2024-2025 Organization and Information Systems OIS Past Paper PDF

TrEC - Accounting, Finance and Information Systems Organization and Information System Prof. Diego Campagnolo - Prof. Massimiliano Oleotto Operational Processes and information systems Using IS to improve processes Chapter 5...

TrEC - Accounting, Finance and Information Systems Organization and Information System Prof. Diego Campagnolo - Prof. Massimiliano Oleotto Operational Processes and information systems Using IS to improve processes Chapter 5 Materials - a.y. 2024-2025 2 Learning Objectives Q1. What are the important characteristics of processes in organizations? Q2. What are examples of common business processes? Q3. How can management improve processes? Q4. How can information systems be used to improve processes? Q5. How can process management principles improve processes? Q6. How do process teams diagram process improvement? Q7. How can an IS hinder a process? Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 3 What Are the Important Characteristics of Processes in Organizations? Business Process § Sequence of activities for accomplishing a function Activities § Tasks within a business process Resources § Items necessary to accomplish an activity Actors § Resources that are either human or computers Role § Subset of activities in a business process performed by a particular actor Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  What Is a Business Process? 4 Sequence of activities for accomplishing a Example: Booking a flight online function First, you must enter dates, times, and number of passengers to search § Activities are tasks within a business for available flights. process Once available flights are presented, the next activity is to select from the alternatives. Once these are selected, you will need Documenting business processes to enter passenger information. Another activity will be to make § Business Process Model and Notation seating assignments and/or enter (BPMN) baggage requirements. When this is completed, yet another üGlobal standard for documentation activity is to confirm your details and enter payment information. § Roles and Actors Finally, you’ll receive a confirmation of the flight details that you can print or § Swimlanes save to a file. Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  Documenting business processes using BPMN 5 Documenting business processes using BPMN § How much detail is enough? ü include as many activities as required to avoid ambiguity Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 6 Example Examples of Processes: Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 7 Recruitment process - example any error? Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 8 Customer order - example Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 9 What Are the Important Characteristics of Processes in Organizations? Characteristics of Processes: Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  How Do Structured and Dynamic Processes Vary? 10 Characteristics of Structure Processes Characteristics of Dynamic Processes Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 11 What Are the Important Characteristics of Processes in Organizations? Scope of Processes: Operational processes: procedures, or instructions, are changed very infrequently. Changing operational processes is more difficult than changing other types of processes. Managerial processes: concern planning, assessing, and analyzing the resources used by the company in pursuit of its objectives. Managerial processes occur much less frequently and with many fewer computerized actors than operational processes. Strategic processes: issues that have long-range impact on the organization. These processes have broad scope and affect most of the firm. Because judgment and a tolerance for ambiguity Operational, managerial, and strategic processes are three levels are important, there are typically more human actors of processes within the organization. than in operational or managerial processes. Same for inter-organizational processes Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  What Are the Important Characteristics of 12 Processes in Organizations? Objectives of Processes: Objective: desired goal an organization has decided to pursue Effectiveness: doing right things vs Efficiency: doing things right Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  What Are Examples of Common Business Processes? 13 The Value Chain Location in Value Chain Inbound Logistics Processes Operations Processes Outbound Logistics Processes Sales and Marketing Customer Service Sales and Marketing Processes Service Processes Support Activities § Human Resources Processes § Technology Development Processes § Infrastructure Processes Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  What Are Examples of Common Business Processes? 14 Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  What Are Examples of Common Business Processes? 15 Inbound logistics processes receive, store, and disseminate product input. Processes in inbound logistics include procurement, managing inventory, and evaluating potential suppliers. Operations processes simply transform inputs into outputs. This is common in manufacturing organizations but is also seen in service organizations. In manufacturing, assembly can be considered an operational process while decisions regarding expansion are strategic processes. Scheduling of equipment in manufacturing would be considered a managerial process. Outbound logistics processes revolve around distributing goods and services to buyers. From an operational perspective, this would include such things as sales processes. An example of a managerial process for outbound logistics would be giving a refund to a customer. Strategically, outbound logistics processes include things like payment policies and dunning procedures. Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 16 Example of a process Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 17 Applying Process Characteristics Applying Process Characteristics § Ask good questions about objectives § Standardize structured processes; keep dynamic processes fluid § Don’t confuse process and IS § Ensure processes work together Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 18 Three questions 1. How can managers improve processes? 2. How can IS be applied to improve processes? 3. How can process management techniques lead to process improvement? Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 19 How Can Management Improve Processes? Process Improvement: means that a process Process Improvement: means that a process better better achieves its objectives based on its achieves its objectives based on its measures objectives – Process Objectives: every process has one or more – Process Objectives : every process has one or possible objectives more possible objectives – Process Measures (metrics): quantities assigned to – Process Measures (metrics): quantities assigned to attributes, also called KPIs attributes, also called KPIs Specifying measures can be difficult, as it requires a To improve processes, managers must specify and very thorough knowledge of the process. Even then, communicate appropriate objectives. They can do some objectives are challenging to quantify. this in three ways: 1. Classify objectives as effective or efficient to Einstein once said, “Not everything that can be overcome ambiguity counted counts, and not everything that counts can 2. Make unstated objectives explicit be counted.” When considering measures, recognize 3. Ensure objectives are appropriate for strategy they all have limitations and that the key business challenge is to select the best ones available and know their limits. Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  How Can Management Improve Processes through 20 measures? Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  How Can Information Systems Be Used to Improve 21 Processes? Improve an Activity Improve Data Flow Among Activities Improve Control of Activities: control limits behavior and variations in activities so a process runs more consistently and smoothly Use Automation: a computer does an activity or a part that was once done by a person. Challenge: consider the amount of judgement required by the actor Improve Procedures: procedures in business need to be constantly refined as technology changes and processes change. Challenge: easier said than done Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  How Can Process Management Principles Improve 22 Processes? Process Management Principles – Examples Systems engineering; workflow/WfMc; Business Process Modeling; Six Sigma; and others Six-Sigma – Removing causes of defects – Minimizing variability in the process 99.99966% of output free from defects Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  How Can Process Management Principles Improve 23 Processes? Most businesspeople can suggest ways to improve processes: the issue is whether it is worth the cost and if the improvements help the process better achieve the firm’s strategy Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto  How Do Process Teams Diagram Process Improvement? 24 Process improvements involves a team: what about team composition? Diagrams in Process Improvement BPMN Diagramming As-is diagrams Ought-to-be diagrams Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 25 How Can an IS Hinder a Process? Information Silos – Data exists in isolated functional IS Why Information Silos Exist – Data stored in separate databases – To control data – Variety of objectives – Sensitive data not to be shared – Departmental systems purchased and implemented quickly – Less expensive Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto 26 Ethics Guide Vehicle Tracking System – Process Improvement or Privacy Problem? Organization and Information Systems | a.y. 2024-2025 | Diego Campagnolo – Massimiliano Oleotto