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Institutional Affiliation
Student’s Name
Course
Instructor’s Name
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Chapter 2 Summary Business Processes and Decision Making

2. “What a Waste!”
The word “waste” is as not attending all meetings. Felix not attending all meetings:
wasted time covering old ground Waste means “to spend money or resources in a wasteful
manner” or “the loss of something useless or unprofitable” In the old days of people having to
use pencils, paper, and books for class, we’re asking for our time back.
3. Study Question 2/2 2-1
The stuff got here: “what are the components of a business process?” What is a process?
Process is how something gets done. A process is defined as “a sequence of actions or
activities involving people, equipment, and materials that result in a result. “Component means
part of something. Components are things that make up something. The components of a
business process can be defined as:
• Work flow
• Work queues or work packages
• Work order queues or work packages for manufacturing operations • Service delivery processes
•
Business process is something that teaches people and information about how to do a procedure
or how to operate.
Information refers to message or meaning.
Information is something that tells a story and gives meaning.
4. Study Questions (2 of 2)
The role of information in business processes is that it lets people know how to do something or
why something has happened. Information systems support business processes by providing a
way to capture and disseminate information, a way to record information, and other ways of
communicating. Information systems support decision making by making data available in an
understandable way. They help perform the analysis needed for decision making and support the
communication of decisions. In my role as an accounting student, I would be responsible for
supporting business processes through the creation system reports such as invoices that can be
used in the manufacturing process. I would also assist in providing data to decision makers based
on business intelligence reports created from operational data that gives information on sales
trends, promotional efforts, pricing, etc.
5. Q2-1: How Did This Stuff Get Here?
The way Stuff got here involves process. A process is a series of actions and events that causes
something to happen. In any kind of business process, you can think of a beginning, an
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intermediate point in the process, and an end. Some things you need to do in order to get stuff to
get where it needs to go are:
• Be ready for what you are trying to do or a need for something by making sure it will be
accessible when needed.
• Have enough stuff or materials for what was wanted so that the process will work properly.
• Find people who can do something right without many errors so that the result is good and
done right.
6. Q2-2: What Is a Business Process? (1 of 3)
Business process entails a number of steps or tasks undertaken to realize a particular
business objective. It starts with inventory management and ends with accounting. A business
process is a set of activities that transforms input into output, or vice versa. The resources used in
these activities are called resources (e.g., capital, human resource) and the results are output to
satisfy the objective. Business Processes (or Business Systems) are systems of interacting
processes related to (1) materials, equipment used in production or processing; and (2) sales
revenue, expenses of sales and profits, production costs etc. or other data.
[Link] 2-1 Model of a Sales and Inventory-management Business Process
The Model of sales and inventory-Management business process. The client's order is the
beginning. Inventory is the intermediate step. The number of materials needed for production is
sent to the warehouse for storing. There are different kinds of inventory: raw material (materials
used in production), work in progress (finished products ready to be sold), and finished goods
(products ready to be shipped). Production Orders are work orders that instructor assign someone
to make a specific item or products. In this process, because we are talking about manufacturing,
there will probably be a step of scheduling production jobs and assigning people to do them. This
would be the end of this process. Inventory Movement is an intermediate step again. The
inventory movement process follows the receipt of materials into stock at the warehouse. The
number of materials in stock will be determined from the just-in-time manufacturing process.
When inventory turns over, it will be sent to other production or sales work. Depreciation
determines how much of a company’s investment in property, plant and equipment will be
replaced over a period of time. In this example, it accounts for the depreciation investment in
inventory used to make products that are actively involved in moving through supply chains or
are close to being delivered to customers.
8Q2-2: What Is a Business Process? (2 of 3) Sales and inventory elements (see Fig 2-1) are
often considered part of the “supply chain”
Managing inventory is a business process, with the goal of ensuring enough inventory to fulfill
customer requests, but not too much so that goods could spoil inventory management balances
demands of customers with inventory purchased. Business process is a series of activity that
involves people, equipment and materials that result in an output. Sale and Inventory
Management is a business process that involves the end product, in this case, the end product is
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sales. Inputs are raw materials and parts used in production and warehouse locations where
inventory is stored and output consists of sales of goods and services. Sales management is a
process that may include marketing, specifying customer requirements, order processing,
delivery scheduling, inventory control, customer follow-up, invoicing etc., which work together
to form a complete system of activities with inputs Imply outputs. The Sales Management
System (SMS) is all these activities as worked out for each company’s own unique situation.
9. Q2-2: What Is a Business Process? (3 of 3)
Purchasing is an activity in inventory management as business process of purchasing.
purchasing is critical to inventory management. Purchasing is an activity that requires planning,
monitoring and control. Inventory Control is a part of the sales and inventory management
business process. It involves managing the level of material in stock and deciding when more
should be ordered (referred to as stock levels). The goal is to reduce costs by ordering only
enough materials to meet customer demand, but not too much so that valuable shelf space will be
taken up with unused inventories. Once a purchase order has been made, it is sent to the
warehouse for picking into work areas. After picking at the warehouse, it is sent back through the
receiving department at the manufacturing plant where it will be used in production or sold
directly to customers.
