Define business processes and their relationship to information systems

define business processes and their relationship to information systems

The Relationship Between Information System s Management and y's sake, that the notion of IS management has a fairly broad meaning, which will . there is a cl ear understanding of business processes and activities and. But what is a process and how does it tie into information systems? And in what ways do processes The better their processes, the more effective the business. There are four major types of information systems in contemporary Analyze the relationship between organizations, information systems, and business processes. Supply chain management systems help the firm manage its relationship.

The better their processes, the more effective the business. Some businesses see their processes as a strategy for achieving competitive advantage. A process that achieves its goal in a unique way can set a company apart. A process that eliminates costs can allow a company to lower its prices or retain more profit.

Documenting a Process Every day, each of us will conduct many processes without even thinking about them: But as processes grow more complex, they need to be documented. For businesses, it is essential to do this, because it allows them to ensure control over how activities are undertaken in their organization.

It also allows for standardization: The simplest way to document a process is to simply create a list.

define business processes and their relationship to information systems

The list shows each step in the process; each step can be checked off upon completion. For example, a simple process, such as how to create an account on eBay, might look like this: Choose your user ID and password. For example, here is the process for determining if an article for a term needs to be added to Wikipedia: Search Wikipedia to determine if the term already exists. If the term is found, then an article is already written, so you must think of another term.

If the term is not found, then look to see if there is a related term. If there is a related term, then create a redirect. If there is not a related term, then create a new article. This procedure is relatively simple — in fact, it has the same number of steps as the previous example — but because it has some decision points, it is more difficult to track with as a simple list.

In these cases, it may make more sense to use a diagram to document the process: Process diagram for determining if a new term should be added to Wikipedia click to enlarge.

Public Domain Managing Business Process Documentation As organizations begin to document their processes, it becomes an administrative task to keep track of them.

As processes change and improve, it is important to know which processes are the most recent. It is also important to manage the process so that it can be easily updated!

A document management system stores and tracks documents and supports the following functions: The document management system will keep multiple versions of documents.

The most recent version of a document is easy to identify and will be served up by default.

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When a process needs to be changed, the system will manage both access to the documents for editing and the routing of the document for approvals. When a process changes, those who implement the process need to be made aware of the changes.

A document management system will notify the appropriate people when a change to a document is approved. Of course, document management systems are not only used for managing business process documentation.

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  • Managing Business Process Documentation
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Many other types of documents are managed in these systems, such as legal documents or design documents. ERP Systems An enterprise resource planning ERP system is a software application with a centralized database that can be used to run an entire company. An ERP system click to enlarge A software application: The system is a software application, which means that it has been developed with specific logic and rules behind it.

It has to be installed and configured to work specifically for an individual organization. With a centralized database: All data in an ERP system is stored in a single, central database. This centralization is key to the success of an ERP — data entered in one part of the company can be immediately available to other parts of the company.

That can be used to run an entire company: If they so wish, companies can purchase modules for an ERP that represent different functions within the organization, such as finance, manufacturing, and sales. Some companies choose to purchase many modules, others choose a subset of the modules.

When an ERP vendor designs a module, it has to implement the rules for the associated business processes. A selling point of an ERP system is that it has best practices built right into it. In other words, when an organization implements an ERP, it also gets improved best practices as part of the deal! For many organizations, the implementation of an ERP system is an excellent opportunity to improve their business practices and upgrade their software at the same time.

But for others, an ERP brings them a challenge: Is the process embedded in the ERP really better than the process they are currently utilizing? And if they implement this ERP, and it happens to be the same one that all of their competitors have, will they simply become more like them, making it much more difficult to differentiate themselves? The good news is that ERP systems also have the capability to be configured with custom processes.

Chapter 8: Business Processes – Information Systems for Business and Beyond

For organizations that want to continue using their own processes or even design new ones, ERP systems offer ways to support this through the use of customizations. But there is a drawback to customizing an ERP system: Whenever an update to the ERP system comes out, any organization that has created a custom process will be required to add that change to their ERP. This will require someone to maintain a listing of these changes and will also require retesting the system every time an upgrade is made.

Organizations will have to wrestle with this decision: When should they go ahead and accept the best-practice processes built into the ERP system and when should they spend the resources to develop their own processes? It makes the most sense to only customize those processes that are critical to the competitive advantage of the company.

Define and describe business processes and their relationship to information systems ?

Business Process Management Organizations that are serious about improving their business processes will also create structures to manage those processes. BPM is more than just automating some simple steps. These devices have grown exponentially in sheer numbers and in applications available.

They are often easier to use and cheaper than more proprietary knowledge management systems. They also provide a more dynamic and current repository of knowledge than other systems. Explain how intranets and extranets help firms integrate information and business processes.

Because intranets and extranets share the same technology and software platforms as the Internet, they are easy and inexpensive ways for companies to increase integration and expedite the flow of information within the company intranets alone and with customers and suppliers extranets.

They provide ways to distribute information and store corporate policies, programs, and data. Both types of nets can be customized by users and provide a single point of access to information from several different systems.

Businesses can connect the nets to transaction processing systems easily and quickly. What is the difference between e-business, e-commerce, and e-government? Distinguish between e-business and e-commerce. It includes internal business processes and processes for coordination with suppliers, customers, business partners, and government regulators.

E-commerce is a narrower part of e-business dealing with the purchase and sale of goods and services over the Internet, including support activities such as marketing and customer support. Define and describe e-government.

What is the role of the information systems function in a business?

define business processes and their relationship to information systems

Describe how the information systems function supports a business. The information systems departments is the formal organizational unit responsible for information technology services. Compare the roles played by programmers, systems analysts, information systems managers, the chief information officer CIOchief security officer CSOchief knowledge officer CKO. The CSO is responsible for educating and training users and IS specialists about security, keeping management aware of security threats and breakdowns, and maintaining the tools and policies chosen to implement security.

Once you have completed the case study please answer all questions relating to the case study, which are located at the end of each case study.

Learning Objectives

What problems does Air Canada hope that Maintenix will solve? How does Maintenix improve operational efficiency and decision-making?

The Maintenix information system provides integrated, intelligent aviation maintenance, repair, and operations software. The Maintenix system is accessible via the Web and easy to deploy to all stations around the world. It reduces repetitive tasks and time chasing missing or incomplete information by allowing maintenance, engineering, and finance divisions to easily share information. Wireless deployment also makes Maintenix more effective, since aviation technicians, equipment, and parts are always on the move.

Give examples of three decisions supported by the Maintenix system. What information do the Maintenix modules provide to support each of these decisions?

Three decisions supported by the Maintenix system may include: The various types of systems in the organization exchange data with one another. ESS primarily receive data from lower-level systems. Describe the information systems supporting the major business functions: At each level of the organization information systems support the major functional areas of the business.

Manufacturing and production systems deal with the planning, development, and production of products and services, and controlling the flow of production. Human resources systems maintain employee records; track employee skills, job performance, and training; and support planning for employee compensation and career development. Analyze the relationship between organizations, information systems, and business processes.

Business processes refer to the manner in which work activities are organized, coordinated, and focused to produce a specific business result.

They also represent unique ways in which organizations coordinate work, information, and knowledge and the ways in which management chooses to coordinate work.