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INFO Ch. 2

STUDY
PLAY
Structured decisions
operational decisions, arise in situations where established processes offer potential solutions
Semistructured decisions
managerial decisions, arise in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision
Unstructured decisions
strategic decisions, occur 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
Critical success factors (CSF)
crucial steps companies perform to achieve their goals and objectives and implement their strategies
Key performance indicators (KPI)
quantifiable metrics a company uses to evaluate progress toward critical success factors
Market share
proportion of the market that a firm captures
Return on Investment (ROI)
indicates the earning power of a project
Efficiency MIS metrics
measure the performance of MIS itself, such as throughput transaction speed and system availability
Effectiveness MIS metrics
measure the impact MIS has on business process and activities
Benchmarks
baseline values the system seeks to attain
Benchmarking
a process of continuously measuring system results, comparing those result 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 business process or unit of work, and its primary purpose is to support the performance of daly operational or structured decisions
Online transaction processing (OLTP)
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
the original transaction record
Analytical information
encompasses all organizational information, and its primary purpose is to support the performance of managerial analysis or semistructured decisions
Online analytical processing (OLAP)
manipulation of information to create business intelligence in support of strategic decision making
Decision support systems (DSSs)
model information using OLAP, which provides assistance in evaluating and choosing among different courses of action
What-if analysis
checks the impact of a change in a variable or assumption on the model
Sensitivity analysis
a special case of what-if analysis, is the study of the impact on other variables when one variable is changed repeatedly
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 optimism value for a target variable by repeatedly changing other variables, subject to specified constraints
Executive information system (EIS)
specialized DDS that supports senior-level executives and unstructured, long-term, non-routine decisions requiring judgement, evaluation, and insight
Granularity
refers to the level of detail in the model or the decision-making process
Visualization
produces graphical displays of patterns and complex relationships in large amounts of data
Digital dashboards
common tool that supports visualization which tracks KPI's and CSF's by compelling information from multiple sources and tailoring it to meet user needs
Consolidation
the aggregation of data from simple roll-ups to complex groupings of interrelated information
Drill-down
enables users to view details, and details or details, of information
Slice-and-dice
the ability to look at information from different perspectives
Artificial intelligence
simulates human thinking and behavior, such as the ability to reason and learn
Intelligent systems
various commercial applications of artificial intelligence
Expert systems
computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems
Neural network
also called an artificial neural network, is a category ofAI that attempts to emulate the way the human brain works
Fuzzy logic
mathematical method of handling imprecise or subjective information
Genetic algorithm
artificial intelligence 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
Virtual reality
Computer-stimulated environment that can be a simulation of the real world or an imaginary world
Customer-facing processes
front-office processes, result in a product or service received by an organization's external customer
Business-facing processes
back-office processes are invisible to the external customer but essential to the effective management of the business
Business process modeling
mapping, it the activity of creating a detailed flowchart or process map of a work process that shows its inputs, task, and activities in a structured sequence
Business process model
graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint
As-is process models
represent the current state of the operation that has been mapped, without any specific improvements or changes to existing processes
To-be process models
shows the results of applying change improvement opportunities to the current as-is process model
Swim lane
layout that arranges the steps of a business process into a set of rows depicting the various elements
Workflow
includes the tasks, activities, and responsibilities required to execute each step in a business process
Business process improvement
attempts to understand and measure the current process and make performance improvements accordingly
Automation
process of computerizing manual tasks, making them more efficient and effective and dramatically lowering operational costs
Streamlining
improves business process efficiencies by simplifying or elimination unnecessary steps
Bottlenecks
occur when resources reach full capacity and cannot handle any additional demands; they limit throughput and impede operations
Redundancy
occurs when a task or activity is unnecessarily repeated
Cycle time
the time required to process an order
Business process reengineering (BPR)
the analysis and redesign of workflow within and between enterprises
Business process management (BPM) systems
focus on evaluating and improving processes that include both person-to-person workflow and system-to-system communications