MBUS 302 Chapter 2 notes
MBUS 302 Chapter 2 notes MBUS 302
Popular in Managing information in a global environment
Popular in Minor In Business
This 11 page Class Notes was uploaded by Aimee Castillon on Thursday September 22, 2016. The Class Notes belongs to MBUS 302 at George Mason University taught by Majumdar in Summer 2016. Since its upload, it has received 2 views. For similar materials see Managing information in a global environment in Minor In Business at George Mason University.
Reviews for MBUS 302 Chapter 2 notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 09/22/16
GMU Aimee Castillon Managing Information Systems MBUS 302 • Fall 2016 firstname.lastname@example.org Heading: 9/20/16 Notes: Chapter 2 Decisions and Processes Learning Outcomes: Section 2.1 Decision Support Systems Explain the Making business decisions importance of decision Managerial decisionmaking challenges making for managers Analyze large amounts of information (think about how many at each of the three text messages are sent every day) primary organization Apply sophisticated analysis techniques levels along with the Make decisions quickly associated decision The decisionmaking process characteristics Six steps Define critical success Problem identification factors (CSFs) and I.e. Processes falling short? key performance Data collection indicators (KPIs), and source is important (factbased vs. vague) explain how managers Solution generation use them to measure Solution test the success of MIS Solution selection projects Solution implementation Classify the different Decisionmaking and problemsolving occur at each level of operational support organization systems, managerial support systems, and strategic support systems, and explain how managers can use these systems to make decisions and gain competitive advantages Describe artificial intelligence, and identify its five main Operational decision making ( i.e. firstlevel types managers) employees develop, control, and maintain core business activities required to run the daytoday Think about the metrics operations when you buy a new car? Structured decisions situations where Reliability, fuel established processes offer potential solutions efficiency, mileage, Managerial decision making ( i.e. mid to senior price, etc. level) employees evaluate company operations to identify, adapt to, and leverage change 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 Strategic (i.e. CEOs) managers develop overall, strategies, goals, and objectives Unstructured decisions o ccurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice Metrics: measuring success 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 (CSFs) the crucial steps companies make to perform to achieve their goals and objectives and implement strategies Create highquality products Retain competitive advantages (i.e. Oakland baseball team uses stats) Reduce product costs (don’t go below the company’s “bottom line”) Increase customer satisfaction (Customer Satisfaction Index) Hire and retain the best professionals Key performance indicators (KPIs) the quantifiable metrics a company uses to evaluate progress toward critical success factors I.e. turnover rates of employees, number of product returns, Benchmarking is done when number of new customers, and average customer spending the first version of product is External KPI created Market share portion of the market a firm captures Internal KPI Return on investment (ROI) i ndicates the earning A catalyst causes a company power of a project to rebenchmark their products Feedback is also important Efficiency and effectiveness metrics 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 Interrelationship between efficiency and effectiveness metrics Benchmark 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 Support: enhancing decision making with MIS Model a simplified representation or abstraction of reality Models help managers to Calculate risks Understand uncertainty Change variables Manipulate time to make decisions Operational support systems Transaction processing system ( TPS) (i.e. airline reservations) basic business system that serves the operational and assists in making structured decisions Online transaction processing (OLTP) (I.e. Amazon) capturing of transaction and event information using technology to process, store, and update Source document the original transaction record 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 decisionmaking process Four quantitative models used by DSS include Whatif analysis checks the impact of a change in a variable or assumption on the model Sensitivity analysis study of impact on other variables when one variable is changed repeatedly Goalseeking analysis finds input necessary to achieve a goal such as a desired level output Optimization analysis extension of goalseeking analysis, finds optimal value for a target variable by repeatedly changing other variables, subject to specified constraints Strategic support systems Executive information system (EIS) specialized DSS that supports senior level executives within the organization Granularity r efers to the level of detail in the model or the decisionmaking process Visualization p roduces graphical displays of patterns and complex relationships in large amounts of data Digital dashboard t racks KPIs and CSFs by compiling information from multiple sources and tailoring it to meet user needs Most EIS offering the following capabilities Consolidation a ggregation of data from simple rollups to complex groupings of interrelated information Drilldown enables users to view details of information Sliceanddice ( i.e. comparing sales by segments) look at information from different perspectives The future: artificial intelligence Artificial information (AI) simulates human intelligence such as the ability to reason and learn (i.e. Manchester Airport cleaning robot) Intelligent system various commercial applications of artificial intelligence 5 most common AI categories 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 Fuzzy logic mathematical model of handling imprecise or subjective information Genetic algorithm AI system that mimics the evolutionary, survivalofthefittest 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 Intelligent agent specialpurpose knowledgebased information system that accomplishes specific tasks on behalf of its users Virtual reality (i.e. Google Glass, VR Box) computersimulated environment that can be a simulation of the real world or an imaginary world Section 2.2 Business Processes Evaluating business processes Businesses gain a competitive edge when they minimize costs and streamline business processes Customer facing process r esults in a product or service that’s received by an organization’s external customer Business facing process i nvisible to the external customer but essential to the effective management of the business Models: measuring performance Business processing modeling/mapping activity of creating a detailed flowchart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence Business processing model graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose AsIs process model r epresents the current state of operation that has been mapped, without any specific improvements or changes to existing processes ToBe process model “What do we need to do to improve?” Support: enhancing business processes with MIS Workflow includes the tasks, activities, and responsibilities required to execute each step in a business process Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit Improving operational business processes automation Customers are demanding better products and services Business process improvement a ttempts to understand and measure the current process and make performance improvements accordingly Automation t he process of computerizing manual tasks Improving managerial business processes streamlining Streamlining improves business process efficiencies by simplifying or eliminating unnecessary steps Bottleneck o ccurs when resources reach full capacity and cannot handle any additional demands Redundancy task or activity is unnecessarily repeated Improving managerial business processes reengineering Business process reengineering (BPR) A company can improve the way it travels the road by moving from foot to horse and then horse to car BPR looks at taking a different path, such as an airplane which ignores the road completely The future: business process management Business process management (BPM) focuses on evaluating and improving processes that include both persontoperson workflow and systemtosystem communications Proctor and Gamble measuring ROI Not used traditionally Define training, cost Goallocated model Reduce costs Measuring ROI normally: profit Save $ rather than overall profit Huge difference in cost savings
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'