Computer Science 1032 Chapter 2 Notes.docx

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Computer Science
Computer Science 1032A/B
Diane Goldstein

Chapter 2 Notes: Business Processes, Information, and Decision Making Business Process (Business System)  Business Process: Network of activities, resources, facilities, and information that interact to achieve business objective o Activities: Transforms resources and information of one type into resources and information of another type  Follows rules and procedures  Can be manual (people following procedures) or automated (hardware directed by software)  EX: Quantity received (info) and shipping invoice (info) transform into payment to supplier (resource) o Resources: Items of value  External to organization; does not have to be a part of the corporation or activities  EX: workers, customers, and suppliers o Facilities: Structures used within the business process  EX: Inventory, database, factory, equipment o Information: Knowledge derived from data (recorded facts and figures)  Activities use information to determine how to transform inputs received to outputs for production  Business Process Modeling Notation (BPMN) o Developed by OMG as a standard set of terms and graphical notations for documenting business processes Information  Data: Recorded facts or figures that are not meaningful on their own  Information: o Knowledge derived from data o Data presented in a meaningful context & organized and process to provide meaning o Data processed by summing, ordering, averaging, grouping, and comparing  Good Information: o Accurate: Based on correct and complete data, and has been processed correctly as expected  Information must be cross-checked and observed sceptically in-case of faultiness o Timely: Produced in time for its intended use  Can be measured against a calendar or against events o Relevant: Useful in the context and the subject at hand o Just Barely Sufficient: Unnecessary information is disregarded, to the point of just-barely o Worth its Cost: Appropriate relationship between the cost of information and its value  Role of Information in Business Processes: o Flow of good or service is always accompanied by the potential flow of data and information o When various pieces of data are brought together in a meaningful context, information can be generated o Shows when payments for goods and services must be given (useful for management & strategy decisions)  Business Process Management (BPM) o A field of management that promotes the development of effective and efficient processes through continues improvements and innovation (continuously collecting data  information) o Information about the process helps to better manage the process itself. o Uses methods including total quality management, six sigma, and lean production Information Systems Support Business Processes  Information systems have different relationships with business processes. While several activities may use one system, a single activity may have one or more of its own systems (determined by systems designers during development).  Automated System: IS that makes more use of hardware, software and data (supporting counter sales)  Manual System: IS that makes more use of people, procedures, and data (supporting payment)  Balanced System: IS that makes use of both hardware and software vs. procedures and people (support purchasing) Information System & Decision Making  Decisions Varying by Level o Operational Decisions: Decisions that concern day-to-day activities (short-term)  Transaction Processing System (TPS): IS that supports operational decision making  Collect, store, modify and retrieve transactions  Events that generate or modify data o Managerial Decisions: Decisions that concern the allocation and utilization of resources (long-term)  Management Information System (MIS): IS that supports managerial decisions  Narrower definition (Support of management decision making) o Strategic Decisions: Decisions that concern broader organizational issues  Executive Information Systems (EIS): IS that supports strategic decisions  MIS for senior executives, as it is easier to access information  Provides access to internal and external information  Decisions varying by Structure o Structured Decisions: Decisions that are understood and accepted  Made by applying knowledge to make an informed decision  EX: Formula for compu
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