Key Concepts - Week Two Flashcards
Business Processes:
Flows of material, information, knowledge (may be assets or liabilities)
Types of Business Processes:
- Manufacturing and Production
- Sales and Marketing
- Finance and Accounting
- Human Resources
Manufacturing and Production:
Assembling the product
Sales and Marketing:
Identifying customers
Finance and Accounting:
Creating financial statements, paying suppliers
Human resources:
Hiring employees, paying employees
IT improves BP by increasing ___________ and enabling entirely new processes
efficiency
Transaction Processing Systems:
Systems that process basic data transactions in an organization
Serves operational managers to perform daily transactions to conduct business (e.g. sales order, payroll, online purchases)
Allow managers to monitor status of operations and relations with external environment
Business Intelligence (MIS, DSS, ESS):
Contemporary term for data and software tools for organizing, analyzing, and providing access to data to help managers to make informed decisions
Addresses decision making needs of all levels of management
Management Information Systems (MIS):
Systems designed to convert raw data from TPS (reports on current performance) into useful information
Information is used to monitor and control the business and predict future performance.
MIS provides answers for routine questions that have been specified in advance and have predefined procedure for answering them
Serves middle management
Decision Support Systems (DSS):
Information systems that support business or organizational decision-making activities
Focuses on problems that are unique and rapidly changing for which the procedure for arriving at a solution may not be fully predefined in advance
Improved decision making and supports nonroutine decision making
Serves middle management
Executive Support Systems (ESS):
They address nonroutine decisions requiring judgement, evaluation, and insight
Presents graphs and data from sources through an interface that is easy for managers to use
Incorporates data about external events (new laws or competitors_ and summarizes information from internal MIS and DSS)
Helps senior management make these decisions
Enterprise Resource Planning Systems (ERP):
Integrate business processes into a single software system
(e.g. when a customer places an order, data flows to other parts of the company, warehouse, accounting, and customer service are notified)
Supply Chain Management (SCM):
Systems help suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels, and delivery of products from their source to their point of consumption in the least amount of time.
Inter-organizational systems:
Automate the flows of information across organizational boundaries.
Share information about: Orders, production, inventory levels, delivery of products and services.
