COMM 205 Unit 2

Question 1

Differences between Information System (IS) and Information Technology (IT)

Answer 1

Information Systems (IS) is NOT THE SAME as Information Technology (IT)
 Technologies are tools.
 An Information System is the collection of TOOLS, the
PEOPLE who use it, and the PROCESSES it supports.
An Information System collects, processes, stores, analyzes, and disseminates INFORMATION for a specific purpose.

Question 2

Basic components of IS

Answer 2

Technology:
Hardware; Software; Network; Data
People
Process

Question 3

Definition: Hardware

Answer 3

A device such as a processor, monitor, hard drive, keyboard, printer, etc.

Question 4

Definition: Software

Answer 4

A program or collection of programs that enable hardware to process data.

Question 5

Definition: Network

Answer 5

A connecting system (wireline or wireless) that permits different computers to share resources.

Question 6

Definition: Data

Answer 6

A collection of facts such as name, address, phone number, date of birth, etc.

Question 7

Definition: Process

Answer 7

A series of steps undertaken to carry out a specific business activity in order to achieve a desired outcome or goal.

Question 8

Definition: People

Answer 8

• Those individuals who are directly involved with the information system including managers, end users, system analysts, programmers, etc.

Question 9

Which Component is Most Important?

Answer 9

Information Technology (IT) is an important ENABLER of business success and innovation.
However, IT in and of itself is not useful unless the RIGHT PEOPLE know how to USE and MANAGE it EFFECTIVELY.

Question 10

Data vs. Information

Answer 10

Data:
Raw facts representing events such as business
transactions. Unprocessed facts of interest to end
users.
Example: customer x bought product y for $z on date t
Information
A meaningful aggregation of facts that is useful to
human beings in management and decision making.
Example: year-to-date revenues from customer x are
$2.4m, average gross margin from customer x is 12.2%
compared to firm average of 8.4%

Question 11

Knowledge, Information, Data

Answer 11

Knowledge: Processed data or information that conveys some individuals’ UNDERSTANDING OR LEARNING applicable to a problem or activity.
Information: ORGANIZED DATA that has meaning and value.
Data: Items that are the MOST ELEMENTARY descriptions of things, events, activities, and transactions.

Question 12

Major Capabilities of Information Systems

Answer 12

1. Perform high-speed, high-volume numerical computations.
2. Provide fast, accurate communication and collaboration within and among organizations.
3. Store huge amounts of information in an easy-to-access, yet small space.
4. Allow quick and inexpensive access to vast amounts of information, worldwide.
5. Interpret vast amounts of data quickly and efficiently.
6. AUTOMATE both semi-automatic BUSINESS PROCESSES
   and manual tasks.

Question 13

What is a Business Process?

Answer 13

A business process (or business method) is a collection of RELATED, STRUCTURED, ACTIVITIES or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers.
It may often be visualized as a flowchart of a SEQUENCE OF ACTIVITIES with interleaving decision points.

Question 14

Definition: Swim Lane Flowchart

Answer 14

The swim lane flowchart differs from other flowcharts in that processes and decisions are grouped visually by placing them in LANES, with one lane for each person, group or sub-process.
Swim lanes serve to clarify not only the steps and who is responsible for each one, but also how delays or mistakes are most likely to occur.

Question 15

Definition: Business Process Model and Notation (BPMN)

Answer 15

Business Process Model and Notation (BPMN) was developed as an easily understandable, standardized language to communicate business processes effectively between all business users and IT professionals.

Question 16

What is a Cross-Functional Business Process?

Answer 16

This is a process in which no single functional area is responsible for its completion; MULTIPLE FUNCTIONAL AREAS collaborate to perform the function.
For example, product development involves research, design, engineering, manufacturing, marketing, and distribution.

Question 17

Customer-facing processes vs. Business-facing processes

Answer 17

Customer-facing processes
 front-office processes
 result in a product or service received by an
organization’s external customer.
Business-facing processes
 back-office processes
 are invisible to the external customer but are
essential to the effective management of the
business.

Question 18

Business Process Hierarchy

Answer 18

 A VALUE CHAIN usually describes a major line of business. An organization may have a few value chains.
 A value chain is usually decomposed into a few BUSINESS PROCESSES (e.g., a supply chain, a new product development process.)
 Processes usually contain a few SUB-PROCESSES.
 ACTIVITIES are the LOWEST LEVEL process

Question 19

Why are Business Processes Important?

Answer 19

Examining business processes helps an organization:
 determine bottlenecks,
 eliminate duplicate activities,
 combine related activities, and
 identify smooth-running processes.
To stay competitive, organizations must OPTIMIZE and AUTOMATE their business processes.

Question 20

When to Initiate Business Process Change?

Answer 20

Companies should initiate a business process change when:
1. there has been a pronounced shift in the market the
process was designed to serve;
2. the company is below industry benchmarks on its
core processes; or
3. the company needs to regain competitive advantage.
Alternative business process should be EFFECTIVE (they deliver the intended results) and EFFICIENT (they consume the least amount of resources for the intended value.)

Question 21

How to Analyze a Business Process?

Answer 21

How to Analyze a Business Process?

1. Look for signs of process inefficiency such as long queues.
2. Interview key process participants.
3. Conduct group interviews.
4. Summarize the information.
5. Create a process flowchart (or process map).
6. Perform task analysis.
7. Compare the results from individual interviews.
   * 8. Identify activities and task outputs that are unnecessary.
8. Sketch the business process from scratch based on the business process requirements
   * 10. Identify potential process changes.

Question 22

Scope of Business Processes

Answer 22

1. Operational
2. Managerial
3. Strategic

Question 23

How can Information Systems be used to Improve Processes?

Answer 23

1. Improve an Activity
      Driving activity improved with GPS
      Prescription writing activity improved with medication 
      checker
2. Improve Data Flow Among Activities
      Display order process data on GPS in delivery process
      Prescription data electronically recorded and shared 
      with pharmacy
3. Improve Control of Activities
      Better control of order details
      Appointment no-shows reduced
4. Use Automation
     Send scheduled tweets
     Phone answering system
5. Improve Procedures
     Payment procedure improved
     Office procedures rewritten

Question 24

What is Business Process Management?

Answer 24

BUSINESS PROCESS MANAGEMENT (BPM) focuses on aligning all aspects of an organization with the wants and needs of clients.
It promotes business EFFECTIVENESS and EFFICIENCY while striving for innovation, flexibility, and integration with technology.
It attempts to improve processes CONTINUOUSLY.

Question 25

Conclusion

Answer 25

 Organizations must go beyond the basics when implementing business process improvement and realize that it is not a ONE-TIME PROJECT  CONTINUOUS monitoring and improving core business processes will guarantee performance improvements across an organization.