Business Processes, Information, and Information Systems

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Chapter 2

• Business Processes, Information, and Information
  Systems

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Study Questions
Q1 Why do we need to understand business
processes? Q2 What is a business process? Q3
How can information systems improve process
quality? Q4 What is information? Q5 What data
characteristics are necessary for quality
information?
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Study Processes and Look for Inefficiencies
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Q2 What Is a Business Process?

• A network of activities, resources, facilities,
  and information that interact to
  achieve/accomplish some business function.

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FlexTimes Three Business Processes
Figure 2-1
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Register Participants Process
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Register Participants Process
Figure 2-4
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Process Symbols (BPMN Standard)
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Components of a Business Process
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Q3 How Can Information Systems Improve Process
Quality?
Figure 2-3
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Revised GearUp Process Using BPMN
Buyers and Operations share a single, integrated
repository of vendor data
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Q4 What Is Information?
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Where Is Information?

• Graph is not, itself, information
• Graph is data you and others perceive, use to
  conceive information
• Ability to conceive information from data
  determined by cognitive skills
• People perceive different information from same
  data

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5. Characteristics of Quality Information?
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Characteristics of Quality Information (contd)
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Q6 Where Is the Information in Business Processes?

• Information Stored in Repositories

Status
Member Records
Check Membership Status
Customer data Name, Email, Address, Phone(s),
DateOfBirth Membership data DateOfMembership,
MembershipType, FeePaid, ExpirationDate Course
data Name, Description, StandardFee,
PromotionalTerms Class data CourseName,
StartDate, EndDate, Instructor, AvailableSeats
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Information for Unstructured Processes
Quality of information determined by people and
procedures used to interpret that data
Data is a stimulus that causes you to create
information in your mind
Data
Your mind and your thinking are most important
part of an information system
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How Does the Knowledge In This Chapter Help You?

• Be able to document GearUps business processes,
  and explain in a professional way how GearUp
  should develop new or adjust existing information
  systems
• Think about similar issues you will likely
  encounter in your career.
• Go through Ethics Guide topics in the textbook

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Additional Points
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SystemsThat Span the Enterprise
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Active Review
Q1 Why does the GearUp team need to understand
business processes? Q2 What is a business
process? Q3 How can information systems improve
process quality? Q4 What is information? Q5
What data characteristics are necessary for
quality information?
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Case Study 2 Fulfillment by Amazon (FBA)
  Sold via Amazon.com Sold elsewhere
Order handling (per order) 1.00 4.75 ()
Pick pack (per item) 1.00 0.75
Weight handling (per pound) 0.37 0.45 ()
Storage (cubic foot per month) Minimum 0.45 (rates vary by time of year) Minimum .045 (rates vary by time of year)