INFS1000 Lec 2 Business Processes

Question 1

What is a BUSINESS PROCESS?

Answer 1

• A “STRUCTURED NETWORK OF ACTIVITIES” supported by (1) resources, (2) facilities, and (3) information that interact to achieve some BUSINESS FUNCTION.
• Turns input –> higher value output.
• Levels of abstraction: high level value chain can be broken down into smaller sub processes.

Question 2

What does a business process specify? Give an example.

Answer 2

• The interaction between (1) flows of info and documents (e.g. purchase orders), (2) flows of materials and products, (3) flows of money.
• Often CROSS - FUNCTIONAL.
  e. g. Order fulfilment process.

Question 3

What are the 4 CHARACTERISTICS of a well-designed business process?

Answer 3

1. Complete: includes all activities necessary to achieve the business goal.
2. Minimal: no unnecessary activities. (cost efficiency).
3. Well - structured: activities organized in logical sequence.
4. Embedded: BP logically connects with other BP’s in the organization.

Question 4

What are the 2 OUTCOMES of a well-designed business process?

Answer 4

• increased effectiveness (i.e. quality / value for customer)
• increased efficiency (i.e. less cost for company)

Question 5

What are the 6 COMPONENTS of a business process?

Answer 5

1. Activities: transform resources / info from one type to another type.
2. Decisions: yes / no?
3. Roles: look after sets of procedures (e.g. AR, AP).
4. Resources: people, facilities, programs that are assigned to roles.
5. Repositories: collection of business records (database).
6. Data / information flow: movement of data item from one activity to another activity / repository / database.

Question 6

How do IS support BP’s?

e.g. How does IS support counter sales process?

Answer 6

• Several activities may use 1 integrated IS. (e.g. order entry + invoicing).
• Activity may have its own IT system.
• Activity may use several IT systems.
• New BP may require design of new IT system. New IT systems may automate some manual activities in the BP. (e.g. Opal cards need system to verify credit).
• New IS can facilitate new activities / lead to changes in BP’s. (e.g. make activities automated therefore more efficient).

Question 7

What are the benefits of using IT in BP’s?

Answer 7

• More accurate info: if BP’s draw on IT databases.
• Automation of manual activities.
• More streamlined –> faster: ERP systems can facilitate quick hand-over of activities due to real time updating of info.
• All leads to reduced cost!!

Question 8

Which statement describes a business process?

a) A business process describes computer processes in a time-wise and logical manner.
b) A business process is a structured network of activities that requires inputs to fulfil a business goal.
c) A business process is the hierarchy of a company’s business functions ordered in a logical manner.
d) None of the above.

Answer 8

B!

Question 9

With abstraction of a business processes we refer to … …

a) Processes that are carried out by computer systems.
b) Processes at different levels of detail (e.g. divisional, work level).
c) Processes that draw on information as their input.
d) None of the above.

Answer 9

B!

Question 10

Which statement is correct?

a) The introduction of a new computer system in a business function might lead to changes in the existing business processes.
b) Business processes need to be managed separately from any existing information systems.
c) All business processes in an organization should be automated using modern computer systems.
d) In order to innovate, one needs to replace activities in a business process with information systems.

Answer 10

A!