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Business Administration
BUS 237
Kamal Masri

CHAPTER 2BUSINESS PROCESSES Business Process Information and Decision MakingHow did this stuff get herey Business processes are central to what every organ doesWe are surrounded by business processesy Understanding how things work helps us to make us more valuable members of the economy y Understanding business process is critical to understtand the IS that support them What is a Business Process XPA business process describes a set of activities that are necessary to complete a response to a stimulus applied to an organization y Network of activities resources facilities and infor that interact to achieve some bus objective o Bus processsystemaka business system o ExOf bus processes inventorymanagement process manufacturing processes sales processes customersupport processes o Ex Tim H inventory goods coffee doughnuts muffin milk etcmanaging the inventorybusiness process o Goal of processensure that theres enough inventory to fulfill customers request whilesame time making sure that theres not too much inventory otherwise goods will spoil y Inventory mangement process works to balance the demands from customers wthe inventory purchased for supplies o Thereofre perchasing is import activity in inventorymangement process y Inventeorymangement stem supports process by collecting info y Inventory database keeps track of what customers order quantity order and whats currently in inventory quantity on handy Stock inventory critical point often called Reorder pointtime to order new suppliesy Goal is to develop an understanding of how an organ yworksBusiness ProcessA Response y Resourcesitems of valuenot considered activities because they are external and hence not under organs controlo Ex Case of milk resource person working is a resouce cheque and customore cashThe response is the actions that the organization takes as a result of the stimulus For exampleship product to customerupdate inventory based on shipmentAll of the activities required to recognize the stimulus and develop and implement the final response are components of the business process More Business Process ExamplesStimuluscustomer requestsupplier shipmentmanagement directiveinformation about competitorResponse ship product update inventory create committee develop new marketingExamples of Business Processes Routine business processes fulfilling customer order receiving shipment for inventory reviewing loan applications creating a two week payrollMore complex business processes developing a new product deciding on a location for new store designing a new marketing campaign Defining a Business Process XP
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