Understanding Business Process and its Link to Information Systems
What is your understanding of a business process? How is the business process linked to the information system? Can you think of an example, a public or a private corporation, and explain how various divisions collaborate using information systems to maximize the performance? (Note: Each of you should choose a different company in your examples for maximum benefit to everyone.)
Understanding Business Process and its Link to Information Systems
A business process refers to a series of interconnected activities or tasks that are performed within an organization to achieve a specific goal. These processes involve the coordination and collaboration of different individuals, departments, or divisions to complete a set of activities that contribute to the overall functioning and success of the organization.
Information systems play a crucial role in supporting and facilitating business processes. They provide the necessary technology and tools to streamline and automate various tasks, improve communication and collaboration, enhance decision-making processes, and ultimately optimize the performance of the organization. By leveraging information systems effectively, businesses can achieve greater efficiency, productivity, and competitive advantage.
Now let’s consider an example of how various divisions collaborate using information systems to maximize performance in a public corporation - The United States Postal Service (USPS).
The USPS is responsible for delivering mail and packages across the United States. It is a complex organization with multiple divisions that work together to ensure efficient mail processing, transportation, and delivery. Here’s how information systems enable collaboration and maximize performance within different divisions of USPS:
Collection and Sorting: The Collection and Sorting division collects mail from various sources, such as post offices, businesses, and collection boxes. Information systems are used to track and manage the collection process, ensuring accurate recording of volumes, locations, and delivery timelines.
Mail Processing: Once collected, mail is sent to one of the USPS Mail Processing Centers. Information systems are utilized to automate the sorting and distribution of mail based on ZIP codes or other relevant criteria. These systems use optical character recognition (OCR) to read addresses, barcode scanners for tracking purposes, and routing algorithms to optimize the delivery process.
Transportation: The Transportation division is responsible for moving mail between different processing centers, post offices, and distribution facilities. Information systems support route planning, scheduling, and tracking of vehicles to ensure timely and efficient transportation. GPS technology is used to monitor vehicle locations, while communication systems enable real-time updates between drivers, dispatchers, and supervisors.
Delivery: The Delivery division involves mail carriers who deliver mail and packages to individual addresses. Information systems play a vital role in optimizing delivery routes, generating electronic delivery confirmations, and managing packages through barcodes or tracking numbers. Mobile devices equipped with information systems enable carriers to access route information, capture electronic signatures, and communicate with supervisors or customers.
Customer Service: The Customer Service division handles inquiries, complaints, and other customer-related issues. Information systems are utilized to track customer interactions, manage service requests, and provide real-time updates on the status of deliveries. Customer databases allow representatives to access customer information quickly and provide personalized assistance.
Analytics and Reporting: USPS also utilizes information systems for analytics and reporting purposes. By analyzing data on mail volumes, delivery times, customer satisfaction, and other performance metrics, USPS can identify areas for improvement, optimize processes, and make informed decisions to enhance overall performance.
In summary, the USPS demonstrates how various divisions collaborate using information systems to maximize performance. From collection and sorting to transportation, delivery, customer service, and analytics, information systems facilitate efficient coordination, communication, automation, and data-driven decision-making across all aspects of the organization. This integration of business processes with information systems allows USPS to deliver mail in a timely manner while optimizing operational efficiency and customer satisfaction.