TPS- Transaction Processing Systems:
Involves elementary business activities, such as sales, receipts, cash deposits, payroll, credit decisions and flow of materials. They are not specific to a single functional area, and are also transaction oriented. They manage these activities, and are usually fundamental to the operation of a business. Transactions can also be managed in various ways, eg. batch, online. They also replace repetitive tasks.
DSS- Decision Support System:
A computer-based information system that supports business or organisational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.
2. Describe the three quantitative models typically used by decision support systems.
Sensitivity analysis: model is built and look at the impact in a particular change.
e.g. look at the impact of change in tax rate, decline in sales, will either have a large or small impact, if large the model is sensitive may hold back from proceeding,
What if analysis: what will happen if this changes, impact of the change
e.g. decline in units sold what would be the impact on our profit
Goal seeking analysis: right to left thinking, we start and follow a sequence until we get to the end, looks to the end, what we need to do in order to make it happen, finds all the inputs necessary to achieve the goals
3. Describe business processes and their importance to an organisation.
Set of activities to achieve a specific task, aims to convert inputs to outputs in an organisation. Hidden to the user by starting to look at a model business process, the technology becomes visible and see what data is moving around.
By knowing your business process, the more efficient you make your business, the higher your operating profit, maximising your efficiencies
4. Compare business process improvement and business process re-engineering.
Reengineering: assumes the current process is there, doesn’t work anymore and needs to be fixed, scarps the current process.
5. Describe the importance of business process modelling (or mapping) and business process models.
• Exposes the process in a controlled manner
• Controls consciousness, people know what we are actually doing
• Enables them to do analysis
Some related and interesting links:
Why do companies need BPM?
IBM Business Process Management
No comments:
Post a Comment