Q7-4 How Can Information Systems Be Used to Improve Processes?

Question 1

What role do Information Systems (IS) play in improving business processes?

Answer 1

IS are increasingly important in business processes, providing new and promising options for improving activities, data flow, control, automation, and procedures in various processes.

Question 2

What are the five ways that Information Systems can improve processes?

Answer 2

Improve an activity

Improve data flow among activities

Improve control of activities

Use automation

Improve procedures

Question 3

How can IS improve an activity?

Answer 3

IS can improve activities by adding tools like GPS for deliveries or using medication checkers in hospitals to ensure prescriptions don’t conflict with patient allergies or medications.

Question 4

How can IS improve data flow among activities?

Answer 4

IS can improve data flow by electronically sharing data, such as using GPS to track order processes in a delivery or electronically sending prescription information to a pharmacy.

Question 5

How can IS improve the control of activities?

Answer 5

IS can provide better control over process details, such as reducing appointment no-shows in hospitals or managing order details in a pizza shop.

Question 6

How can automation improve processes?

Answer 6

Automation can handle repetitive tasks, such as sending scheduled tweets for promotions or answering phones in hospital reception areas.

Question 7

How can IS improve procedures?

Answer 7

IS can streamline and improve procedures, such as optimizing payment processes in a pizza shop or rewriting office procedures in a hospital to enhance efficiency.

Question 8

How can IS improve data flow among activities in a process?

Answer 8

IS can improve data flow by allowing data to move between different activities in real time, improving decision-making and efficiency, such as using GPS to track orders in a delivery process.

Question 9

How does improving data flow enhance the delivery process in a pizza shop?

Answer 9

By integrating order data with GPS displays in delivery cars, drivers can plan better routes, decide when to stop for gas, or coordinate deliveries more efficiently, improving delivery times.

Question 10

How can IS improve the data flow in hospital prescription processes?

Answer 10

IS can transmit prescription data directly to the pharmacy, reducing waiting time and minimizing errors compared to hand-written prescriptions.

Question 11

What are the benefits of improved data flow in the prescription process at a hospital?

Answer 11

Improved data flow reduces prescription wait time and decreases the likelihood of errors that can occur with handwritten prescriptions.

Question 12

How can IS improve the control of activities in a process?

Answer 12

IS can improve control by limiting variations in activities, ensuring processes run smoothly and consistently, such as using software to check for incomplete orders at a pizza shop.

Question 13

What is the general role of control in a process?

Answer 13

Control limits behavior in a process, reducing variations and providing consistent results.

Controls ensure activities stay within set parameters, like an alarm clock controlling wake-up time or a PIN controlling banking transactions.

Question 14

What are some examples of controls used in daily life?

Answer 14

Examples include an alarm clock (wakes you up), cruise control (manages vehicle speed), phone passwords (restrict phone access), social media privacy settings (control who sees content), and ATM PINs (control access to banking).

Question 15

How does control help reduce exceptions in a business?

Answer 15

Controls help minimize exceptions—unexpected outputs like incomplete orders or missing parts—that require managers to intervene.

By reducing exceptions, controls limit disruptions and improve consistency.

Question 16

How does a hospital use control to manage appointment no-shows?

Answer 16

Hospitals send automated text and voice reminders to patients about upcoming appointments to reduce no-shows.

This control helps ensure patients attend their appointments and reduces schedule disruptions.

Question 17

What is automation in the context of information systems (IS)?

Answer 17

Automation means that a computer performs an activity or part of an activity that was once done by a person. It can involve robots or artificial intelligence (AI).

Question 18

How has automation improved processes in businesses?

Answer 18

Automation improves processes by replacing human tasks with computer-based systems, increasing efficiency, consistency, and accuracy.

Examples include ATMs replacing bank tellers and e-commerce sites replacing salespeople.

Question 19

What are the benefits of automation over human labor?

Answer 19

Automation provides advantages such as increased productivity, speed, quality, scale, consistency, and reduced human injury.

Automated systems do not require vacations, breaks, or have errors caused by fatigue.

Question 20

What are the limitations of automation compared to human labor?

Answer 20

While automation improves control and consistency, it lacks the flexibility, judgment, and ability to adapt to uncertainty that humans provide, especially in complex or high-judgment tasks like medical diagnosis or risk assessment.

Question 21

Why is the decision to automate not straightforward?

Answer 21

The decision to automate is difficult because automation offers advantages in efficiency and consistency, but it also has downsides like upfront costs, security risks, and the need for maintenance.

Additionally, humans are better suited for tasks requiring judgment, flexibility, and interaction.

Question 22

How do Information Systems (IS) and processes relate to each other?

Answer 22

Each process can rely on zero, one, or many IS, and each IS may support one or many processes.

Question 23

What is the role of a procedure in an Information System (IS)?

Answer 23

A procedure anchors an IS to a process. Each application of an IS to a process has a unique procedure.

Question 24

How does the ‘Go To Movie’ process illustrate the connection between IS and procedures?

Answer 24

The ‘Go To Movie’ process can be executed with different procedures (e.g., Alone Procedure, With Friends Procedure), and each uses the same IS (a smartphone) in different ways.

Question 25

What can happen if procedures are not well understood or followed?

Answer 25

Poorly understood procedures can hinder the effectiveness of processes.

For example, in a pizza shop, a misunderstanding of the payment procedure using student ID cards affected sales until the procedure was clarified.

Question 26

How can improving a procedure enhance a process?

Answer 26

Improving a procedure can lead to a better process outcome by making it more efficient and reducing mistakes.

For example, fixing how to search for nearby theaters or reviews can improve the ‘Movie Process.’

Question 27

What challenge did healthcare professionals face when switching to a new IS under the Affordable Care Act?

Answer 27

They found that although the hospital’s processes were appropriate, the procedures for the new IS were not understood, leading to process issues.

Question 28

Why is it important to update procedures when an IS or process changes?

Answer 28

When a new IS is purchased or a process changes, the procedure should also change.

Otherwise, the old procedure may not work well with the new system, leading to inefficiencies.

Question 29

How does the price-performance ratio of computers affect process improvement through IS?

Answer 29

As the price-performance ratio of computers continues to improve, more opportunities to enhance processes with IS become available, leading to more efficient business operations.

Question 30

What is an ERP system, and how does it improve processes?

Answer 30

ERP (Enterprise Resource Planning) systems are multimillion-dollar systems designed to improve a wide range of business processes, often leading to significant improvements in efficiency and integration.