References (book,

Question Answer slides)

Components of DFD (Data Flow Diagram)

http://spot.colorado.
External Entity, Process, Data Store, Data flow edu/~kozar/dfdsymb.gif
Type of DFD used in analysis and design

Complex Information
DFD types Physical Logical Systems 01.pdf
Comments
1) Entity
2) Relationship Optionality Cardinality Labels
3) Notation : Advanced features Exclusive relationships Subtypes Entity aspects
Partitioning

All activities or processes in a system are represented in a rectangular box.

All data stores are shown by a narrow elongated rectangle with an open end.
Arrows are used to show how data is put into or taken out of data stores.
The system boundary defines the area of the business which the user and the analyst
have agreed should be investigated . The boundary can be indicated by a dotted line
around the appropriate processes in the Level 1.

External entities are people, departments, etc., which receive data from, or send data
into, the system, but do not carry out any processing within the system. External entities
are shown as ellipses and may be drawn more than once to aid clarity.

Pages 20-21
54th

Level 0 DFD, or 'context diagram'. Can expand each of the process boxes on the higher
level (Level I) DFD into a lower level (Level 2) DFD.

Pages 18,24
Steps in Producing a Level DFD of the Current Physical System There are 4 Approach listed::
Approach 1 :
Identify the major data flows into and out of the
system, together with their respective starting
and finishing points (the source and recipient
ofthe data). The source and recipient will
normally become external entities on the DFD.
Identify the processes which receive the
incoming data and the stores used to hold such
data.
Identify the processes which generate outward
flows togetherwith the relevant data stores, for
example
Draw DFD
Add any additional processes, flows and data
stores
Review.

Approach 2:
Add any additional processes, flows and data
stores
Identify the source and recipient of each
document and construct a physical document
flow diagram
Review thesystem with the user to agree
systemboundary

Approach 3:
Draw a number of partial DFDs, for example,
for each function within the system, and then
link these together.

Approach 4
Draw a separate flow diagram for each major
document in the system, showing processes,
stores and external entities involved, and then
link these together.

Components of a Function A function consists of the input, the processes

(update and enquiry) required to respond to
that input, and the output produced by those
processes Joyce
50
Function Types
The products of (Derive System) Functions
Products of entity-event modelling
Functions can be categorised in three ways:
Enquiry or update (note that an update function
may also include enquiries) On-line and off-
line - a function can include both types of
processing Method of initiation, e.g. by the
action of a user of the system, a time clock, an
error, etc.
Joyce
The products of this step are new, rather than
amended versions of existing products, and
demand much cross-referencing, consultation
with users and discussion between project
team members. The products are Function
Definitions, Input/Output Structures and a User
RolelFunction Matrix.
Joyce
Information from the Function Definitions and
Enhanced Logical Data Model and other
products, (Re, DFD) will be used in Entity-event
modelling. Although the Function Definitions
provide the base information for identifying
events, new events may be identified during
this step, thereby Joyce
 50

50
71
The top box in any ELH contains the name of the entity.
Below the entity another box is drawn to represent each of the events in its life cycle.
These events must occur in one of the following ways:
1. Sequence - the events follow each other in sequence
2. Selection - one event or another will occur
3. Iteration - the event is repeated a number of times .

In creating the ELHs for a particular system, it is usual to start with the entities at the
lowest level of hierarchy in the LDS, i.e, the entities which are only details and are not
masters of lower level entities. Having chosen an initial entity, we now look at the
Function Definitions and identify the event(s) which create that entity. If there is more
than one possible way of creating a particular entity, then this may be represented by a
selection under the overall event responsible for triggering the creation process.
It is useful at this point to have the entity descriptions to hand as they contain the
attributes of the entity and it may be that all of the data is not entered at the creation
point but may be added at a later date
The deletion events are now added to the ELH. If there is more than one method of
deleting the entity then a check must be made to the sequence involving the deletion

Pages 71,73-74
Producing the ELH
Construction of the Effect Correspondence Diagram
Logical Data Modelling (Steps)
Entity Life History Analysis (ELH) is a very
important technique in SSADM. It provides a
cross-check between the LDS and DFDs of the
required system. In creating the LDS, the
entities within the system about which we store
data were identified. The purpose of an ELH is
to record diagrammatically all of the events
which affect the data concerning that entity and
identify the order in which they will occur. Any
entity must be created within the system. It may
be amended several times and it will probably
be deleted. ELHs will therefore also highlight
any processes, used to change data in the
system, which have been omitted from the
DFDs. It is important to remember that ELHs
are primarily a record of the events which affect
the data; thus careful thought must be given to
the naming of the events. Before embarking on
the ELHs themselves, it can be helpful to
produce an Entity/Event Matrix Joyce
The Effect Correspondence diagram (ECD) is
used to validate the ELH in Stage 3 and is
subsequently used during the Process
Specification activity in Stage 5. One ECD
should be constructed for each event identified
in ELH analysis and should include each effect
caused by the event. The diagram shows the
effects that events have on data in the system
and how they correspond to each other, thus
providing information about the required update
access paths used in Stage 5 logical design. Joyce
Identify the entities or data structures needed
in the system.
Identify the attributes (properties) of each of
the entities.
Identify the relationships between the entities
and thereby the access paths to data within the
system.
Represent the entities and their relationships
in diagrammatic form by means of a Logical
Data Structure (LDS).
Ultimately produce a data model which will
form the basis for the final physical file or
database structure.
Joyce
 71

7.8

Select Entities
Investigate Interrelationships
Produce a Logical Data Structure Matrix
Convert the Matrix to a Logical Data Structure
Entity Descriptions
Exclusive Relationships
Recursive Relationships
Rationalise the Structure
Naming Relationships
Create from LDS after: Data Store/Entity Cross Reference

Pages 31-39
Components of Logical Data model
Content of an Entity Description
THE UNIFIED PROCESS- The Most Important UP Idea
Entity, Relationships
During the process of producing the LDS,
details of the attributes of each of the entities
will evolve. In order to keep a record of these
attributes an Entity Description is produced
(see Appendix 4). The description shows all the
attributes, including those which will take key
values, that is, a field or fields used to define
uniquely a single occurrence of a record Joyce
A standardized approach to analysis and Slide #23 on Lecture
design helps to ensure that all necessary tasks presentation/Complex
are understood and completed in software Information Systems 02.
development. pdf
Any system, manual or computerised, is composed of data and processes. Data is in
itself meaningless and only becomes meaningful when placed in context;

An entity is an object of the real world about which information is held in a particular
system. These entities may be physical or conceptual;

The properties ofan entity are called attributes. Entities within a system may be related to
or dependent on each other. The nature of these relationships is defined by Logical Data
Modelling (LDM).

LDM concentrates on the entities, or groups of data, and their relationship(s) with each
other;

Pages 30-31

35
The Most Important Learning Goal? A critical ability in OO development is to skillfully
assign responsibilities to software objects.

