1ADVANCED ESSENTIAL BUSINESS CONCEPTS Business Processes: The business processes is considered as collection of some linked tasks which ends at the point of delivering some random product or service to the clients (Hammer, 2015). This business process can be also defined as some important set of tasks and activities through which organizational goal can be achieved if the tasks are completed. All of the business processes must be must be consisting a clearly defined input while it also needs to have a single output also. These inputs are created considering all the factors which contributes indirectly or directly to the added value of a product or a service. Categorization of these factors can be done into operational processes, management processes and the supporting type of business processes (Chang, 2016). The operational related processes constitute the core business point of the organisation while the management processes are responsible for governing the operations of the system of operations for a particular type of organization. Supporting type of business processes are utilized so that core processes of business can be supported which includes accounting and human resources. The definition of the business process has been provided by Adam Smith in the year of 1776 which has led to some important area of study including operations management, operationsdevelopmentandvariousofbusinessmanagementsystemdevelopment (Rosemann & vom Brocke, 2015). This system has created the industry of Business Process Management Software which is seeking for automating the business processes by creating connection between various of process actors using the technology. A normal type of process include some important series of action so that certain of important objective can be achieved. The processes of business process management are continuous in nature but these processes also allows for actions regarding ad-hoc (Zur Muehlen & Shapiro, 2015). Here, the processes can be both complex and simple in nature
2ADVANCED ESSENTIAL BUSINESS CONCEPTS which is depending on the total number of steps and the number of systems are involved. In the number of involved system and steps increase the processes becomes more complex in nature. These processes can be long or short running. The processes which are longer in naturegenerallyconsistsvariousofdependenciesandtheyalsorequiresagreater documentation part. There are several of importance of the business processes within the organizations. In the large organisations the business processes can provide some important advantages. In this aspect the business processes creates lifeline for any type of business and help the businesses in the streamline individual activities which makes sure that every resources are ready for their optimal usage (Tregear, 2015). Well defined business processes are important for the organizations due to various of reasons. This actually improves the efficiency of the organizations, helps to identify the important business tasks for the large business goals and streamlining the communication between departments and functions. Business Processes in the aspect of Information System: There is a quite deep relationship between the business processes and the information systems. The information systems automate the manual processes of the businesses so that the organization becomes more efficient in nature. Information and data are available to a wide range of decision making process in much more quicker way in such of the situation whenever information system are utilized for changing current flow of the information (Laudon & Laudon, 2016). In this aspect all the tasks can be executed in a simultaneous way rather that the sequential way so that all the business processes completion can be speed up. The information system is also capable of driving the new business models which maybe no possible without implementing this technology.
3ADVANCED ESSENTIAL BUSINESS CONCEPTS To be in the operative step the businesses needs to deal with various of different information pieces. In this aspect, the work activities needs to be organized in a perfect manner so that it can use the information to operate effectively which will be enhancing overall performance of the organization. Here the information system plays a crucial role. Information system assists the firms so that they can manage all of their information (Pearlson,Saunders&Galletta,2016).Withthattheinformationsystemhelpsthe organization to take better and appropriate decisions and it also helps to improve the business process execution. Reasons behind Information System is essential for managing Businesses: The importance of information system in the aspects of businesses has been increased hugely. Most of the businesses has adopted the information systems in their organizations so that they remain competitive in the current market context. Currently, it is nearly impossible to engage with a business without having any type of efficient information system. These are some basic reasons for which information system is so much crucial for the management of the businesses. In the following section important reasons for which the information system is essential for the businesses are discussed. New Services and Products:The information system is capable of easy analysis of the independent processes including the information that are important for producing valuable products or services and organized type of working activities (Bourgeois, 2018). Thus in this aspect, the information system provides the organization some competitive advantage by the analysis of how the organizations produce, creates and sells their service or product.Easy Process of Decision Making:In the traditional way decision making processes takesahugeamountoftimeandenergyofanorganizationwherewiththe
