Unit 47-LO1 Discuss business processes and the mechanisms used to support business decision-making-BTEC-HND-Level 4 & 5

Course: Pearson BTEC Levels 4 and 5 Higher Nationals in Business

Business processes and mechanisms are what make business decisions work. They tell people how to do their jobs. Without them, organizations have to spend much more money because they can’t get things done right.

Different types of support systems exist. These are different ways to help a business. A person who holds a management role should be aware of what each type does so they can determine which one is best for their type of company. We will briefly describe what each system does below:

  • Business-oriented operational support system (BOS):  This system supports data collection, analyses, and reporting around key organizational performance metrics
  • Enterprise resource planning (ERP):  This system helps make it easier for a company to decide what they want to do. It is used to make decisions about how many materials there are and where they are going.
  • Customer relationship management (CRM):  A CRM system is a computer system that has information about customers. The people who work for the organization can see this information, too, so they can talk to the customer easier.
  • Supply chain network management (SCNM):  SCNM is a system that supports an organization’s supply chain processes.

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Also Read: Compare the tools and technologies associated with business intelligence functionality

Business process model:

Data input and capture, data processing/conversion and information output, security considerations; unstructured and semi-structured data

Data input and capture

Data input and capture is when you get information from an individual or company. It can be done by filling out a paper form or digitally on a computer, tablet, or mobile device (e.g., smartphone).

To get data, you may communicate with other people by email, chat, or phone. You can also use medical records from doctors’ offices and hospitals. And you may also record observations that are made during meetings that have something to do with communication processes. You can find instructions for doing a certain function in instructional videos on the web.

Data processing/conversion and information output

To get data, you may talk to others by email, phone, or chat. You can also use medical records that are from doctors’ offices and hospitals. And you may record observations that come up during meetings if they have something to do with communication processes. Instructions on how to do a certain function can be found in instructional videos on the internet.

Information is also put on paper and sent to people through printers. This happens when people divide up the work.

Security Considerations

When building a project, it is important to think about what security controls need to be built-in.

Before the business process can happen, security needs to be checked. There are two ways of this: an enterprise analysis (VA) and a risk assessment. The VA tells you if your current security measures are enough for the risks in your company.

Unstructured and semi-structured data 

Unstructured data management is when you store your information in different ways without guidance. You may find it on shelves or in a file cabinet instead of neatly sorted into folders.

Semi-structured data is often mixed with unstructured data. Semi-structured data are structured but also have flexibility, while unstructured content changes from time to time. If you release more of this type of data, you can use it for different things because it does not have a locked-in model.

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Tactical and operational decisions, the business process model, business intelligence functionality

The tactical and operational decisions include targeting, timing, and content. These are usually put in the intelligence section of a process model.

The business process model includes four main activities for an organization or department.

  • The first is to know where we are now.
  • The second is to tell the future what to do.
  • The third is to plan what kind of results you want.
  • The fourth is figuring out if things worked out well or not.

This is based on information from different sources about what the company needs to do. The company needs to think about things like other companies and adjust its strategy.

Analyze and compare the systems and technologies associated with business intelligence

Business Intelligence (BI) is a growing field that analyzes and collects data from many sources. There are different ways to collect it, such as data mining, visualization, predictive analytics, and dashboard reporting. These systems might be best for some businesses but not for others because all big data is not alike.

First, you need to figure out what kind of data the company has. Then you need to figure out where it is and how to get it in a format that can be used by BI tools and analyzers. Next, based on what data you find, decide what kind of enterprise intelligence will happen. Finally, decide how to do this best.

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Application software, databases, which are used to collect and store intelligence

The below is a non-comprehensive list of the types of intelligence that can be collected and stored as data using an application software or database.

1) Metadata about each report submitted by the user in the form of date, time, location, agency (limiting only to agencies with security clearance)

2) Each report submitted by the final user during the login process for review

3) All images connected to a referenced link or photo in the relevant report (renamed with file extension if not JPG/PNG), along with destination URL/location where the image was found online and finally reviewed.

Systems that are used to manage, analyze and display business intelligence to support the decision-making process; the importance of reliable data; impacts of reliable data in businesses

BI systems can help people make business decisions, and also help the HR department. But they need good data to work. So this data must be reliable.

BI systems and analytics are important for a business. A company called Greenfield Partners helps B2B companies get advice about where they can make changes to the way they do business. They get information from the market and other things and use it to help their clients be successful in the future.

Business processes:

Management e.g. supporting decision-making, problem-solving

Management is hard and an important job. The better the management, the easier it is for everyone on a team.

One of my best pieces of advice for a good manager is to make decisions based on data. I personally like using total quality management principles because they require managers to come up with ‘3 whys’ before passing judgment on any decision or problem that they cannot identify the root cause for. Using data, you can help manage employees. You can see what is working and what is not, which will allow you to make good decisions.

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Operational e.g. sales, purchasing, and marketing

An operational person is in charge of making sure that the company runs smoothly. They could be in charge of buying things or helping to make products. They are usually at the bottom of a chart because they need to be able to do everything and anything to keep everything running smoothly.

Operation experts are people who enforce employee policies, keep records of what’s happening, and implement business procedures. They need a balance between people management skills and managerial skills. It is difficult to be in this field because you never know where you will be next year.

Support e.g. accounting, technical supporting processes

Accountants are not usually technical. They focus on what they can do more efficiently than before.

A technical supporting professional does not usually work in accounting. It can be helpful to go to a school that offers subjects in business administration or economics. When you are in college, you should take courses like industrial relations and company law. These courses will help you when you start doing work as an accountant because they will teach you about the technical side of things.

Improving the efficiency of a business process e.g. forecasting, decision-making, predictive reasoning

To make your decision or forecast more accurate, you need to make sure you are making it better. Predictive reasoning means knowing what will happen before it happens. Change management programs use predictive reasoning to know how likely something is to happen and create a basis for predictions and justify associated costs.

An example in my book ‘Crown of Success’: A manufacturing company makes windshield wipers. Sometimes the parts are perfect, sometimes they are not so good. To avoid this, the company tried different things to improve their quality. They tried different processes and vendors and changed how they do their inspections.

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Automating processes e.g. print runs, salary slips

Automating the processes in your company can make it more efficient. It can also reduce the chance of making mistakes. Software vendors that make bank software, like check printing, payroll processing, balance reconciliation, and investment banking are available for companies.

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