Chapter 2

Business Processes, Information,

and Information Systems
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

Can any processes be simplified?

Can tasks be re-ordered or re-organized to

eliminate tasks and save labor hours?

Can process costs be reduced by applying

information technology?

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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.

Resources Facilities

Activities Information
Business
Function

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FlexTime’s 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

Activities— Resources
Decisions— Roles— Repository—
—
Transform A question Sets of Collection of
resources People, or
that can be procedures business
and facilities, or
answered records
information computer
Yes or No
of one type programs
into another that are
type assigned to
roles

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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?

Knowledge derived from data (recorded

facts or figures)

Data that is presented in a meaningful

context

Data processed by summing, ordering,

averaging, grouping, comparing, or other
similar operations
A difference that makes a difference

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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?

1. Accurate
• Correct and complete
• Crucial for management
• Cross-check information to ensure accuracy
2. Timely
• Produced in time for intended use

3. Relevant to both:
• Context
• Subject

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Characteristics of Quality Information
(cont’d)
4. Just barely sufficient
• Sufficient for purpose it is generated
• Avoid too much or extraneous information
5. Worth its cost
• Relationship between cost and value
• Information systems cost money to develop,
maintain, and use
• Must be worth that cost (i.e., trip vs. web
conference)

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Q6 Where Is the Information in Business
Processes?
Information Stored in Repositories

Status
Member
Check Membership Status Records

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
Data create
information …
in your mind

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 GearUp’s 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

1 Management tasks differ with levels of decision

2 Different tools/data may be needed at different levels

3 Same tools and sources may be used differently

4 IS Tools are interrelated in an organization

5 A digital firm = DM (processes + assets +
relationships)
6 Social-technical approach to study MIS

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SystemsThat Span the Enterprise

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Case Study 2: Fulfillment by Amazon
(FBA)
Sold via
  Sold elsewhere
Amazon.com
Order handling
$1.00 $4.75 (+)
(per order)
Pick & pack
$1.00 $0.75
(per item)
Weight handling
$0.37 $0.45 (+)
(per pound)
Storage Minimum $0.45 Minimum $.045
(cubic foot per (rates vary by time (rates vary by time
month) of year) of year)

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