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MIS Chapter 2 Study

Business Process
a network of activities for accomplish a business function

Examples,

Buying inventory, selling to customers, manging inventory, paying bills, collecting revenue

How does the business process work?
– Vendors agree to sell a certain quantity of times to your store at a very low prices
– The store negotiates the total quantity and price for the item
– Conducts a sale
– Sale ends –> operation orders the total amount sold from the vendor
– The store gets the items in bulk and repackages them for shipment to customers
– customers receive the items.
BPMN (Business process modeling notation)
is an international standard for creating business process diagrams
Swim lane format
graphical arrangement in which all of the activities for a given role are shown in single vertical or horizontal lane
Activites
are specific tasks that need to be accomplished as part of the process

= transform resources and info to one type to another

Its the rectangle

Role
Is a subset of the activities in a business process that is performed by an actor.

set of procedures

Actor
which is a person, group, department, or organization
Start of business
Circle having a narrow border
End of a business
circle having a thick border
Repository
which is a collection of data that is stored within the business process
– Can be computer databases, collection of files, the internet, printed records in a file cabinet
– particular medium is unimportant
-business records
– Contains data from prior auctions and prior buyer searchers and product data
Resources
People or facilities
Decisions
Yes or No
Dataflows
Represents the movement of data from one activity to another
– labeled dashed lines
– email, text message, over the phone, by fax
– medium is unimportant
Sequence flows
– solid lines between activities
– Activity finishes the next one starts
Sub-Process
An activity with a boxed plus sign inside it
– used when the word to be done is SUFFICIENTLY COMPLEX AS TO REQUIRE A PROCESS DIAGRAM OF ITS OWN
summzarize
– a business process is a network of activities
– each activity is performed by a certain role
– roles are taken by people, groups, departments and organizations
– repositories are collections of data
– data flows between activities; when one activity follows directly after another than its called sequence flow
– complex activities are represented by Sub-processes
Process quality
info systems improve process quality

can be branched out by process effectiveness and process efficiency

Process effectiveness and process efficiency
Process effectiveness: is one that enables the organization to accomplish its strategy
For example, some parts of the business model is uneffective and creates trouble; fix it to raise process quality to change its structure; integrated repository of vendor data

Something that can improve process effectiveness and effectiveness is to have tracking lables

Process Efficiency: the ratio of benefits to costs

One costs more than the other does; higher costs is less efficient and vice versa

One versions costs the same but one generates less benefits than the other one does’ lower benefits is less efficient

Automation
more efficient
generates more benefits
Work formly done by people following procedures and has been moved to computers that perform the work
– Human side to the computer side: right to left

– one way to automate the process would be to use a product such as EXCEL
– the time for finding past and performing analyses would be reduced –> lower costs of process
– The buyer would have a faster and more reliable means of finding RELEVANT DATA
– TIME REQUIRED TO PEFROM THE ANALYSIS AND LCOATE PAST ANALYSES WOULD BE REDUCED AND THE COST OF THE PROCESS WOULD DECREASE

HOWEVER, costs must be considered
can be cost inefficient

Bottom Line
info systems can increase process quality by increasing both process efficiency and effectiveness
Information
Fundamental terms, defining words such as alive and truth
– knowledge derived from data
– Information is data presented in a meaningful context
– is processed data or someitmes information is data processed by summing , ordering, averaging, grouping, comparing or other similar operations
Data
recorded facts and figures
Accurate
Accurate, correct, complete data

Always use a new info system –> be skeptical
Cross check data
If this happens (inaccurate) –> waste of money

Timely
available in time for its intedned use
late –> uselss
Relevant
Relevant to the context and to the subject
Just barely sufficient
Data needs to be sufficient for hte purpose for which it is generated but barley so

The higher you rise in management –> more data

Worth its costs
data is not free
Costs for developing an information system and costs of operating it is not free.

Value and costs

Egocentric vs Empathetic
Egocentric: considers his or her view “the real view
Empathetic: view different possible interpretations
– important business skill
Egocentric
– argumentative

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