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Processes Systems and Information An

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Chapter 5
Using IS to Improve Processes

Chapter Objectives/Study Questions

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?

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List of Key Terms

• Activity – a task with a business process.

• Actors – resources who are either humans or computers.
• As-is diagram – diagrams of the current process.
• Business process – a network of activities, resources, facilities, and information that
interact to achieve some business function; sometimes called a business system.
• Control – limits behavior.
• Customer service processes – includes Track Orders, Customer Support, and
Customer Support Training.
• Effectiveness – a process objective that helps achieve organizational strategy.
• Efficiency – a process objective that is resource oriented. A process is efficient if it
creats more output with the same inputs or the same output with fewer inputs.
• Executive support system (ESS) – information systems that support strategic
processes.
• Human resource processes – organizational processes that assess the motivations
and skills of employees, creates job positions, investigates employee complaints, and
staffs, trains, and evaluates personnel.
• Inbound logistics processes – receive, store, and disseminate product input.
• Information silo – islands of automation; information systems that work in isolation
from one another.
• Infrastructure processes – essential supporting processes in the organization that
enable day-to-day operations.
• KPI – key performance indicators. Metrics used to identify process efficiency and
effectiveness.
• Management information system (MIS) – an information system that helps
businesses achieve their goals and objectives.
• Managerial processes – processes that concern resource use. Includes planning,
assessing, and analyzing the resources used by the company in pursuit of its strategy.
• Measures – quantities that are assigned to attributes. In the process context, measures
help assess achievement of process objectives.
• Metrics – see Measures.
• Objective – a goal that people in an organization have chosen to pursue. In the
process context, managers develop and measure objectives for each process.
Objectives fall into two categories: effectiveness and efficiency.
• Operational processes – common, routine, everyday business processes such as
procurement and sales.
• Ought-to-be diagram – diagrams of suggested improvements to the current process.
• Outbound logistics processes – includes designing, testing, and developing
technology in support of the primary activities. These processes concern the
management of finished-goods inventory and the movement of goods from that
inventory to the customer.
• Process improvement – identifies when a process better achieves its objectives
based on its measures.
• Procurement – the operational process for acquiring goods and services.

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• Resources – the items, such as people, computers, and data and document
collections, necessary to accomplish an activity.
• Role – a subset of the activities in a business process that are performed by a
particular actor.
• Sales processes – an operational outbound process that records the sales order, ships
the product, and bills the customer.
• Service – a repeatable task that a business needs to perform.
• Service-oriented architecture (SOA) – a design in which every activity is modeled
as an encapsulated service and exchanges among those services are governed by
standards.
• Six Sigma – a popular strategy for process improvement which seeks to improve
process outputs by removing causes of defects and minimizing variability in the
process.
• Strategic processes – business processes that seek to resolve issues that have long
range impact on the organization. These processes have broad scope and impact most
of the firm.
• Technology development processes – includes designing, testing, and developing
technology in support of the primary activities.
• Transaction processing system (TPS) – an information system that supports
operational decision making.

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MIS InClass 5

1. In teams, diagram the Assembly process using BPMN symbols such as roles,
swimlanes, activities, and decisions. Name resources assigned to roles.

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2. Use the ideas in this chapter to improve this Assembly process. Discuss the
objectives of the assembly line. If you were in charge of an assembly line like this
one, do you think your objective would be efficiency or effectiveness? Specify the
measures used to monitor progress toward your objective(s).
Student answers will vary. As this assembly line involves the creation of paper
airplanes, the objective should probably be effectiveness. A quality-made paper
airplane will fly a greater distance than one that was produced in a shorter time, but
with less fold accuracy. One measure would be to calculate the variation in fold
geometry of each completed paper airplane compared to a “master” template paper
airplane. Another measure would be to compare the distance traveled by each
completed paper airplane when tested under controlled conditions.

3. Assume that the WC folding is done by four machines. In that scenario, the
second run uses different software than the first run. Does this new IS improve
an activity, data flow, control, automation, or procedure?
It would improve the control of the amount of WIP in the “pipeline” throughout the
process. It may better control the pace at which each WC transforms inputs into
outputs.

4. Is any data in an information silo on the first or second runs?

In the first run, every WC is in an information silo, particularly regarding the status of
WC later in the process. Each will know if there is WIP in the “inbox,” but the status
of work after their “outbox” is unknown.

5. Which measure changed most significantly from the first to the second run? Did
you anticipate this? Are other processes with other measures just as subject to
change with a similar minor change in information?
Answers will vary, but WIP at the end of the run should be significantly reduced.

