Introduction to Business Information Systems

Assignment 1

Table of Contents

Part A

1. Describe the information age and the differences between data, information, business intelligence and knowledge…………………. Page 1

2. Explain systems thinking and how management information systems (MIS) enable business communications…………………………….. Page 2

3. Describe three Business 2.0 tools for collaborating………………... Page 2

4. Characterise and explain the importance of decision-making for managers at each of the three primary organisation levels……….. Page 3

5. Describe business process management and its value to an organization…………………………………………………………... Page 4

Part B

1. Describe the concept of business process modeling………………... Page 4

2. Identify the key processes involved in the new Qantas check-in system…………………………………………………………………. Page 5

3. Provide two (2) process models……………………………………… Page 6 * Pre new check-in model………………………………………….. Page 6 * As-Is new check in model………………………………………... Page 7

4. References…………………………………………………………….. Page 8

PART A

1. Describe the information age and the differences between data, information, business intelligence and knowledge.

Compared to the past, the age we live in today is called the information age, where an infinite number of facts are broadly accessible to anyone who has the capability of using a computer (Baltzan, Lynch & Blakey, 2013, p. 9). Stair et al (2008, p. 5) says “data consists of raw facts, such as an employee number, total hours worked in a week, inventory part numbers or sales orders”. The information age has helped managers analyse huge amounts of data on a daily basis, which helps them make better decisions about the company’s future. Once data is analysed and translated into context, it turns into information (Baltzan, Lynch & Blakey, 2013, p. 10)

Stair et al (2008, p. 5) says “information is a collection of facts organized and processed so that they have additional value beyond the value of the individual facts”. The bottom line about information is that it is only as good as the people who interpret it. Information is subjective, which means that the same people using the same information can make different decisions depending on how they themselves interpret the information, thus making it as useful as the person who analysis it. Once enough information has been collected it then turns into business intelligence (Baltzan, Lynch & Blakey, 2013, p. 10).

Baltzan, Lynch & Blakey (2013, p. 13) says “business intelligence is information collected from multiple sources such as suppliers, customers, competitors, partners and industries that analyse patterns, trends and relationships for strategic decision making”. Business intelligence incorporates all the different types of internal and external variables to anticipate the performance of the business (Baltzan, Lynch & Blakey, 2013, p. 13).

Stair et al (2008, p. 6) says, “knowledge is the awareness and understanding of a set of information and the ways that information can be useful to support a specific task or reach a decision”. Using data, information, business intelligence and knowledge together to make decisions and resolve problems is the most important key to the success of any business. These fundamental drivers of the information age are the building blocks of business systems (Baltzan, Lynch & Blakey, 2013, p. 14).

2. Explain systems thinking and how management information systems (MIS) enable business communications.

Before looking at what “systems thinking” is, we first need to understand what a “system” is. A system “is a collection of parts that link to achieve a common purpose” (Baltzan, Lynch & Blakey, 2013, p 16). Therefore, systems thinking is a way of observing the entire system by viewing several inputs that are being processed to produce outputs while all the time gathering feedback on each individual part. It provides an end-to-end look at how the operations work together to create a particular type of product or service (Baltzan, Lynch & Blakey, 2013, p 16).

Management information systems are an integrated collection of people, procedures, databases and devices that provide managers and various decision makers within a business with information on how to achieve a business’ goals. A MIS helps a business achieve those goals by providing managers with understanding into the processes of the business so that they can control and organise the future plans of the business more efficiently (Stair et al, 2008, p. 449)

3. Describe three Business 2.0 tools for collaborating.

Blogs are online journals that allow different users to post their own material, comments, video or images for others to use or read (Sargent, 2013)

Mashups can be websites or web applications that use content from multiple sources to create a new product or service. Three characteristics of a mashup are combination, visualisation and aggregation (Sargent, 2013)

Apps are small bits of software that can run from your computer, the internet or from your mobile phone. Apps are generally targeted towards users of Apple, Android or Blackberry devices (Sargent, 2013)

4. Characterise and explain the importance of decision-making for managers at each of the three primary organisation levels.

The first level of the decision-making process focuses on operational decisions. Operational decisions can be defined as the day-to-day decisions of the business, such as “how do I process this claim” or “how do I treat this customer” or “how do I handle this order” (SAS Software, 2011). These decisions are structured, and are made by lower management, department managers and staff (Baltzan, Lynch & Blakey, 2013,p. 151)

The second stage focuses on managerial decisions. Managerial decisions can be defined as covering short to medium range business plans, schedules, budgets, policies and procedures and also business goals. These are semi-structured decisions and are made by middle management, managers and directors and can have short-term, monthly and even yearly objectives (Baltzan, Lynch & Blakey, 2013, p. 151).

The final and most important stage of the decision making process is referred to as the strategic level. Strategic decisions are usually made with long-term impact in mind for the business. The business as a whole is shaped and affected by these types of decisions (CIMA, 2013). These decisions are unstructured and are made by senior management, leaders and CEO’s (Baltzan, Lynch & Blakey, 2013, p. 152).

