Overview of Business Processes

Overview of Business Processes

  • Submitted By: Steffano
  • Date Submitted: 01/27/2010 8:40 PM
  • Category: Business
  • Words: 939
  • Page: 4
  • Views: 448

Overview of Business Processes

This chapter is divided in two major sections. First major section discusses the basic business activities an organization engages in, the key decision that must be considered when managing those activities, and the information needed to make those decisions. It also discusses the type of interactions that an organization’s AIS has with both internal and external parties. It concludes with a description of the major transaction cycles common to most organizations. In discussing these things, we show that the nature and objectives of an organization affect the design of its AIS.

Before we select an accounting package, we need to identify the information need to manage the company efficiently. Those information can help us to understand how the company functions, and when we completely understand about the company, we can assure that a good AIS can be created. According to the example, we can see that first thing to do is we must list the basic business activities or process, the key decisions that will need to be made for each of these processes, and list the helpful information that company’s need to make these decisions. We also need to identify all the stakeholders that we will deal with (external and internal parties) to get a better handle on the more important interactions with them, because the AIS at the company will interact with many external and internal parties. Next thing to do is we must reorganize the business processes into groups of related transactions, which is contain an exchange. Many business activities are pairs of events involved in a give-get exchange, and these basic exchange can be grouped into five major business or transaction cycles: revenue cycle, expenditure cycle, production cycle, human resource/payroll cycle, and financing cycle. These basic exchange are supported by a number of other business activities, and we need to list the major activities in each transaction cycle. After...

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