Pages 19-20
What Is Design

Design emphasizes a conceptual solution that

fulfills the requirements. A design is not an
implementation, although a good design can be
implemented when it is complete. Slide #26 on Lecture
There are subsets of design, including presentation/Complex
architectural design, object design, and Information Systems 02.
database design. pdf
What is Object Oriented Analysis

The emphasis is on finding and describing the Slide #28 on Lecture

objects (or concepts) in the problem domain. presentation/Complex
In a Library Information System, some of the Information Systems 02.
concepts include Book, Library, and Patron. pdf
Use Case Writing Use Cases is not a specifically Object
Oriented practice.
But it is a best practice for elaborating and
understanding requirements. Slide #21 on Lecture
Structured document, with events, actors, pre- presentation/Complex
and post conditions, scenarios, steps, non- Information Systems 02.
functional requirements. pdf, consultation notes
Analysis emphasizes an investigation of the problem and requirements, rather than a
solution. For example, if a new online trading system is desired, how will it be used?
What are its functions?
"Analysis" is a broad term, best qualified, as in requirements analysis (an investigation of
the requirements) or object-oriented analysis (an investigation of the domain objects).
Design emphasizes a conceptual solution (in software and hardware) that fulfills the
requirements, rather than its implementation. For example, a description of a database
schema and software objects. Design ideas often exclude low-level or "obvious"
detailsobvious to the intended consumers. Ultimately, designs can be implemented, and
the implementation (such as code) expresses the true and complete realized design.
As with analysis, the term is best qualified, as in object-oriented design or database
design. Useful analysis and design have been summarized in the phrase do the right
thing (analysis), and do the thing right (design).

Pages 23-25

During object-oriented analysis there is an emphasis on finding and describing the

objects or concepts in the problem domain. For example, in the case of the flight
information system, some of the concepts include Plane, Flight, and Pilot.
During object-oriented design (or simply, object design) there is an emphasis on defining
software objects and how they collaborate to fulfill the requirements.

Object orientation emphasizes representation of objects.

Pages 26-27

Requirements analysis may include stories or scenarios of how people use the
application; these can be written as use cases. Use cases are not an object-oriented
artifact they are simply written stories. However, they are a popular tool in requirements
analysis.

Page 30
Types of Requirements

Slide #2 on , Complex
Information Systems 02 -
a Summary of Systems
Analysis Techniques O-O
Requirements Functional Non-functional Structured
What are System Sequence Diagrams?

Slide #32 on , Complex

Information Systems 02 -
a Summary of Systems
Analysis Techniques O-O
Sequence Diagram Structured
What is a Domain Model

Slide #31 on , Complex

Information Systems 02 -
a Summary of Systems
Analysis Techniques O-O
Domain Diagram Structured
FURPS+:
Functional features, capabilities, security.
Usability human factors, help, documentation.
Reliability frequency of failure, recoverability, predictability.
Performance response times, throughput, accuracy, availability, resource usage.
Supportability adaptability, maintainability, internationalization, configurability.
The "+" in FURPS+ indicates ancillary and sub-factors, such as:
Implementation resource limitations, languages and tools, hardware, ...
Interface constraints imposed by interfacing with external systems.
Operations system management in its operational setting.
Packaging for example, a physical box.
Legal licensing and so forth.

Some of these requirements are collectively called the quality attributes, quality
requirements, or the "-ilities" of a system. These include usability, reliability, performance,
and supportability. In common usage, requirements are categorized as functional
(behavioral) or non-functional (everything else); some dislike this broad generalization
[BCK98], but it is very widely used.

Pages 264-268
A system sequence diagram (SSD) is a fast and easily created artifact that illustrates
input and output events related to the systems under discussion. They are input to
operation contracts and most importantly object design.
The UML contains notation in the form of sequence diagrams to illustrate events from
external actors to a system.

Pages 813
Object-oriented analysis is concerned with creating a description of the domain from the
perspective of objects. There is an identification of the concepts, attributes, and
associations that are considered noteworthy.
The result can be expressed in a domain model that shows the noteworthy domain
concepts or objects.

Note that a domain model is not a description of software objects; it is a visualization of

the concepts or mental models of a real-world domain. Thus, it has also been called a
conceptual object model.

Pages 33-34
Use Case Diagrams

Slide #29 on , Complex

Information Systems 02 -
a Summary of Systems
Analysis Techniques O-O
Use Case Diagram Structured
Describe the functional organizational structure

Functional structure divided into functions or

departments Slide #7 on Lecture
Functions perform specialized tasks or presentation/Complex
activities Information Systems 03.
Processes cut across functions pdf, consultation notes
The UML provides use case diagram notation to illustrate the names of use cases and
actors, and the relationships between them

Use case diagrams and use case relationships are secondary in use case work. Use
cases are text documents. Doing use case work means to write text.

A use case diagram is an excellent picture of the system context; it makes a good
context diagram, that is, showing the boundary of a system, what lies outside of it, and
how it gets used. It serves as a communication tool that summarizes the behavior of a
system and its actors.

Page 424-430
The most common organizational structure you are likely to encounter is the functional
structure. Organizations that utilize a functional structure are divided into functions, or
departments, each of which is responsible for a set of closely related activities. For
example, the accounting department sends and receives payments, and the warehouse
receives and ships materials. Typical functions or departments found in a modern
organization include purchasing, operations, warehouse, sales and marketing, research
and development, finance and accounting, human resources, and information systems.
Page 2
What is a business process?

Slide #9 on Lecture
presentation/Complex
Sequence of tasks or activities that produce Information Systems 03.
desired outcomes pdf, consultation notes
A business process, is a set of tasks or activities that produce desired outcomes. Every
process is triggered by some event, such as receiving a customer order or recognizing
the need to increase inventory.
Because the various process steps are carried out by different functional areas or
departments, effective communication and collaboration among the departments is
essential to the smooth execution of these processes. Without this interaction, the
process cannot be completed efficiently and effectively.
Three processes are directly related to creating and delivering products and services.
They are buy, make, and sell. Organizations use specific terms to identify these
processes.
The procurement process (buy ) refers to all of the activities involved in buying or
acquiring the materials used by the organization, such as raw materials needed to make
products.
The production process (make) involves the actual creation of the products within the
organization. Whereas the production process is concerned with acquiring needed
materials internally (by making them), the procurement process is concerned with
obtaining needed materials externally (by buying them).
Finally, the fulfillment process (sell ) consists of all the steps involved in selling and
delivering the products to the organizations customers.
Closely related to buying, making, and selling are four processes used to design, plan,
store, and service products. Once again, organizations use specific terms for these
processes.
The lifecycle data management process (design) supports the design and development
of products from the initial product idea stage through the discontinuation of the product.
The material planning process ( plan) uses historical data and sales forecasts to plan
which materials will be procured and produced and in what quantities.
The inventory and warehouse management (IWM) process (store) is used to store and
track the materials.
The asset management and customer service processes (service) are used to maintain
internal assets such as machinery and to deliver after-sales customer service such as
repairs.
Going further, two support processes are related to people and projects.
Human capital management (HCM) processes (people) focus on the people within the
organization and include functions such as recruiting, hiring, training, and benefits
management.
Project management processes (projects) are used to plan and execute large projects
such as the construction of a new factory or the production of complex products such as
airplanes.
Pages 4-7
What is the silo effect? Why does it exist? What problems does it
create?

