Business Operations and Customer Satisfaction

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Questions and Answers

What is ineffectiveness in a business process?

Consuming resources more than necessary

Reducing efficiency

Achieving the intended output

Not achieving the intended output (correct)

What is the purpose of business process mapping?

To measure efficiency

To reduce costs

To identify areas for improvement (correct)

To increase productivity

What are the two types of business process maps?

Customer-facing and Business-facing

As-Is and To-Be (correct)

Manual and Automated

Inefficient and Efficient

What is a characteristic of a customer-facing process?

Involves interaction with customers Signup and view all the answers

What is the opposite of a customer-facing process?

Business-facing process Signup and view all the answers

What is inefficiency in a business process?

Consuming more resources than necessary Signup and view all the answers

What is the purpose of identifying broken processes?

To identify areas for improvement Signup and view all the answers

What is a redundant process?

A process that is unnecessary Signup and view all the answers

What is the focus of Efficiency in a firm?

Using its resources in an optimal way Signup and view all the answers

What is the measure of the performance of MIS itself?

Transaction speed and system availability Signup and view all the answers

What is the goal of the first strategy listed in the provided text?

Create high-quality products Signup and view all the answers

What is the focus of Effectiveness in a firm?

Achieving its goals and objectives Signup and view all the answers

What is measured by the 'Number of customer complaint p.m.' metric?

Customer satisfaction Signup and view all the answers

What is the primary goal of the second strategy listed in the provided text?

Increase customer referrals Signup and view all the answers

What is the purpose of measuring the 'Turnover rates of employees p.m.' metric?

To measure employee performance Signup and view all the answers

What is the difference between Efficiency and Effectiveness metrics in the context of MIS?

Efficiency metrics focus on MIS performance, while Effectiveness metrics focus on business process impact Signup and view all the answers

What is the primary focus of the 'usability' KPI?

The ease with which people perform transactions or find information Signup and view all the answers

Which KPI is most closely related to the concept of 'efficiency'?

Throughput Signup and view all the answers

What is the primary purpose of measuring 'customer satisfaction'?

To identify areas for improvement in the customer experience Signup and view all the answers

What is the primary focus of the 'response time' KPI?

How long it takes to respond to a user interaction Signup and view all the answers

Which of the following KPIs is most closely related to the concept of 'effectiveness'?

Customer satisfaction Signup and view all the answers

What is the primary purpose of measuring 'system availability'?

To measure the number of hours a system is available to users Signup and view all the answers

What is the primary focus of the 'conversion rates' KPI?

How many customers an organization 'touches' for the first time and persuades to purchase its product Signup and view all the answers

Which KPI is most closely related to the concept of 'process efficiency'?

Transaction speed Signup and view all the answers

Study Notes

Key Performance Indicators (KPIs)

Number of product returns per month
Number of customer complaints per month
Number of new customer referrals per year
Turnover rates of employees per month
Efficiency and effectiveness metrics for management information system

Efficiency vs Effectiveness

Efficiency focuses on optimal resource utilization and doing things right
Effectiveness focuses on achieving goals and objectives and doing the right things
Efficiency metrics for MIS: throughput, transaction speed, and system availability
Effectiveness metrics for MIS: customer satisfaction and customer conversion rate

Efficiency Metrics

Throughput: amount of information that can travel through a system
Usability: ease with which people perform transactions or find information
Transaction speed: time taken to perform a transaction
System availability: number of hours a system is available to users
Response time: time taken to respond to a user interaction

Effectiveness Metrics

Customer satisfaction: measured by surveys, retention, and revenue increase per customer
Conversion rates: percentage of customers persuaded to purchase a product

Business Process Modelling

Business process mapping has three purposes: to identify areas for improvement, to design new processes, and to communicate process changes
There are two types of business process maps: As-Is and To-Be
Two process weaknesses: redundant and broken processes
Redundant process: consumes more resources than necessary to achieve the intended output
Broken process: does not achieve the intended output

Customer-Facing and Business-Facing Processes

Customer-facing processes involve interaction with customers and are also known as external processes
Business-facing processes do not have interaction with customers and are also known as internal processes
Customer-facing processes involve information exchange with customers and the product or service is tangible to the customer

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Description

This quiz assesses your understanding of key performance indicators in business operations, including customer satisfaction, product returns, and employee turnover rates. Test your knowledge of business metrics and analytics.