Module 2: Business Process, Management, and Decision Making

Business Process (Business System)

activities, resources, facilities, and information working together to help a business deliver a product or service

Activities

transform one type of resources and information into another type of resources and information

Resources

items of value that are external to the company

Facilities

structures used within the business process

Information

knowledge derived from data; it is the data presented in a meaningful context

Business Process Management (BPM)

systematic approach to improving and managing an organization’s processes; promotes efficiency through continuous improvement and innovation

Automated Systems

moving work from the human side (the right side of the five components) to the left where it will rely more on hardware and software

Info Systems and Decision making

intelligence gathering, alternatives formulation, choice, implementation, and review

Intelligence Gathering

helps decision-makers identify the decisions that need to be made

Alternative Formulation

identifies alternatives available

Choice

where the business analyzes the alternatives and selects one

Implement and Review

evaluates the results of the decision

Inventory Management System

software or process that helps businesses track, manage, and control their stock levels efficiently

Business Process Modeling Notation

graphical representation used to design, document, and improve business processes; standardizes a way to visualize workflows, making it easier for businesses to understand

Processed Data

raw data that has been analyzed, structured, or organized into meaningful information

Total Quality Management (TQM)

focuses on improving the quality of products and services across all areas of an organization, with everyone involved in continuous improvement

Six Sigma

data-driven methodology aimed at reducing defects and variations in processes, with the goal of achieving near-perfect results

Lean Production

strategy focused on minimizing waste and maximizing efficiency by streamlining processes and improving flow, ultimately delivering more value to customers with fewer resources

Operational Decisions

day-to-day decisions that ensure the smooth functioning of routine activities; typically involve low-level tasks with short-term focus

Managerial Decisions

monitoring and controlling organizational activities; more structured than operational decisions but still deal with mid-level goals and resource allocation

Strategic Decisions

long-term, high-level decisions that set the direction for the organization; involve significant investment and affect the entire organization

Structured Decisions

routine, well-defined decisions that have a clear process and can be easily automated or supported by information systems

Unstructured Decisions

complex and involve situations where there is no clear or predefined solution; require judgment, creativity, and analysis of multiple factors

Intelligence Gathering

identifying and collecting relevant data or information about the situation at hand; goal is to understand the problem and the factors involved

Formulation of Alternatives

brainstorming solutions and evaluating different possibilities once a problem is understood

Choice

a decision-maker selects the best course of action based on criteria such as cost, benefits, feasibility, and alignment with goals

Implementation

allocating resources, assigning tasks, and coordinating efforts to put the decision into action

Review

results of the decision are reviewed to assess whether the goals were achieved and what can be learned from the process