Chapter 7
Structured Processes and
Information Systems–
Case & Exercise
Jason C. H. Chen, Ph.D.
Professor of MIS
School of Business
Gonzaga University
Spokane, WA 99258 USA
chen@jepson.gonzaga.edu
Dr. Chen, Management Information Systems
1
USING YOUR KNOWLEDGE
UYK#7(4 or 5)-p.251
• #5 (Fox Lake)
• # 4 (Hospital)
Dr. Chen, Management Information Systems
2
• 4.Using the patient discharge process in Figure 7-10, explain how the
hospital benefits from an ERP solution. Describe why integration of
patient records has advantages over separated databases. Explain the
value of industry-specific ERP solution to the hospital.
•
• An integrated ERP solution will be very beneficial in the hospital
setting. For patient discharge, the physician can use a discharge
application that triggers processing in other related applications to
accomplish all of the notifications outlined in Figure 7-5. Because
the applications use an integrated database, there is little chance of
anything being lost or overlooked.
• If the discharge should get cancelled later, the integration is
immediately beneficial in notifying the various parties of the
change in status. An ERP solution tailored to a hospital
environment will be extremely useful because this organizational
setting is unique and has many processes that are not applicable to
other organizational environments.
Dr. Chen, Management Information Systems
3
5. Consider the problem at Fox Lake at the start of this chapter. Explain
why this problem was caused by a lack of integration. In what ways would
ERP help Fox Lake? If Fox Lake decided to implement ERP, which vendors
are likely to have suitable products? Do you think you would recommend
ERP to Fox Lake? Why or why not?
•
•The lack of integration leading to this problem came about because
there was no centralized means of reserving or blocking out the use
of the rooms and buildings on the Fox Lake campus. Anne had no
way of knowing that Mike planned to conduct some required
maintenance on one of the rooms she uses for weddings because her
room schedule was completely separate from his room schedule.
•An ERP system would have had a room scheduling application that
both Mike and Anne could use to reserve rooms and block out rooms
needing maintenance
Dr. Chen, Management Information Systems
4
• 5 (cont.)
• By using the shared database and shared application, this conflict
would never have occurred. Given the wide range of products
offered, I would think that Infor is a good potential vendor of ERP
software for a country club like Fox Lake.
• My biggest reluctance about recommending ERP software for Fox
Lake is my reservation that the organization is able to adapt to the
use of such a product. I don’t see the level of top-management
support that will be necessary, and I don’t believe the users are
really ready for the commitment that is required to successfully
implement an ERP product.
Dr. Chen, Management Information Systems
5
CASE STUDY 7
Process Cast in Stone
• 1 thru 4; 6
Dr. Chen, Management Information Systems
6
Case Study 7:
Process Cast in Stone
• Knowledge of enterprise systems can help you
see how information flows throughout an
organization and how enterprise systems enable
an organization to keep its records up-to-date and
accurate.
• Understanding how an enterprise system links all
aspects of an organization together will help
recognize the value of these systems and envision
their use.
Dr. Chen, Management Information Systems
77
Case Study 7:
Process Cast in Stone
Selection and purchase
1. Client (homeowner) hires architect who either draws plans or
hires specialized kitchen architect.
2. Client usually walks through stone vendor’s warehouses, often
accompanied by interior designer or kitchen architect.
3. Stone vendor employees place chips of slabs in which the client
expresses interest into little boxes.
4. Write name of client or decorator in indelible ink on side of
selected stone or stones to reserve them
5. After final selection, the name is crossed out on slabs not
purchased.
6. Purchased slabs are set aside for shipping.
Dr. Chen, Management Information Systems
8
Case Study 7:
Process Cast in Stone
Construction process
• Contractor selects a stone fabricator.
• Fabricator moves slabs from stone vendor’s warehouse to
workshop.
• Fabricator prepares the slab.
 Treat stone’s edges, possibly repolish stone
 Cut holes for sinks and faucets
• Installs in client’s home
Dr. Chen, Management Information Systems
99
1. Identify the key actors in this scenario. Name their employer
(if appropriate) and describe the role that they play. Include
as a key player the operations personnel who move stones in
the warehouse as well as who load stone on the fabricators’
truck.
•
•
•
•
•
•
•
•
•
Client (makes selection and pays for choice)
Architect (advises client)
Specialty architect (e.g., kitchen) employed by architect (advises client)
Interior designer (advises client)
Stone salesperson—employed by stone vendor (guides selection and purchase
process)
Stone operations personnel—employed by stone vendor (move and load stones)
Stone cutter/polisher—employed by stone fabricator (physically prepares stone for
installation at site)
Stone mover—employed by stone fabricator (unloads raw stone; moves stone; loads
finished stone into truck for site delivery)
Stone installer—employed by stone fabricator (unloads stone and installs at final site
location)
Dr. Chen, Management Information Systems
10
2. Using Figure 7-20 as an example, diagram the stone selection process. Classify
this process as a personal, departmental, enterprise, or interenterprise process.
This process is a departmental system—the sales activity is described here.
Dr. Chen, Management Information Systems
11
3. The current system is not a paper-based system; it is a
stone-based system. Explain why this is so.
• The current system relies on a process that
records a stone’s status (available, reserved, and
sold) for each stone. That is why this can be
considered a ‘stone-based’ system.
• There is no centralized way of knowing all
available stones, all reserved stones, or all sold
stones without physically reviewing the stone
inventory. To find a given stone’s status, the
stone must be looked at physically.
Dr. Chen, Management Information Systems
12
4. Create an enterprise system that uses a shared database. Change the
diagram you created in your answer to question 2 to include this database.
(Assume every slab of stone and every location in the warehouse has a unique
identifier). Does the shared database system solve the problems of the stonebased system? Why or why not?
Dr. Chen, Management Information Systems
13
4. (cont.) The centralized database will make some
improvements to the process. It should be much easier for the
salesperson to direct the client and designers to the suitable
available stones because the salesperson can run a query to find
the potential stones and their locations before entering the
warehouse. This will prevent the problem of showing a client a
stone that he loves, only to look and see that it is reserved or
sold. Additionally, when the client makes the final selection, the
database can be updated immediately so that other salespeople
will know. This improves the flow of information about each
stone’s status. Also, the process of choosing a stone can
automatically trigger an action request to the Stone Operations
personnel to schedule the movement of the stone from the sales
area to the loading area in preparation for shipment to the
fabricator
Dr. Chen, Management Information Systems
14
6. Suppose you manage the stone vendor company. If you implement the system
in your answer to question 4, what problems can you expect? If you do not
implement that system, what problems can you expect? What course of action
would you take and why?
•
• If the system with the centralized database is implemented, the
salespeople will have to be trained to utilize the applications to query
and update the database. Because much of the client interaction will
have to occur in the stone warehouse, the salespeople will need mobile
devices that can query the stone inventory and record stone reservations
and stone purchases on the spot.
• If the system is not implemented, there will continue to be an inefficient
system that is subject to information inaccuracies. If the volume of
stone slabs in my organization is large enough that salespeople cannot
easily know the status of every stone in the warehouse, then this system
would be justified. Upscale clients expect efficient and accurate service,
and this system will help the stone vendor provide this.
Dr. Chen, Management Information Systems
15