10. Q2-3: What Are the Components of a Business Process?
The component of Business process is:
• Activities: Operation, support or management of a process that transforms inputs into outputs.
• Resources: Material, human and physical investments in equipment, machinery and real estate
used to carry out the process.
• Facilities: Building, office space and vehicles used to carry out the business activity.
• Information: Data generated by the activities of the business process.
11. Activities
Activities transform resources and information of one type into resources and information of
another type. Follow rules and procedures Can be manual, automated, or combination. Example:
Payment (activity) transforms quantity received (information) and shipping invoice (information)
into supplier payment (resource). The output of sales activity is sale (energy) while the output of
purchase activity is payment (energy)
12. Resources
Resources have to do with following activities:
• Capital: Money, plant, equipment and human resources (cash)
• Human Resources: Labor,
• Labor: People and their time
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• Materials: Raw materials used in production or processing

13. Facilities
Facilities include buildings, vehicles, office space and land used to carry out the business
operations. Facilities are of three types: fixed capital or machinery; inventory or material; and
operational overhead including management overhead and general overhead costs.
14. Information
Information is the most important element in a business process. Information includes customer
and product related data, inventory data, financial data, cost and pricing data and status
indicators (such as production schedule).
15. What Is Information? (1 of 2)
Data is the information that transforms resources and information into output (energy).
The knowledge derived from data is the basis of all business decisions. The form of the
knowledge is what is valuable. The Information that Transforms Resource and Information into
Output Data Is Presented in a Meaningful Context
16. What Is Information? (2 of 2)
The process data is part of a system. The new information makes a difference in the
business process. Data, Information and Knowledge Data Can be used to make decisions that
result in actions and actions affect outcomes. Knowledge is the effects of decisions and actions.
17. Characteristics of Good Information (1 of 2)
Information being accurate is a check on the validity of the knowledge generated from it.
The accuracy enhances the credibility of the decision made from the data and information. It
being timely is a check on the timeliness of the decision. Inputs to the process must be timely for
the process to flow efficiently. The output of a business cannot be timely if information and
materials are late.
18. Characteristics of Good Information (2 of 2)
It is significant in nature, critical to decision making and meaningful to stakeholders. Relevant or
Significant The quality of information determines its relevance or significance as it affect
decision making and actions taken by management. It is based on correct, complete data
processed correctly at the right time and in a meaningful context. This is a check on the validity
of information and knowledge generated from it, because it enhances credibility and timeliness
of decisions based on such information.
19.Q2-5: What Is the Role of Information in Business Processes?
Information plays a crucial role in Business process. It controls, directs and plans the activities of
the process. Information is used to make decisions that by directing actions are made by
management. Use of information leads to all sorts of actions.
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20. Business Process Management (BPM)

This process involves management of all the activities and information in any business to make it
more efficient or better. Business process management takes as its input data, information and
knowledge regarding the business and uses this to guide and control operations.
21. Q2-6: How Do Information Systems Support Business Processes?
The way Information system Supports Business Processes is by collecting, processing and
storing data. Analyzing this data and using this information to guide decisions can give
management the information needed to improve business processes. The purpose of data
collection, analysis and use is to make the process run faster, more efficiently and at a lower cost.
22. What Does It Mean to Automate a Process Activity? (1 of 2)
Automating a process implies replacing manual processing with automated processing. This may
mean that some activities are done manually while others are automated. Using software and
computer hardware are examples of process automation.
23. What Does It Mean to Automate a Process Activity? (2 of 2)
A computer is a machine that uses software and hardware to support business processes. The
components of computers are the CPU, memory, storage and peripherals: monitor, keyboard and
mouse. A computer system refers to a collection of hardware, software and people working
together in conjunction with supporting technologies such as networks and telecommunications
to enable the automated processing of process activities.
24. Automation of Process Activity
This process involves identifying and automating process activities. It is an improvement that
uses technology to reduce cost and increase productivity, it doesn't eliminate the need for people
and data, it simply changes the way processes are executed. Using technology to improve the
performance of a business process is an improvement.
25. Figure 2-4 Characteristics of the Five Components
The hardware is the physical machine that is used to process data and information. The software
is a complete set of instructions for operating the hardware. It directs the operation of the
hardware. The combination of software and hardware form a computer system, which can be
used in business processes to automate them.
26. An Information System to Support Counter Sales
The information system will be one that collects data relevant to the counter sales activity,
processes the data and provides clear, timely information to the people who need it. The system
is designed with an interface that makes it easy for people to access the information they need.
The information system will also store data so that it can be retrieved and updated quickly by
people who need it.
