BA 302 - Introduction: OM + MIS = BPM

Summary

BA 302 integrates core concepts from Management Information System (MIS) with those of Operations Management and introduces a process-oriented view of the flows of materials, information and services through and across organizations. All organizations must carefully analyze and document their business processes and must continuously assess the efficiency and effectiveness of these processes in order to minimize cost and maximize value creation. The course helps students identify information-bearing events, assess and improve process efficiency, learn to model and analyze business processes, and understand the interactions between human behavior and process design. Hands-on, case-based assignments allow students to practice some of the principles addressed.

Innovation

• Classic disciplinary divisions in business schools:
  

• Problem: What distinguishes one discipline from another?

• Problem: What do they share?
• Operations Mgt.:
  • Management of processes that produce and distribute products.
  • "Production of goods and services, the set of value-added activities that transform inputs into many outputs"
  
  
  • Metters p. 4: Operations: "process that turns inputs into outputs, ... combining people, raw materials, technology, etc. into services and products"
    
  • Examples of 'processes':
  • Oil change:
  • Location
  • Personnel
  • Oil (several kinds), filters, gaskets
  • Take order
  • Do the change
  • Wait facility
  • Pay
  • Disposal
  • Etc.

  • Grocery shopping?

• MIS:
• Stair & Reynolds (p. 15): "a system of of interrelated components that collect (input), manipulate (process), store, and disseminate (output) data and information..."
• Examples of information systems:
• On-line flight purchasing:
• Flight database
• Routing tools
• Booking information
• Authentication
• Payment system
• Confirmation
• Etc.

• On-line ordering a DVD?

• Problem: What connections exist between the oil change/grocery shopping process and on-line flight purchasing?
• All these processes store and handle data and information.
• All four processes have formal structure.
• All four processes can be modeled and measured.
• All can (most likely) be improved:
• Better customer value
• Lower cost

• New information technologies allow for ever better (OM) process control & improvement.

• "Old" OSU BA Core Curriculum:

• New OSU BA Core Curriculum:
• BA 101: Business Now (Business Fundamentals)

• BA 302: Business Process Management (4 cr.) ==>
• BA 357: Operations Management (4 cr.)
• BA 370: Business Information Systems Overview (4 cr.)

• A word to seniors in this class.

• Innovation & early adoption:
• Well-established curriculum not (yet) available (few textbooks).
• Consultants and practitioners are leading the way (books for professionals).
• Temporary solution:
  
  
  • Metters, King-Metters, Pullman, Walton (2007) Business Process Management. BA302 at Oregon State University. Thomson Southwestern (!!!Special edition, available from the OSU Bookstore!!!):

  • Oriented towards service industries.
  • 78.9% of US GDP ($13.3T, 2006) is service oriented.
  • Service industries rely heavily and increasingly on information systems.
  • Service industries are heavily engaged in process improvement using OM & MIS methods.
  • Services & information technology increasingly penetrate nonservice sectors (manufacturing, mining, etc.).
  • New information technologies generate new service industries

---

• The OM discipline: (See Blackboard; BA302-C001; Lecture 1: Prof. Shaw: Introduction to Business Process Management).
  
• The MIS discipline:
• "computer-based system that provides managers with the tools for organizing, evaluating and efficiently running their departments. In order to provide past, present and prediction information, an MIS can include software that helps in decision making, data resources such as databases, the hardware resources of a system, decision support systems, people management and project management applications, and any computerized processes that enable the department to run efficiently." (www.Webopedia.com):
• All people and organizations generate, process and consume information (in order to survive).
• MIS studies organizations and their information generation, processing and consumption.
• Who needs what information when?
• Where and when is this information generated?
• Is this information transient or persistent?
• How must this information be structured and formatted?
• What media types should it be in?
• Which part of a business process can be dematerialized?
• How must the information be controlled and checked?
• Where is this information stored? People? Paper? Electronically?
• How do we store it? How do we search and retrieve it when needed?
• Who or what generates the information in the first place?
• Technical:
• Programming
• Databases
• Data exchange protocols (HTTP, Web (services), etc.)

• Institutional: Who controls our technology?
• Proprietary vs. open source models
• W3C / ISO / IEEE / ANSI, etc.
• Governance and control: COBIT, ITIL, etc.