Chapter 2: Using MIS to Make Business Decisions Flashcards
Model
A simplified representation or abstraction of reality
How do models help managers?
Calculate risks
Understand uncertainty
Change variables
Manipulate time to make decisions
Transaction Processing System (TPS)
Basic business system that serves the operational level and assists in making structured decisions
Online Transaction Processing (OLTP)
Capturing of transaction and event information using technology to process, store, and update
Transactional Information
Encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational or structured decisions.
Decision Support System (DSS)
Models information to support managers and business professionals during the decision-making process
Executive Information System (EIS)
A specialized DSS that supports senior level executives within the organization
Online Analytical Processing
The manipulation of information to create business intelligence in support of strategic decision making.
What are four quantitative models used by Decision Support Systems?
1) What-if analysis
2) Sensitivity analysis
3) Goal-seeking analysis
4) Optimization analysis
What-if Analysis
Checks the impact of a change in an assumption on the proposed solution
Sensitivity Analysis
The study of the impact that changes in one (or more) parts of the model have on other parts of the model
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.
What are three components to the Executive Information System?
1) Granularity
2) Visualization
3) Digital dashboard
Granularity
Refers to the level of detail in the model or the decision-making process
