Chapter 2 Flashcards
Analytics
Is the science of fact-based decision making.
Problem Identification
Define the problem as clearly and precisely as possible.
Data Collection
Gather problem-related data, including who, what, when, where, why, and how.
Solution Generation
Detail every solution possible, including ideas that seem farfetched.
Solution Test
Evaluate solutions in terms of feasibility (can it be completed?), suitability (is a permanent or a temporary fix?), and acceptability (can all participants form a consensus?).
Solution Selection
Select the solution that best solves the problem and meets the needs of the business.
Solution Implementation
If the solution solves the problem, then the decisions, made were correct. If not, then the decisions were incorrect and the process begins again.
Operational Decision Making
Employee development, control, and maintain core business activities required to run the day to day operations.
Managerial Level
Employees are continuously evaluating company operations to hone the firm’s abilities to identify, adapt to, and leverage change.
Structured Decisions
Situations where established processes offer potential solutions.
Semistructured Decisions
Occur in situations in which a few established processes help evaluate potential solutions, but not enough to lead to a definite recommended decision.
Strategic Decision Making
Managers develop overall business strategies, goals, and objectives as part of the company’s strategic plan.
Unstructured Decision
Occurring in situations in which no procedures or rules exist to guide decision makers toward the correct choice.
Metrics
Are measurements that evaluate results to determine whether a project is meeting its goals. WILL BE ON EXAM
Critical Success Factors (CSFs)
Are the crucial steps companies perform to achieve their goals and objectives and implement their strategies.
Key Performance Indicators (KPIs)
Are the quantifiable metrics a company uses to evaluate progress toward critical success factors. Far more specific than CSF’s
Project
A temporary activity a company undertakes to create a unique product. Meant to be short term. **WILL TRY TO TRICK ON EXAM***
Programs
Long term projects.
Best Practices
Are the most successful solutions to problem-solving methods that have been developed by a specific organization or industry.
Efficiency MIS Metrics
Measure the performance of MIS itself, such as throughput, transaction speed, and system availability.
Effectiveness MIS Metrics
Measure the impact MIS has on business processes and activities, including customer service satisfaction and customer conversation rates.
Market Share
The portion of the market that a firm captures
Return on Investment
Indicates the earning power of a project. (Internal KPI)
Throughput (efficiency metrics)
The amount of information that can travel through a system at any point in time.
Transaction Speed (efficiency metrics)
The amount of time a system takes to perform a transaction.
System Availability (efficiency metrics)
The number of hours a system is available for users
Information Accuracy (efficiency metrics)
The extent to which a system generates the correct results when executing the same transaction numerous times.
Response Time (efficiency metrics)
The time it takes to respond to user interactions such as a mouse click.
Usability (effectiveness metrics)
The ease with which people perform transactions and/or find information.
Customer satisfaction (Effectiveness metrics)
Measured by satisfaction surveys, percentage of existing customers retained, and increase in revenue dollars per customer.
Benchmark
Baseline values the system seeks to attain.
Benchmarking
A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve performance.
Model
Is a simplified representation or abstraction of reality.
Online Transaction Processing (OLTP)
Is the capture of transaction and event information using technology to (1) process the information according to defined business rules, (2) store the information, and (3) update existing information to reflect new information.
Analytical Information
Encompasses all organizational information, and its primary purpose is to support the performance of managerial analysis or semistructured decisions.
Online Analytical Processing (OLAP) *
Is the man
What-If Analysis
Checks the impact of a change in a variable or assumption on the model.
Sensitivity Analysis
A special case of what-if analysis, is the study of the impact on other variables when one variable is changed repeatedly.
Goal Seeking Analysis
Finds the inputs necessary to achieve a goal such as a desired level of output.
Optimization Analysis
An extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints.
Most EIS’s offer what capabilities?
consolidation,
Artificial Intelligence
Simulates human intelligence such as the ability to reason and learn.
Intelligent Systems
Various commercial applications of AI
Expert System
Computerized advisory programs that imitate the reasoning of processes of expert in solving difficult problems.
Neural Network
Attempts to emulate the way human brain works.
Executive Information System (EIS)
Is a specialized DSS that supports senior-level executivesand unstructured long-term, no routine decisions requiring judgement, evaluation, and insight.
Genetic Algorithm
An artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem.
Intelligent Agent
Special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users.
Virtual Reality
A computer-simulated environment that can be a simulation of the real world or an imaginary world.
JBusinesses gain a competitive edge when they_______ and _______ business________?
Minimize Costs, streamline, processes.
Business process modeling, or Mapping (verb)
Is the activity of creating a detailed flowchart or process map of a work process that shows its inputs, tasks, and activities in a structured sequence.
Business Process Model (noun)
Is a geographic description of a process, showing the sequence of process tasks, which developed for a specific purpose and from a selected viewpoint.
Customer Facing Process
Results in a product or service that is received by an external customer.
Business Facing Process
Invisible to the external customer but essential to the effectiveness - management of business.
Workflow
Includes the tasks, activities, and responsibilities. (Finish in powerpoint)
Automate
Answering phones with computers
Streamline
Remove duplicate jobs in the process
Reengineering
Taking an airplane instigate of a bike.
Business Process Improvement (BPI)
Attempts to understand and measure the current process and make performance improvements accordingly.
Automation
The process of computerized manual tasks.
What are the 5 steps in Business Process Improvement
- Document AS-IS Process
- Establish Measures
- Follow Process
- Measure Performance
- Identify and Implement Improvements
Bottleneck
Occur when recourses reach full capacity and cannot handle any additional demands
Redundancy
Occurs when a task or activity is unnecessarily repeated
Streamlining
Improves business process efficiencies (finish from powerpoint)
Business Process Reengineering (BPR)
Analysis and redesign of workflow within and between enterprises.
