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Chapter 2

Chapter 2: Business Process, Management, and Decision Making

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Computer Science
Computer Science 1032A/B
Shauna Burke

Chapter 2: Business Process, Management, and Decision Making 1 Business Process: • business process (business system): series of tasks/steps designed to produce a product/service • “supply chain”- > sales, purchasing, inventory management • ex. Tim Hortons: manage inventory- enough to fulfill customers, not too much to spoil • purchasing from suppliers • database: (Quantity Ordered) & (Quantity on Hand) • stock moves out of inventory, hits critical point (reorder point) • supplier: Purchase Order - > Shipping Invoice - > Shipping Goods - > Quantity Received Components of Business Process: • activities: purely manual (people following procedures), automated/controlled by computers (hardware directed by software), combination • resources: items of value; ex. suppliers & customers facilities: structures to store resources; ex. factory, truck, database • • information: activities used to transform input received - > outputs produced • ex. Business Process Modeling Notation (BPMN) What is Information? information: knowledge derived from data • • data: recorded facts/figures • ex. hourly wage, $25=information derived from data of individual wages Characteristics of Good Information: accurate: good/complete data, processed correctly; be skeptical • • timely: produced in time for intended use; ex. monthly statement • relevant: to context & subject; ex. CEO- list of all employee wages=irrelevant • just barely sufficient: ignore some information • worth its cost: relationship b/w cost of information & its value What is the Role of Information in Business Processes? Chapter 2: Business Process, Management, and Decision Making 2 • moving physical good places it in a new location (data) • Quantity Received - > Shipping Invoice (from supplier) - > Supplier Payment • information is a difference that makes a difference: ex. order 5 milk cases, only get 8 • Business Process Management (BPM): development of effecti
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