Lesson 2: Business Processes and Decision Making Flashcards
business process
“business system” is another name for this
A series of activities, tasks, or steps designed to produce a product or service
Has four components:
1. activities
2. resources
3. facilities
4. information
examples of business processes
- inventory management processes
- manufacturing processes
- sales processes
- customer support processes
what are some names of data headings in an inventory database?
- quantity ordered
- quantity on hand
- reorder point
- quantity received
system analysis and design
modelling and designing activities in information systems with a goal to understand how an organization works
activities
parts of a business process that transform resources and information of one type into resources and information of another type; can be manual or automated
resources
items of value, such as inventory or funds, that are part of a business process
facilities
structures used within a business process
information
the fourth element of a business process\
- knowledge derived from data (data = recorded facts or figures)
- data presented in a meaningful context
- data processed by summing, ordering, averaging, grouping, comparing, or other similar operations
- a difference that makes a difference
- activities use information
- the data is just the data; the information you conceive from it is the value you add to the information system
OMG
Object Management Group
- a software industry standards organization that has developed graphical notations for documenting business processes
BPMN
Business Process Modelling Notation
www.bpmn.org
- created by OMG
- basic symbols that are easy to understand
- help you to map the business process of an organization
characteristics of good information
- accurate
- timely
- relevant to context and subject
- just barely sufficient
- worth its cost
business process management
A field of management that promotes the development of effective and efficient processes through continuous improvement and innovation
What are some names of methods used to support improving an organization’s business processes?
- TQM Total Quality Management (method focused on improving quality)
- six sigma (developed by Motorola that focuses on developing quality)
- lean production (a manufacturing method focused on using resources as efficiently as possible)
What are some tools used to support improving an organization’s business processes?
- lean value map streaming
- process mapping tools like MS Visio
automated system
an information system in which the hardware and software components do most of the work
manual system
an information system in which the activity of processing information is done by people, without the use of automated processing
operational decisions
decisions that concern the day to day activities of an organization
TPS
Transaction processing systems
an information system that supports operational decision making
managerial decisions
decisions that concern the allocation and use of resources
MIS
Management information systems
Information systems that help businesses achieve their goals and objectives
strategic decisions
decisions that concern broader-scope, organizational issues
structured decision
a type of decision for which there is a formalized and accepted method for making the decision
unstructured decision
a type of decision for which there is no agreed-on decision making method
intelligence gathering
the first step in the decision-making process in which decision makers determine what is to be decided, what the criteria for selection will be, and what data are available
alternatives formulation
a step in the decision-making process in which decision makers lay out various alternatives
choice (as a step in the decision making process)
the decision makers analyze their alternatives and select one
implementation
a step in the decision-making process in which decision makers implement the alternative they have selected
review
the final step in the decision making process
- decision makers evaluate results of their decision and if necessary repeat the process to correct or adapt the decision
What are the five steps in the decision making process?
- intelligence gathering
- alternatives formulation
- choice
- implementation
- review
just barely so
information that meets the purpose for which it is generated, but just barely so
