Multicriteria Decision Model for Information Systems Priorities Based on Business Process Management

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1 Multiiteia Deision Model fo Infomation Systems Pioities Based on Business Poess Management Adiel Teixei de Almeida* and Mila Neves Souza** The pape pesents a multiiteia deision model fo infomation system (IS) pioities. The model takes into aount Business Poess Management appoah in ode to assign sttegi and oganizational issues, epesented by iteia. Also, tehnologial iteia ae onsideed. The pape pesents the IS planning methodology, emphasizing the deision model poposed. Field of Reseah: Management Siene, Infomation System Management. Intodution Most of pevious appoahes to deal with IS pioities have not given adequate impotane to sttegi aspets. Shin (200) pointed out sevel easons fo failues in IS planning. One of these easons is the lak in onnetion between sttegi objetives and ation plans. In this pape a deision model make sttegi and oganizational onnetions with the ation plan. A patiula IS planning methodology (Zahman, 982), named Business System Planning (BSP), has been applied and adapted in pevious wok (Almeida el al, 992). The adaptation has povided a moe appopiate way fo quantitative analysis egading pioities assignment of IS. A deision model is built to inopote the use of the ELECTRE I method. This method allows analysis on the dominane elations amongst IS modules, based on the study of outnking elations, using a non ompensatoy logi (Roy, 996; Vinke, 992; Belton and Stewat, 2002). * Pof. Adiel Teixei de Almeida, Fedel Univesity of Penanbuo, [email protected] ** Mila Neves Souza, Fedel Univesity of Penanbuo, Reife, Bzil, [email protected]

2 2. Litetue Review Sevel methodologies have been epoted in litetue elated to infomation system (IS) planning (Shniedejans el al, 2004; Ahituv and Neumann, 983; Dohety et al, 999; Teo, 200; Zahman, 982). Most of this IS planning methodologies do not povide an adequate appoah fo a quantitative hoie of altenatives fo implementation. Regading the Business System Planning methodology, ad ho poedues have been applied in most ases (Zahman, 982). Most of these appoahes lak fomality and igo fo pioities assignment of IS. Sevel appoahes have been found in litetue dealing with pioities assignment of IS (Shniedejans el al, 2004; Han et al 998; Haes and Royle, 994). Howeve, most of them ae not integted with an IS planning methodology, whih inopotes the whole view of the oganization. A Cost Benefit Analysis has been poposed inluding only tangible aspets to be analyzed Haes and Royle, 994). Appoahes based on Quality Funtion Deployment (QFD) has been poposed by taking into aount suess itial fatos to assign pioities fo IS (Han et al 998; Kim et al, 2000; Min et al, 999). Matinsons et al (999) suggest the use Balaned Soead (BSC) in ode to evaluate IS in oganizations. Vey few wok found in litetue deals with multiiteia methods (Belton and Stewat, 2002) to analyze pioities fo IS. Howeve, Shniedejans el al (2004) pesented sevel altenative ways to deal with IS investment, inluding multiiteia methods, suh as: multi-objetive pogmming and Analyti Hiehy Poess (AHP). Regading the use of Business Poess Management (BPM) appoah fo IS planning, the Business System Planning (BSP) methodology (Zahman, 982) may inopote this view based on adapted BSP (Almeida el al, 992). The BPM appoah supply a fmewok fo Leaning and may inopote Knowledge Management. BPM appoah may be applied fo exploing the oganizational view based on Knowledge (Amistead et al, 999). In the last few yeas, a hange thee has been fom data-awae IS oiented to poess-awae IS (PAISs) oiented. poess-awae IS allows hanges of poess whithout hanges in IS (van de Aalst et al., 2007; Weske et al, 2004). In this pape BPM appoah has been taken into aount fo building the multiiteia deision model fo IS pioities, onsideing oganizational issues. 3. Methodology and Model Poposed An IS planning methodology has been adapted to inopote the deision model. This methodology is based on the Business Systems Planning pesented by Zahman (982) and adapted by Almeida el al (992). The methodology has been adapted in ode to simplify some planning steps and inopote the deision model. Figue shows the steps applied fo the IS planning. A sttegi view of the oganization is obtained in the fist step. The seond step is onened with the appliation of the BPM appoah. Thid step deals with infomation issue, inluding the pioities assignment. The last step pesents an ation plan to appoah the IS in the oganization. This ation plan

