Chapter Two Flashcards
Operational Level
Employees develop, control and maintain core business activities required to run the day-to-day operations.
Operational Decisions
Affect how the firm is run day-to-day.
Structured Decisions
Arise in situations where established processes offer potential solutions.
Managerial Level
Employees are continuously evaluating company operations to hone the firm’s abilities to identify, adapt to, and leverage change.
Managerial Decisions
Concern how the organization should achieve goals and objectives set by strategy.
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 Level
Managers develop overall business strategies, goals and objectives as part of the company’s strategic plan.
Strategic Decisions
Involve higher-level issues concerned with the overall direction of the organization.
Unstructured Decisions
Occurring in situations in which no procedures or rules exist to guide decision makers toward the correct choice.
Project
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.
CSF
Critical Success Factors: the crucial steps companies perform to achieve their goals and objectives and implement their strategies.
KPI
Key Performance Indicators: the quantifiable metrics a company uses to evaluate progress towards CSFs.
Best Practices
The most successful solutions or problem-solving methods that have been developed by a specific organization or industry.
Efficiency MIS Metrics
Measure the performance of the MIS itself, such as throughput, transaction speed and system availability.
Effectiveness MIS Metrics
Measure the impact MIS has on business processes and activities, including customer satisfaction and customer conversion rates.
Throughput
The amount of information that can travel through the system at any point in time.
Information Accuracy
The extent to which a system generates the correct results when executing the same transaction numerous times.
Usability
The ease with which people perform transactions and/or find information.
Benchmarks
Baseline values the system seeks to attain.
Benchmarking
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
Simplified representation or abstraction of reality.
Transactional Information
Encompasses all the information contained within a single process or unit of work, and its primary purpose is to support the performance of daily operational or structured decisions.
Online Transaction Processing (OLTP)
The capture of transaction and event information using technology to 1) process the information according to defined business rules, 2) store the information, and 3) update existing information to reflect the new information.
Transaction Processing System (TPS)
Basic business system that serves the operational level (analysts) and assists in making structured decisions.
Source Documents
Original transaction record along with details.
CRUD
Creating, reading, updating, and deleting.
Analytical Information
Encompasses all organizational information, and its primary purpose is to support the performance of managerial analysis or semi-structured decisions.
Online Analytical Processing (OLAP)
Manipulation of information to create business intelligence in support of strategic decision making
Decision Support Systems (DSS)
Model information using OLAP, which provides assistance in evaluating and choosing among different courses of action. Analyze complex relationships between large amounts of data to discover patterns, trends and exception conditions.
Executive Information System (EIS)
Specialized DSS that supports senior-level executives and unstructured, long-term, non routine decisions.
Granularity
Refers to the level of detail in the model or decision-making process.
Visualization
Produces graphical displays of patterns and complex relationships in large amounts of data.
Infographic
A representation of information in a graphic format designed to make the data easily understandable at a glance.
Pie Chart
Type of graph in which a circle is divided into sectors that represent a proportion of the whole.
Bar Chart
A chart or graph that presents grouped data with rectangular bars with lengths proportional to the values they represent.
Histogram
A graphical display of data using bars of different heights. Similar to a bar chart, but groups numbers into ranges.
Sparkline
A small, embedded line graph that illustrates a single trend. Do not use axes or labels; context comes from the related content.