Business Processes and Information Systems

Business Processes and Information Systems

• Business processes involve the flow of materials, information, and knowledge.
• Can be functional (specific to one area) or cross-functional (spanning multiple areas).
• Efficient processes are valuable, whereas inefficient ones can be liabilities.

Types of Business Processes

• Manufacturing and Production: Assembling a product
• Sales and Marketing: Identifying customers
• Finance and Accounting: Creating financial statements
• Human Resources: Hiring employees

The Order Fulfillment Process

• Sales: Receives the order and processes it.
• Accounting: Ensures payment is processed and recorded.
• Manufacturing: Assembles and ships the product to the customer.

Types of Information Systems

• Transaction Processing Systems (TPS): Handle routine, structured tasks.

  • Focus on predefined goals and decision-making.
  • Examples: Sales order entry, payroll, shipping.
  • Provide managers with operational status and external relations insights.

• Enterprise Applications: Connect different parts of a company.

  • Support various business processes and management levels.

Enterprise Applications

• Enterprise Systems: Manage core business activities.

  • Integrate data from various departments into a central location.
  • Help with coordinating activities, responding to customer orders, and improving decision-making.

• Supply Chain Management (SCM): Manage relationships with suppliers.

  • Share information like orders, production, inventory, and deliveries.
  • Goal is to ensure the right products reach their destination efficiently and cost-effectively.

• Customer Relationship Management (CRM): Manage interactions with customers.

  • Streamline processes related to sales, marketing, and customer service.
  • Identify, attract, and retain profitable customers.

• Knowledge Management Systems (KMS): Capture and share company knowledge.

  • Support product creation and delivery, knowledge collection and sharing, and access to external expertise.

E-business and E-commerce

• E-business: Using digital technology and the internet to manage and improve business processes.
• E-commerce: A part of e-business that focuses on buying and selling goods and services online.

Intranets and Extranets

• Intranets: Internal company websites accessible only to employees.
• Extranets: Company websites accessible by external partners like vendors.

How IT Improves Business Processes

• Efficiency: Automating tasks that were previously done manually.
• New Processes: Changes how information flows, enables parallel tasks, reduces decision delays, and supports new business models.

Business Intelligence

• Tools and data to help managers and users make better decisions.

Management Information Systems (MIS)

• Provide regular reports for decision-making.
• Utilize data from Transaction Processing Systems (TPS).
• Focus on generating reports rather than deep analysis.

Decision Support Systems (DSS)

• Support non-routine decision-making.
• Utilize both external information and data from TPS & MIS.
• Types: Model-driven DSS (complex calculations) and Data-driven DSS (large data analysis).

Executive Support Systems (ESS)

• Assist senior management with strategic decisions.
• Utilize data about external events and summarized information from MIS & DSS.
• Examples: Digital dashboards for financial performance.

Information Systems Department

• Manages the company's technology services.

Key Roles in the Information Systems Department

• Chief Information Officer (CIO): Leads the department and oversees IT strategy.
• Chief Security Officer (CSO): Focuses on IT security.
• Chief Knowledge Officer (CKO): Manages the company's knowledge resources.
• Chief Privacy Officer (CPO): Ensures data privacy and compliance.
• Programmers: Write and maintain software code.
• Systems Analysts: Design solutions for business problems.
• Information Systems Managers: Oversee IT teams and daily operations.

IT Governance

• Creates strategies and policies for how IT is used within the organization.
• Defines decision rights and accountability for IT-related decisions.
• Organizes the information systems function, which can be centralized or decentralized.

End Users

• Representatives from other departments who use the applications developed for them.
• Increasing role in system design and development to ensure technology meets their needs.

This quiz explores the fundamentals of business processes and the role of information systems in various functions. It covers types of business processes such as manufacturing, sales, and finance, highlighting the importance of efficiency. Additionally, it delves into transaction processing systems and their applications.