3 indiates aeas whee IS should be impoved and is applied to guide softwae implementation and esoues alloation appliation. Sttegi View Business Poess Management Infomation Engineeing Data Analysis Modulaization Pioitization Ation Plan Figue - Infomation System Planning This pape is mainly onened with the pioities assignment. To make this pat lea some aspets of modulaization ae pesented, as follows. The IS is divided aoding to two diffeent aspets in: Infomation Sevie Type (IST) and Infomation Goup (IG). The IST is elated to the appoah applied on infomation, suh as desibed in Spgue and Watson (982). Theefoe, following IST an be applied: Tnsational infomation systems (also alled Eletoni Data Poessing - EDP); Management infomation systems (MIS); Deision suppot systems (DSS); Exeutive infomation systems (EIS); Infomation sevie of offie suppot; Infomation sevie of poess ontol; Infomation sevie of gphi suppot The IG oesponds to a mao gouping efeing to speifi poesses in the oganization. These modules hateize the subjets the IS deal with. The infomation system is analyzed based on these two views. The infomation system modules (ISM) ae obtained by ombination of IST and IG, aoding to Table.

4 IG IG2 IG3 IG4 IST ISM ISM2 ISM4 IST2 ISM2 IST3 IST4 IST5 IST6 IST7 ISM7 ISM47 Table 2 - Infomation System Modules - ISM The pioitization of the whole IS onsists in obtaining an evaluation of all ISM s. The objetive of the deision model is to assign pioities fo the ISM. Evaluations on eah ISM fo eah iteion ae obtained and epesented though the following matix by onsideing iteia(), IG(m) and IST(). m m 2 m m m m 2 m m m () The pioities ae fistly assigned fo the sttegi fatos and then tnsfeed to the poesses and finally to the ISM. The deision model is based on pefeene modeling based on the pefeene stutue of the deision make. Thus, a multiiteia method should be applied. In this pape the ELECTRE method is applied in ode to make this evaluation. 3. Multiiteia Deision Method ELECTRE I method has been applied fo pioities assignment. This method onenttes the analysis on the dominane elations amongst altenatives. This method is based on the study of outnking elations, using a non ompensatoy logi, exploiting notions of onodane. These outnking elations ae built in suh way that it is possible to ompae altenatives. The DM establishes the elative weights fo the iteia and the admissible level p fo onodane index and admissible level q fo disodane index. The indexes ae obtained though the following elations, onsideing two ations: a and b (Vinke, 992; Roy, 996; Belton and Stewat, 2002): + (W + 0.5W ) C(a, b) + (W + W + W ) (2) ( Zbk Zak) D(a, b) Max * Z k Z k, fo all k whee Zbk > Zak (3) outnking elations: asb if C p and D q (4) whee: W + oesponds to the sum of weights fo iteia whee a is pefeble to b; W oesponds to the sum of weights fo iteia whee a b; and W - oesponds to the sum of weights fo iteia whee b is pefeble to a.

5 Z ak is the evaluation o utility of ation a elated to iteia k; Z * k is the best degee of evaluation obtained fo iteia k; and Z - k is the wose degee of evaluation obtained fo iteia k. In ode to failitate the poedue, the evaluation of altenatives ae nomalised suh that Z * k and Z - k 0. The outnking elation is obtained applying (4) and the poedue to obtain the sub-set of best altenatives, efeed to as kenel (Vinke, 992; Roy, 996; Belton and Stewat, 2002). The kenel inludes a sub-set of altenatives suh that any othe altenative is outnked by at least one of the kenel and the altenatives of the kenel ae inompable. 3.2 Deision Model fo Pioities of Infomation System An analytial stutue extts fom deision makes and analysts elationships among poess and IS modules, inluding IG, IST, and iteia goups to put them togethe to obtain ISM evaluation. Deision make establishes elationship between: poesses and sttegi iteia in (5), poesses and IG in (6). 2 p 2 n pn p i 0 (5) m 2 2 p mp 0, m i (6) The poesses evaluations elated to sttegi iteia fo IG ae tnsfeed though a matix stutue in (7), to obtain the IG evaluation aoding to sttegi views. whee: ik. p k ik kj (7) 2 m 2 n mn 0, m i j The poesses ae evaluated unde poess iteia ( p ) and this evaluation is tnsfeed to IG fo obtaining IG evaluations aoding to these iteia as given by (8)

