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Lecture 2

BUS 237 Lecture 2: Business Processes

2 Pages

Business Administration
Course Code
BUS 237
Zorana Svedic

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Approaches to improving organizational performance, each with its advantages and disadvantages 1) Business Process Automation (BPA): least intense form of automation automating some aspect of business process through IT; makes processes fastermore efficient 2) Business Process Improvement (BPI): more intense than BPA recommends employees to constantly seek improvement in process(evolutionary view of system); small improvements made to business processes, not just computer system 3) Business Process Transformation (BPT): highest intensity radicalfundamental rethinking of business processes (revolutionary view of system); high risk and dramatic improvements Timewise, BPT > BPI > BPA Ex. automated checkout (BPA), cataloging (BPI), online bankingshoppingeBooks (BPT) > automation is usually the basis Online processes are almost always transformations because they require entirely new systems Information Systems and DecisionMaking Data is important for any IS component (the bridge) Data can be transformed into information by providing context, and information systems are used for decisionmaking IS supports decisionmaking by providing information (raw material) for decisions Decisions vary by level: operational < managerial < strategic Operational decisions concern daytoday activities (transaction processing systems (TPS)) Managerial decisions concern allocationutilization of resources (management information systems (MIS)) Strategic decisions concern broaderscope, organizational issues (executive information systems (EIS)) Difficulty level: TPS > MIS > EIS Decisions vary by structure: structured decision vs. unstructured decision Structured decision is one with an understood and accepted method for making decisions (ex. Weather forecasting) Unstructured decision is one with no agreedon decision making method (ex. Weather) Note: structuredunstructured refer to decisionmaking method, not the underlying subject matter Operational (TPS) is mostly structured, managerial (MIS) is in between, and strategic (EIS) is mostly unstructured Steps of decisionmaking: intelligence gathering > alternatives formulation > choice > implementation > review People are part of every information system! Most important component of IS Must be able to use IS and ask good questionsprovide good information to ensure quality of output
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