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CHAPTER 2: LEARNING OUTCOMES

CHAPTER 2: LEARNING OUTCOMES. Explain the importance of decision making for managers at each of the three primary organization levels along with the associated decision characteristics.

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CHAPTER 2: LEARNING OUTCOMES

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  1. CHAPTER 2: LEARNING OUTCOMES • Explain the importance of decision making for managers at each of the three primary organization levels along with the associated decision characteristics. • Define critical success factors (CSFs) and key performance indicators (KPIs), and explain how managers use them to measure the success of MIS projects. • Classify the different operational, managerial, and strategic support systems, and explain how managers can use them to make decisions and gain competitive advantage. • Describe artificial intelligence and identify its five main types.

  2. CHAPTER 2: LEARNING OUTCOMES • Explain the value of business processes for a company and differentiate between customer-facing and business-facing processes. • Demonstrate the value of business process modeling and compare As-Is and To-Be models. • Differentiate among business process improvements, streamlining, and reengineering. • Describe business process management and its value to an organization.

  3. MAKING BUSINESS DECISIONS • Managerial decision-making challenges • Analyze large amounts of information • Apply sophisticated analysis techniques • Make decisions quickly • The six-step decision-making process: • Problem Identification • Data Collection • Solution Generation • Solution Test • Solution Selection • Solution Implementation

  4. Decision-Making Essentials • Operational Decision Making—Employees develop, control, and maintain core business activities required to run the day-to-day operations • Managerial Decision Making—Employees evaluate company operations to identify, adapt to, and leverage change • Strategic Decision Making—Managers develop overall strategies, goals, and objectives

  5. METRICS: MEASURING SUCCESS • Project—A 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 • Critical Success Factors (CSFs)—The crucial steps companies make to perform to achieve their goals and objectives and implement strategies • Key Performance Indicators (KPIs)—The quantifiable metrics a company uses to evaluate progress toward critical success factors

  6. METRICS: MEASURING SUCCESS • 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 conversation 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

  7. SUPPORT: ENHANCING DECISION MAKING WITH MIS • Model—A simplified representation or abstraction of reality • Operational Support Systems: • 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 • Source Document—The original transaction record

  8. SUPPORT: ENHANCING DECISION MAKING WITH MIS • MANAGERIAL SUPPORT SYSTEMS: • Online Analytical Processing (OLAP)—Manipulation of information to create business intelligence in support of strategic decision making • Decision Support System (DSS)—Models information to support managers and business professionals during the decision-making process • STRATEGIC SUPPORT SYSTEMS: • Executive Information System (EIS)—A specialized DSS that supports senior level executives within the organization • Granularity • Visualization • Digital Dashboard

  9. THE FUTURE: ARTIFICIAL INTELLIGENCE (AI) • Expert System—Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems • Neural Network—Attempts to emulate the way the human brain works • Genetic Algorithm—An artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem • Intelligent Agent—Special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users • Virtual Reality—A computer-simulated environment that can be a simulation of the real world or an imaginary world

  10. EVALUATING BUSINESS PROCESS • Businesses gain a competitive edge when they minimize costs and streamline business processes • Customer Facing Process—Results in a product or service that is received by an organization’s external customer • Business Facing Process—Invisible to the external customer but essential to the effective management of the business

  11. MODELS: MEASURING PERFORMANCE • 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

  12. SUPPORT: CHANGING BUSINESS PROCESSES WITH MIS • Workflow—Includes the tasks, activities, and responsibilities required to execute each step in a business process • Improving Operational Businesses—Automation: • Business Process Improvement—Attempts to understand and measure the current process and make performance improvements accordingly • Automation—The process of computerizing manual tasks

  13. SUPPORT: CHANGING BUSINESS PROCESSES WITH MIS • Improving Managerial Business Processes – Streamlining: • 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 – Reengineering: • Business Process Reengineering (BPR)—Analysis and redesign of workflow within and between enterprises

  14. THE FUTURE: BUSINESS PROCESS MANAGEMENT • Business Process Management (BPM)—Focuses on evaluating and improving processes that include both person-to-person workflow and system-to-system communications • BPM not only allows a business process to be executed more efficiently, but it also provides the tools to measure performance and identify opportunities for improvement, as well as to easily capture opportunities such as: • Bringing processes, people, and information together • Breaking down the barriers between business areas and finding “owners” for the processes • Managing front-office and back-office business processes

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