Focusing on functional objectives without

regard to process objectives
Optimizing functional goals vs. process goals Slide #7 on Lecture
Process execution requires presentation/Complex
Communication and coordination among Information Systems 03.
functions pdf, consultation notes
The procurement process includes

Create purchase requisition (Warehouse) ->

Create and send purchase order (Purchasing) - Slide #12 on Lecture
> Receive material (Warehouse) -> Receive presentation/Complex
invoice (Accounting) -> Send payment Information Systems 03.
(accounting) pdf, consultation notes
PRODUCTIONMAKE Process elements

Request production (Warehouse) -> Authorize Slide #13 on Lecture

production (Production) -> Issue raw materials presentation/Complex
(Warehouse) -> Create product (Production) -> Information Systems 03.
Receive finished goods(Warehouse) pdf, consultation notes
The functional structure served organizations well for a number of years because it
enabled them to cope with the challenges generated by their rapid growth. Over time,
however, this system developed a serious drawback. Put simply, people in the different
functional areas came to perform their steps in the process in isolation, without fully
understanding which steps happen before and which steps happen next. They
essentially complete their part of the process, hand it off to the next person, and then
proceed to the next task.
By focusing so narrowly on their specific tasks, they lose sight of the big picture of the
larger process, be it procurement, fulfillment, or any number of other common business
processes. This tendency is commonly referred to as the silo effect because workers
complete their tasks in their functional silos without regard to the consequences for the
other components in the process.
A key point here is that the silo nature of the functional organizational structure and the
cross-functional nature of processes are at odds with each other. That is, while workers
focus on their specific function, each business process involves workers located in
multiple functional areas. A major challenge facing organizations, then, is to coordinate
activities among the different functional areas. Viewing a company from a process
perspective requires employees to think sidewaysin other words, to view the
business across functional boundaries and focus on the end-to-end nature of the process
and its intended outcomes. Learning to view a process from end to end is essential to
understanding how enterprise systems help businesses manage their processes
efficiently. Not surprisingly, then, this understanding has become a critical skill that
companies have come to demand from their employees.
Page 2-3
The procurement process includes all of the tasks involved in acquiring needed materials
externally from a vendor.
The process begins when the warehouse recognizes the need to procure materials,
perhaps due to low levels of inventory. The warehouse then documents this need in the
form of a purchase requisition, which it sends to the purchasing department. In turn, the
purchasing department identifies a suitable vendor, creates a purchase order, and sends
it to the vendor. The vendor ships the materials, which are received in the warehouse.
The vendor then sends an invoice, which is received by the accounting department.
Accounting then sends payment to the vendor, thereby completing the process.
Page 7
Other times, however, a company uses the production process to acquire needed
materials internally. As we explained in the previous paragraph, a customer order can
trigger the production process. Alternatively, the material planning process can trigger in-
house production.
Subsequently, it will request production. In turn, the production department will approve
the request. The approval authorizes the warehouse to release the materials needed to
complete production. Once the production department has completed its task, the
warehouse places the finished goods into storage. Note that this last step in the
production process, which is concerned with the storage of the finished goods, could
trigger IWM processes.
Page 8
FULFILLMENTSELL Process steps

Receive customer purchase order (Sales) ->

Create sales order (Sales) -> Prep shipment Slide #14 on Lecture
(Warehouse) -> Send shipment (Warehouse) - presentation/Complex
> Create and send invoice (Accounting) -> Information Systems 03.
Receive payment (accounting) pdf, consultation notes
ASSET MANAGEMENT

Request maintenance (Production) -> Slide #16 on Lecture

Authorize maintenance (Production) -> Perform presentation/Complex
maintenance (Production) -> Settlement Information Systems 03.
(Accounting) pdf, consultation notes
CUSTOMER SERVICESERVICE

Slide #17 on Lecture

Create service request (Sales) -> Authorize presentation/Complex
service (Sales) -> Perform service (Production) Information Systems 03.
-> Settlement (Accounting) pdf, consultation notes
Fulfillment is concerned with efficiently processing customer orders. It is triggered by a
customer purchase order that is received by the sales department. Sales then validates
the order and creates a sales order. The sales order communicates data related to the
order to other parts of the organization, and it tracks the progress of the order. The
warehouse prepares and sends the shipment to the customer. Once accounting is
notified of the shipment, it creates an invoice and sends it to the customer. The customer
then makes a payment, which accounting records. As this scenario illustrates, fulfillment
triggers processes in IWM where the materials are stored. Of course, in many cases the
ordered materials are not available in the warehouse. In such cases fulfillment will trigger
external procurement and/or production.
Page 9
Asset management is concerned with both the preventive and corrective maintenance of
an organizations equipment. Preventive maintenance is performed periodicallyfor
example, the routine maintenance of a machine in a factory.
In contrast, corrective maintenance is done as neededfor example, repairing a
machine when it breaks down. The trigger is a maintenance request, which can be either
preventive or corrective. Production approves the request, and the maintenance is
performed. The final stage, settlement, involves an internal charge for the work done.
Page 11-12
A similar process is used for service requests from customers, for example, to repair a
product they purchased. In such cases, different functional areas may be involved. Sales
receives a service request, which it approves and forwards to the department
responsible for completing the repairs. Settlement will depend on whether the service is
covered by a warranty. If it is, then the organization will absorb the cost of the repair.
Otherwise, the organization will send an invoice to the customer and then record
payment, similar to the steps in the fulfillment process.
Page 12
Employee/ person related concepts in a HR system within an
enterprise.
Recruiting Process, The Interviewing and Hiring Process
Human Resources Duties After Hiring
The Human Resources department has responsibilities that continue beyond the hiring
and job start of an employee. The HR department should maintain a good and continual
line of communication with the employee and the supervisor to make sure the employee
is performing well.
Like most companies, issues performance evaluations to new and current employees.
The supervisor performs an initial evaluation and reviews it with the employee. After the
review, the supervisor may modify the evaluation, which both the supervisor and the
employee sign. The employee may submit a written response to the review, listing any
disagreements or explanations. Other senior employees, such as the plant manager,
may add a separate written comment, and should also review the performance
evaluation and employee response. The complete package is then forwarded to the HR
department, where all documents become part of the employees file. These files are
critically important when an employee consistently fails to perform adequately. If an
employee must be terminated, the company needs sufficient documentation to
demonstrate that the termination is warranted; otherwise, if the employee sues the
company for wrongful termination, the company may have problems substantiating the
termination decision.
Because it does not have an effective information system, it is frequently difficult to
manage all of the performance evaluation data. This makes it difficult for the Human
Resources Department to identify problems with an employee and take corrective action
(such as counseling or a transfer) before the problems lead to termination of the
employee. With its paper-based system, an employees file can be viewed by only one
person at a time, and it is possible to lose track of an employees filetemporarily or
permanently. Also, it is difficult to maintain proper control of sensitive personal
information when its maintained in paper files.
Employee turnover can be a significant problem. In its 2002 Cost-per-Hire (CpH) Staffing
Metrics Survey, the Society for Human Resource Management reported that hiring costs
for an employee may be as high as $70,000. This figure represents both the direct costs
of hiring an employee and the less tangible losses that occur during a new employees
first year or so. While new employees are learning their jobs, other employees have to
take time from their normal jobs to train them.
Another cost that is difficult to quantify is an employees historical knowledge of the job,
which is lost when he or she leaves a company. For example, if a purchasing manager
leaves a company, then all of the managers knowledge about supplier relations is lost.
The company does have a record of the contract signed with the supplier, but details of
the negotiations that led to the contract may not be documented. Such details can be
crucial in successfully negotiating the next contract. The manager may have developed
good relations with the supplier and know whom to contact when there are problems.
These relationships are not specified as part of the purchasing manager position, but
accrue over time with the individual holding the position. When companies experience
high rates of turnover, they lose knowledge and skills that may be crucial to keeping
them competitive.
Employee turnover is strongly related to job satisfaction and compensation. If employees
have satisfying jobs and are well compensated, they are less likely to leave the
company. Human Resources can help maintain a satisfying work environment through a
number of means, such as holding training programs for supervisors and managers,
conducting periodic employee satisfaction surveys, and gathering data from employee
exit surveys. Human Resources also has a critical role to play in compensation, which
should be related to the skills and tasks required by the job and the performance of the
Processes of HUMAN CAPITAL MANAGEMENTPEOPLE
Human capital management (HCM) consists of numerous processes related to all
aspects of managing people in an organization. Examples of HCM processes are
recruitment, hiring, training, compensation and benefits management, and payroll
administration. In our brief discussion of processes in this chapter, we focused on tasks
and the functional areas where they are completed. Clearly, however, it is the people in
the functional areas who actually perform the tasks. Consequently, HCM touches every
process in the organization. Moreover, it is not uncommon for people in different
functional areas to complete many of the tasks in HCM processes. For example, the
trigger for recruitment and hiring is a need for people with the requisite skills to complete
process tasks. Consequently, the functional area in need of new employees will be
involved in this process.
Pages 12-13
The Interviewing and Hiring Process

