Module 7 Flashcards
What are the systems of different management groups? Describe them.
- Transaction processing system (TPS)
*Systems that record data on fundamental operations occurring within the company
*Tracks flow of transactions
*Questions: What happened with this customer’s order? How many items do we still have in stock?
(Scheme) - Business Intelligence Systems (BIT)
*Support management decision making for different levels
* represent input side; business intelligence tools, as well as more sophisticated analytics systems, represent the output side
*Responsible for producing information and insights from the data
Which systems support decision making? Name them and their differences.
- (MIS)
*Serve middle management.
*Provide reports on firm’s current performance, based on data from TPS.
*Answers routine questions
*Little analytical management
(see MIS Report on slides for example) - (DSS)
*Serves middle management.
*Supports non-routine decision making.
*May use external info as stock prices etc.
Has analytical capability. Forecasting, stating impact etc.
KPI’s key performance indicators. - (ESS)
*Supports senior management.
*non-routine, requires judgement, evaluation, insight.
*Incorporated data about external events (new tax laws, competition etc.)
* Summarised MIS & DSS
Example: digital dashboard w/real-time view of financial performance.
How does business deal with managing all the decision making systems?
<Describe>
Enterprise applications- Systems that span functional areas. Execute business processes across the firm, including all levels of management.
Four major enterprise applications:
– Enterprise systems
– Supply chain management systems
– Customer relationship management systems
– Knowledge management systems
</Describe>
Name 4 “Enterprise applications”.
Four major enterprise applications:
– Enterprise systems
– Supply chain management systems
– Customer relationship management systems
– Knowledge management systems
What are Enterprise Systems?
ERP- Enterprise resource planning system. Aim at consolidating data collected and processed in various departments or branches of the company.
*Integrates core functions of the company (such as accounting, HR, procurement, sales)
*Speed communication of information throughout the firm.
*Enable greater flexibility in responding to customer requests, greater accuracy in order fulfilment.
EXAMPLE: SAP&ORACLE
What is the value of Enterprise Systems?
- Increase operational efficiency.
- Provide firm-wide information to help managers make better decisions.
3.Help firms respond rapidly to customer requests for information or products. - Analytical tools are available, informing corporate headquarters in real-time.
What do Supply Chain Management Systems do?
Provides a holistic overview of value chain, including flow of raw materials, deliveries, inventories.
*Manage relationships with suppliers, purchasing firms, distributors, and logistics companies
*Manage shared information about orders, production, inventory levels, and so on.
*Goal- move correct amount of product from source to point of consumption as quickly as possible and at lowest cost.
*Automating info flow.
What is Bullwhip effect and to which system it belongs to?
SCM- Supply chain management system.
Bullwhip effect- info about product demand gets distorted as it passes from one entity to next in supply chain.
“Pampers” example in lecture.
What is included in upstream in supply chain?
Tier 1 supplier (contract suppliers to the company)
Tier 2
Tier 3
What is included in down-stream in supply chain?
Distributor <—>Retailer <—>Customer
Explain push-pull relationship in supply chain .
- Push-based model (build-to-stock): based on forecasts or best guesses of demand for products and then pushed to customers
- Pull-based model (demand-driven or build-to-order): customer purchases trigger events in the supply chain
What is CRM System? Name it’s tools.
CRM- Customer Relationship Management
Integrates customer data to be used by various departments (sales, marketing, support).
Tools-
*Sales force automation (sales prospect and contact information,
sales quote generation capabilities)
*Customer service (assigning and managing customer service
requests, web-based self-service capabilities)
* Marketing (capturing prospect and customer data, scheduling
and tracking direct-marketing mailings or e-mail, cross-selling)
What is a touch point in CRM System?
A touch point (also known as a contact point) - method of interaction with the customer, such
as telephone, email, customer service desk, Facebook etc.)
What is KMS?
KMS- Knowledge Management Systems.
* Manage processes for capturing and applying knowledge and expertise
* Collect relevant knowledge and make it available wherever needed in the enterprise to improve business processes and management decisions.
* Link firm to external sources of knowledge
What are examples of firm knowledge? What does it take to run a fast food restaurant or operate a website?
Where are all the data stored?
- Data warehousing
* Data warehouses- data consolidated and standardised, cannot be altered.
*Data marts- subsets of data in data warehouses. - Online Analytical Processing (OLAP)
Transaction-level data stored in relational databases is aggregated and summarised.
Results of analysis are stored in special databases- data cubes.
What are data cubes? Describe them.
Results of analysis are stored in special databases- data cubes.
Data cubes structure results across multiple (i.e. not limited to three) dimensions, such as:
* Space (store locations, countries)
* Products
* Time period (by week, month, year)
Running queries on data cubes enables substantially quicker response times than running them on the original database
What refers to the use of specific algorithms to identify hidden patterns in and to fit models to large data sets?
Data mining.
P.S. data mining is more discovery driven.
What are the patterns of data mining?
– Associations (different product combinations that customers buy together)
– Clusters (a group of customers that share certain characteristics and behave in a similar way)
– Sequential (time series) relationships (dependences)
What is association rule mining? Name two concepts.
- Association rule mining seeks to identify the most frequent affinities amongst items
- Two central concepts
– Support s(X) is the fraction of transactions that contain a certain set of items X
– Confidence c(X Y) is the fraction of transactions that contain Y among those
transactions that contain X. E.g. what is the likelihood that someone who buys milk and
bread also buys cereal – that is confidence
Name 4 V’s of Big Data.
– Volume: the simple size of a dataset that needs to be processed
– Velocity: the speed with which new data is generated and needs to be processed
– Variety: the different formats and features of data that need to be processed (relational databases, documents, photos, videos, spatial and temporal aspects)
– Veracity: the reliability of the data (user-generated content, such as restaurant reviews, but also imprecisions in measurements, such as GPS positions)
What applies methods from both classical statistics and AI to derive actionable insights from big data?
Analytics.
Describe example of neural network.
Neural networks replicate the basic functionality of the human brain to support decision-making by predicting future outcomes.
- Neural networks are usually trained using very large historical datasets on the outcome of interest and other variables (this may take a long time)
- After training, once a new set of input variables is fed into the network, it can quickly predict the outcome variable
- Neural networks are usually black box methods, i.e. it is extremely hard (and not intended) to quantify the impact of a particular input variable on the outcome
