2 Flashcards
What does Porter’s five forces model suggest entering the market with?
Competitive advantage in
- Cost leadership
- Product differentiation
- Focus
What is the most difficult decision managers face?
Making decisions
What are the three main problems managers face in decision making?
- analyzing large amounts of information
- quick decisions
- sophisticated analysis techniques
What has increased the number of variables a person has to consider when making a decision?
improvments in communication and globalization
What is the science of fact-based decision making?
analytics
What is the six-step decision making process?
- Problem Identification
- Data collection (facts about case)
- Solution Generation
- Solution Test
- Solution Selection
- Solution Implementation (feedback)
At what level do employees develop, control, and maintain core business activity required for day-to-day operations
Operational Level
what kinds of decisions do operational level employees make?
Structured (Programmed) decision
What are some examples of structured decisions?
how many out sick? How much needs to be made today?
What is the time frame of operational level decisions?
short, day-to-day
What is the focus of operational level decisions?
internal, functional
What is the MIS type of operational level decisions?
information
What is the key metric of operational level decisions?
focused on efficiency
At what level of decision making are employees constantly evaluating company operations to help indentify, adapt to, and leverage change
managerial decision making
What does a company that has a competitive advantage need to do?
constantly adjust and revise its strategy
What kinds of decisions do managers make?
semistructured decisions
What are semistructured decisions?
few established processes help to evaluate situations, but no definite answer
What is the focus of managerial level decisions?
Internal, crossfunctional (sometimes external)
What is the time frame of managerial level decisions?
short term, daily, weekly, monthly, yearly
What is the MIS type of managerial level decisions?
Business Intelligence
What are the metrics of of managerial level decisions?
efficiency and critical success factors of effectiveness
What are some examples of managerial level decisions?
Who are our best customers by region, product type. . .
What was the impact of last month’s marketing campaign?
At what level do managers develop overall business strategies, goals, and objectives as part of the company’s strategic plan
Strategic level
What type of decisions do strategic level managers make?
Unsctructured (Non-program) decisions
What are some examples of strategic level decisions?
What is the industry trend for the next 3 years?
Which trends are worth analyzing
How can we prepare for new tax laws.
A temporary activity a company undertakes to create a unique product, service, or result
project
measurements that evaluate results to determine whether a project is meeting its goals
metrics
What are two core metrics?
critical success factors and key performance indicators
the crucial steps companies perform to achieve their goals and objectives and implement their strategies
Critical success factors
quantifiable metrics a company uses to evaluate progress toward critical success factors
Key performance indicators
Are KPIs or CSFs more specific?
KPIs
What is a common extermal KPi which tells the proportion of the market that a firm captures?
Market share
How is market share determined?
firm’s sales/total market sales in industry
What is a common internal KPI which indicates the earning power of a project
return on investment
What are the most successful solutions or problem-solving methods that have been developoed by a specific organization or industry?
best practices
Wha tmeasure the perfrormance of MIs itself, such as throughput, transaction speed, and system availability
Efficiency MIS metrics
What measure the impact MIS has on Business process and activities, including cutomer satisfaction and customer conversion rates
Effectiveness MIS metrics
baseline values a system seeks to attauin
benchmarks
process of continuously measuring system results, comparing those results to optimal system performance, and identifying steps and procedures to improve system proformance
Benchmarking
a simplified representation or abstraction of reality
model
What emcompasses all the information contained within a single business process or unit of work, and supports the performance of daily operation or structured decisions
Transactional information
When is transcational information created?
Purchasing stock, making airline reervation, ATM use
What is the capture of transaction and event information?
Online transaction processing OLTP
What are the goals of OLTP?
- Process the information according to defined business rules
2 Store the information - Update existing information to reflect the new information
the basic business system that serves the operation level and assists in making structured
Transaction processing system TPS
What is a common example of a TPS?
payroll system
What are the inputs for a TPS?
source documents
What are source documents?
the original transcation record (time sheets, etc)
What are theprocesses a TPS engages in?
Creating, reading, updating, and deleting (CRUD)
What is the output of a tPS?
reports
emcompasses all the organizational information
Analytical information
What is the primary purpose of analytical information?
support the perfomance of managerial analysis or semistructured decision
What are examples of analytical information?
trends, sales, product, statistics, etc
What is the manipulation of information to create business intelligence in support of strategic decision making?
Online analytical processing (OLAP)
what model information using OLAP, which provides assistance in evaluating and choosing among different courses of action?
Decision support systems (DSSs)
What are four common DSS analysis techniques?
What-if Analysis
Sensitivity Analysis
Goal Seeking Analysis
Optimization Analysis
checks the impact of a change in a variable or assumption of the model
What-if analysis
a special case of what-if analysis, is the study of the impact of other variables when one variable is changed repeatedly
sensitivity analysis
finds the inputs necessary to achieve a goal such as a desired level of output.
goal seeking analysis
an extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables, subject to specific constraints
optimization analysis
What is a specialized DSS that supports senior-level executives and unstructured, long-term nonroutine decisions requiring judgment, evaluation and insight
executive information system
What refers to the level of detail in the model or decision-making process
granularity
prodcues graphical display of patterns and complex relationships in large amounts of detail
visualization
what tracks KPIs and CDFs by compiling information from multiple sources and tailoring it meet user needs?
digital dashboard
What simulates human thinking and behavior, such as the ability to learn and reason
artificial intelligence.
What are commercial applications of AI called?
Intelligent Systems
What are expert systems?
computerized advisory programs that imitate the reasoning of experts.
Which Intelligent System is most common in business?
Expert Systems
What are some examples of Expert Systems
Chess, Doctor
What form of AI tries to emulate human nueral processes?
Neural Network
Who relies heavily on Neural Networks?
Finance, Credit Card Fraud
What is a mathematical method of handling imprecise or subjective information?
fuzzy Logic (investments)
Artificial intelligence that mimics evolutionary survival-of-the-fittest process to create better and better solutions through mutations
Genetic Algorithm
What are some examples of genetic algorithms?
Investment decision, competitive intelligence
special purpose, knowledge-based infromation system that accomplishes specific tasks for users
intelligent agent
A type of intelligent agent software that searches retailer websites for buying and selling at the best price
shopping bot
computer simulated environment that can be a simulation of the real world or an imaginary world
Virtual Reality
viewing the world with computer generated layers of info added
augmented reality
What type of process results in a product or service received by an organization’s external customer
Customer facing (front office) process
What type of process is invisible to the external consumer but are essential to the effective managing of a business (goal setting, planning)
Business facing (back office) process
business processes, such as manufacturing, selling, and providing services that make up the primary activities in the value chain
core processes
uses a systematic approach in an attempt to improve business effectiveness and efficiency continuously
static process
continuously changing process and provides business solutions to ever changing business operations
dynamic process
What is creating a flowchart or process map of a business process that contains inputs, tasks, and activities in a structured sequence
Business process modeling, mapping
a graphic description of a business process
business prcoess model
a graphical notation that depicts the steps of a business process
Business process model and notation
includes the tasks, activities, and responsibilities required to execute each step of the business process
workflow
monitors processes to ensure tasks, activities, and responsibilities are executed as specified
workflow control system
static, routine, daily business processes such as stocking inventory?
operational business process
How are operational level processes improved?
automation