Requesting department develops a short list of

candidates based on data provided by HR
Human Resources department:
The requesting department develops a short list of candidates for the position by
selecting up to three applicants, based on the data provided by HR. Human Resources
contacts the candidates on the short list, schedules interviews, and creates a file for each
candidate. A candidates file includes a form that shows when the application was
received, the position(s) applied for by the candidate, and the date and time of any
interviews. If this is the second time the candidate has applied for a job with the
company, the form indicates the current status of the candidate: whether the candidate
was interviewed and rejected, whether the candidate rejected a job offer, and so on.
If a candidate accepts the interview offer, the HR department makes the arrangements
for the job candidate, including travel arrangements and a schedule of interview
activities. A representative from the HR department conducts an interview that includes a
discussion of the applicants experience and questions relevant to the position for which
the candidate has applied. The supervisor of the department in which the position exists
also interviews the candidate, and other employees in the department are usually given
time to talk to the candidate as well. For most professional positions, the candidate is
interviewed by the plant manager and, frequently, the company president.
After the initial interview process, HR updates the candidates file to indicate whether he
or she is still a possibility for hire. In some cases, a second interview is scheduled. Once
HR has interviewed all the candidates on the short list, a representative of HR and the
supervisor of the requesting department decide which candidates on the short list are
acceptable, and rank them. If there is an acceptable candidate, the HR person makes
the highest-ranking candidate a verbal job offer over the phone. If the candidate accepts
the verbal offer, a written offer letter is sent, which the candidate must sign and return.
Once the candidate formally accepts the written offer, his or her file is again updated,
showing that the candidate has accepted the offer and will begin employment with the
company on a specified date.
If there are no acceptable candidates from the short list, or if none of them accepts the
job offer, then the process must be repeated, which at a minimum will require the
development of a new short list but may involve starting over with a new job posting.
Many problems in the interviewing and hiring process have to do with information flow
and communication. If the business does not have group appointment calendar software,
which would allow HR staff to easily find a time when all key personnel would be
available to interview a candidate. A group appointment calendar (available in software
packages such as SAP) allows users to check others calendars in order to schedule
meetings. Scheduling interviews is frequently a cumbersome process, requiring the
Human Resources employee to coordinate the interview schedule between the
candidate and the appropriate personnel. Because this is done by e-mail and phone, it
can take days and sometimes weeks to schedule an interview. A similar problem occurs
after the interviews have been completed. Gathering feedback from all involved parties
and ranking the candidates takes time and may require multiple meetings. Managing the
travel arrangements and reimbursing candidates for their travel expenses are also
cumbersome tasks. More than once, it could have lost a promising candidate to another
company because of delays in the interviewing and hiring process.
After the candidate accepts the formal job offer, it hires an HR consulting firm to perform
a background check to verify that the candidate has not falsified any information and
does not have a serious criminal record. It outsources the background check because of
the special skills required. If the background check is satisfactory, this information is also
stored in the candidates file, and the job offer stands. If the consultant finds evidence of
falsified information or legal troubles, the file is likewise updated, and the job offer is
rescinded with a written explanation.
After passing the background check, the new employee completes additional paperwork
Human Resources (HR) department responsibilities Attracting, selecting, and hiring new employees
Communicating information regarding new
positions and hires
Ensuring proper education, training, and
certification for employees
Handling issues related to employee conduct
Making sure employees understand job
responsibilities
Using effective process to review employee
performance and determine salary increases
and bonuses
Managing salary and benefits for each
employee
Communicating changes in salaries, benefits,
or policies to employees
Supporting management plans for changes in
the organization

Ensuring that the company can find, evaluate,

hire, develop, evaluate, and compensate the
right employees to achieve the companys Slide #3,4,38 on Lecture
goals presentation/Complex
Employee training and development, Information Systems 05.
succession planning, and termination pdf, consultation notes
ADVANCED ERP HUMAN RESOURCES FEATURES

