1.HAILU URGESA..........................................

1301783
2.HAYMANOT AMARE...................................1301784
3.HENOK SHIBE............................................1301799
4.IDRIS KANA................................................1301813
5.INDALE OLANI............................................1301815
6.IYASU ISABA..............................................1301818
7.JALENE LEGESSE.....................................1301824
8.JARA BOGALE...........................................1301827
9.JEMAL ABDU.............................................1301829
10.JEMAL MEHAMMED.................................1301830
Sum date 22/12/20223
 cont...
•To measure the success of a business process, organizations track
the completion of different steps within the process.
i.e., benchmarks -- or evaluate the quality of the process' endpoint.
When an organization determines that a
business process is not achieving the desired goals or outcomes, there
are several strategies it can use for improvements. For example, an
organization might to focus on business process visibility to identify is-
sues in process performance or execution.
 cont...
• Organizations also engage in business process mapping to
help boost the effectiveness of their busines operations.
• Business process mapping provides a visual representation
of how different processes function and gives organizations
better visibility into how their business works.
2.1 BUSINESS PROCESS AND EVENTS
 Cont...
What Does Business Event Mean?

Definition: Events, also called business events or transactions, are

occurrences that can be measured and change a business’ financial
position.
• In other words, an event is a business transaction that affects the
accounting equation and can be reasonably measured.
 cont...

picture 2.2 business event diagram

 cont...
 Business events are large gatherings where professionals carry
out business-related activities, such as selling services, conducting re-
search or meeting clients. These events often blend leisure with pro-
fessional activities.
• A transaction is an agreement between two entities to exchange
goods or services or any other event that can be measured in eco-
nomic terms by an organization.
• Examples include selling goods to customers, buying inventory from
suppliers, and paying employees.
• Many business activities are pairs of events involved in a give-get
exchange.
cont...
 2.2. Identifying events in business process

A financial transaction is an economic event that affects the assets and equities
of the firm, is reflected in its accounts, and is measured in monetary terms. The
most common financial transactions are economic exchanges with external par-
ties. These includes:
the sale of goods or services,
 the purchase of inventory,
 the discharge of financial obligations, and
 the receipt of cash on account from customers.
Financial transactions also include certain internal events such as the deprecia-
tion of fixed assets; the application of labor, raw materials, and overhead to the
production process; and the transfer of inventory from one department to another.
 cont...
The three cycles exist in all types of businesses both profit-seeking
and not-for-profit.
1 expenditure cycle
2 conversion cycle and
3 revenue cycle
 cont...

figure 2.3Transaction cycle diagram

 2.2.1. The Expenditure Cycle

 Business activities begin with the acquisition of materials, property, and labor in
exchange for cash
in the expenditure cycle. Figure 2.3 shows the flow of cash from the organization to
the various
providers of these resources. Most expenditure transactions are based on a credit
relationship
between the trading parties.
 The actual disbursement of cash takes place at some point after the receipt of
the goods or services. Thus, from a systems perspective, this transaction has
two parts:
 physical component (the acquisition of the goods) and
 financial component (the cash disbursement to the supplier). A separate subsys-
tem of the cycle processes each component.
cont...
 2.2.2. The Conversion Cycle

The conversion cycle is composed of two major subsystems:

I. the production system and
II. the costaccounting system.

The production system: involves the planning, scheduling, and control of

the physicalproduct through the manufacturing process.
This includes determining raw material requirements, authorizing the
work to be performed and the release of raw materials into
production, and directing the movement of the work-in process through its
various stages ofmanufacturing.

The cost accounting system: monitors the flow of cost information related
to production.The information this system produces is used for inventory
valuation, budgeting, cost control,performance reporting, and manage-
ment decisions, such as make-or-buy decisions.
Manufacturing firms convert raw materials into finished products through
formal conversion cycleoperations. However, the conversion cycle is not
usually formal and observable in service and retail enterprises.
 2.2.3. The Revenue Cycle

Firms sell their finished goods to customers through the revenue cycle,
which involves processing cash sales, credit sales, and the receipt of
cash following a credit sale. Revenue cycle transactions also have a
physical and a financial component, which are processed separately.
The primary subsystems of the revenue cycle are: Sales order pro-
cessing: The majority of business sales are made on credit and involve
tasks such as preparing sales orders, granting credit, shipping products
(or rendering of a service) to the customer, billing customers, and
recording the transaction in the accounts (accountsreceivable, inven-
tory, expenses, and sales). Cash receipts: For credit sales, some pe-
riod of time (days or weeks) passes between the pointof sale and the
receipt of cash. Cash receipts processing includes collecting cash, de-
positingcash in the bank, and recording these events in the accounts
(accounts receivable and cash
 Reference
The University of Illinois PressBashe, Charles (1986). IBM's Early
Computers. The MIT Press. p. 327. ISBN 9780262022255.
Goldstine, Herman (1972). The Computer from Pascal to Von Neu-
mann.
Princeton University Press.   Taub, Abraham (1963). John von
Neumann Collected Works. Vol. 5. Macmillan. pp. 80–151.
Bohl, Rynn: "Tools for Structured and Object-Oriented Design", Pren-
tice Hall, 2007.
Alan B. Sterneckert (2003) Critical Incident Management. p. 126
Andrew Veronis (1978) Microprocessors: Design and Applications. p.
111
• Marilyn Bohl (1978) A Guide for Programmers.
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