OMIS MIDTERM WEEK 2 Flashcards
What are the six steps in decision-making?
1) Problem identification
2) Data collection
3) Solution generation
4) Solution test
5) Solution selection
6) Solution implementation
What are Structured decisions?
Situations where established processes offer potential solutions
What is Managerial decision making?
Employees evaluate company operations to identify, adapt to, and leverage change
What are Semistructured 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
What is strategic decision making?
Managers develop overall strategies, goals, and objectives
What are Unstructured decisions?
Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice
What are critical success factors (CSFs)?
The crucial steps companies make to perform to achieve their goals and objectives and implement strategies
Ex:
- Create high-quality products
- Retain competitive advantages
- Reduce product costs
- Increase customer satisfaction
- Hire and retain the best professionals
What is a project?
A temporary activity a company undertakes to create a unique product, service, or result
What is a metric?
Measurements that evaluate results to determine whether a project is meeting its goals
What are Key performance indicators? (KPIs)
The quantifiable metrics a company uses to evaluate progress toward critical success factors
Ex:
- Turnover rates of employees
- Number of product returns
- Number of new customers
- Average customer spending
What is an external KPI?
Market share - The portion of the market that a firm captures (external)
What is an internal KPI?
Return on investment (ROI) – Indicates the earning power of a project
What are Efficiency MIS metrics?
Measure the performance of MIS itself, such as throughput, transaction speed, and system availability
What are Effectiveness MIS metrics?
Measures the impact MIS has on business processes and activities, including customer satisfaction and customer conversation rates
What is 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
What is benchmark?
Baseline values the system seeks to attain
What is a model?
A simplified representation or abstraction of reality
Models help managers to
- Calculate risks
- Understand uncertainty
- Change variables
- Manipulate time to make decisions
What are Operational support systems?
1) Transaction processing system (TPS)
2) Online transaction processing (OLTP)
What is a Transaction processing system (TPS)?
Basic business system that serves the operational level and assists in making structured decisions
What is a Online transaction processing (OLTP) -
Capturing of transaction and event information using technology to process, store, and update
What is a Source document?
The original transaction record
What is Online analytical processing (OLAP)?
Manipulation of information to create business intelligence in support of strategic decision making
What is Decision support system (DSS)?
Models information to support managers and business professionals during the decision-making process
What are 4 quantitative models used by decision support systems (DSS)?
- What-if analysis
- Sensitivity analysis
- Goal-seeking analysis
- Optimization analysis
What is an example of a Strategic support system?
Executive information system (EIS)
What is an Executive information system (EIS)?
A specialized DSS that supports senior level executives within the organization
- Granularity
- Visualization
- Digital dashboard
What capablities do Executive information system (EIS) offer?
- Consolidation
- Drill-down
- Slice-and-dice
- Pivot
What is Artificial intelligence (AI)?
Simulates human intelligence such as the ability to reason and learn
What is an Intelligent system?
Various commercial applications of artificial intelligence
What is Machin learning?
A type of artificial intelligence that enables computers to both understand concepts in the environment, and also to learn
- Weak AI: chatbots
- Strong AI: automated cars
What are the five most common categories of AI?
1) Expert system
2) Neural network
3) Genetic algorithm
4) Intelligent agent
5) Virtual reality
What is an Expert system? (AI)
Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems
Ex:
- Machine vision: The ability of a computer to “see” by digitizing an image, processing the data it contains, and taking some kind of action
What is a Neural network?
Attempts to emulate the way the human brain works
Ex:
- Fuzzy logic: A mathematical method of handling imprecise or subjective information
- Deep learning: A process that employs specialized algorithms to model and study complex datasets; the method is also used to establish relationships among data and datasets
What is a Genetic algorithm? (AI)
An artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem
- Shopping bot:: Software that will search several retailer websites and provide a comparison of each retailer’s offerings including price and availability
What is an Intelligent agent? (AI)
Special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users
What is Virtual reality? (AI)
A computer-simulated environment that can be a simulation of the real world or an imaginary world
What are Customer facing processes?
Results in a product or service that is received by an organization’s external customer
What are Business facing processes?
Invisible to the external customer but essential to the effective management of the business
What is Business process modelling (or mapping)?
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
What is a Business model?
A graphic description of a process, showing the sequence of process tasks, which is developed for a specific
Ex:
- As-Is process model
- To-Be process model
What is Workflow?
Includes the tasks, activities, and responsibilities required to execute each step in a business process
What are Operational business processes?
Static, routine, daily business processes such as stocking inventory, checking out customers, or daily opening and closing processes
What are Operationalized analytics?
Makes analytics part of a business process
What are Business process improvements?
Attempts to understand and measure the current process and make performance improvements accordingly
What is Automation?
The process of computerizing manual tasks
What are the steps in Business process improvement?
1) Document As-Is processes
2) Establish measures
3) Follow process
4) Measure performance
5) Identify and implement improvements
What is Streamlining?
Improves business process efficiencies by simplifying or eliminating unnecessary steps
What is a Bottleneck?
Occur when resources reach full capacity and cannot handle any additional demands
What is a Redundancy?
Occurs when a task or activity is unnecessarily repeated
What is Business process reengineering (BPR)?
Analysis and redesign of workflow within and between enterprises
