case mis ch02

39
Chapter 2 비즈니스 프로세스, 정보 그리고 정보시스템 Chapter 2

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Page 1: Case mis ch02

Chapter 2

비즈니스 프로세스 정보 그리고 정보시스템

Chapter 2

This Could Happen to You

bull In order for Dee to get a budget approved for the blog she needs to

ndash Provide specific details

ndash Provide answers to

bull How will this blog impact the sales process

bull How will the salespeople use it

bull How will it help gain sales

bull What else will the CFO want to know

2-2

Q1 How Did This Stuff Get Here

bull Business processes must work together as an integrated system

bull A business must

ndash Obtain payments for its goods and services

ndash Cover costs

ndash Make profit

2-3

Q2 What Is a Business Process

bull A network of activities resources facilities and information that interact to achieve some business function

2-4

Q2 What Is a Business Process

(contrsquod)

bull Business process is a network of ndash Activities (processes) ndash Resources (inputs) ndash Facilities (inputs) ndash Information (both inputs and outputs)

bull Processes interact to achieve business function

2-5

Q2 What Is a Business Process

(contrsquod)

bull Business systems are integrated processes

bull Examples ndash Inventory management processes ndash Manufacturing processes ndash Sales and support processes ndash Accounting systems ndash HRM

2-6

Q3 What Are the Component of a

Business Process bull Activities ndash transform resources and information of one type

into resources and information of another type

bull Resources ndash items of value such as customers suppliers employees distributors and so on

bull Facilities ndash structures used within resources Ex inventories databases

bull Information ndash activities use information to know how to transform inputs to outputs

2-7

Portion of Inventory Management

Business Process

2-8

Figure 2-1

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 2: Case mis ch02

This Could Happen to You

bull In order for Dee to get a budget approved for the blog she needs to

ndash Provide specific details

ndash Provide answers to

bull How will this blog impact the sales process

bull How will the salespeople use it

bull How will it help gain sales

bull What else will the CFO want to know

2-2

Q1 How Did This Stuff Get Here

bull Business processes must work together as an integrated system

bull A business must

ndash Obtain payments for its goods and services

ndash Cover costs

ndash Make profit

2-3

Q2 What Is a Business Process

bull A network of activities resources facilities and information that interact to achieve some business function

2-4

Q2 What Is a Business Process

(contrsquod)

bull Business process is a network of ndash Activities (processes) ndash Resources (inputs) ndash Facilities (inputs) ndash Information (both inputs and outputs)

bull Processes interact to achieve business function

2-5

Q2 What Is a Business Process

(contrsquod)

bull Business systems are integrated processes

bull Examples ndash Inventory management processes ndash Manufacturing processes ndash Sales and support processes ndash Accounting systems ndash HRM

2-6

Q3 What Are the Component of a

Business Process bull Activities ndash transform resources and information of one type

into resources and information of another type

bull Resources ndash items of value such as customers suppliers employees distributors and so on

bull Facilities ndash structures used within resources Ex inventories databases

bull Information ndash activities use information to know how to transform inputs to outputs

2-7

Portion of Inventory Management

Business Process

2-8

Figure 2-1

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 3: Case mis ch02

Q1 How Did This Stuff Get Here

bull Business processes must work together as an integrated system

bull A business must

ndash Obtain payments for its goods and services

ndash Cover costs

ndash Make profit

2-3

Q2 What Is a Business Process

bull A network of activities resources facilities and information that interact to achieve some business function

2-4

Q2 What Is a Business Process

(contrsquod)

bull Business process is a network of ndash Activities (processes) ndash Resources (inputs) ndash Facilities (inputs) ndash Information (both inputs and outputs)

bull Processes interact to achieve business function

2-5

Q2 What Is a Business Process

(contrsquod)

bull Business systems are integrated processes

bull Examples ndash Inventory management processes ndash Manufacturing processes ndash Sales and support processes ndash Accounting systems ndash HRM

2-6

Q3 What Are the Component of a

Business Process bull Activities ndash transform resources and information of one type

into resources and information of another type

bull Resources ndash items of value such as customers suppliers employees distributors and so on

bull Facilities ndash structures used within resources Ex inventories databases

bull Information ndash activities use information to know how to transform inputs to outputs

2-7

Portion of Inventory Management

Business Process

2-8

Figure 2-1

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 4: Case mis ch02

Q2 What Is a Business Process

bull A network of activities resources facilities and information that interact to achieve some business function

2-4

Q2 What Is a Business Process

(contrsquod)

bull Business process is a network of ndash Activities (processes) ndash Resources (inputs) ndash Facilities (inputs) ndash Information (both inputs and outputs)

bull Processes interact to achieve business function

2-5

Q2 What Is a Business Process

(contrsquod)

bull Business systems are integrated processes

bull Examples ndash Inventory management processes ndash Manufacturing processes ndash Sales and support processes ndash Accounting systems ndash HRM

2-6

Q3 What Are the Component of a

Business Process bull Activities ndash transform resources and information of one type

into resources and information of another type

bull Resources ndash items of value such as customers suppliers employees distributors and so on

bull Facilities ndash structures used within resources Ex inventories databases

bull Information ndash activities use information to know how to transform inputs to outputs

