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
Online Transaction Processing
Capturing of transaction and event information using technology to process, store, and update
Source Document
The original transaction record
Online Analytical Processing
Manipulation of information to create business intelligence in support of strategic decision making
Decision Support System
Models information to support managers and business professionals during the decision making process
Quantitative Models Used by Decision Support System
What if analysis, sensitivity analysis, goal seeking analysis, optimization analysis
Executive Information System
A specialized decision support system that supports senior level executives within the organization
Artificial Intelligence
Simulated human intelligence such as the ability to reason and learn
Intelligent System
Various commercial applications of artificial intelligence
Expert System
Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems
Neural Network
Attempts to emulate the way the human brain works
Fuzzy Logic
A mathematical method of handling imprecise or subjective information
Genetic Algorithm
An artificial intelligent system that mimics the evolutionary, survival of the fittest process to generate increasingly better solutions to a problem
Shopping Bot
Software that will search several retailer websites and provide a comparison of each retailers offerings including price and availability
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
Business Process
An ongoing collection of related activities that create a product or service of value to the organization
Customer Facing Process
Results in a product or service that is received by an organization’s external customer
Business Facing Process
Invisible to the external customer but essential to the effective management of the business
Mapping
The activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities
Business Process Model
A graphic representation of a process, showing the sequence of process tasks developed for a specific model
Business Process Event
Is represented by a circle
Business Process Activity
Represented by a rectangle
Business Process Gateway
Represented by a diamond
Business Process Flows
Represented by arrows
Business Process Improvement
Attempts to understand and measure the current process and make performance improvements accordingly
Automation
The process of computerizing manual tasks
Streamlining
Improves business process efficiencies by simplifying or eliminating unnecessary steps
Business Process Reengineering
Analysis and redesign of workflow within and enterprises
Silo Effect
Delays in the form of increased lead times and cycle times
