Chapter 2: Decisions And Processes Flashcards
Problem Identification
Define the problem as clearly and precisely as possible
Data Collection
Gather problem related data. Be sure to gather facts about the problem
Solution Generation
Detail every solution possible including ideas that seem farfetched
Solution Test
Evaluate solutions in terms of feasibility, suitability, and acceptability
Solution Section
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 the process starts over
Operational Decision Making
Employees develop, control, and maintain core business activities required to run the day to day operations
Structured Decisions
Situations where established processes offer potential solutions
Managerial Decision Making
Employees evaluate company operations to identify, adapt to, and leverage change
Semi structured Decisions
Occur in situations in which a few established processes help to evaluate potential solutions but not enough to lead to a definite recommended decision
Strategic Decision Making
Managers develop overall strategies, goals, and objectives
Unstructured Decisions
Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choices
Project
A temporary activity a company undertakes to create a unique product, service, or result
Metrics
Measurements that evaluate results to determine whether a project is meeting its goals
Critical Success Factors
The crucial steps companies make to perform to achieve their goals and objectives and implement strategies
Key Performance Indicators
The quantifiable metrics a company uses to evaluate progress toward critical success factors
Market Share
The portion of the market that a firm captures
Return on Investment
Indicates the earning power of a project
Efficiency MIS Metrics
Measure the performance of MIS itself, such as throughput, transaction speed, and system availability
Effectiveness MIS metrics
Measures the impact MIS has on business processes and activities, including customer satisfaction and customer conversion rates
Benchmark
Baseline values the system seeks to attain
Benchmarking
A process of continuously measuring system results, comparing those results to optimal system performance and identifying steps/procedures to improve system performance
Model
A simplified representation or abstraction of reality
Transaction Processing System
Basic business system that serves the operational level and assists in making structured decisions