Time management
Payroll processing
Travel management
Training and development
Additional Human Resources Features of SAP
ERP:
Mobile time management
Management of family and medical leave
Domestic partner handling
Administration of long-term incentives Slide #21,29 on Lecture
Personnel cost planning presentation/Complex
Management and payroll for global employees Information Systems 05.
Management by objectives pdf, consultation notes
The responsibilities of an HR department usually include:
Attracting, selecting, and hiring new employees using information from resumes,
references, and the interview process
Communicating information regarding new positions and hires throughout the
organization and beyond
Ensuring that employees have the proper education, training, and certification to
successfully complete their duties
Handling issues related to employee conduct
Making sure employees understand the responsibilities of their jobs
Using an effective process to review employee performance and determine salary
increases and bonuses
Managing the salary and benefits provided to each employee and confirming that the
proper benefits are disbursed to new and current employees
Communicating changes in salaries, benefits, or policies to employees
Supporting management plans for changes in the organization (expansion, retirements,
and so on) so that competent employees are available to support business processes
Page 158
Time Management The SAP ERP system uses Cross Application Time Sheets (CATS)
to record employee working times and provide the data to applications
Payroll - The remuneration elements of an employees pay include the base pay,
bonuses, gratuities, overtime, sick pay, and vacation allowances that the employee has
earned during the pay period. The statutory and voluntary deductions include taxes
(federal, state, local, Social Security, and Medicare), company loans, and benefit
contributions. The process of determining each employees pay is called a payroll run. In
the payroll run, the SAP ERP system evaluates the input data and notes any
discrepancies in an error log.
Travel Management - Because airfare, hotel, and rental car costs can vary widely,
companies frequently require employees to make reservations through either a company
travel office or a travel agency under contract to the company. The employee must keep
receipts for expenses incurred during the trip in order to complete an expense report and
receive reimbursement.
Training and Development - Requirements are skills or abilities associated with a
position, while qualifications are skills or abilities associated with a specific employee.
One of the most important reasons for managing the development and training of
employees is succession planning.
Mobile Time Management, Management of Family and Medical Leave, Domestic Partner
Handling, Administration of Long-Term Incentives, Personnel Cost Planning,
Management and Payroll for Global Employees, Management by Objectives
Pages 170-175
Processes of MANAGEMENT ACCOUNTING TRACK FOR
INTERNAL REPORTING
Management accounting or controlling (CO) processes (trackinternal ) focus on internal
reporting to manage costs and revenues.
Whereas financial accounting is concerned with external reporting that is mandated by
laws and regulations, management accounting, or controlling, is concerned with tracking
costs and revenues for internal reporting that is intended to help management control
costs and revenues and assess the profitability of various products and market
segments. Management creates these reports to support its decision making. Unlike
financial accounting reports, management accounting reports are produced as needed
and can contain any information that management deems necessary.
Among the major costs management accounting tracks are materials costs, labor costs,
and overhead costs. Management takes these costs into account when it establishes
prices for its products or services. It then combines these data with information
concerning revenues to determine the profitability of various products and services in
different market segments. Ultimately, management utilizes all of this information to
make key strategic decisions that affect the organizations products market mix as well
as tactical decisions that influence day-to-day operations.
Pages 7, 14-15
Processes of FINANCIAL ACCOUNTINGTRACK FOR
EXTERNAL REPORTING
What is a business process
What is a model of a business process
It is the way a company handles a business
request, eg. a loan request in a bank, or an Slide #5 on Lecture
incoming order in a shipping company. It is presentation/Complex
nothing concrete, it is the way people and Information Systems 06.
systems interact to handle a business request. pdf
An abstraction of the way people an systems
interact to handle a business request described
in some kind of language, eg. UML Activity
diagrams. A simplified view of the complex Slide #6 on Lecture
reality. Externalization and formalization of presentation/Complex
knowledge and expertise within applications Information Systems 06.
and minds. pdf
Financial accounting (FI) processes (trackexternal ) track the financial impacts of
process steps with the goal of meeting legal reporting requirementsfor example, the
Internal Revenue Service (IRS) or the Securities and Exchange Commission ( SEC).
Financial accounting is concerned with tracking the financial impacts of processes with
the primary goal of meeting legal and regulatory reporting requirements.
Thus, it is externally focused. Common reports include the income statement or profit
and loss (P&L) statement and the balance sheet. The income statement indicates the
organizations financial condition within a specified period of time. It identifies revenues,
expenses, and net profit (or loss) for the period.
In contrast, a balance sheet indicates the financial condition of an organization at a given
point in time. It identifies assets, liabilities, and shareholders equity. All of these reports
must comply with prescribed standards, such as the generally accepted accounting
principles (GAAP) in the United States and Handelsgesetzbuch (HGB) in Germany.
These reports must be submitted to regulatory agencies at prescribed times, such as
annually or quarterly. Finally, these reports are country specific. Therefore, an enterprise
that operates in multiple countries must track financial data separately for each country,
using that countrys prescribed standards.
Various steps in the different processes introduced earlier in this chapter have an impact
on an organizations financial status. Organizations analyze this impact using four key
processes based in financial accounting: general ledger, accounts receivable, accounts
payable, and asset accounting. The general ledger process records the impacts of
various process steps on a companys financial position. The impacts are recorded in a
number of accounts in the general ledger that represent an organizations income,
expenses, assets, and liabilities. These accounts are used to store accounting-relevant
data from process steps. Accounts payable is associated with the procurement process
and is used to track money that is owed to vendors. Similarly, accounts receivable is
used to track money owed by customers. Accounts receivable and accounts payable
automate the general ledger entries associated with the procurement and fulfillment
processes so that the financial impact of these processes is recorded automatically.
Finally, asset accounting is concerned with tracking financial data related to assets such
as machinery and cars.
Pages 7,14
A process is considered to be a collection of related activities together with associated
execution constraints that lead to some anticipated end goal or outcome. Although the
notion of a process has general applicability, it is the execution of a process in the
context of a given organizational setting commonly termed a business process that
is of most interest for us in this book.
Page 27
A business process is described by a business process model, which defines its means
of operation. This may be at an abstract level, where there is no consideration of how it
will ultimately be effected and the focus is on the type of work activities making up a
process and the sequence in which they are undertaken, or at a concrete level, where it
is described in sufficient detail such that the model can be directly executed by a
software system.
Page 27
Business Process Modeling - UML Activity Diagram components
Business Process Model and Notation (BPMN) is an XML-based language for defining
business processes with a formal meta-model and an associated graphical notation.
Flow objects, Data, Connecting objects, Swimlanes, Artifacts, Event handling
UML activity diagrams are part of the UML modeling framework that provide a means of
describing the operation of a process. Although originally intended for describing
software processes, they have also shown themselves to be useful for describing
business processes. Like BPMN, UML is managed under the auspices of OMG.
Actions, Nodes, Paths, Containment elements

A dedicated software system called the business process designer or editor is used to
design the business process model. Once this contains sufficient detail, it can be utilized
to guide the operation of the Business Process Management System (BPMS). This
involves loading the business process model into the BPMS and executing it in
conjunction with any other information that is required to facilitate its operation. This may
include data associated with resources and the organizational structure from an
organizational repository (e.g., HR systems, LDAP, or X.500 databases), data from
external databases, and the results of interactions with external systems and web
services. The interaction of process participants with the business process occurs via
individual worklist handlers, which display the work allocated to specific users and allow
them to signal how they intend to deal with it.
The business process model is typically centered around a description of the control-flow
aspects of the process in the form of a directed graph, in which the constituent tasks,
which describe the individual work activities that comprise the process, are connected by
directed arcs indicating the various execution paths through the process. Different forms
of gateway constructs (splits and joins) allow alternate execution paths to be taken
through the process model. Business process models can be hierarchical in nature as
the operation of an individual task within a model can be described in terms of a more
detailed process specification, a concept commonly known as decomposition.
Figure 2.2 outlines the main control-flow and data concepts relating to a business
process model in the form of a UML class diagram. A specification defines a particular
process model within an overall business process. A specification is composed of tasks,
gateways, and arcs. As shown by the contains relationship, a task appears in precisely
one specification. Although not shown, this also holds (implicitly) for gateways and arcs:
they are only added to describe the routing of tasks within a specification. Gateways
define the various splits and joins that connect (and diverge) branches within process
models. Within a given process specification, directed arcs connect tasks and/or gateway
nodes and define the execution sequence within the process model. Each arc has
precisely one source and one target (task or gateway). In some cases (e.g., the
individual output branches from an XOR-split), the triggering of an individual arc is based
on the positive evaluation of an associated Boolean condition. Similarly, specifications
and tasks may have preconditions and postconditions associated with their execution
defining the time at which they are able to be enabled and can complete, respectively
A task corresponds to a single unit of work. An atomic task has a simple, self-contained
definition (i.e., one that is not described in terms of other tasks). A block task (also known
as a composite task) is a complex activity whose implementation is described in terms of
a subprocess, which has an associated process specification. As shown by the
decomposes to relation in figure 2.2, a block task corresponds to precisely one
specification, but multiple block tasks may refer to the same specification. When a block
task is started, it passes control to the first task(s) in its corresponding subprocess. This
subprocess executes to completion, and at its conclusion it passes control back to the
composite task.
Advantages of Workflow Management Higher productivity
Moves knowledge from people to documented
process
Rapid adaptation to the market
Location of bottlenecks and runtime changes of
process
Statistics about processes
Continued optimization Slide #26 on Lecture
Reuse of services and processes presentation/Complex
All processes are implemented in same Information Systems 06.
framework pdf
Advantages of modeling the business processes Better understanding of existing business
processes
Documents the business process
Basis for improving existing business
processes
Basis for experiencing and simulating new
concepts and impact on the organization
Basis for continued optimization
Basis for creating information systems that Slide #8 on Lecture
support the business processes presentation/Complex
One type is known as Workflow Management Information Systems 06.
Systems pdf
A Workflow is A Workflow is
also a model of the business process, but
contains much more details about technical
issues
a program written in a declarative language, Slide #18 on Lecture
most often XML based executable by a runtime presentation/Complex
engine, which can interprete the workflow Information Systems 06.
language pdf
Workflow Patterns 21 patterns described by Vil van der Aalst:
Basic Patterns
Advanced Branch and Join patterns
Structural patterns
Multiple Instances patterns
State based patterns
Cancellation patterns

