Chapter2 Business Process
Q1: “How did this stuff get here?”
Business processes are central to what every organization does. That is why understanding
business processes is critical to understanding the information systems that support them.
Q2: What is a business process?
Business process: a network of activities, resources, facilities, and information that interact to achieve
some business objective.
Business process: describes a set of activates, that are necessary to complete a response to a stimulus
applied to an organization.
----- A business process is a system, which is sometimes also referred to as a business system. In this
book, we will use the term business process.
Example of inventory-management process （how information system support business process）
----- At some point, stock in inventory hits a critical point, often called the Reorder Point when a good in
stock hits this point, the system lets the manager of the restaurant know that it is time to order new
----- Understanding, modeling, and redesigning business processes are a big part of what business
Q3: What are the components of a business process?
A business process consists of activities, resources, facilities, and information.
Activities: transform resources and information of one type into resources and information of another
---- An activity can consist or be made up of strictly manual activities (people following procedures), be
automated or controlled by computers (hardware directed by software), or, as is often the case, be a
combination of manual and automated activates.
Resources: items of value.
E.g.: milk, working people, cheque, the customer cash
For example: both supplier and customer are also considered resources, because they have value in this
process. (External resources)
Facilities: structures used within the business process.
For example: inventories, databases (typically), factories, pieces of equipment, trucks. Information: data with a meaning (被统计处理过与所有 sample 相关的 statistic data)
----- It is the central focus of information systems
----- It is used and created by activities
---- Business processes create, process and store information
----- “Information Systems” support business processes by automating or facilitating the creation,
processing, and storage of information.
Q4: What is data?
1. Recorded facts or figures
2. Not meaningful on its own
Q5: What is information?
1. Knowledge derived from data.(通过 data 得出的总结)
2. Data presented in a meaningful context.（report）
3. Processed data(被处理过的 data)
4. Information is processed by summing, ordering, averaging, grouping, comparing, or performing
other similar operations.
5. A difference that makes a difference.
o Good information is based on correct and complete data, and it has been processed
correctly as expected.
o Crucial for management
o When you begin to use an information system, be skeptical. Cross-check the information
you are receiving.
o Produced in time for its intended use
For example: the CEO, need information about wage in the organization. A list
of the hourly wage of every employee is unlikely to be useful, average wage
information are more likely relevant.
o Subject For example: information about short-term interest rates is what you need,
then a report that details 15-year mortgage interest rates is irrelevant.
Just barely sufficient
o Sufficient for purpose for which generated
o Do not need additional, extraneous information
Worth its cost
o Must be worth the cost of develop, maintain, and use
Q5: What is the role of information in business processes?
----- Business processes (process) use, (create) generate and store information.
----- Any time there is a physical flow; there is the potential to capture a flow of information.
----- Data alone by itself is not information. But if two items together that generate information.
For example: Quantity received (data) and shi