Business Processes and Types of Info Systems

Question 1

What is the basic operation of a business?

Answer 1

To convert resources into products and services

Question 2

What is the business process?

Answer 2

the collection of activities required to produce a product or service (how work is organized or coordinated)

Question 3

What is a business?

Answer 3

collection of business functions/processes

Question 4

What is a business function?

Answer 4

a collection of business processes

Question 5

What are the 4 major functions of an organization?

Answer 5

Manufacturing and production
Sales and marketing
Finance and accounting
HR

Question 6

What is the manufacturing and production department concerned with?

Answer 6

Producing and delivering products and services

Question 7

What is the sales and marketing department concerned with?

Answer 7

Selling the products and services

Question 8

What is the finance and accounting department concerned with?

Answer 8

Managing the financial assets and records

Question 9

What is the HR department concerned with?

Answer 9

attracting, developing and maintaining the labour force

Question 10

What is an example of a business process that runs across several business functions?

Answer 10

Order fulfillment

Question 11

What are the 2 aspects of IS in the business process?

Answer 11

Technical (can we?)

Behavioural (should we?)

Question 12

What are 4 considerations of the technical aspect of IS in the business process?

Answer 12

Understand how the existing business process works
Which parts of the business process can be automated
Can we modify the process to enable more automation
What changes need to be made

Question 13

What are 2 considerations of the behavioral aspect of IS in the business process?

Answer 13

What is the impact on people in the org

what is the impact on the orgs structure and culture

Question 14

What is the goal of IS?

Answer 14

to enhance business processes through automation

Question 15

What are the 3 steps in creating business intelligence?

Answer 15

1. Collect data
2. Extract information to support decision making
3. Create business intelligence

Question 16

What are the 4 major business functions from which business intelligence can be derived?

Answer 16

Sales and marketing
Finance and Accounting
HR
Manufacturing and production

Question 17

What are the 3 levels of management?

Answer 17

Senior
Middle
Operational

Question 18

What is each level of management concerned with?

Answer 18

Senior - long range strategic decisions and financial success
Middle - implementing the plans of senior management
Operational - monitoring the day-to-day activities

Question 19

What level of management would be concerned with order processing?

Answer 19

Operational management

Question 20

What level of management would be concerned with pricing analysis?

Answer 20

Middle management

Question 21

What level of management is concerned with sales trend forecasting?

Answer 21

Senior management

Question 22

What are the 4 information systems for management and which management level do they concern?

Answer 22

Executive support system (ESS) - senior management
Decision support system (DSS) - middle management
Management information system (MIS) - middle management
Transaction processing system (TPS) - operational management

Question 23

What does ESS support?

Answer 23

ad-hoc decisions requiring judgement, evaluation and insight

Question 24

What does DSS support?

Answer 24

ad-hoc decisions

Question 25

What is an ad-hoc decision?

Answer 25

a non-routine decision

Question 26

What does MIS provide?

Answer 26

routine reports on department's current performance

Question 27

What does TPS do?

Answer 27

automates the business process

Question 28

What are 3 characteristics of an ESS?

Answer 28

Entire company view Specialized version of DSS Minute-to-minute view of a firm’s financial performance as measured by working capital, AR, AP, cash flow, and inventory

Question 29

What are 2 characteristics of a DSS?

Answer 29

Uses external information as well as info from TPS and MIS | More analytical capabilities

Question 30

What are 3 characteristics of an MIS?

Answer 30

Routine reports: contain the same type of info each time their produced (ex. credit card statements) Based on and summarizes the data from TPS Little analytic capability (sales and marketing summaries, actual vs predicted sales, sales by region, sales by product line)

Question 31

What are 2 characteristics of a TPS?

Answer 31

Routine transactions necessary to conduct day-to-day business (payroll, inventory, PO, packing lists, invoice payment, order fulfillment, sales orders) Allows frontline workers and managers to monitor the status of operations and relations with the external environment

Question 32

What is the IS system for sales and marketing?

Answer 32

Customer relationship management system (CRM)

Question 33

What is the IS for manufacturing and production?

Answer 33

Supply chain management system (SCM)

Question 34

What is the IS for finance and accounting?

Answer 34

Accounting information system (AIS)

Question 35

What is the IS for HR?

Answer 35

HR management system (HRMS)

Question 36

What parts of sales and marketing can be automated?

Answer 36

i. order processing ii. order fulfillment iii. order inquiry iv. advertising and promotion

Question 37

What data can be collected from sales and marketing?

Answer 37

i. individual orders: who, when, where, fulfillment date | ii. customer data: name, contact info, purchases, returns

Question 38

What information can be collected from sales and marketing?

Answer 38

i. Purchase habits: who likes what, when and where sales trends occur, efficiency of fulfillment, return rates ii. Promotion strategy iii. Production schedule iv. Inventory level

Question 39

What does POS system do?

Answer 39

Partially automates in-store checkout process, provides sales-related and customer-related information

Question 40

What parts of manufacturing and production can be automated?

Answer 40

i. Making of individual parts ii. Assembling iii. Testing iv. Stocking and shelving

Question 41

What data can be collected from manufacturing and production?

Answer 41

i. Inventory of inputs and outputs ii. When, where, how many iii. If there were any issues in order fulfillment

Question 42

What information can be collected from manufacturing and production?

Answer 42

i. Efficiency of production process ii. Defective rate iii. Production and schedule status

Question 43

What parts of finanace and accounting can be automated?

Answer 43

Everything to do with money

Question 44

What data can be collected from finance and accounting?

Answer 44

i. Inventory ii. Purchase order: records of inventory orders iii. AP iv. Sales order: records of customers orders v. Billing: invoices vi. AR vii. Cash book: collection of payments made with cash viii. Tax info ix. Sales reports x. Payroll

Question 45

What information can be collected from finanace and accounting?

Answer 45

i. Match purchase order, goods received and invoice paid ii. Match customer order, invoice and receive payment iii. Cash flow/financial status of the firm

Question 46

What parts of HR can be automated?

Answer 46

i. Automated deposits ii. Tax forms iii. Pay slips

Question 47

What data can be collected from HR?

Answer 47

i. Recruiting, hiring, reassignment ii. Scheduling iii. Payroll iv. Time, attendance, absence and leave management v. Performance appraisal vi. Benefits administration vii. Grievance handling viii. Learning management

Question 48

What information can be collected from HR?

Answer 48

i. Employee turnover ii. Absenteeism iii. Cost of overtime/acquisition iv. Trouble filling certain positions