6 g j p j (8) IS Expets evaluates IST elated to tehnial iteia, obtaining t i. Then, the IS Expets obtain following matix. This matix indiates the degee in whih eah IG uses eah IST. at at2 at m at 2 at m at at at m j Finally, the ISM evaluation fo eah iteion is given by (9). Based on IG and IST evaluations and the degee of ontibution of eah IST in eah IG, the ISM evaluation ae given by (9). m at. t i. (9) The evaluation of ISM fo iteia is given in (9), whih oesponds to the matix in (). Now the ELECTRE method may be applied. (2), (3) and (4) ae applied into the matix given in () and obtained by (9). Fo the appliation of this model following iteia have been onsideed: fou sttegi iteia: level of sevies supply, new business oppotunities, bette quality pattens and staff development; two poesses iteia: ustomes ommitment and itiism of automati systems; and two tehnial iteia tehnologial oppotunities and elative tehnology osts. Sevel poesses have been taken into aount to ondut the study, inluding: basi stutue opetions, aquisition, tehnology development, human esoues management, opote suppot and maketing. By elating poesses and opote data, the Infomation Goups (IG) have been found. Following IST have been onsideed: Tnsational Infomation System (TIS); Management Infomation System (MIS); Deision Suppot System (DSS); Exeutive Infomation System (EIS). The ombination between IG and IST given the ISM s, whih ae the IS modules, epesent the pojets potfolio to be seleted fo pioity onsidetions in the next ation plan. 4. Disussion The model pesented inopote ELECTRE I method in the deision model. Othe Multiiteia methods ould also be adapted and inopoted within this model. The hoie of the multiiteia method is based on sevel aspets, suh as: deision make pefeenes and tionality, oganizational ontext, sheduling fo the deision poess. The model allows the assignment of pioities fo IS modules, assisting an ation plan onened with infomation systems and onneted with sttegi fatos. The esults of the pioitization has been applied fo the ation planning, whih onsists of seleting the IS modules fo futue investments.

7 The emphasis of the deision model is the onnetion with the oganizational poesses, inluding also tehnologial iteia. The poposed deision model povides to business deision makes following esults: It allows the use of a vey known multiiteia method, suh as ELECTRE I; It povides a onnetion between the business sttegy and IS hoies. It is integted with a vey well stutued IS planning methodology; it allows the oveview of multiples objetives of deision makes, one it is based on a multiiteia method; 5. Conlusion The multiiteia deision model pesented takes into aount Business Poess Management appoah in ode to assign sttegi and oganizational issues fo infomation system (IS) pioities. The model also inopote tehnologial iteia. The ELECTRE I method has been inopoted within the deision model in ode to assign pioities fo IS modules. This allows assisting an ation plan onened with infomation systems and onneted with sttegi fatos. The esults of the pioities assignment may be applied fo an ation planning, whih onsists of seleting the IS modules fo futue investments. The emphasis of the deision model is the onnetion with the oganizational poesses, inluding also tehnologial iteia. BPM appoah fo IS planning has supplied inside the adapted Business System Planning (BSP) methodology means fo inopote Knowledge Management of the oganization. BPM also, desibe the value hain of the business. The pape pesented the IS planning methodology, emphasizing the deision model poposed. Aknowledgements This wok is pat of eseah funded by the Bzilian Reseah Counil (CNPq). Refeenes Ahituv, N. and Neumann, S. 983, Piniples of Infomation Systems fo Management, Vm. C. Bown Company Publishing. Almeida, A. T. de, Bohois, G. A. and Steinbeg, H Managenment Infomation and Deision Suppot System of a Teleomuniation Netwok, Jounal of Deision Systems, vol. no. 2-3, pp Amistead, C, Pithad, J-P.; Mahin, S Sttegi Business Poess Management fo Oganisational Effetiveness, Long Range Planning, vol. 32, no., pp Belton, V. and Stewat, T.J Multiple Citeia Deision Analysis. Kluwe Aademi Publishes. Dohety, N.F., Maples, C. G., and Suhaimi, A The Relative Suess Of Altenative Appoahes To Sttegi Infomation System Planning: An Empiial Analysis, The Jounal of Sttegi Infomation Systems, vol. 8 no. 3,

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