Additional Patterns: Slide #33 on Lecture

Communication patterns presentation/Complex
Human interaction patterns Information Systems 06.
Enterprise specific patterns pdf
Workflow Management System consist of
Requirements for implementing WFM system
Workflow Execution engine
The Model Driven Engineering paradigm
What is Messaging
IT infrastructure to build, execute, monitor and
optimize workflows
Consists of:
Language(some kind of web service
composition language, eg. BPEL, BPML., often
based on graphs),
Build time IDE to build the workflows. Gives a
graphical user interface to the language
Runtime engine to handle instances of the Slide #20 on Lecture
workflows presentation/Complex
Monitor to get overview of running and finished Information Systems 06.
processes pdf
Well established IT infrastructure
SOA: Applications called as services
Resources to model the business, to implement
them and to support and monitor the running
instances. Slide #27 on Lecture
The organization must be ready for change. presentation/Complex
People get new ways of working. Information Systems 06.
Skilled people! pdf
Interprets workflows based on a language
Knowns how to call Web Services through
different protocols
Enables long running transactions (days,
weeks, month) by persisting state information Slide #38 on Lecture
for the workflow presentation/Complex
Enables ACID transactions and compensation Information Systems 06.
in case of exceptions pdf
The programming level is raised from code to
models
The code is generated from the models
The process developer should work on the
makro-flow and the code, eg. BPEL should be
generated from the makro-flow
Working on higher abstraction level speeds up
development time, decreases the amount of Slide #32 on Lecture
errors and decreases the reaction time to presentation/Complex
changes in the marked Information Systems 06.
Is still in a very early stage. pdf
Technology, that enables high-speed,
asynchronous, program-to-program
communication (with reliable delivery)
Messages Slide #5 on Lecture
Channels presentation/Complex
Sender or producer Information Systems 07.
Receiver of consumer pdf
Why Use Messaging? Benefits: Remote Communication
Platform/Language
Integration.
Asynchronous
Communication.
Variable Timing.
Throttling.
Reliable Communication. Slide #8 on Lecture
Disconnected Operation. presentation/Complex
Mediation. Information Systems 07.
Thread Management. pdf
The Wide World of Integration Fields and Methods of Various Six types:
Solutions Information Portals
Data Replication
Shared Business Functions Slide #16 on Lecture
Service-Oriented Architectures presentation/Complex
Distributed Business Processes Information Systems 07.
Business-to-Business Integration pdf
Why is there a Need for Integration? Hundreds or thousands of applications are
custombuilt,
third-party, part of legacy systems, etc.
Business applications are complex writing
them is hard Slide #14 on Lecture
ERP vendors created large business presentation/Complex
applications, but perform a Information Systems 07.
fraction of the business functions required pdf
Application Integration Criteria First criterion: application integration itself
Other main decision criteria are:
Application coupling
Integration simplicity
Integration technology
Data format Slide #22 on Lecture
Data timeliness presentation/Complex
Data or functionality Information Systems 07.
Asynchronity pdf
What is Cloud Computing
What is Utility Computing?
Grid Computing
Concept of Service Orientation
Hardware Virtualization
In a nutshell, cloud computing is a means by
which computational power, storage,
collaboration infrastructure, business
processes and applications can be delivered as
a utility, that is, a service or collection of
services that meet your demands.
In the need of extra processing power, it is
available in an instant. No need to invest a lot
of hardware to cater for peak usage. This Slide #5-6 on Lecture
aspect of the cloud is referred to as elasticity presentation/Complex
and is an extremely important concept within Information Systems 08.
cloud computing. pdf
The nature of utilities such as water, natural
gas and electricity in the way they are provided Slide #7 on Lecture
to create an understanding of the presentation/Complex
characteristics that computing would require if it Information Systems 08.
was truly a utility pdf
The connection and coordination of many
separate personal computers (PC) as a grid Slide #9-10 on Lecture
would facilitate the scaling up of computational presentation/Complex
resources under the guise of a virtual Information Systems 08.
organization (VO). pdf
The term service orientation refers to the clear
demarcation of a function that operates to
satisfy a particular goal. Concept of abstraction,
combined with object-oriented principles such
as encapsulation and cohesion, that helps
define services within an organization. Service- Slide #8 on Lecture
oriented architecture (SOA) utilizes the presentation/Complex
principle of service orientation to organize the Information Systems 08.
overall technology architecture of an enterprise. pdf
Enabling virtual instances of hardware to
execute on disparate physical infrastructure.
Virtualization layer allows data centre
management to create and instantiate new
instances of virtual hardware irrespective of the
devices running underneath it. New hardware Slide #11 on Lecture
can be added to the pool of resource and presentation/Complex
commissioned without affecting the virtualized Information Systems 08.
layer. pdf
What is Autonomic Computing Autonomic computing attempts to specify
behaviors that enable the self-management of
systems.
Self-configuration, self-healing, self-optimizing Slide #13 on Lecture
and self-protection (self-CHOP) are the four presentation/Complex
principles defined by IBMs autonomic Information Systems 08.
computing initiative. pdf
Cloud Computing Service Models Software as a Service (Saas) - abstracts the
consumer away from any infrastructure or
platform level detail,
Platform as a Service (Paas) - ready for
applications to be deployed, Slide #16 on Lecture
Infrastructure as a service (IaaS) - virtual presentation/Complex
infrastructure, operating systems and Information Systems 08.
application software can be deployed pdf
Cloud Computing: A definition National Institute of Standards and Cloud computing is a model for enabling
Technology (NIST) ubiquitous, convenient, ondemand network
access to a shared pool of configurable
computing resources (e.g., networks, servers,
storage, applications, and services) that can be
rapidly provisioned and released with minimal
management effort or service provider Slide #14 on Lecture
interaction. This cloud model is composed of presentation/Complex
five essential characteristics, three service Information Systems 08.
models, and four deployment models. pdf
Cloud Computing Deployment Models A public cloud, as its name implies, is available
to the general public and is managed by an
organization

