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Chapter 2

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Chapter 2 How Businesses Use Information Systems Business Processes and Information Systems Business Processes Business Processes refer to the manager in which work is organized coordinated and focused to produce a valuable product or serviceBusiness processes are workflows of material information knowledgeset of activitiesBusiness processes also refer to unique ways in which organizations coordinate work information and knowledge and the ways in which management chooses to coordinate workEvery business can be seen as a collection of business processes Ex Almost every business has a way to hire employees The process of hiring employees is a business process in the sense that it is a set of activities that a firm uses to hire new employeesTo a large extent the performance of a business firm depends on how well its business processes are designed and coordinated A companys business processes can be a source of competitive strength if they enable the company to innovate or to execute better than its rivals Business process can also be liabilities if they are based on outdated ways of working that impede organizational responsiveness and efficiencyMany business processes are tied to a specific functional area Business functions are specialized tasks performed in a business organization including manufacturing and production sales and marketing finance and accounting and human resources Moreover efficiently performing all these steps in the order fulfillment process requires a great deal of information Information systems make this possibleHow information Technology Enhances Business Processes Efficiency and TransformationPrimarily in 2 waysIncreasing the efficiency of existing processes and enabling entirely new processes that are capable of transforming the business Types of Business Information Systems
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