6. Were there any controls on the assembly process? Could an IS improve the
process by improving control? On which measure(s) will this improvement
appear?
Assembly controls are in place only as the participants in the process recognize them
and adhere to them. An IS would improve adherence to controls throughout the
process. Improvements should be seen in throughput, ending WIP quantities, and any
measures associated with them.

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Using Your Knowledge

5-1. For each of the following processes, suggest how an IS can improve the
process. Specify if the improvement is due to improving an activity, improving
data flow, improving control, implementing automation, or improving
procedures.
a. the process of selecting a job after college
A job search database could be used to improve the process by improving data
flow.
b. the process of planning and executing a wedding or a funeral
A wedding planning resource like theknot.com could be used to improve the
wedding planning activity (e.g., checklists and timelines).
c. the process of taking photos and uploading the photos to Facebook
A photo sharing IS can be used to improve data flow.
d. the process the pizza shop uses to buy supplies
Enterprise Resource Planning software can be used to improve the supplies
buying activity.

5-2. For each process, specify an IS that supports the process and the first three
steps of the procedure that links that IS to the process.
a. IS: A job search database like one offered by careerbuilder.com or monster.com.
Procedure: Create an account with job search database. Upload resume. Submit
application to hiring firm(s).
b. IS: Wedding planning resource like theknot.com. Procedure: Visit theknot.com.
Join theknot.com. Select tool to utilize.
c. IS: Picasa or iPhoto. Procedure: Upload photos to software. Edit or tag photos.
Share with family or friends.
d. IS: Enterprise Resource Planning software. Procedure: Build Bill of Materials for
each pizza. Build Ingredient Suppliers. Populate current ingredient inventory.

5-3. For each of these processes, suggest how they may be improved by non-IS
means; that is, by management and by process management principles.
a. The process could be improved by having a counselor from Career Services (or
the relevant career placement office on campus) critique the applicant’s resume.
b. The process could be improved by having a close friend or family member who
was recently married assist the planner with preparations.
c. The process could be streamlined by removing Facebook from the equation and
sending the photo directly to the recipient’s smartphone.
d. One way to improve the process is to have a designated purchasing manager
buy the supplies for the pizza shop.

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5-4. When you go to a restaurant, that restaurant must execute several operational
processes. Apply the concepts in this chapter to several of these processes.
These processes might include seating, ordering, cooking, delivering, and
paying.
a. Seating
i. Objective: Balance number of seated tables among available wait staff.
Measure: Average number of tables seated per section. IS: Maitre’D
software.
b. Ordering
i. Objective: Enter accurate orders. Measure: Number of pizzas remade to
meet the customers’ original requirements. IS: POS software that captures
orders before going to the kitchen.
c. Cooking
i. Objective: Prepare order in the shortest possible time. Measure: Total time
in kitchen. IS: Order monitoring software.
d. Delivering
i. Objective: Deliver order in shortest possible time. Measure: Average
delivery time. IS: GPS with real-time traffic updates.
e. Paying
i. Objective: Collect accurate payments from customers. Measure: Balanced
Till. IS: POS software.

5-5. How can your college use IS to make its processes better? Can you think of
ways to use new IS tools like smartphones and social media to make college
processes better? Specify the objective and measure that these IS help
improve. For two of these processes, describe the procedures. Does your
college have information silos? Which departments keep data needed by
processes outside the department?
Colleges can use IS to improve many of its processes. Information Systems can be
used to process tuition refunds, distribute assignment grades, and update academic
records. Social media can be leveraged to notify students about events on campus.
With the majority of students owning accounts, it would be a potential contact point
in addition to phone, email, and snail mail. The objective of social media is to
create additional contact points with the student body. It would be measured by the
number of followers on Twitter, contacts on Facebook, etc. Smartphones could be
used to submit electronic quiz answers. The objective of smartphones would be to
reduce distribution of printed materials. The measure would be the printing costs
borne by academic departments to duplicate quizzes. The procedure for engaging in
social media to notify students of events on campus would be to generate a list of
activities for the coming day or week, craft a promotional message, send the
message to followers, and track the engagement level through retweets, shares, and
likes. The procedure for using smartphones to submit quiz answers includes
developing or purchasing a quiz application, creating a Learning Management
backend for instructors to post questions and deadlines, creating quiz content, and
grading student responses. Information silos will exist on any college campus, no
matter how well the processes between departments are designed and executed.

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Data needed by processes outside of a given department needs to be stored at the

campus level, where all other processes can find the data.

