Information Systems &

Databases

Lecture 4

Business Process Management

1
A fundamental challenge is how to
understand and represent reality

Data is one dimension of viewing human-centered reality –

domain business

Data flow through components of information systems

From data flow point of view, things exist only when data reflecting things exist

2
 Data Flow Diagrams
• Data Flow Diagrams represent the
flow of data between processes

– A simple language that employs only four symbols

– Only data are represented, not materials
– Decision points are not represented

3
Flow Diagram Symbols

Process

Data store

External External
entity OR
entity

Data Flow

4
The Ford Purchasing System
Order
Supplier
Material planning
department
Payment

Requirement
Purchasing
System
Confirm Receipt
of Goods invoice

Receiving
Department

5
 Processes for Purchasing

Material planning Requirement Purchase Order

department Purchasing1
Place Order
Purchase Orders

Order Details
Purchase Orders Purchasing2 Supplier
Decide on
Receipt Confirmation payment Invoice
Receipt details

Receipt
confirmation
Purchasing3
Receiving Pay Payment
Department Supplier
6
 Limitation and Strength
• Actual goods are not depicted
• Important decision of whether or not to pay the
invoice is not depicted
– neither is the issue of returning goods that do not
match the invoice
• Limitations of DFDs are also a strength
– The simplified diagrams makes them easier for
general managers to understand

Process modelling diagrams provide a valuable way for

visualising the process as a whole
7
Another Example

8
 Flowcharts
Input/
Flowcharts allow
output
the depiction of the
logic and sequence
of processes Paper
document

These are some of

the flowchart
symbols, there are Decision
many more

Process

9
 Flowchart for Purchasing
Start

Print
Notify vendor Notification
Material received = No
material on order?

Yes Return
order
Payment approval
in database

Record
discrepancy
Stop 10
Process Characteristics

A process run with a series of components

from reductionism point of view

11
 Degree of Structure
• The extent to which an activity can
be specified in advance
• Example
• Checking a password is so highly structured
that it can be defined in a computer program

• Act of selling a car has a low degree of

structure because it could not be reduced to
a set of instructions.

12
 Structured Tasks
Reality should be sufficiently understood and precisely
defined.
Characteristics:
• Information requirements precisely defined
• Data processing methods precisely defined
• Data format precisely defined
• Steps of the task are always the same
• Decision criteria may be precisely defined
• Methods of evaluating success precisely defined
• Suitable for mechanisation or unskilled staff
13
 Semi-Structured Tasks

• A semi-structured task has a number of steps

governed by rules that are generally understood
• The knowledge required may need considerable
training
• Not suitable for automation
• Example: process of medical diagnosis

14
 Unstructured Tasks

• A totally unstructured task does not have rules

that can be defined
• Usually requires staff with training and experience
• Examples:
• fashion design
• staff selection
• designing a web page for ease of use

15
 Automation
Automation imposes structure
A process with minimal human assistance
Example: heating system and production line
Characteristics:
• Tends to reduce costs
• Automated systems are more consistent
• Drawbacks:
• Highly mechanised systems lack flexibility and may fail to
respond adequately to unpredicted events
• Excessive control of staffs may lead to morale problems
16
 Degree of Structure

• Setting the level too high fails Structured

to make use of the ability of
staff to use their common
sense
• Setting the level too low causes
Unstructured
inconsistent outputs

17
 Range of Involvement
The number of people required to act before a job is
completed
• Too high: Work is slowed down because too many people are
involved
• Too low: Decisions made too narrowly without sufficient
consideration of the issues
Correct number of participants
• Where a task is carried out in a number of stages, delay often occurs
when the job is laying on someone’s desk awaiting attention
• Strategy: Delay reduced by giving one individual sole responsibility
• Influence: This may not be feasible where specialist skills required

18
 Range of Involvement
Doing and checking
• Delay often occurs when a task is completed
but awaiting checking
• Strategy: Delay can be reduced by requiring
the person who did the work to carry out the
checks
• Influence: Produces a lower level of quality as the
individual is likely to make the same error whilst
checking as they made originally

19
Five Elements of Integration
• Common culture
– shared understanding and beliefs
• Common standards
– Consistent terminology & procedures
• Information sharing
– Access to common data
• Coordination
– Communication between processes
• Collaboration
– Strong interdependence of processes
20
 Level of Integration
• Too high: The operation
becomes too complex and
hard to control

• Too low: The right hand does

not know what the left is doing

21
 Outcome
• Data Flow Diagram
• Concepts
– Process Characteristics
• Strategies
– Degree of Structure
– Range of Involvement
– Level of integration

22
 Exercise

Draw a data flow diagram and a flow chart to

depict the processes involved when the
system checks a password being used to
log on to a computer

23
 Solution:
Data Flow Diagram
Password
Database

Password Password
confirmation
User Security
Software
Password
Request
access for
user

Operating
System
24 of 41
 Exercise
What level of structure is appropriate to
1) A Research Scientist
2) A Security Officer
3) An assembly operative on a production
line

25 of 41
 Solution
1) Semi structured. A scientist must be
informed by the published literature as
well as having his/her own insights
2) Unstructured. A security officer must be
able to deal with unexpected well as
routine events
3) Structured. Production line work is
defined precisely and unvarying,
consistent work is required.

26
 Describe Ford Motor Company
• Language Description
 The Ford Motor Company’s Purchasing department employed 500 staffs
 When goods were received, the receiving department sent a confirmation
of receipt to the Purchasing department
 When the invoice arrived, the department checked the confirmation
document against the original order. If the two documents exactly
matched, the invoice was paid
 When the materials received did not match the order exactly, the
Purchasing department negotiated with the suppliers and receiving
department to decide what to do
 The staff spent most of their time resolving these mismatches between
what was ordered and what was received
 The company instituted a new policy towards goods received that did not
exactly match the order, they were simply returned to the supplier
 As a result of the new practice, Ford was able to reduce staff in the
Purchasing department from 500 to 125
Use Data Flow Diagram to describe the above process. 27