Business Processes and New Technologies in Business Organizations - Term Paper Example

Introduction to Business Information Systems Executive Summary The aim of this task was explore information systems and business processes that employ Web 2.0 technologies to create efficient procedures and process that reduce costs and increases profitability. It described and explored the role of information systems, business process and new technologies in business organizations by using relevant data. Performance of information systems is enhanced by social bookmarking, social networks, blogs and wikis in business process. Business process modeling in CMP Pty Ltd focused of efficient processes by aid of new technologies to support decisions at operational, tactical and strategic levels. The first section of the assignment explores the role of business process modeling in business information systems design. In the second section, Microsoft Office applications such as MS Excel were investigated to determine how it supports business decision making. Moreover, the application of Web 2.0 tools such as social bookmarking, social networks, wikis and blogs underscored its relevance in improving internal communication, marketing research, stakeholder collaboration and participation. Finally, last section of the task provided MS Excel tool as vital for graphical and visual representation of determining CMP Pty Ld profitability in terms of brands and general organizational profitability. Table of Contents Executive Summary 1 1.0 Questions 4 1.1 Business process modeling and business information systems design 4 1.2 How does using a software tool such as Microsoft Excel support business Decision-Making 5 1.3 Web 2.0 Tools in CMP Pty Ltd Business Applications 6 2.0Process Model 7 2.1 CMP Dairy Pty Ltd Business process model 7 2.2 Assumptions 7 Figure 1: CMP Pty Ltd Business Process Model 8 3.0Excel Spreadsheet 9 Figure 2: Net profit of CMP Pty Ltd for years 2012-2014 9 Figure 3: CMP Pty Ltd Net Profit 10 4.0 Conclusion 10 The aim of process modeling is to increase quality and process speed or to reduce capital costs and cycle time with some of the costs being scrap, materials and labor. The need to document requirements necessitates a management decision of investing in business process modeling to improve the information technology project (Scheer, 2000). Spreadsheets model numerical, statistical and financial data within systems of columns and rows. They have the ability to present and analyze data sets meaning that many firms are able to use in making informed decisions (Subhasish, 2009). Web 2.0 tools plays the role done by traditional advertising by persuading consumers to buy a company's services or products, harvest invaluable customer insights (Arthur, 2009) given that Web 2.0 has great impact on customers and consumers in terms of internal collaboration and communication. 10 Reference list 11 List of Figures Figure 1: CMP Pty Ltd Business Process Model 8 Figure 2: Net profit of CMP Pty Ltd for years 2012-2014 9 Figure 3: CMP Pty Ltd Net Profit 10 1.0 Questions 1.1 Business process modeling and business information systems design Business process modeling (BPM) is performed by business analysts as an activity to represent processes of a firm so that existing process may be improved or analyzed. The subject matter experts provide specialized knowledge of the processes while analysts provide expertise by in the modeling discipline (Matthias et al. 2009). The aim of modeling is to increase quality and process speed or to reduce capital costs and cycle time. Some of the costs include scrap, materials and labor. The need to document requirements necessitates a management decision of investing in business process modeling to improve the information technology project (Aalst & Stahl, 2011). Modeling involves business processes which are a collection of structured and related tasks or activities producing particular product or service to serve specific customers or customer (Briol, 2008). These business processes are; strategic, operational and supporting. Management processes such strategic management and corporate governance govern the operation of a system while operational processes such as sales, marketing, processing and purchasing create the primary value stream and constitute the core business (Matthias et al. 2009). Similarly, supporting processes such as technical support, recruitment and accounting support the core processes. Mapping of sub-processes and processes down to activity level constitute analysis of business processes (Scheer, 2000). A business process model defines the operational ways of one or more business processes undertaken in order to fulfill desired organizational objectives. Depending on the desired use of the model, it remains an abstraction since it can describe the integration or workflow between business processes or constructed in multiple levels (Harvey, 