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of competitive advantages if they innovate or to execut e better than its rivals can be also liabilities if based on outdated ways of working enhancing by information technology automate many steps in business processes that were formerly performed manually e.g. Checking a client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