chap004 - Chapter 4 The REA Enterprise Ontology: Business...

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Chapter 4 The REA Enterprise Ontology: Business Process Modeling Review Questions R1. Give three examples of each of the three main types of business processes. Any applied example of each of the following is acceptable: 1. Acquisition/Payment Processes - acquiring, maintaining, and paying for resources needed by the organization (e.g., human resources, financing, property, plant, equipment, materials and supplies) to provide goods and services. Specific Examples may include: Hiring a new employee Purchasing a new piece of equipment Buying raw materials for inventory Arranging for short-term financing 2. Conversion Process - converting the acquired resources into goods and services for customers. Specific Examples may include: Building a house Assembling a computer Auditing a financial statement Preparing a tax return 3. Sales/Collection Process - delivering goods and services to customers and collecting payment. Specific Examples may include: Selling an automobile for cash Signing a contract for a new home, collecting mortgage payments. Collecting the monthly phone bill Selling hamburgers at a fast-food restaurant Evaluating one business organization best illustrates the business processes. For example, a fast food retailer’s acquisition/payment processes include purchasing raw material food supplies from vendors and paying the vendors for the purchases. Their conversion processes include cooking and preparing the raw materials to create finished food products for sale to customers. Their sales/ collection processes include selling food to customers collecting payment. Solutions Manual to accompany Dunn, Enterprise Information Systems: A Pattern Based Approach, 3e 31
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Chapter4 R2. Describe the relationship between business processes and events. Just like a play that is comprised of four separate acts, business processes are comprised of a discrete, related series of business events that management wants to plan, execute (control), and evaluate. Thus the term business process implies a group of business events, while the term business event implies a single business activity within a business process. R3. What is an information process? How are information processes triggered? Information processes include three activities: recording data about business events, maintaining other reference data that are important to the organization, and reporting useful information to decision makers. Each business event triggers a recording process needed to document the event. Occasionally, things happen which are important to an organization (e.g., a customer moves or an employee gets married) that trigger maintenance processes. Recording and maintaining processes create and maintain a repository of data that documents and describes an organization's business processes, including the people and resources associated with the processes. This data repository, or collection of data, is used to generate output for information customers. Reporting, the most demanding of
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This note was uploaded on 01/17/2011 for the course INFO SYSTE 115 taught by Professor Baker during the Spring '10 term at Strayer.

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chap004 - Chapter 4 The REA Enterprise Ontology: Business...

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