2-7

Portion of Inventory Management

Business Process

2-8

Figure 2-1

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 5: Case mis ch02

Q2 What Is a Business Process

(contrsquod)

bull Business process is a network of ndash Activities (processes) ndash Resources (inputs) ndash Facilities (inputs) ndash Information (both inputs and outputs)

bull Processes interact to achieve business function

2-5

Q2 What Is a Business Process

(contrsquod)

bull Business systems are integrated processes

bull Examples ndash Inventory management processes ndash Manufacturing processes ndash Sales and support processes ndash Accounting systems ndash HRM

2-6

Q3 What Are the Component of a

Business Process bull Activities ndash transform resources and information of one type

into resources and information of another type

bull Resources ndash items of value such as customers suppliers employees distributors and so on

bull Facilities ndash structures used within resources Ex inventories databases

bull Information ndash activities use information to know how to transform inputs to outputs

2-7

Portion of Inventory Management

Business Process

2-8

Figure 2-1

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 6: Case mis ch02

Q2 What Is a Business Process

(contrsquod)

bull Business systems are integrated processes

bull Examples ndash Inventory management processes ndash Manufacturing processes ndash Sales and support processes ndash Accounting systems ndash HRM

2-6

Q3 What Are the Component of a

Business Process bull Activities ndash transform resources and information of one type

into resources and information of another type

bull Resources ndash items of value such as customers suppliers employees distributors and so on

bull Facilities ndash structures used within resources Ex inventories databases

bull Information ndash activities use information to know how to transform inputs to outputs

2-7

Portion of Inventory Management

Business Process

2-8

Figure 2-1

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 7: Case mis ch02

Q3 What Are the Component of a

Business Process bull Activities ndash transform resources and information of one type

into resources and information of another type

bull Resources ndash items of value such as customers suppliers employees distributors and so on

bull Facilities ndash structures used within resources Ex inventories databases

bull Information ndash activities use information to know how to transform inputs to outputs

2-7

Portion of Inventory Management

Business Process

2-8

Figure 2-1

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 8: Case mis ch02

Portion of Inventory Management

Business Process

2-8

Figure 2-1

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 9: Case mis ch02

Inventory Management

Business System Processes 1 Purchasing (activity) queries Inventory Database (facility)

and obtains QuantityOnHand (information)

2 If reorder needed Purchasing generates Order (information) to Supplier (resource)

3 Order Placement (activity) sends copy to Receiving (activity)

4 Receiving puts goods into Inventory (facility)

5 Record (Info) sent to Inventory Database (facility) and Payment (activity)

2-9

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 10: Case mis ch02

Inventory Management

Business System (contrsquod)

6 Supplier sends ShippingInvoice (info) to Payment

7 ShippingInvoice compared to Order generates Check (info and resource)

8 Counter Sales (activity) interacts with Customer (resource) Inventory (resource) and Inventory Database (facility)

2-10

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 11: Case mis ch02

Activities

bull Transform resources and information from one form into another

bull Follow rules and procedures

bull Can be manual automated or combination

bull Example

ndash Payment (activity) transforms QuantityReceived (information) and ShippingInvoice (information) into PaymentToSupplier (resource)

2-11

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 12: Case mis ch02

Resources

bull Items of value

bull External to organization

bull Examples ndash Customers ndash Suppliers ndash Consultants

2-12

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 13: Case mis ch02

Facilities

bull Structures used within business process

bull Places where things are produced or stored or equipment machines buildings

bull Examples ndash Inventories ndash Databases ndash Factories ndash Equipment

2-13

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 14: Case mis ch02

Information

bull Used by activities

bull Determines how to transform inputs into outputs

bull So what is information and how is it different than data

2-14

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 15: Case mis ch02

Q4 What Is Information

bull Knowledge is derived from data

bull Data is processed and presented in meaningful context

bull Data is processed by summing ordering averaging grouping comparing or other similar operations

bull Information is ldquoa difference that makes a differencerdquo

2-15

Data Processes Information Knowledge

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 16: Case mis ch02

Characteristics of Good Information

1 Accurate ndash Correct and complete

ndash Crucial for management

ndash Cross-check information to ensure accuracy

2 Timely

ndash Produced in time for intended use

3 Relevant to both ndash Context

ndash Subject

2-16

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 17: Case mis ch02

Characteristics of Good Information

(contrsquod)

4 Just Barely Sufficient

ndash Sufficient for purpose for which generated

ndash Do not need too much or extraneous information

5 Worth its cost

ndash Relationship between cost and value

ndash Information systems cost money to develop

maintain and use

ndash Must be worth the cost (time and money)

