Chapter 2 Flashcards
1. Explain the importance of decision making for managers at each of the three primary organization levels along with the associated decision characteristics. 2. Define critical success factors (CSFs) and key performance indicators (KPIs) and explain how managers use them to measure the success of MIS projects 3. Classify the different operational support systems, managerial support systems, and strategic support systems, and explain how managers can use these systems to make decisions and ga
- Analyze large amounts of information
- make decisions quickly
- apply sophisticated analysis techniques
Managerial decision making challenges
- Problem Identification
- Data Collection
- Solution Generation
- Solution Test
- Solution Selection
- Solution implementation
The Decision-making process
- Strategic
- Managerial
- Operational
Primary Organization Levels
Employees develop, control, and maintain core business activities required to run the day-by-day operations
Operational level
Affect how the firm is run day to day
Operational decisions
Situations where established processes offer potential solutions
Structured decisions
Employees evaluate company operations to identify, adapt to, and leverage change
Managerial level
These concern how the organization should achieve the goals and objectives set by its strategy
Managerial decisions
Occur in situations in which a few established process help to evaluate potential solutions, but not enough to lead to a definite recommend decision
Semi-structured decisions
managers develop overall strategies, goals, and objectives
Strategic level
involve higher-level issues concerned with the overall direction of the organization
strategic decisions
occurs in situations in which no procedures or rules exist to guide decision makers towards the correct choice
unstructured decisions
The crucial steps companies make to perform to achieve their goals and objectives
Critical success factors (CSF)
the quantifiable metrics a company uses to evaluate progress towards critical success factors
Key Performance Indicators (KPIs)
Encompass all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational or structured decisions
Transactional Information
Basic business system that serves the operational level and assists in making structured decisions
Transaction processing system (TPS)
Capturing of transaction and event information using technology to process, store, and update
Online Transaction processing (OLTP)
The original transaction record
Source document
Encompass all organizational information, and its primary purpose is to support the performing of managerial analysis or semi-structured decisions
Analytical Information
Manipulation of information, and its primary purpose is to support the performing of managerial analysis or semi-structured decisions
Online analytical processing (OLAP)
Models information to support managers and business professionals during the decision-making process
Decision support system (DSS)
A specialized DSS that supports senior-level executives and unstructured, long-term, non routine decisions requiring judgement, evaluation, and insight
Executive Information System (EIS)
Refers to the level of detail in the model of the decision-making process
Granularity
Produces graphical displays of patterns and complex relationships in large amounts of data
Visualization
A representation of information in a graphical format designed to make the data easily understandable at a glance
Infographic
Stimulates human intelligence such as the ability to reason and learn
Artificial Intelligence
Results in a product or service that is received by an organization’s external customer
Customer facing process
Invisible to the external customer but essential to the effective management of the business
Business facing process
The activity of creating a detailed flow chart or process map of work process showing its inputs, tasks, and activities, in a structured sequence
Business Process Modeling (or mapping)
Represents the current state of operation that has been mapped, without any specific improvements or changes to existing process
As-is process model
Shows the result of applying change improvement opportunities to the current (As-Is) process model
To-Be process model
The process of computerizing manual tasks, making them more efficient and effective, and dramatically lowering operational costs
Automation
Improves business process efficiencies by simplifying or eliminating unnecessary steps
Streamlining
Analysis and redesign of workflow withing and between enterprises
Reengineering