A private cloud has an exclusive purpose for a

particular organization

Community clouds are a model of cloud Slide #17 on Lecture

computing where the resources exist for a presentation/Complex
number of parties who have a shared interest Information Systems 08.
or cause pdf
Infrastructure as a Service IaaS is about servers, networking and storage
delivered as a service
Virtualized
Form of computing rental where the billing is
related to actual usage
Suited to organizations who want to retain Slide #20 on Lecture
control over the whole platform and software presentation/Complex
stack and who need extra infrastructure quickly Information Systems 08.
and cheaply pdf
Platform as a Service
Software as a Service
Web Technology for Cloud Computing
Possible Types of Virtualization
PaaS has parallels with web hosting
Enables the complete application development Slide #21 on Lecture
life cycle within a cloud presentation/Complex
Tools for development and testing Information Systems 08.
Resources are dynamically scaled pdf
SaaS is the easiest way into cloud computing
The software automatically scales to the
number of users, data is backed up
SaaS is useful if you are in the situation
whereby a legacy application you own has
been replicated by a SaaS provider or if a
particular SaaS application offers a capability
that you dont currently have but can see the Slide #22 on Lecture
business benefit of having it presentation/Complex
e.g., Customer Relationship Management Information Systems 08.
(CRM) pdf
HTTP is a key to building cloud systems
at low level, each interaction in a cloud
application uses HTTP
HEAD which asks the server for information
about a resource
PUT which stores data in a resource
POST which sends data to a program to be
processed on the server Slide #31-32 on Lecture
DELETE which deletes the specified resource presentation/Complex
HTML, CSS, XML, JSON (JavaScript Object Information Systems 08.
Notation), JavaScript and AJAX, MVC pdf
Desktop Virtualization Slide #34 on Lecture
Server Virtualization(Efficiency, Isolation, presentation/Complex
Mobility) Information Systems 08.
Storage Virtualization pdf
Map/Reduce Cloud Computing Technology MapReduce is a programming model and an
associated implementation for processing and
generating big data sets with a parallel,
distributed algorithm on a cluster.
A MapReduce program is composed of a Map()
procedure (method) that performs filtering and
sorting (such as sorting students by first name
into queues, one queue for each name) and a
Reduce() method that performs a summary
operation (such as counting the number of
students in each queue, yielding name
frequencies). The "MapReduce System" (also
called "infrastructure" or "framework")
orchestrates the processing by marshalling the
distributed servers, running the various tasks in
parallel, managing all communications and
data transfers between the various parts of the
system, and providing for redundancy and fault https://en.wikipedia.
tolerance. org/wiki/MapReduce
Question
What is a system?
What is information and what purpose
it is needed for?
What is an information system?
Type of Information Systems
Problem types between Informations
Systems and the real world
System quality properties -ISO 9126
Software Architecture
Traditional view of organizations
The Zachman Framework for
Enterprise Architectures Rows
(Views)
The Zachman Framework for
Enterprise Architectures Columns
(Perspectives)
Properties of TOGAF
TOGAF - Enterprise architecture
domains
TOGAF Architecture Development
Method (ADM)
Answer
Set of coherent entities which together act like a big
entity. Every element has an effect to other, and vice versa.
Information decreases uncertainty. ???
Sum of procedures and activities which store, produce and
distribute the required information for administrational and
operational duties of the enterprise.
Open systems
Big and complex systems
Manual vs Automatic
Data-intensive systems vs Transaction-oriented systems
Empirical - observation of the real world
Formal level - description of abstraction, structuration
or other representation of the gained knowledge
Design or development level - the implementation of
the formal draft
Functionality, Reliability, Usability, Efficiency, Maintainability, Portability
Consists of components called System, Architecture, Architecture description, View, Point of View,
Model, Parties involved.
Strategy< Information, support of decision-making < Enterprise systems,
databases, ERP < Services: hardware, network, PCs, e-commerce
Scope (Contextual ) - Enterprise model (Conceptual) - System model (Logical) - Technlogy model
(Physical) - As built - Functioning enterprise OR Planner's view - Owner's - Designer's - Builder's -
Integrator's - User's view
What, How, Where, Who, When, Why OR Data - Function - Network - People - Time - Motive
High level approach design.
Relies heavily on: modularization, standardization, and already existing,
proven technologies and products.
Business architecture, Applications architecture, Data architecture, Technical architecture
Detailed step-by-step process for developing or changing
an enterprise architecture.
Applied to develop an enterprise architecture which will
meet the business and information technology needs of an
organization.
Tailored to the organization's needs and is then employed
to manage the execution of architecture planning activities.
References (book, slides) Comments

Slide #3 on Lecture presentation/service_science_1.pdf

Slide #5 on Lecture presentation/service_science_1.pdf

Slide #4,6,10 on Lecture

presentation/service_science_1.pdf

Slide #7 on Lecture presentation/service_science_1.pdf

https://en.wikipedia.org/wiki/ISO/IEC_9126#Function
Slide #11,12 on Lecture
presentation/service_science_1.pdf Diagram
Slide #15 on Lecture presentation/service_science_1.
pdf Diagram

Slide #22, 30 on Lecture

presentation/service_science_1.pdf

Slide #22, 30 on Lecture

presentation/service_science_1.pdf

Slide #32 on Lecture presentation/service_science_1.

pdf The Open Group Architecture Forum
Slide #35 on Lecture presentation/service_science_1.
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Definition (Service)
Service Industries - The services are
categorized into
Resource Intensity of Services
Recent development in the domain of
services types of services in service Service Economies, Service-Dominant (S-D) Logic, Electronic Services, Mobile Services, Cloud
economy
Service-Oriented Societies
characteristics
Service-Dominant (S-D) Logic
Definition (Service System)
Operations Management View on
Services
Services and Goods IHIP criteria
A service is a change in the condition of a person, or
a good belonging to some economic unit, which is
brought about as the result of the activity of some
other economic unit, with the prior agreement of the
former person or economic unit.
Logistics, Infrastructure, Government, Finance, Entertainment, Business
Resources are fundamental elements of services.
Characterization of services is based on proportion or intensity.
Following main types of services have been distinguished
according to their resource intensity:
Labor- and capital-intensive services.
Knowledge-intensive service.
Information-intensive service.
Technology-intensive service.
Services, Service Marketplaces
Intense competition of economies
Globalization of worldwide markets
Generalization and expansion of information systems and
information technologies
Significant opportunities for the conception of new specialized
services.
Recent theoretical contributions, such as S-D Logic, indicate that all markets are centered
on the exchange of services, and all economies and societies are service based
A service system consists of elements (e.g., people,
facilities, tools, and computer programs) that have a
structure (i.e., an organization), a behavior (possibly
described as a process), and a purpose
Transformation Process
One of the basic concepts of OM
Activity, or group of activities that
takes one or more inputs,
transforms and adds value to them,
provides output for customers or clients.
Input-transformation-output model
intangibility,
heterogeneity,
inseparability,
and perishability.
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Labor costs outweigh the costs for equipment and
materials
Capital-intensive service:
Labor- and Capital-Intensive Services The capital costs (for facilities, equipment, tools) prevail.
Knowledge-intensive services
Technology-intensive Services
Information-intensive Services
Non-ownership Outsourcing
IT outsourcing
Hybrid Offering
Labor-intensive service:
Mostly used in the form of knowledge-intensive
business services.
Heavily rely on professional knowledge.
Similarly to skills-intensive services.
Forms of labor-intensive services
The proportion of labor is very low or zero.
Delivered by resources that are purely technological.
Can be used in a self-service mode.
Technology used in services today is predominantly ICT.
ICT and the internet led to concepts like Electronic
Services, Web Services, Cloud Services, the Internet of
Things, and the Internet of Services.
Involve substantial information processing.
Collecting,
manipulating,
interpreting,
and transmitting data to create value.
The collection and processing can be automated using information and communication
technology (ITC).
The amount of data available gets bigger and bigger (Big Data)
The task if extracting valuable information becomes more and more sophisticated (data
scientist, Big Data analytics)
giving up resources and demanding them back as a
service without ownership is called outsourcing
pay for the service only on demand
non-ownership gives more flexibility and avoids risks
service provider can mitigate risks and handle varying
demand
IT resources of a company are taken over by a third
party and provided back to the first company as a
service.
Cloud services are type of IT outsourcing
Goods and services bundling :Companies combine products with services into new offerings with a
superior value, for example company offers an extended warranty contract in addition to an electronic
product
Slide #30 on Lecture presentation/service_science_2.
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 for example: companies have added services to their core
offerings and services have become a dominant portion of their revenues and profits

