Textbook Notes (368,098)
Canada (161,641)
BUS 237 (192)
textbook (3)
Chapter 2

Chapter 2 notes.docx

4 Pages
Unlock Document

Business Administration
BUS 237

BUS 237 Chapter 2 Notes Business Processes, Information, and Decision Making Business process is important because it central to every organization. It helps organization deliver goods/services to customers earning profit (achieving goals) We increase our value in the economy by understandings how things are put in place and interact with others. Business Processes  Sometimes called business system is a network of activities, resources, facilities, and information that interact to achieve some business objective  A set of activities needed to produce response to a stimulus applied to an organization  There are different types of business processes: o Inventory-management processes, manufacturing processes, sales processes, and customer-support processes  Routine business processes are usually computerized  Complex business processes are usually manually generated Components of a business process  Activities: transform information and resources from one type to another o It can be done manually, automated or usually a combination of both o Example: payment (activities) transforms quantity received and invoice (information) to a payment for the supplier (resource is money) o It must follow procedures and rules  Resources: items that have values o External, have value in the process so they are not activities o There are two types of resources external and internal to the company (example: cash, employees, inventory (controlled by the company), valued customers, creditors (cannot controlled))  Facilities: things that you can store data and information in (structures) o Example: inventories and databases  Information: data with meaning! Data that tells something relevant to the user. What we want to know about data. o Activities use information to transfer from inputs to outputs o Business create, process and store information o Example: the average minimal wage for a class is information collect from our data of all the class’s wage o Do something (summing, ordering, averaging, grouping, comparing or performing other functions) to data to produce information o Information can make a difference in decisions  Data: recorded facts and figures with no meaning  Characteristics of good information o Accurate: complete and correct data based so we can rely on the information to make the best decisions.  If the system is inconsistence with its information then it will ruin the reputation of the company and waste resources BUS 237 Chapter 2 Notes  Accurate information loses its value over time. o Timely: produce at time for intended use  However, it is hard to produce information that is near real time o Relevant to context and subject o Just barely sufficient: we do not want information overload where it is hard to find accurate information o Worth its cost: the cost for developing the information must be exceeded by the benefits that the information will bring to the company  Role of Information in business processes o Recall that business creates, processes and stores information and it uses that information by bringing together important items of data in a context  Example: Quantity received is different from the invoice quantity o We use information in business process to make decisions o We use the information from process to help understand how to many the process better and
More Less

Related notes for BUS 237

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.