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BUS 237 Study Guide - Business Process, Accounts Payable, Unst

Business Administration
Course Code
BUS 237
Kamal Masri

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A business process is fair;a network of facilities, activities, information and resources that collectively
operate in response to a stimulus/business issue.
Facilities: structures used within the business process. (inventories, databases, factories, equipment).
Activities: transform resources and info into other resources or info. Catalysts.
(Payment activity turns quantity received and shipping invoice info into supplier payment, a resource).
Information: knowledge derived from data, or, data presented in a meaningful context.
Resources: items of value. Cash, stock, supplier, customer.
Information must be accurate, timely, relevant, just sufficient and worth its cost.
Accurate: based on data that's correct, complete and processed correctly.
(representational faithfulness, as it were).
Timely:produced in the time for its intended use. Better late than never does not apply.
Relevant:to context and subject (not too broad or too narrow, specific to what we're talking about).
What are we talking about?
Worth its cost:benefit>cost always.
Cashiers use automated IS's, accounts payable clerks use mostly manual IS's, purchasing clerks use
balanced IS's
Information systems provide the raw material for making decisions.
Operational Decisions: Day to day transactions. Supported by transaction processing systems (TPS)
Managerial Decisions: allocation and utilization of resources. Includes budgets, personnel, etc.
Supported by MIS.
Strategic Decisions: broad scope organizational issues. Should we start a new line? Expand? Supported
by Executive Information Systems (EIS)
These Decisions can be Structured or Unstructured.
Structured: accepted method for making the decision. Makes sense. Follows protocol.
Unstructured: no accepted method. Maybe made through experience? Which way is the company
going? When?
Note decision making gets less structured as we go up the ladder.
Steps in decision making:
Intelligence gathering
Subject, data, criteria, direction.
Alternatives formulation
What else?
Choice step
Pick one.
Implementation step
Do it.
Review step
How'd it go? Do it again?
Data=knowledge without context
Changing Business Processes
Automation (BPA)
Paving the cow path. Pave the meandering path of the cow.
e.g. Library (cards to comps)
Same process (people still go to same place), but more efficient. Thus with BPA we're not changing
everything just improving the system slightly.
Business Processes, Information and Decision Making
11:59 AM
MIS Chapter 2 Page 1
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