Business Processes and Information Systems

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What are business processes?

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A collection of activities required to produce a product or service, supported by flows of material, information, and knowledge among participants.

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How does Information Technology improve business processes?

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By automating processes, changing the flow of information, allowing more people to access and share information, enabling simultaneous task performance, eliminating delays in decision-making, and supporting new business models.

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What are the three principal levels of business management structure?

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Senior management, middle management, and operational management.

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What is the role of senior management in a business?

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Makes long-range strategic decisions about products and ensures financial performance.

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What is the role of middle management?

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Carries out the programs and plans set by senior management.

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What is the role of operational management?

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Monitors the daily activities of the business.

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Who are knowledge workers?

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Employees such as engineers, scientists, or architects who design products or services and create new knowledge for the firm.

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Who are data workers?

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Employees such as secretaries or clerks who assist with scheduling and communications at all levels of the firm.

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What is the procurement process?

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The purchasing of raw materials for production, involving steps like requesting quotations, creating purchase orders, and receiving goods.

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What is the purpose of inventory management?

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To oversee the movement of goods within an organization, including stock receipts, transfers, and counting.