Servitization is the innovation of an organisations

capabilities and processes to better create mutual
value through a shift from selling product to selling
Servitization product service systems
In computer science, services and web services are terms that describe fundamental programming
paradigms.
Services are software components of distinct functional meaning, or software programs with distinct
design characteristics. Web services are self-describing,
self-contained software modules, or software applications with a published programming interface,
Services in Computer Science and web services can be sold, too
Evolution of services can be observed from two distinct perspectives:
Evolution of services from two distinct As the automation of economic activities and self service.
perspectives As the improvement of a programming paradigm.
Service automation - person delivering the service was replaced by machines
Self-service is a direct consequence of service automation
Advantages:
no availability limitations (e.g., opening hours)
customer has the service encounter completely under his/her own
control
Automation and Self Service - Self Computers and ICT accelerated the progress of service automation (self-service
Service gasoline stations, ATM, kiosks, electronic ticket machines)
Manufacturing industry - automation of production
processes
Vending machines - automate the sales process
Automation and Self Service Telephonys modern switching systems - caller
Automation directly dial and automatically get routed
Face-to-screen service - architectural
components Technology, Cutomer, (Provider)
An electronic service is a service system (with
elements, a structure, a behavior, and a purpose) for
which the implementation of many of its elements
and behavior is done using automation and
Electronic Services programming techniques.
Business-to-Business
Transactions between two parties where the buyer and seller are both businesses.
(ariba.com, salesforce.com)
Business-to-Consumer
The business offers products or services to consumers rather than other
businesses. (Amazon, eBay)
Government-to-Citizen
Governments are recognizing the value of using electronic services for improving
Electronic Business Models citizens experience and lowering costs.
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pg. 23, Fundamental of Service Sciences

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The Value of Electronic Services -
Human Touch
The Role of Technology
The Value of Electronic Services
Personalization
The Value of Electronic Services
Accessibility
E-Service Strategy -Types
Developing Electronic Services - web- Database server is responsible for the persistence of data
accessible programs
Service-oriented programming
Subroutines- Services as
Programming Paradigms
Traditional human-based services are characterized by the
personal service encounter involving human touch and service
experience
Provider understands what the customer wants -> deliver a very
individual, personalized experience
This advantage was lost in automated services
Service experience is influenced by the outcomes of the
interactions that occur between service systems and their
customers
Technology-free services, Technology-assisted services, Technology-Facilitated Services, Technology-
Mediated Services, Technology-Generated Services, further classification:
face-to-face or
face-to-screen.
The disadvantage of losing human touch can be overcome with
electronic services
Provide possibilities to focus on the customer
Keywords:
personalization,
customization,
interaction,
localization.
Standard internet devices -> using electronic
services is very comfortable
Can be used from everywhere
First - widely accepted - service electronic mail or email
Instantaneously delivered
According to Hofacker the three types:
1. Complements to existing offline services and goods.
(DHL, FedEx, UPS)
2. Substitutes for existing offline services. (Spotify, Netflix,
Google Maps)
3. New core services. (Google, Facebook, LinkedIn, Twitter)
In software engineering: web-accessible programs are called
web applications
Residing on the providers web application server
Uses the clients web browser as the presentation layer
(client/server)
Communicates via standard internet protocols (such as HTTP)
stored for the web application
Subroutines, Components, Business Process Modeling, Service-Oriented Architecture (SOA),
Often used functions are isolated from the rest of the code and
put it into a subroutine. Can be shared with other developers.
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Components- Services as Many recurring, separable functions. Extensively reuse preprogrammed object or components. Concept
Programming Paradigms of modules, later evolved into concept of components.

Reusable set of services is available.

Business Process Modeling - Instead of programming composing or modeling. Composition of
Services as Programming Paradigms services into business applications is business process modeling (BPM).
Service-Oriented Architecture (SOA) and Service-Oriented Computing (SOC) are programming
Service-Oriented Architecture (SOA) - paradigms that were introduced to overcome the inflexibility of monolithic software. They utilize services
Services as Programming Paradigms as fundamental elements for developing applications.
REST web services are resource-based services. Uses the set of well-known HTTP operations GET,
PUT, POST, DELETE to change states of remote resources.
Definition (REST Service):An application-accessible web service that uses REST architectural
Resource-based web services principles and web specifications as underlying paradigms and technologies, respectively
The World Wide Web Consortium defines a web
service as a software system designed to support
interoperable machine-to- machine interaction over a
Web Services network.
Web services + provide a technological infrastructure
outsource computing resources as a service (data storage, hardware, servers, networking)
Cloud indicates that the service is remotely accessed using the internet

Delivery Models
Software as a Service
Platform as a Service
Infrastructure as a Service

Economies of Scale
Administration
Infrastructure
Sharing

Characteristics
On-demand self service
Broad network access
Resource pooling
Rapid elasticity
Cloud Services Measured services
Operation-based web services The preferred communication medium is WWW, existing protocols were adopted, new ones
technologies were created (HTML, HTTP, XML, WSDL, SOAP, UDDI)
An innovation is the combination of a novelty and
its introduction to a market. The novelty can either
be newly discovered, or re-used in the context of
Definition (Innovation) this innovation.
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Definition (Service Innovation)
The novelty in a service innovation can be
constituted by changes in one or several of the
following dimensions: Service concept, customer
interaction, value system, business partners,
revenue model and organizational or
technological service delivery system.
Analyze innovations along two dimensions:
First dimension describes the degree of change in
the employed core concepts. Second dimension describes the degree of change
in the linkages between these core concepts
The linkages between the core concepts
characterize the way in which the concepts are connected to form a new offering.
This can include technical interfaces, physical integration, and the connection of different service
components.

Types of Innovation - Henderson and 4 types:

Clark Inceremntal Innovation, Modular innovation, Architectural Iinnovation, Radical innovation
Assimilation approach of Service
Innovation
The demarcation approach of Service
Innovation
The synthesis approach of Service
Innovation
Name from the ancient Roman god Janus, who is
characterized by looking into the future and the past
at the same time
Janus cones capture past events relevant to ones
innovation project
Janus Cones Projection of potential future events and their timing
Developed at the Stanford University
Puts the central topic or opportunity to be addressed
by the team in the center
Arranges the relevant dimensions around the topic
By capturing and discussing these dimensions, the
problem space defining the teams challenge is
Context Map properly explored
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