for business processes
Runtime Websphere Application Server 5 Enterprise BPE Container EJB Container WEB Container Process instance WSIF

63 Development Process IT Architect
Ensures the makroflow conforms to the IT infrastructure Enriches the makroflow with information about the IT infrastructure Defines service interfaces Business analyst Defines the AsIs, ToBe and the makroflow Process developer Takes the makroflow and transforms it into “code”, eg. BPEL Service developer Develops implementations to the specified service interfaces

64 Development Process AS IS TO BE Makroflow (PIM) Higher abstraction
Extend Higher abstraction Specificate Makroflow(PSM) Service interfaces Transform Specificate BPEL process(es) Service impl.

65 What is process mapping?
Process mapping is a technique of diagrammatical modelling. The diagram represents a series of processes and how they are related. Process mapping provides a representation of who does what and in what order.

66 Why and when is process mapping used?
Process mapping helps to clarify the steps involved in a particular process. It is used for: understanding the current processes clarifying responsibilities identifying process inefficiencies designing new procedures training

67 How to produce a process map
Consult with the experts. These are the people managing and working with the process. Identify the boundaries. Where does the process begin? where does it end? Identify the participants. What roles are involved in the processes? Hand draw the process in front of the expert, getting then to confirm the steps. Identify the steps. What is done first? What is done next? By who? Identify the decision points. What are the alternatives? What determines which alternative is chosen? Draw an initial process flow. Draw and label the swim lanes (see next slide for details) using standard symbols. Check for completeness. Are all participants represented? Are all processes shown? Are there any alternatives that have not been considered? Refine and finalise. Review with the experts to ensure completeness.

68 Draw and label the swim lanes
Employee Supervisor Administration The swim lanes represent the area of involvement of each participant who has a role in the processes being mapped. The participant may be an individual, a team, a department or an organisation.

69 Add in the process flows
1.1 Fill out expense form 1.2 Submit expense form Employee Supervisor Administration Starting at top left with the start symbol. Draw processes along the swim lane, and use arrows to represent the sequence. Each process is given a number, and starts with a verb.

70 Swap lanes and enter decision points
1.4.1 notification to employee 1.1 Fill out expense form 1.2 Submit expense form Employee No 1.4 Expenses Valid? 1.5 Submit authorised expense form 1.3 Receive expense form Supervisor Yes Administration When a process is performed by a different participant switch lanes. If the next step depends on a decision show this as in the example above, labelling the alternatives and showing the steps that follow.

71 Complete the process map
Remove any unused swim lanes. Make sure there is one start point and all flows have an end point. Check that all decision points have all options labelled and have flow arrows to the next step. Review with participants for verification. An example of a completed process map is shown on the next slide.

72 Business process 1 – Process expense claim
1.1 Fill out expense form 1.2 Submit expense form 1.4.1 notification to employee 1.8.1 notification to employee Employee m m No 1.3 Receive expense form 1.5 Submit authorised expense form 1.4 Expenses Valid? Yes m m m Supervisor 1.6 Receive expense form 1.8 Make payment m sol 1.7 Log expense form Administration sol M = manual Sol = facilitated by solution

73 Data Flow Diagrams Decomposing Data Flow Diagrams

74 The Business Information Value Chain
Management Information Systems Chapter 1 Information Systems in Global Business Today Perspectives on Information Systems The Business Information Value Chain From a business perspective, information systems are part of a series of value-adding activities for acquiring, transforming, and distributing information that managers can use to improve decision making, enhance organizational performance, and, ultimately, increase firm profitability. Figure 1-7

75 Diagram Layering and Process Refinement
Context-level diagram Level 1 diagram Process Specification

76 Processes and the organization