2005). A sequence of operations is depicted by workflows and declared as simple or complex mechanism, work of a group or individuals, machines or organization of staff. Workflow is thus perceived as real work abstraction but segregated into work split, workshare, or other ordering types. Workflow for control purposes are real work under a specific aspects (Manuel et al. 2009). When information system design and business process design are not well aligned, it means that the designed business process will fail to into account the impact of the information system. Quality problems at runtime are often a result of missing alignment at design time (Bider, 2005). Some of the problems include interrupted processes, overloaded information systems, large process execution times and information systems large response times. 1.2 How does using a software tool such as Microsoft Excel support business Decision-Making Microsoft Office programs is currently used by millions of employees to collaborate, communicate, process, capture, publish, report and analyze business information. The common Microsoft Office applications to communicate such business information are Access, Outlook and Excel. Key business information in an enterprise setting, typically resides in line-of-business applications and large, back-end databases (Gross et al. 2007). Collection and maintenance of enterprise data is through line-of-business applications such as project management systems, financial reporting, Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP). Spreadsheets such as Microsoft Excel and alternatives from GoogleDocs and OpenOffice have a function of storing and modeling data sets in all the business sectors. Spreadsheets model numerical, statistical and financial data within systems of columns and rows. Rows and columns have single cell within which each data item is contained. When new data is added, spreadsheets continually update. The design of spreadsheets is to store information but they do a lot more in reality (Butterfield, 2009). On daily basis, companies apply spreadsheets to create graphical visualizations, manipulate and model data sets, and ultimately inform future planning and decision making. The programs use data visualization tools where data set stored within a spreadsheet uses the data as the basis for graphical displays such as pie charts, graphs bar and charting options edited to suit own needs (Mila, 2009). Charts communicate data in corporate contexts during presentation activities or by management teams to obtain greater data insights. Spreadsheets have the ability to present and analyze data sets meaning that many firms are able to use in making informed decisions (VanHuss et al. 2011). Clear picture of past and present is generated and need to inform effective planning activity in future by carrying out performance measurements. For example, manufacturing or processing firm can spreadsheet data in form of bar chart to gauge production performance, employee attendance and efficiency of operations at different times of the year (Mila, 2009). The firms can also estimating sales projections through speculative analyses hence determining its effect on the overall business. 1.3 Web 2.0 Tools in CMP Pty Ltd Business Applications Web 2.0 tools are numerous, constantly recombining and evolving technologies such as news aggregation sites, social bookmarking, social networks, wikis and blogs. They have numerous implications for business since they help change ways of customers’ interactions as well as demanding changes in way business communication with their markets (Subhasish, 2009). The perception of a website as analogous to a publication is replaced by Web 2.0, in which an information from a trusted source is provided and consumed by the user. Web 2.0 tools provide structured interaction among consumers and clients. Given that traditional advertising persuades consumers to buy a company's services or products, Web 2.0 tools can also play the role (Mila, 2009). For example, an executive at CMP Pty Ltd can write a blog regularly talking about the various milk products offered by the company. The point of Web 2.0 is getting consumers involved, through product development, customer service, feedback, and participate in marketing-related activities (Arthur, 2009). The company can do that by setting up an online community where the company can talk to its consumers while customers can talk to one another. The company seeks opinions on various milk brands, pricing and flavors. The consumers talk about their experiences and nutritional benefits that enabling the company to better understanding its market (Mila, 2009). A company wastes its online opportunity if its website is a simply an online product brochure (Subhasish, 2009). Companies that are more progressive can use the tools to stimulate discussion and communicate their services, products and brands (Arthur, 2009; Subhasish, 2009). For example, CMP Pty Ltd can use social networks (Facebook, Twitter and Instagram), e-mail and social bookmarks to communicate and collaborate internally. By doing so, they are able to harvest invaluable customer insights given that Web 2.0 has great impact on customers and consumers in terms of internal collaboration (Solomon & Schrum, 2007). Email and outlook as workhorses of internal communication continue to be strong avenues of interdepartmental communications and data collections such as surveys. 