Page 285 - Using MIS

Q1 What Are the Basic Types of Processes? 253

Structured Dynamic

Support operational and structured Support strategic and less structured
managerial decisions and activities managerial decision and activities
Standardized Less specific, fluid

Usually formally defined and documented Usually informal
Exceptions rare and not (well) tolerated Exceptions frequent and expected
Process structure changes slowly and Adaptive processes that change structure
with organizational agony rapidly and readily
Figure 7-2 Example: Customer returns, order entry, Example: Collaboration; social networking;
Structured Versus Dynamic purchasing, payroll, etc. ill-defined, ambiguous situations
Processes

How Do Processes Vary by Organizational Scope?

Processes are used at three levels of organizational scope: workgroup, enterprise, and inter-
enterprise. In general, the wider the scope of the process, the more challenging the process
is to manage. For example, processes that support a single workgroup function, say accounts
payable, are simpler and easier to manage than those that support a network of independent
organizations, such as a supply chain. Consider processes at each of these three organiza-
tional scopes.

Workgroup Processes
A workgroup process exists to enable workgroups to fulfill the charter, purpose, and goals of a
particular group or department. A physicians’ partnership, such as that of Dr. Flores, is a work-
group that follows processes to manage patient records, issue and update prescriptions, provide
standardized postsurgery care, and so forth.
Figure 7-3 lists common workgroup processes. Notice that each of these processes is largely
contained within a given department. These processes may receive inputs from other depart-
ments, and they may produce outputs that are used by other departments, but all, or at least the
bulk of, the processes’ activities lay within a single department.
A workgroup information system exists to support one or more processes within the
workgroup. For example, an Operations department could implement an IS to support all three
of the operations processes shown in Figure 7-3. Or an Accounting department might imple-
ment two or three different IS to support the accounting processes shown. Sometimes, work-
group information systems are called functional information systems. Thus, an operations
management system is a functional information system, as are a general ledger system and a
cost accounting system. The program component of a functional information system is called a
functional application.
General characteristics of workgroup information systems are summarized in the top row
of Figure 7-4. Typical workgroup information systems support 10 to 100 users. Because the pro-
cedures for using them must be understood by all members of the group, those procedures are
often formalized in documentation. Users generally receive formal training in the use of those
procedures as well.
When problems occur, they almost always can be solved within the group. If accounts pay-
able duplicates the record for a particular supplier, the accounts payable group can make the fix.
If the Web storefront has the wrong number of items in the inventory database, that count can
be fixed within the storefront group.
(Notice, by the way, that the consequences of a problem are not isolated to the group.
Because the workgroup information system exists to provide a service to the rest of the