5-6. When you order a meal at McDonald’s, that data is stored in an enterprise IS
to be used by various processes. Make a list of the McDonald’s processes in
which your Happy Meal purchase will appear. You may want to review the
value chain processes discussed in Q2.
Create Order. Reduce raw materials inventory. Complete Sale. Order raw materials.
Compile Historical Sales.

5-7. Make a Facebook cause (www.facebook.com/causes). Invite several friends to

join. Using paper and pencil or diagramming software, make a BPMN
diagram of the three or four key activities in this promotional process. Specify
objectives and measures for this process and explain how Facebook (IS)
improves the promotional process.

Diagram from www.gliffy.com.

The objective is to promote a cause. The measure is the number of followers
obtained or funding received, depending on the type of cause. The Causes App in
Facebook allows your friends to be made more aware. It is not necessary to visit
www.causes.com.

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5-8. Assume you are flying to a vacation resort. Create a BPMN diagram of the five
to seven key activities in the process of getting your suitcase to its destination.
Specify objectives and measures for this process.

Diagram from www.gliffy.com.

The objective is to get a suitcase from point A to point B. The measure is whether
or not the suitcase arrives at point B. No process is perfect, so “percentage of bags
that arrive on time at the correct destination” would be an appropriate metric.

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Collaboration Exercise 5

1. Is this process an operational, managerial, or strategic process?

This process is an operational process. While the definition of managerial processes
might lead some to believe that this process would qualify as such, due to the
analytical nature of the work being performed.

2. How can the permit process be improved? Identify at least one flaw in each
measure.
One option would be to streamline the process for previously rejected applications.
Objective: Reduce the amount of time for a permit to be processed after initial
rejection.
Measure: Number of days from resubmitted permit application to permit approval.
Potential Flaw: An error that can be corrected in one area may cause the other areas to
deem their respective reviews unnecessary.

A second option would be to process the permits electronically.

Objective: Reduce the copying cost of permit applications and related materials.
Measure: Change in monthly copier costs for department.
Potential Flaw: Copier costs may be reduced while increasing the electronic storage
costs for the large files by an equal or greater amount.

3. For your proposed IS improvements, specify if they are activity, data flow,
control, automation, or procedure improvements.
One possible improvement would be to add a status board. If one copy of the permit
needs an error addressed, the copies in the other two departments are put on hold.
These are linkage control improvements that would prevent the permits from being
shuffled to the end of the line, and would allow other permits to keep being processed
by the department, therefore not wasting any time.

4. Where are the information silos? Why did these silos develop over the years?
The information silos are in each of the departments. The silos developed because the
departments did not communicate between themselves during the process. They only
talked to the clerk who passed the application to the department, or the clerk who sent
the application, along with the approval or denial, to the clerk afterward. There are
many good reasons. First, an enterprise system would allow the departments to keep
track of where the concurrent copies are elsewhere in the system. Second, it would
allow the departments to communicate issues and holds related to a particular
application more easily. Third, it would allow the greatest throughput of applications,
while reducing or eliminating the use of labor on problem applications.

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5. Draw the new process using BPMN.

Diagram from www.gliffy.com.

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Case Study 5

Google Cars

5-9. For your own transportation process, what are your objectives and measures?
Objective: Get from point A to point B. Measure: Get to point B in same physical
and mental condition as observed at point A.

5-10. Make a BPMN of a new transportation process with driverless cars. Specify
activities, actors, and the smartphone IS.

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5-11. What other processes may be improved with driverless cars?

Other processes that could potentially be improved with driverless cars include
Posting Road Signs, Obtaining Insurance, and Parking Meter Enforcement.

5-12. Can you think of ways to improve the transportation process further? Try to
apply as many concepts from this chapter as possible.
Other ways that the transportation process could be improved includes adherence to
scheduled maintenance intervals, remote diagnostic checks of vehicle error codes,
and automated emergency distress signaling.

5-13. If you worked at Google, what type of city might you want to pursue for the
initial trial and why?
A “Googler” may want to select a small city that does not have an established
public transportation infrastructure for an initial trial. Reasons for selecting a small
city include origin and destination points in close proximity. It will be easier for
residents to notice the offering and try it. A city that is lacking a developed public
transportation infrastructure may serve as a catalyst for potential users to try the
service.

5-14. What are the five components of the driverless car IS, and which lessons from
Chapter 2 can be applied to the concept of a Google car?
Hardware – Car, Sensors, Servo Motors
Software – Google Maps, GPS
Data – Location, Speed Limit, Destination
Procedures – Pick up passenger, determine route to destination, navigate route, park
People – Safety Observer, Passenger(s)

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