MIS 2000 Instructor: Bob Travica

1. MIS 2000 Instructor: Bob Travica Class 7 Process View of Organization and Information Systems Updated: Sep. 2014

2. Outline • Cases of IS roles in business processes (expanding over Chapter 5) • IS impacts on process design Optimization • Impacts of process design on Process Performance • Typologies of information systems • Summary

3. Recalling from the last lecture, IS has three roles in business processes: • Technological characteristics of IS make the building block in process design • IS Functionality makes IS the process optimizer • Non-functional characteristics of IS are the process performancebooster Organizational Performance Process Performance Model of Managing organization from process perspective (Class 6) Process Design Information System

4. IS roles in business processes DESIGN OPTIMIZER ROLE PERFORMANCE BOOSTER ROLE Information System Non-Functional Characteristics Functionality Technological Properties BUILDING BLOCK ROLE

5. Focus in this lecture is on relationships marked with yellow arrows: Organizational Performance Process Performance Process Design • IS and Process Design • Process design and Process Performance Information System

6. IS and Process Composition • IS can help to optimize Process Composition. • IS can influence the selection of activities, performers (workers), departments, and organizations to be included in a process. • Example: A new Purchasing TPS implemented at Ford made its purchasing order process: different work activities than those used before. • Example: A computer network linking information systems at Kiaand service shops in support to inter-organizational quality control process.

7. IS and Process Complexity • IS and Process Complexity: IS can absorb complexity or simplify process a process looking from the perspective of process performers. This is possible because IS performs some activities and decisions instead of people (automation). • Example: A Decision Support System performs very complex calculations so that a decision maker is spared of such steps – decision process looks simpler.

8. IS and Process Coordination • IS and Process Coordination: IS can enhance coordination among the process activities and process performers. • Example: The supply process at Walmart uses inventory management systems linked via a corporate network; data transfer across supply chain between Walmart stores, Walmart distribution centres, and suppliers. • Group decision making process that includes a GDSS makes it possible for decision makers to brainstorm in parallel rather than in sequence. IBM was a big user of GDSS. Facilitator drives the session Decision makers

9. IS and Process Design - Flexibility • IS and Process Flexibility: IS can contribute to controlling variation in a process. • Think of variation in terms of availability of options (usually desirable), and deviation from a benchmark (usually undesirable). • Example A: Various reservation processes (hotel, travel, university course) could be done with the start activities supported by different technologies (telephone, cell phone, Website, email). The process has several versions. • Example B: The quality control process in manufacturing rests on controlling variation between a part under production and desired benchmarks (size, etc.). Today, quality control process is automated and IS continuously inspect and report on the state of production.

10. Process Design and Process Performance Based on cases discussed so far:

11. Typologies of Information Systems Time Focus Information systems studied in this course: • Transaction Processing system (TPS) • Management Information System (MIS) • Decision Support System (DSS) • Knowledge Work System (KWS) • Group Support System (GSS) • Communication Systems • Office Automation System (OAS) • Enterprise Resource Planning System (ERPS) Typologies show similarities and differences between these systems looking from different angels.

12. Typologies of Information Systems:Organizational Function & Time Focus • Based on Org. Function: • Production system • Accounting IS • HRIS • Sales system… • Usually TPS & MIS • Different data content – look back at schemas for different business domains • Based on time focus: • Past/present focused: • Supporting & recording current operations • Reporting on the past business • Future focused • Planning, predicting • Longer range decision making Past Now Future TPS, MIS DSS

13. Typologies of Information Systems (IS): User Focus • Different systems serve different groups of users. • System types have different level of detail, processing capabilities, and outputs. Executive Management Decision Support System (DSS) - Strategic decision making Management Information System (MIS) - Mid-range performance control & planning Mid-level Management Transaction Processing system (TPS) - Daily operations control Supervisory Management Office Automation Systems (clerks, others) Knowledge Work Systems (professionals) Communication Systems (everybody) Group Support Systems (any teams)

14. Typology of Information Systems: Cross-referencing • Relationship between IS types based on org. function and management user groups:

15. Summary • IS can help to optimize process design (Composition, Complexity, Coordination, Flexibility) • Improvements in process design reflect in process performance (Customer Value, Cost, Time) • IS types can be differentiated on the bases of organizational function, time, and user group. • IS types serving management groups are TPS, MIS and DSS. • IS typologies can be cross-referenced (same system shown as different types).