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4ADVANCED ESSENTIAL BUSINESS CONCEPTS implementation of the information technology it becomes very much easy to deliver all the important information and models so that effective decisions can be taken in minimal amount of time (Sun, Strang & Firmin, 2017). In this way information system is actually helping the organizations to take organizational decisions easily without wasting so much of time behind it.Operational Excellence:To achieve higher profitability, the organizations always needs to improve their efficiency of the business operations in constant basis. This can be done easily constantly having proper amount of stock and manpower so there is no shortage in the supply chain (Dwivedi, 2015). In this way the customer will always get what they want and it will be improving the operational excellence of the organization. In this aspect to properly maintain the stock and manpower, information systems can be used. Thus information system is helping in this case for achieving operational excellence.Behavioural Improvements:The employees of the organization will be able to communicate in much more effective way while having an information system. The informationsystemcancreateanenvironmentthroughwhichaneffective communication system can be established through which the employees will be able to access the documents in the shared access folders (Romero & Vernadat, 2016). This will provide a much faster communication than the traditional email services. Thus, in this case the flow of the information will be really quick and the direction of the information flow will be vice-versa. This will bring behavioural changes to the employees of the organization which will be making them much more efficient in nature.Information Storage:All of the organization needs to maintain the record of their operational activities so that these data can be used in the future cases for finding
5ADVANCED ESSENTIAL BUSINESS CONCEPTS cause of the problems. The information system is very much useful for storing operational data, documents, communication data and important histories (DeLone & McLean, 2016). The manual type of data storage can take a huge amount time while the information system can store these type of data effectively. Thus, in this way the information system is becoming vital for the modern day businesses.Competitive Advantage:In the above discussion already various of advantages of the information system for the businesses has been identified. Now, if the organizations achieve all of these improvements due to information system then they will be automatically gaining competitive advantage (Friedman, 2005). Thus the information systemisalso verymuch essentialfor thebusinessesfor gainingcompetitive advantage. Work Experience Analysis: From the personal working experience also it has been assessed that information system is very much crucial for management of the businesses today. It was a finance organization on which I was working. In the earlier cases they have faced various of issues in their businesses regarding sales and marketing, operations and in the section of human resource. Due to this their business was performing very badly. It has been assessed that they were requiring some automated systems for their organization so that their businesses processes can be improved. Regarding this organization implemented information systems so that automation can be achieved within the organization. Due to this sales and marketing departmentoftheorganizationimprovedgreatlywithimprovementsinmarketing management and sales management. Also, the operations sector of the organization also improved in which enterprise resource planning and the process control improved largely. The information system also helped in the human resource sector by improving the staffing techniques of the organization.
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7ADVANCED ESSENTIAL BUSINESS CONCEPTS References: Bourgeois, D. T. (2018). Information systems for business and beyond. Chang, J. F. (2016).Business process management systems: strategy and implementation. Auerbach Publications. DeLone,W.H.,&McLean,E.R.(2016).Informationsystemssuccess measurement.Foundations and Trends® in Information Systems,2(1), 1-116. Dwivedi, Y. K., Wastell, D., Laumer, S., Henriksen, H. Z., Myers, M. D., Bunker, D., ... & Srivastava, S. C. (2015). Research on information systems failures and successes: Status update and future directions.Information Systems Frontiers,17(1), 143-157. Friedman, T. L. (2005).The world is flat: A brief history of the twenty-first century. Macmillan. Hammer, M. (2015). What is business process management?. InHandbook on business process management 1(pp. 3-16). Springer, Berlin, Heidelberg. Laudon, K. C., & Laudon, J. P. (2016).Management information system. Pearson Education India. Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016).Managing and using information systems, binder ready version: a strategic approach. John Wiley & Sons. Romero, D., & Vernadat, F. (2016). Enterprise information systems state of the art: Past, present and future trends.Computers in Industry,79, 3-13. Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process management.InHandbookonbusinessprocessmanagement1(pp.105-122). Springer, Berlin, Heidelberg.
8ADVANCED ESSENTIAL BUSINESS CONCEPTS Sun, Z., Strang, K., & Firmin, S. (2017). Business analytics-based enterprise information systems.Journal of Computer Information Systems,57(2), 169-178. Tregear, R. (2015). Business process standardization. InHandbook on Business Process Management 2(pp. 421-441). Springer, Berlin, Heidelberg. Zur Muehlen, M., & Shapiro, R. (2015). Business process analytics. InHandbook on Business Process Management 2(pp. 243-263). Springer, Berlin, Heidelberg.