2-17

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 18: Case mis ch02

Q5 What Is the Role of Information in

Business Processes

bull Business processes generate information by giving context to data

ndash Process gives context to data

ndash May turn low-level information into high-level information

bull Useful for management and strategy decisions

2-18

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 19: Case mis ch02

Q6 How Do Information Systems

Support Business Processes

bull IS supports activities in a business process

ndash Several activities may use one information system

ndash Activity may have own information system

ndash Activity may use several information systems

bull Systems designers determine relationship of activities

to information systems

ndash Relationships are determined during systems

development

2-19

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 20: Case mis ch02

What Does It Mean To Automate a

Process Activity

2-20

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 21: Case mis ch02

What Does It Mean To Automate a

Process Activity (contrsquod)

bull Automation of processes

ndash Transfers work done by people to

computers

ndash People follow procedures (instructions)

ndash Computers follow software instructions

2-21

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 22: Case mis ch02

An Information System to Support

Counter Sales

2-22

Figure 2-4

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 23: Case mis ch02

An Information System to Support

Counter Sales (contrsquod)

bull Fully automated (McDonaldrsquos new drive-up window technology)

ndash Cashiers do not require extensive training

ndash Cashiers do not work directly with programs on

computer

bull Computer in cash register communicates with

computer connected to the Inventory Database

bull Programs record sales and make changes

2-23

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 24: Case mis ch02

An Information System to

Support Payment

2-24

Figure 2-5

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 25: Case mis ch02

An Information System to

Support Payment (contrsquod) bull Payment receives QuantityReceived and

ShippingInvoice and produces SupplierPayment

bull Mostly manual

ndash Accounts Payable Clerk reads documents and issues payment or investigates discrepancies

ndash Processing exceptions complicated

bull Programming expensive

bull Probably not effective

2-25

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 26: Case mis ch02

An Information System to

Support Purchasing

2-26

Figure 2-6

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 27: Case mis ch02

An Information System to

Support Purchasing (contrsquod)

bull Purchasing clerkrsquos computer runs program that queries database and identifies stock levels and generates PurchaseOrder

bull Designers decided to balance work between automation and manual activity ndash Searching database is repetitive

bull Automated process

ndash Selecting suppliers is complicated

bull Manual process

2-27

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 28: Case mis ch02

MIS in Use The Need for Business

Processes

bull To understand the need for business

processes the importance of process design

and the role that information systems play in

support of such processes

bull A seemingly simple business process can be

unexpectedly complex

1-28

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 29: Case mis ch02

Order Approval Process

1-29

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 30: Case mis ch02

What Is Your Role

bull Your mind and your thinking are the most important part of information system

bull The quality of your thinking is a large part of the quality

of the information system

bull You can dramatically improve the quality of your

thinking if you are able to use information systems

effectively

2-30

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 31: Case mis ch02

How Does the Knowledge in This

Chapter Help Dee and You

bull After reading this chapter Dee and you should

ndash Understand the need for business processes the importance

of process design and the role that information systems play

in support of these processes

ndash Be able to create process diagrams to show information

needed

ndash Understand the usefulness of blogs as a facility that contains

information that makes a difference

ndash Be able to answer the three questions Deersquos boss asked

2-31

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 32: Case mis ch02

2-32

2-33

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

2-36

2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

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어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

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Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 34: Case mis ch02

2-34

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

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2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 35: Case mis ch02

어느날 T사의 공장 현장 책임자에게 들은 이야기

원재료에서 완성까지 대략 4일 정도 걸립니다 한 달에 20만대 정도를 이 공장에서 출하하고 있습니다 우리 그룹에서 두 번째로 큰 공장이지요 이곳에서는 크게 나누어 다섯 가지 공장을 거칩니다 먼저 매입한 부품을 확인하고 그것을 조립할 수 있도록 준비합니다 다음으로 조립을 하고 완성된 제품을 검품합니다 아 조립 라인에서 일하는 사람들 중에 지금은 40가 외국인입니다 그건 그렇고 검품에서 문제가 없으면 이곳에서 출하 준비를 보냅니다 사내에서는 부품의 확인과 매입을 사전 작업 검품과 출하 준비를 후반 작업이라고 부릅니다 이 생산 라인도 여러 번 개선을 거듭하면서 조업할 때는 생산성이 50 가까이 올라갔습니다 굉장하죠 다만 최근 갑자기 대형 오더가 들어와서 부품을 제때 조달하지 못하는 문제도 갂갂히 발생하고 있습니다 좀 더 빨리 수요를 알 수 있으면 좋을 텐데요helliphelliphellip 조립 라인은 아무래도 인력이 많이 필요해서 외국인의 비율이 높지만 다른 공정은 그 정도는 아닙니다 시스템이 잘 구축되어 있어서 경력 사원 몇 명이 운영하고 있습니다 부품은 가까운 곳에 있는 여섯 굮데 협력 공장에서 저렴하게 들여옵니다 출하는 지바에 있는 창고로 전량 납입하여 그곳에서 각 영업소로 배송됩니다

2-35

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2-37

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

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Page 36: Case mis ch02

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Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 37: Case mis ch02

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Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 38: Case mis ch02

2-38

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39

Page 39: Case mis ch02

Active Review

Q1 How did this stuff get here

Q2 What is a business process

Q3 What are the components of a business process

Q4 What is information

Q5 What is the role of information in business processes

Q6 How do information systems support business processes

2-39