5. Describe business process management and its value to an organization.

Antony Adshead (2002, p. 1) describes BPM as “a concept that represents a convergence between the IT sphere of applications and the processes required by the business. An open and developable platform can be built which enables processes to be easily modelled into enterprise applications as they are needed by the business”. BPM is valuable to an organisation because of its ability to track and orchestrate a particular business process, automate tasks that involve information from multiple sources and to define rules in which the tasks are performed. BPM can also benefit an organisation by updating processes in real-time, decreasing business costs, systematising key decisions and enhancing productivity for the business (Baltzan, Lynch & Blakey, 2013, p. 178).

PART B

1. Describe the concept of business process modeling.

Baltzan, Lynch & Blakey (2013, p. 180) says that “business process modelling is the activity of creating a detailed flowchart or process map of a work process that shows its inputs, tasks and activities in a structured sequence”. Baltzan, Lynch & Blakey (2013, p. 180) also states “a business process model is a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint”. A functional process representation of what the process problem is is where a business process model typically starts. This is called the As-Is model. It represents the current state of operations without any changes to present processes. The second stage is to create a To-Be process model, which will display how the process plans to be solved. A To-Be process model displays the results of employing change to the existing As-Is model.
This approach guarantees that the process is understood before the details of a process solution are reached (Baltzan, Lynch & Blakey, 2013, p. 180).

2. Identify the key processes involved in the new Qantas check-in system.

Process 1 – Selecting how many passengers will travel.
Process 2 – Selecting type of flights.
Process 3 – Choosing seats.
Process 4 – Dangerous goods check.
Process 5 – Boarding pass printed.

3. Provide two process models. 1. Swim-lane Pre-new Check-in Process.

PASSANGER AIRLINE REP 1 AIRLINE REP 2

Go through Int.
Process
Go through Int.
Process

Yes
Yes
No
No
Yes
Yes
Passanger boards plane Passanger boards plane Int
Int
Dom
Dom
Prohibited goods removed Prohibited goods removed Prohibited
Goods?
Prohibited
Goods?
Bags recieved Bags recieved
Passenger checks bags Passenger checks bags Tickets purchased
Tickets purchased
Passanger chooses seats Passanger chooses seats Pref
Seats?
Pref
Seats?
Int or
Dom?
Int or
Dom?
Enquiry about
Tickets at desk
Enquiry about
Tickets at desk
Arrive at Airport
Arrive at Airport

No

No

The pre new check in process involves more steps than the As-Is process. The passenger arrives at the airport and enquires about tickets. The passenger is asked international or domestic and then asked if they want to choose their seats. The tickets are then purchased and a boarding pass is printed then the passenger checks their bags. A prohibited goods check is completed then the passenger boards the plane.

2. Swim-lane As-Is new Check-In Process for Passengers who have not checked in online or with their mobile phone.

PASSENGER CARD READER AIRLINE REP

The As-Is process is much easier. The passenger arrives at the airport and scans their card at the card reader. The passenger then purchases excess baggage if it is required then drops their bags off and boards the plane.
The As-Is process is much easier. The passenger arrives at the airport and scans their card at the card reader. The passenger then purchases excess baggage if it is required then drops their bags off and boards the plane.
No
No
Yes
Yes
Passenger drops bags Passenger drops bags Excess
Baggage?
Excess
Baggage?
Purchase of
Excess baggage
Purchase of
Excess baggage Scans card at Card reader Scans card at Card reader
Passenger arrives
At airport
Passenger arrives
At airport

References

Antony Adshead, Computer Weekly, 24th January 2002, p. 1, “What is Business Process Management?” <http://web.ebscohost.com.ezproxy.lib.swin.edu.au/ehost/detail?vid=2&sid=3a009e8f-8a24-4b4a-99c1-fe258d8e1004%40sessionmgr4&hid=26&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=7416748>, viewed September 2nd 2013.

Baltzan, P Lynch, K & Blakey, P 2013, Business Driven Information Systems, 2e, McGraw-Hill, Sydney.

CIMA, 2013, Improving Strategic Decision Making, viewed September 2nd 2013, <http://businesscasestudies.co.uk/cima/improving-strategic-decision-making/levels-of-decision-making.html#axzz2diha29id> Sargent, J Lecture 3, 2013, HIT1401/5401 Introduction to Business Information Systems, Learning Material on Blackboard, Swinburne University of Technology, viewed September 3rd 2013. SAS Software, 2011, Analytics in Operational Decisional Making, 20th April 2011, viewed September 1st 2013, <http://www.youtube.com/watch?v=HDip4HGV2II> Stair, R Moisiadis, F Genrich, R & Reynolds, G 2008, Principles of Information Systems, Thomson, Sth. Melbourne, Australia.