chapter 2

What are business processes? Explain and provide examples?

business processes.

  • a specific event in a chain of structured business activities. The event typically changes the state of data and/or a product and generates some type of output.Examples of business processes include receiving orders, invoicing, shipping products, updating employee information, or setting a marketing budget.
  • company business process can be a source of competitive strength enable the company to innovate or execute better than rivals


2. what are the different types of information systems? 

  • Transaction Processing System (TPS)
  • Business Intelligence and Business Intelligence Systems
  • Decision Support Systems (DSS)
  • Executive Support Systems (ESS)
  • Enterprise applications


Transaction Processing System (TPS)

Is an information processing system for business transactions involving the collection, modification, and retrieval of all transaction data. Characteristics of a TPS include performance, reliability, and consistency. TPS is also known as transaction processing or real-time processing.

The principal purpose of the system at this level is to answer routine questions it is Allow managers to monitor the status of internal operations and relations with external environment .also its Serve predefined, structured goals and decision making.

 Business Intelligence and Business Intelligence Systems

Business intelligence

Focus on delivering information to support management decision making.It is a contemporary term to Data and software tools for organizing and analyzing data Used to help managers and users make improved decisions.

Business Intelligence Systems

Business intelligence systems can be complex as they identify, extract and analyze data for various operational needs, particularly for decision-making purposes. BIS information systems may provide analyses that predict future sales patterns, summarize current costs and forecast sales revenues. Business intelligence systems collect data from the various data warehouses in an organization and provide management with analyses according to lines of business, department or any breakdown that management desires. For example, financial institutions use BIS systems to develop credit risk models that analyze the number and extent of lending or credit given to various sectors. These systems may use various techniques and formulas to determine the probability of loan defaults.

Decision Support Systems (DSS)

 a computer-based information system that supports business or organizational decision-making activities, typically resulting in ranking, sorting or choosing from among alternatives. DSSs serve the management, operations, and planning levels of an organization (usually mid and higher management) and help people make decisions about problems that may be rapidly changing and not easily specified in advance—i.e. Unstructured and Semi-Structured decision problems. Decision support systems can be either fully computerized, human-powered or a combination of both.

Executive Support Systems (ESS)

 reporting tool (software) that allows you to turn your organization’s  data into useful summarized reports. These reports are generally used by executive level managers for quick access to reports coming from all company levels and departments such as billing, cost accounting, staffing, scheduling, and more.

Enterprise applications

It is Systems for linking the enterprise, Span functional areas

Execute business processes across organization

Include all levels of management. it helps business become more flexible and productive by coordinate their business process

 Four major applications:

  •  Enterprise systems
  •  Supply chain management systems
  •  Customer relationship management systems
  •  Knowledge management systems

3-What is the key difference between an Internet an extranet? Explain .

Because intranets and extranets share the same technology and software platforms as the Internet, they are easy and inexpensive ways for companies to increase integration and expedite the flow of information within the company (intranets alone) and with customers and suppliers (extranets). They provide ways to distribute information and store corporate policies, programs, and data. Both types of nets can be customized by users and provide a single point of access to information from several different systems. Businesses can connect the nets to transaction processing systems easily and quickly. Interfaces between the nets and TPS, MIS, DSS, and ESS systems provide input and output for users.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s