Baltzan Chapter 2 Flashcards
Decision Making
Operational Level
Department Managers, Analysts, Staff Information Focus: Internal (day to day) Structured and recurring decisions Performance focusing on efficiency
Decision-Making Process
Problem identification Data collection Solution generation Solution test Solution selection Solution implementation
Decision Making
Managerial Method
Managers and Directors
Business Intelligence
Focus: Internal and Cross-functional
Short term decisions (daily, monthly, yearly)
Semistructured decisions and unplanned reporting
Decision Making
Strategic Method
Presidents, Executives, Leaders
Knowledge
Focus: External, Industry, cross-company
Unstructured and nonrecurring decisions
Metrics
Measurements that evaluate results to determine whether project is meeting it’s goals
Critical Success Factors
Key Performance Indicators
Critical Success Factors
Crucial steps companies perform to achieve goals and implement strategy
Key Performance Indicators
Quantifiable metrics to evaluate progress toward critical success factors
Far more specific than CSFs
- **Market Share
- **Return on Investment
CSF: improve graduation rates
KPI’s to measure?
Average grades by course and gender
Student dropout rates
Average graduation rates
Time spent in tutoring
Market Share
Sales / Total Market Sales
Return on Investment (ROI)
Indicates earning power of a project
Profitability / Costs
Efficiency MIS metrics
“Doing things right”
Measure the performance of MIS itself
Throughput Transaction Speed System Availability Information Accuracy Response Time
“To what extent are we using our resources optimally”
Effectiveness MIS Metrics
“Doing the right things”
Measure the impact MIS has on business processes and activities
Usability
Customer Satisfaction
Customer Conversion Rates
Financial
“How well do we achieve our goals”
Transactional Information
Encompasses all the info contained in a single process or unit of work
Supports daily performance of Operational or Structured decisions
Customer purchase stocks
Customer reserve flight
Customer withdrawal cash from ATM
Analytical Information
Encompasses all organizational information (including transactional, market, and industry info)
Support the performance of managerial analysis or semistructured decisions
Trends, sales, statistics, growth projections
Automation
Computerizing manual tasks
Reduces costs and increases speed of performance
