Chapter 2 – Business Process.docx

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Computer Science
Computer Science 1032A/B
Diane Goldstein

Chapter 2 – Business Process, Info & Decision Making Business Processes - A network of activities, resources, facilities, and, information - Interacting to achieve a business function Activities - Transform o Resources & info of one type into another - Follow rules & procedures - Manual and/or automated - Example: o Payment (activity) transforms  Quantity received (info) and shipping invoice (info) into payment to supplier (resource) Resources - Items of value - External to organization - Examples: o Customers o Suppliers Facilities - Structures used w/in business process - Examples: o Inventories o Databases o Factories o Equipment Information - Used by activities - Determines transformation - Knowledge derived from data - Data presented in meaningful context - Data organized and processed - Data processed by summing, ordering, averaging, grouping, comparing Data differs from information in that information is output and data is the input - Example: o Data – hourly wage o Information – average wage Data - Factors or figures o Collected o Recorded o Stored o Processed - Not meaningful on its own, something must be done with it Good Information Must be: - Accurate - Timely – provided in time for its use - Relevant – reduces uncertainty and improves decision making o To context o To subject - Just sufficient – the right amt, not too much not too little; difficult to determine - Worth its cost – Cost of producing information VS value of the information Role of Information - business processes generate information: o bringing together items of data in a context o @ higher level  Useful for management & strategy decisions - Example: o Payment transforms quantity received (data) into shipping invoice (data) o Together generates information Business Process Management (BPM) - a field of management that promotes the development of effective and efficient processes through continuous improvement and innovation - Methods of BPM o Total quality management (TQM) o Six Sigma o Lean Production - Information about the process helps to better - Manage the process itself IS Support for business processes IS used by activities - Several activities may use one system - Activity may have own system - Activity may use several systems Relationship of activities to IS determined by Systems Designers during systems Development Automation: taking what a human does and getting it done by technology People follow procedures, computers follow software instructions Informat
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