Chapter 2- Decisions And Processes: Value Driven Business

Question 1

Six step decision making process

Answer 1

Problem identification
Data collection
Solution generation
Solution test
Solution selection
Solution implementation

Question 2

Strategic decision making

Answer 2

Managers develop overall goals, strategies, and objectives

Question 3

Managerial decision making

Answer 3

Employees evaluate company operations to identify, adapt to, and leverage change

Question 4

Operational decision making

Answer 4

Employees develop, control, and maintain core business activities required to run the day to day operations

Question 5

Project

Answer 5

A temporary activity to create a unique product, service, or result

Question 6

Metrics

Answer 6

Measurements that evaluate results (outcomes) to determine whether a project is meeting its goals

Question 7

Critical success factors

Answer 7

The crucial steps companies make to perform to achieve their goals and objectives and implement strategies

Question 8

Key performance indicators

Answer 8

The quantifiable metrics a company uses to evaluate progress toward critical success factors (leading indicators)

Question 9

Efficiency MIS metrics

Answer 9

Measure the performance of MIS itself, such as throughput, transaction speed, and system availability

Question 10

Effectiveness MIS metrics

Answer 10

Measures the impact MIS has on business processes and activities including customer satisfaction and customer conversion rates

Question 11

Benchmark

Answer 11

Baseline values the system seeks to attain

Question 12

Benchmarking

Answer 12

A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values) and identifying steps and procedures to improve system performance

Question 13

Model

Answer 13

A simplified representation or abstraction of reality.

Helps calculate risk, understand uncertainty, conduct what if scenarios

Question 14

Operational support systems

Answer 14

Transaction processing system
Online transaction processing
Source document

Question 15

Transaction processing system

Answer 15

Basic business system that serves the operational level and assists in making structured decisions

Question 16

Online transaction processing

Answer 16

Capturing of transaction and event information using technology to process, store, and update

Question 17

Source document

Answer 17

The original transaction record

Question 18

Managerial support systems

Answer 18

Online analytical processing

Decision support system

Question 19

Online analytical processing

Answer 19

Manipulation of information to create business intelligence in support of strategic decision making

Question 20

Decision support system

Answer 20

Models information to support managers and business professionals during the decision making process

Question 21

Strategic support systems

Answer 21

Executive information system

Question 22

Executive information system

Answer 22

A specialized DSS that supports senior level executives within the organization

• granularity
• visualization
• digital dashboard

Question 23

When do businesses gain competitive edge

Answer 23

When they minimize costs and streamline business processes

Question 24

Customer facing process

Answer 24

Results in a product or service that is received by an organizations external customer

Question 25

Business facing process

Answer 25

Invisible to the external customer but essential to the effective management of the business

Question 26

Business process modeling

Answer 26

The activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence

Question 27

Business process model

Answer 27

A graphic description of a process, showing the sequence of process tasks, which is developed for a specific - as is process model - to be process model

Question 28

Workflow

Answer 28

Includes the tasks, activities, and responsibilities required to execute each step in a business process

Question 29

Business process improvement

Answer 29

Attempts to understand and measure the current process and make performance improvements accordingly

Question 30

Automation

Answer 30

The process of computerizing manual tasks

Question 31

Improving managerial business processes

Answer 31

Streamlining Bottleneck Redundancy

Question 32

Streamlining

Answer 32

Improves business process efficiencies by simplifying or eliminating unnecessary steps

Question 33

Bottleneck

Answer 33

Occurs when resources reach full capacity and cannot handle any additional demands

Question 34

Redundancy

Answer 34

Occurs when a task or activity is unnecessarily repeated

Question 35

Improving strategic business processes

Answer 35

Re engineering

Question 36

Business process re engineering

Answer 36

Analysis and redesign of workflow within and between enterprises

Question 37

Business process management

Answer 37

Focuses on Evaluating and improving processes that include both person to person workflow and system to system communications - not only allows a business process to be executed more efficiently but also provides tools to measure performance and identify opportunities for improvement

Question 38

Managerial decision making challenges

Answer 38

- analyze large amounts of information - apply sophisticated analysis techniques - make decisions quickly