2.0 Process Model 2.1 CMP Dairy Pty Ltd Business process model The Swim lane process for CMP Pty Ltd below depicts a business process model shows which underscores the milk factory process and information flow or messages. The factory lane focuses on processes and activities from delivering milk from farmers to packaging in tetra packs. Milk is then refrigerated and delivered to distributors who place in shelves for customers to pick and pay for the product. The corresponding message flow comes from the farms (quality and quantity of raw milk) to the sales team to increase reach and depth. The factory will need to increase efficiency by reducing level of wastage, machine defects and downtime, and employee turnover. 2.2 Assumptions a) An activity label indicates an action. b) Process model collection is sufficient to allow extraction of domain knowledge c) A mechanism exists to allow interpretation of activity labels as actions CMP Dairy Pty Ltd Business process model Figure 1: CMP Pty Ltd Business Process Model 3.0 Excel Spreadsheet From the Figure 1 below, Long Life milk and dried milk is making losses but flavored milk is a promising brand since its profit trend is improving dramatically. Besides, Yogurt, Whole Milk, Skinny Milk and Reduced Fat at CMP Pty Ltd are the most profitable brands because the figures show improvement over the three years. LEGEND: WM Whole Milk RF Reduced Fat SK Skinny Milk FL Flavored Milk LL Long Life Milk YO Yogurt DM Dried Milk BU Butter CH Cheese Figure 2: Net profit of CMP Pty Ltd for years 2012-2014 3.1 CMP Pty Ltd Profitability As observed in the graph below, there was an improvement in net profit of year 2014. This could be a result of increased machine efficiency and better teamwork as well as aggressive marketing and increased customer purchasing power. However, CMP Pty Ltd profits dropped in 2013 after a splendid performance in 2012. Figure 3: CMP Pty Ltd Net Profit 4.0 Conclusion The aim of process modeling is to increase quality and process speed or to reduce capital costs and cycle time with some of the costs being scrap, materials and labor. The need to document requirements necessitates a management decision of investing in business process modeling to improve the information technology project (Scheer, 2000). Spreadsheets model numerical, statistical and financial data within systems of columns and rows. They have the ability to present and analyze data sets meaning that many firms are able to use in making informed decisions (Subhasish, 2009). Web 2.0 tools plays the role done by traditional advertising by persuading consumers to buy a company's services or products, harvest invaluable customer insights (Arthur, 2009) given that Web 2.0 has great impact on customers and consumers in terms of internal collaboration and communication. Reference list Aalst, W & Stahl, C 2011, Modeling Business Processes: A Petri Net-Oriented Approach, MIT Press. Arthur, T 2009, Web Technologies: Concepts, Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and Applications, IGI Global. Bider, I 2005, Goal-oriented Business Process Modeling, Emerald Group Publishing. Briol, P 2008, BPMN, the Business Process Modeling Notation Pocket Handbook, Lulu.com. Butterfield, J 2009, Illustrated Course Guides: Problem-Solving and Decision Making - Soft Skills for a Digital Workplace, Cengage Learning. Gross, D Akaiwa F Nordquist K 2007, Succeeding in Business with Microsoft Office Excel 2007: A Problem-Solving Approach, Cengage Learning. Harvey, M 2005, Essential Business Process Modeling, O'Reilly Media, Inc. Manuel, L Laguna M, Marklund J 2009, Business Process Modeling, Simulation and Design, Pearson Education India. Matthias W, Jan M, Weske M 2009, Action Patterns in Business Process Models, Universitätsverlag Potsdam. Mila, GH 2009, Information Communication Technologies and City Marketing: Digital Opportunities for Cities around the World: Digital Opportunities for Cities Around the World, IGI Global. Scheer AW 2000, ARIS-Business Process Modeling: Business Process Modeling, Springer Science & Business Media. Solomon, G & Schrum L 2007, Web 2.0: New Tools, New Business, ISTE (Interntl Soc Tech Educ). Subhasish, D 2009, Social Computing: Concepts, Methodologies, Tools, and Applications: Concepts, Methodologies, Tools, and Applications, Idea Group Inc (IGI). VanHuss S, Forde C & Woo D 2011, Integrated Computer Applications, Cengage Learning. Read More