Chapter 2 - Business Processes, Information, and Decision Making (Summary Notes)

Chapter 2 - Business Processes, Information, and Decision Making (Summary Notes)

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Chapter 2 – Business Processes, Information, and Decision Making WHAT IS A BUSINESS PROCESS A business process is a network of activities, resources, facilities, and information that interact to achieve some business function. It is a system, and sometimes business processes are also referred to as business systems . Examples of business processes are: o Inventory management processes o Manufacturing processes o Sales and support processes WHAT ARE THE COMPONENTS OF A BUSINESS PROCESS Activities transform resources and information of one type into resources and information of another type. The payment activity transforms QuantityReceived and Shipping Invoice information into a Supplier Payment (resource). An activity can be manual or automatic, or it can be a combination of both. Resources are items of value. Ex: milk, check, cash, people. Facilities are structures used within the business process. Ex: inventories and databases, factories, pieces of equipment. Information is knowledge derived from data. WHAT IS INFORMATION Information is knowledge derived from data, where data is defined as recorded facts or figures. Also defined as: data presented in a meaningful context. Or, differences that make a difference. CHARACTERISTICS OF GOOD INFORMATION
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o Accurate o Timely o Relevant (both to the context and to the subject) o Just Barely Sufficient – since we have to make such fast paced decisions and there isn’t time to collect all the data we could want. o Worth Its Cost – there must be an appropriate relationship between the cost of information and its value. HOW DO INFO SYSTEMS SUPPORT BUSINESS PROCESSES IS are used by the activities in a business process, but the particular relationship varies among business processes. In some processes, several activities use one IS. In other processes each activity has its own IS, and in still other processes some activities use several different IS. Refer to the 5 components of an information system that we introduced in
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This note was uploaded on 03/23/2010 for the course COMP SCI 1032 taught by Professor Goldstein during the Winter '10 term at UWO.

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Chapter 2 - Business Processes, Information, and Decision Making (Summary Notes)

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