Chapter 2 - BUS 237: Business Processes, Information and
Decision Making || QUESTIONS WITH FULL
COMPLETE SOLUTIONS!!
Business Processes correct answers • We are surrounded by business processes
• Understanding how things work helps us to make us more valuable members of the
economy
Business Process correct answers describes a set of activities that are necessary to complete a
response to a stimulus applied to an organization
Business Process - A response correct answers • The response is the action(s) that the
organization takes as a result of the stimulus
EX) Ship product to customer, update inventory based on shipment
• All of the Activities required to recognize the stimulus and develop and implement the final
response are components of the business process
Business Process Components correct answers • A business process is a series of tasks or
steps designed to produce a product or service
• A business process is a network of:
- Activities
- Resources
- Facilities
- Information
• These interact to achieve business function
Stimulus --> Response correct answers Customer request --> ship product
Supplier Shipment --> update inventory
Management Directive --> create committee
Information about competitor --> develop new marketing
Ex's of Business processes correct answers • Routine business processes:
- Fulfilling customer order
- Receiving shipment for inventory
- Reviewing loan applications
- Creating a two week payroll
• More complex business processes:
- Developing a new product
- Deciding on a location for new store
- Designing a new marketing campaign
Defining a Business Process correct answers • A business process (or system) is a network of:
- Activities: use and transform resources and information of one type into resources and
information of another type
Follow rules and Procedures
Can be manual, automated, or combination
Ex) payment (activity), transforms Quantity Received (information) and Shipping Invoice
(information) into Supplier Payment (resource)
, - Resources: are items of value; An organization uses resources to provide value for its
customers and successful outcomes for the owners.
Ex Resources:
Internal to Organization: Cash, real estate, equipment, inventory, databases
External to Organization: Valued Customers, Suppliers inventory
- Facilities: store resources (and information) within a business process.
Ex) Inventory and Database
- Information: is data with a meaning
It is the central focus of information systems
It is used and crated by activities
Business Processes create, process and store information
"information Systems" support business processes by automating or facilitating the creation,
processing, and storage of information
• These interact to achieve business function
Information vs. Data correct answers • The concept of information can be difficult to define:
- Data presented in a meaningful context
- Processed data
- Data processed by summing, ordering, averaging, grouping, comparing, or other similar
operations
- A difference that makes a difference
• All of these definitions provide a perspective on information
• Characteristics of Good Information:
1. Accurate:
Correct and complete
Crucial for management & decision making
Cross-check information to ensure accuracy
2. Timely:
Produced in time for intended use
3. Relevant:
To context, subject
4. Just Barely Sufficient:
Sufficient for purpose for which generated
Do not need additional, extraneous information
Knowing what information to ignore is difficult
5. Worth its cost:
Relationship between cost and value
Information systems cost money to develop, maintain, and use
Must be worth the cost
Role of information in business processes correct answers • Business processes use, generate,
and store information:
- Business processes bring together important item of data in context
• Business processes bring together information so it can be understood at various levels
- Information form business processes are useful for managerial and strategic decisions
Automating a process activity correct answers • The outermost components of information
system, Hardware and People, are both actors; they can take actions
• The software and procedure components are both sets of instructions: software is instruction
for hardware, and procedures are instructions for people
Decision Making || QUESTIONS WITH FULL
COMPLETE SOLUTIONS!!
Business Processes correct answers • We are surrounded by business processes
• Understanding how things work helps us to make us more valuable members of the
economy
Business Process correct answers describes a set of activities that are necessary to complete a
response to a stimulus applied to an organization
Business Process - A response correct answers • The response is the action(s) that the
organization takes as a result of the stimulus
EX) Ship product to customer, update inventory based on shipment
• All of the Activities required to recognize the stimulus and develop and implement the final
response are components of the business process
Business Process Components correct answers • A business process is a series of tasks or
steps designed to produce a product or service
• A business process is a network of:
- Activities
- Resources
- Facilities
- Information
• These interact to achieve business function
Stimulus --> Response correct answers Customer request --> ship product
Supplier Shipment --> update inventory
Management Directive --> create committee
Information about competitor --> develop new marketing
Ex's of Business processes correct answers • Routine business processes:
- Fulfilling customer order
- Receiving shipment for inventory
- Reviewing loan applications
- Creating a two week payroll
• More complex business processes:
- Developing a new product
- Deciding on a location for new store
- Designing a new marketing campaign
Defining a Business Process correct answers • A business process (or system) is a network of:
- Activities: use and transform resources and information of one type into resources and
information of another type
Follow rules and Procedures
Can be manual, automated, or combination
Ex) payment (activity), transforms Quantity Received (information) and Shipping Invoice
(information) into Supplier Payment (resource)
, - Resources: are items of value; An organization uses resources to provide value for its
customers and successful outcomes for the owners.
Ex Resources:
Internal to Organization: Cash, real estate, equipment, inventory, databases
External to Organization: Valued Customers, Suppliers inventory
- Facilities: store resources (and information) within a business process.
Ex) Inventory and Database
- Information: is data with a meaning
It is the central focus of information systems
It is used and crated by activities
Business Processes create, process and store information
"information Systems" support business processes by automating or facilitating the creation,
processing, and storage of information
• These interact to achieve business function
Information vs. Data correct answers • The concept of information can be difficult to define:
- Data presented in a meaningful context
- Processed data
- Data processed by summing, ordering, averaging, grouping, comparing, or other similar
operations
- A difference that makes a difference
• All of these definitions provide a perspective on information
• Characteristics of Good Information:
1. Accurate:
Correct and complete
Crucial for management & decision making
Cross-check information to ensure accuracy
2. Timely:
Produced in time for intended use
3. Relevant:
To context, subject
4. Just Barely Sufficient:
Sufficient for purpose for which generated
Do not need additional, extraneous information
Knowing what information to ignore is difficult
5. Worth its cost:
Relationship between cost and value
Information systems cost money to develop, maintain, and use
Must be worth the cost
Role of information in business processes correct answers • Business processes use, generate,
and store information:
- Business processes bring together important item of data in context
• Business processes bring together information so it can be understood at various levels
- Information form business processes are useful for managerial and strategic decisions
Automating a process activity correct answers • The outermost components of information
system, Hardware and People, are both actors; they can take actions
• The software and procedure components are both sets of instructions: software is instruction
for hardware, and procedures are instructions for people