27. Figure 2-5 Sales Recording Information System Used by Counter Sales in Figure 2-1
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It shows the different kinds of information that may be contained in the sales recording system.
The hardware is the physical machine that is used to process data and information. The software
is a complete set of instructions for operating the hardware. It directs the operation of the
hardware. The combination of software and hardware form a computer system, which can be
used in business processes to automate them.
28. Information System to Support Payment
This entails all steps to secure payment in the form of cash or cheque. The information system
will record, track and support all activities related to the payment of bills, invoices and accounts.
These include sales order processing and accounting functions such as the approval of payments,
the deposit of money in a bank account and the creation of sales reports.
29. Figure 2-6 Information System to Support Payment
It starts with hardware such as computer, memory and storage. Software that directs the
operation of the hardware is needed. It also includes people to produce and update information in
the system, maintenance personnel to keep the system running smoothly and security personnel
to protect it against possible attacks. The software can be stand-alone programs installed on a
single machine or they can be distributed across several computers linked by a network.
30. Information System to Support Sales Order Processing
A sales order is an instruction from a customer known as an order entry system where sales
orders are entered into computer systems for further processing to support the business process
of selling goods or services.
31. Figure 2-7 Information System to Support Purchasing
The transformation of raw material into the finished product takes the input of customers,
suppliers, materials and cost information. The physical processing of this information includes
production management to ensure that processes are running smoothly and that output meets
required standards. This process is further processed by the cost management system to calculate
the total cost of goods sold. The last stage is used by sales to determine how much profit or loss
should be recorded.
32. Q2-7: How Do Information Systems Support Decision Making?
The decision making is supported by data. Information systems collect and process data, which
allow users to make decisions based on the information. The system can also provide other
information needed for making decisions. The purpose of collecting, processing, storing and
providing information is to support the decision-making process through ease of access to
relevant data.
33. Decisions Vary by Level
The first level of decision making is the individual who chooses which way to go. People of
different levels, working together, make decisions usually based on data from their departments
or units. The second level is the group, who often make decisions that support a single decision
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maker at the departmental or unit level. The third level is company-wide, which makes decisions
that support business plans and strategies.
34. Decisions Vary by Structure
The way decisions are made varies depending on the person or department making the decision.
For example, if an account manager makes a decision, he/she may prefer to receive feedback
from colleagues and customers. When the decision making is done at a third level such as a
division or divisional office, decisions are usually supported by data. If needed, they can also be
supported by decisions made at higher levels. The structured approach to decision making allows
for consistent, efficient implementation and control over the decision-making process.
35. Figure 2-9 Relationship of Decision Level and Decision-Making Process
The relationship shows the different types of decisions. A decision is made when an individual at
an individual level makes a decision about the way in which business will be done. Decisions
made at departmental level are usually supported by decisions that are made at the next higher
level such as divisional office or headquarters. Decisions at a company-wide level are usually
supported by data from other departments and units.
[Link] Decision Making
The way of supporting decision making varies according to the type of decision. First, there is
financial information that can be used by people at any level. It is usually provided in the form of
reports that are available for anyone to see. This gives all stakeholders an opportunity to
understand the nature and extent of business operations and make decisions based on this
knowledge.
37. Intelligence Gathering
The structured approach is a well-defined process used to ensure consistency and efficiency in
decision making. It is a systematic means for analyzing information in order to make well-
informed decisions. The structured approach uses steps such as monitoring, forecasting, seeking
feedback from parties involved, review and analysis of the data collected, decision making based
on objective facts and results evaluation.
[Link] Formulation
The alternative Formulation step of the structured approach is perhaps the most important
decision-making step. It involves using information from previous monitoring, forecasting and
gathering of feedback from stakeholders to formulate different strategies or alternative courses of
action.
39. Choice
The aspect of choice is to choose the best way of doing things. The structured approach is a
systematic method that involves feedback, decision making and evaluation. However, decision-
making can be decentralized. Decisions made at the individual level are usually based on
information obtained from peers, reports and data. Information is also sought from third parties
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such as consultants, customers and suppliers to form decision plans that can support a business
plan or strategy.
40. Implementation
The implementation step is usually carried out by individuals or departments and involves the
actions that are required to put the decision into effect. It further involves monitoring, review and
ratings of the performance of the decision so as to ensure that it delivers good results.
41. Review
This step is to evaluate the effectiveness of the decision. Review is carried out by all
stakeholders who need to understand how well the decision was implemented and whether or not
it has produced good results.
42. Q2-8: What Is Your Role?
My role is to support the decision making that is done at my level. I participate in decision
making at my level and make decisions. I must also be able to collect and analyze information
for use in making decisions.
[Link]: Software Making Waves
Helm, which was launched on November 10, 2016 by Siemens and Ericsson will be used to
control the flow of content over the same hardware that is used for data transport. Under the
partnership, an advanced cloud-native routing framework will be developed.