Chapter 2- Decisions And Processes: Value Driven Business Flashcards
Six step decision making process
Problem identification Data collection Solution generation Solution test Solution selection Solution implementation
Strategic decision making
Managers develop overall goals, strategies, and objectives
Managerial decision making
Employees evaluate company operations to identify, adapt to, and leverage change
Operational decision making
Employees develop, control, and maintain core business activities required to run the day to day operations
Project
A temporary activity to create a unique product, service, or result
Metrics
Measurements that evaluate results (outcomes) 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 (leading indicators)
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 (benchmark values) and identifying steps and procedures to improve system performance
Model
A simplified representation or abstraction of reality.
Helps calculate risk, understand uncertainty, conduct what if scenarios
Operational support systems
Transaction processing system
Online transaction processing
Source document
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
Managerial support systems
Online analytical processing
Decision support system
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
Strategic support systems
Executive information system
Executive information system
A specialized DSS that supports senior level executives within the organization
- granularity
- visualization
- digital dashboard
When do businesses gain competitive edge
When they minimize costs and streamline business processes
Customer facing process
Results in a product or service that is received by an organizations external customer
Business facing process
Invisible to the external customer but essential to the effective management of the business
Business process modeling
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
Business process model
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
Workflow
Includes the tasks, activities, and responsibilities required to execute each step in a business process
Business process improvement
Attempts to understand and measure the current process and make performance improvements accordingly
Automation
The process of computerizing manual tasks
Improving managerial business processes
Streamlining
Bottleneck
Redundancy
Streamlining
Improves business process efficiencies by simplifying or eliminating unnecessary steps
Bottleneck
Occurs when resources reach full capacity and cannot handle any additional demands
Redundancy
Occurs when a task or activity is unnecessarily repeated
Improving strategic business processes
Re engineering
Business process re engineering
Analysis and redesign of workflow within and between enterprises
Business process management
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
Managerial decision making challenges
- analyze large amounts of information
- apply sophisticated analysis techniques
- make decisions quickly
