Week 3 Blog Questions

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1. Define TPS & DSS, provide some examples of these systems in business

TPS- Transaction Processing System: A computer system which collects, stores, modifies, and retrieves the transactions of an organisation

Examples of transaction processing systems include order entry systems, scanner-based point-of-sale registers, automatic teller machines, and airline reservation programs.

DSS- Decision Support System: A system that provides tools to managers to assist them insolving semi-structured and structured problems.

Examples of decision-support systems include programs which analyse sales revenue, marketing information, insurance claims, and catalog sales.

2. Describe the three quantitative models typically used by decision support systems.

Sensitivity analysis: Sensitivity analysis is used to determine how “sensitive” a model is to changes in the value of the parameters of the model and to changes in the structure of the model.

What-if-analysis:  is a brainstorming approach that uses broad, loosely structured questioning to check the impact of a change in an assumption on the proposed solution. For example- 'what will happen to the supply chain if a cyclone destroys 60% of banana crops in North Queensland?'

Goal-seeking analysis: finds the inputs necessary to achieve a goal such as a desired level of output. For example- 'How many laptops must be sold to increase gross profit to $200,000 this year?'

3. Describe a business process and it's importance to an organisation

A business process is a standardised set of activities that accomplish a specific task, such as processing a customer's order. 

In this example each bubble represents an activity which must be done by someone and the arrows represent the flow from one activity to another. For example once the agent has issued the itinerary, the traveller receives the itinerary. 
Having a business process such as this example is vital for business operations. The process ensures all necessary steps and procedures are undertaken and in the correct order. For example the airline cannot issue eTickets before the flights have been confirmed because this business process is in place. 

4. Compare business process improvement and business process re-engineering using an example

Business process improvement attempts to understand and measure the current process and make performance improvements accordingly. Business process re-engineering is the analysis and redesign of workflow within and between enterprises. 

In the traveller, agent, airline example, BPI would focus on one aspect of the process and improve it such as how the traveller submits their order. This could be improved by allowing this step to be completed online rather than face-to-face with the agent. 

In the same example; BPR would take a 'clean slate' approach with a focus on simplification and elimination of wasteful steps. For example, the process could be redesigned to exclude the agent and make the process between the traveller and the airline. The airline would take on the tasks the agent had and would eliminate steps such as the airline having to confirm flights with the agent. 

5. Describe the importance of business process modelling (or mapping) and business process models.

Business process modelling is the activity of creating a detailed flowchart or process map of the work process, showing its inputs, tasks and activities in a graphic sequence. 

A business process model is a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint. For example a discussion cycle from management's perspective; the arrows indicate the sequence of events. 

As in the airline example, the business process ensures all necessary steps and procedures are undertaken and in the correct order. This model also outlines the time delay between steps.