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Unformatted text preview: Chapter 5 Business processes and information systems 1. Business process → refer to the manner in in which work is organized, coordinated and focused to produce a valuable product or service → concrete workflows of material, information and knowledge-sets of activities → the unique ways in which organization coordinate work, information and knowledge, and the ways in which management chooses to coordinate work → can be a source of competitive advantages if they innovate or to execut e better than its rivals → can be also liabilities if based on outdated ways of working → enhancing by information technology Ω automate many steps in business processes that were formerly performed manually Ω e.g. Checking a client credit 2. Types of information systems → transaction processing systems Ω keep track of the elementary activities and transactions of the organization Ω a computerized system that performs and records the daily routine transactions necessary to conduct business Ω e.g. Sales order entry Ω monitor the status of internal operations and the firm's relations with the external environment Ω centralized system for an organization → management information systems Ω provide middle managers with reports on the organization's current performance Ω enable managers to drill down to see daily or hourly data if required Ω provide answers to routine questions that have been specified in advance and have a predefined procedure for answering them → decision-support systems Ω support non-routine decision making for middle management Ω focus on problems that are unique and rapidly changing Ω use internal information from TPS and MIS, as well as external sources e.g. Current stock prices Ω small but powerful DSS is the voyage-estimating system which calculates financial and technical voyage details Ω other types of DSS are focusing instead on extracting useful information to support decision making form massive quantities of data Ω referred as business intelligence systems which focus on helping users make better business decisions → executive support systems for senior management Ω help senior management make decisions Ω are designed to incorporate data about external events e.g. New tax laws or competitors Ω deliver information to CEO by using digital dashboards Decision making and information systems 1. Types of decisions → unstructured decisions Ω those in which the decision maker must provide judgment, evaluation, and insight to solve the problems Ω each of these decisions is novel, important, and non-routine Ω no well-understood or agreed-on procedure for making them Ω more common at higher levels of the firm Ω e.g. Operational management, rank-and-file employees → structured decisions Ω are repetitive and routine Ω involve a definite procedure for handling them, therefore they do not have to treated each time as if they were new Ω more prevalent at lower organizational levels → semi-structured decisions...
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- Three '12
- Decision Making, knowledge management systems