Bussiness modelling - Essay Example

In the same manner the information system being developed should not be the automation of the current operational bad habits in the organization. Information System development should also include transforming the operation of the organization from being person or people centric to process and procedure centric as defined by its operating policies and business goals. In information system development before starting the actual design of the system, we need to analyze and understand the requirement and the process of the organization and also the people that will be affected by the system.

The system can either contribute to the organization’s success or it could also be the reason for the demise of an organization in case of its failure. To illustrate, the losses in terms of money and time, In 1980s, the Department of Social Security in the UK implemented a failed system called Camelot that was designed to computerize welfare benefits the lost amounted to £6 million. Sometimes it is not only money that is put at risk life and limbs can also be put in harm’s way if there is failure in implementation similar to what happened to the London Ambulance service LASCAD in 1992 (Chua, 2009).

According to a Standish Group survey only 16% of Information System projects are completed on time and within budget, 53% are over budget and on-time, and 31% of all projects are cancelled (Hamil, 2010). Timmers in 1998 presented this definition “The business model is ‘an architecture of the product, service and information flows, including description of the various business actors and their roles; a description of the potential benefits for the various business actors; a description of the sources of revenues’” (Zott et al, 2010).

Business modeling therefore provides the overall perspective of how the business operates as defined by its processes. The