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BISM7209: ACCOUNTING INFORMATION
SYSTEMS
LECTURE 3: IT Governance &
Business Process Management Notations (BPMN)
CRICOS code 00025B
• Understand the concept of IT Governance
• Understand the Purpose of IT Governance
• Understand the IT Governance Framework
• Understand the IT Governance Processes
• Understand basic Business Process Management Notations (BPMN)
Our Objectives in This Session
13 March 2023
CRICOS code 00025B
• IT Governance is an integral part of enterprise governance and consists of
the leadership and organisational structures and processes that ensure that
the organisation’s IT sustains and extends the organisation’s strategies and
objectives.
• IT governance is the responsibility of the board of directors and executive
management.
What is IT Governance?
13 March 2023
CRICOS code 00025B
• The need for openness, integrity and accountability to improve standards of
corporate behaviour, strengthening controls over enterprises and their public
accountability while retaining the essential spirit of the enterprise (for
example, the Cadbury Report)
• The need for set of relationships between the entity’s management and its
governing body, its owners and its other stakeholders and providing the
structure through which:
The entity’s overall objectives are set.
The method of attaining those objectives is outlined.
The way that performance will be monitored is described.
Why Governance is Important
13 March 2023
CRICOS code 00025B
• IT is the major driver of economic wealth in the 21st Century
• IT is fundamental for managing enterprise resources, dealing with suppliers
and customers, and enabling increasingly global and dematerialised (free of
physical substance, e.g., invoices, receipts, etc.) transactions.
• IT also is key for recording and disseminating business knowledge.
• IT is strategic to the business (Growth and Innovation).
Why IT Governance is Important
13 March 2023
CRICOS code 00025B
IT Governance Framework I
13 March 2023
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• Setting Objectives
To direct IT endeavours
To ensure IT’s performance meets the objectives
• Measure Performance
Deviations from target
Recommendations for action
IT Governance Framework II
13 March 2023
CRICOS code 00025B
• Comparison and Providing Direction
A continuous loop
May result in redirection of activities or change in objectives
• IT Activities
Realising benefits
Making enterprise more efficient
Manage Risks
IT Governance Framework III
13 March 2023
CRICOS code 00025B
• 2 Fundamental Issues
• IT delivery of value to the business
Strategic alignment of IT with the business
• Mitigation of IT Risks
By embedding accountability into the enterprise
What does IT Governance Cover?
13 March 2023
CRICOS code 00025B
The IT Governance Process
13 March 2023
CRICOS code 00025B
• From technology itself to
• Managementrelated areas
• These management areas map well onto IT governance areas of
IT Strategic Alignment
Value Delivery
Risk Management
Resource Management
A Shift in Focus ………
13 March 2023
CRICOS code 00025B
• “IT alignment is a journey, not a destination”
• Whether the investment in IT is in harmony with its strategic objectives.
• State of Harmony – Alignment
Strategic Alignment I
13 March 2023
CRICOS code 00025B
IT often seen as a “necessary evil” but strategically can
• Add value to product and services
On time and on budget
• Assist in competitive positioning
Customer satisfaction
• Contain costs
E.g., outsourcing
• Increase managerial effectiveness
Increase productivity and profitability
Strategic Alignment II
13 March 2023
CRICOS code 00025B
• “IT Value is in the eye of the beholder”
• Ontime and withinbudget delivery of appropriate quality
• Is a function of the degree to which the IT organisation is aligned with the
business and meets the expectations of the business
Value Delivery I
13 March 2023
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• ITs capacity to deliver value is dependent upon
Timely, usable and reliable information about customers, processes and
markets
Productive and Effective Practices
The ability to integrate technology
Value Delivery II
13 March 2023
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Value Delivery III – Views of IT Value
13 March 2023
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• “It is the IT crocodiles you don’t see that will get you.”
• The need to demonstrate good enterprise governance to shareholders and
customer is an indication of risk management activities in organisations.
• Enterprise Risks are in many forms – but of greater concern are operational
and systemic risk
• Operational risk: The risk of loss resulting from inadequate or failed internal processes, people
and systems, or from external events. Basel Committee on Banking Supervision, 2004
• Systemic risk: Systemic risks are known as the Butterfly Defect or the Butterfly Effect that is often
used to refer to if a butterfly flaps its wings in one part of the world, a storm is caused in another part of
the world because of the systemic nature of the world.
Risk Management I
13 March 2023
CRICOS code 00025B
• “Good tradespeople are recognised by the quality of their tools”, however, are
the tools appropriate…
• Key issues in resource management
Optimal IT investment – danger of ‘goldplated’ solutions
Use and allocation of IT resources
Knowing where and how to outsource
Knowing how to manage outsourced services
Resource Management
13 March 2023
CRICOS code 00025B
• “In IT, if you are playing the game and not keeping the score, you are only
practicing.”
• Tangible and Intangible benefits
• Tracking project delivery and monitoring IT services.
• The need for a balanced scorecard
Performance Management
13 March 2023
Business Process Management Notations
(BPMN)
CRICOS code 00025B
• The Business Process Modelling Notation (BPMN) provides businesses with
the capability of defining and understanding their internal and external
business procedures through a Business Process Diagram, which will give
organizations the ability to communicate these procedures in a standard
manner.
• BPMN will also be supported with an internal model that will enable the
generation of executable BPEL4WS (v1.1). (OMG, 2005)
• BPEL now 2.0, e.g., Oracle BPEL Process Manager
What is BPMN?
13 March 2023
CRICOS code 00025B
Events
• Something that happens during the
course of a business process
• Affect the flow of the process
BPMN Basic Elements – Flow Objects I
13 March 2023
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Activity
• Generic term of work that the
company performs
• Can be atomic or nonatomic
BPMN Basic Elements – Flow Objects II
13 March 2023
CRICOS code 00025B
Gateway
• Controls the divergence and
convergence of sequence flow.
• Will determine traditional decisions,
forking, merging, and joining of paths
BPMN Basic Elements – Flow Objects III
13 March 2023
CRICOS code 00025B
Sequence Flow
• Is used to show the order of activities
performed in a process
BPMN Basic Elements – Connecting Objects I
13 March 2023
CRICOS code 00025B
Message Flow
• Shows the flow of messages
between two separate processes
participants that send and receive
them
BPMN Basic Elements – Connecting Objects II
13 March 2023
CRICOS code 00025B
Association
• Used to associate data, text, and
other Artefacts with flow objects
BPMN Basic Elements – Connecting Objects III
13 March 2023
CRICOS code 00025B
Swimlanes – organise activities into
separate visual categories to illustrate
different functional capabilities
Pool
• Represents participant in a process
• Graphical container for partitioning a set of
activities from other pools.
BPMN Basic Elements – Swim Lanes I
13 March 2023
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Lane
• Subpartition within a pool
• Used to organise and categorise
activities
BPMN Basic Elements – Swim Lanes II
13 March 2023
CRICOS code 00025B
• Provides flexibility by
Extending the basic notation
Provides the ability for additional context appropriate for specific modelling
situation
BPMN Basic Elements – Artifacts I
13 March 2023
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Data Objects
• Shows how data is required or
produced by activities
• Are connected to activities through
associations
BPMN Basic Elements – Artifacts II
13 March 2023
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Group
• Used for documentation or analysis
purpose
• Does not affect the sequence
BPMN Basic Elements – Artifacts III
13 March 2023
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Annotations
• To provide additional information for
the reader of BPMN diagram
BPMN Basic Elements – Artifacts IV
13 March 2023
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Business Process Diagram – An OnLine Auction System
13 March 2023
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• Variations of the basic elements and how the elements are used to model
business processes