MIS ch 2.pptx

CHAPTER TWO DECISIONS AND PROCESSES VALUE DRIVEN BUSINESS Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu THE DECISION-MAKING PROCESS  The six-step decision-making process...

CHAPTER TWO DECISIONS AND PROCESSES VALUE DRIVEN BUSINESS Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu THE DECISION-MAKING PROCESS  The six-step decision-making process 1. Problem identification 2. Data collection 3. Solution generation 4. Solution test 5. Solution selection 6. Solution implementation Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu  DECISION-MAKING ESSENTIALS  Decision-making and problem- STRATEGIC solving occur at each level in an organization MANAGERIAL OPERATIONAL Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu DECISION-MAKING ESSENTIALS  Operational decision making - Employees develop, control, and maintain core business activities required to run the day-to-day operations  Structured decisions - OPERATIONAL Situations where established processes offer potential solutions Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu DECISION-MAKING ESSENTIALS  Managerial decision making – Employees evaluate company operations to identify, adapt to, and leverage change MANAGERIAL  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 Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu  DECISION-MAKING ESSENTIALS  Strategic decision making – Managers (leaders) develop overall strategies, goals, and STRATEGIC objectives  Unstructured decisions – Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu USING MIS TO MAKE BUSINESS DECISIONS Types of Decision Making MIS Systems Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu  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 Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu  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 Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu MANAGERIAL SUPPORT SYSTEMS  Four quantitative models used by DSSs include 1. What-if analysis – analyzing different situations. For example – what if inflation happens and how will it affect me 2. Sensitivity analysis – analyzing the influence of factors like customer behavior, interest rate etc. 3. Goal-seeking analysis – goes with ‘what if analysis’, planning to achieve a goal 4. Optimization analysis – looking for the best model for an issue Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. MANAGERIAL SUPPORT SYSTEMS Interaction Between a TPS and DSS Copyright 2020 © McGraw- Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. STRATEGIC SUPPORT SYSTEMS Organization Information Levels STRATEGIC SUPPORT SYSTEMS STRATEGIC SUPPORT SYSTEMS  Executive information system (EIS) – A specialized DSS that supports senior level executives within the organization  Granularity – the size of information on each level  Visualization  Digital dashboard Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu STRATEGIC SUPPORT SYSTEMS Interaction Between a TPS and EIS STRATEGIC SUPPORT SYSTEMS  Most EISs offering the following capabilities  Consolidation – grouping information together  Drill-down – digging deep into data to find something specific  Slice-and-dice – information can be looked at from any perspective  Pivot – application of slice and dice MANAGING BUSINESS PROCESSES MANAGING BUSINESS PROCESSES The Order-to-Delivery Process Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu  MANAGING BUSINESS PROCESSES  Customer facing process Business facing process - Results in a product or - Invisible to the external service that is received by customer but essential to an organization’s external the effective management customer of the business Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu BUSINESS PROCESS MODELING  BUSINESS PROCESS MODELING  Business process modeling (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  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 Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu BUSINESS PROCESS MODELING BUSINESS PROCESS MODELING  USING MIS TO IMPROVE BUSINESS PROCESSES  Workflow – Includes the tasks, activities, and responsibilities required to execute each step in a business process  Workflow control systems - Monitor processes to ensure tasks, activities, and responsibilities are executed as specified  Digitization - The automation of existing manual and paper- based processes and workflows to a digital format Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu USING MIS TO IMPROVE BUSINESS PROCESSES  Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu  OPERATIONAL BUSINESS PROCESSES - AUTOMATION  Operational business processes - Static, routine, daily business processes such as stocking inventory, checking out customers, or daily opening and closing processes  Operationalized analytics - Makes analytics part of a business process Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu  OPERATIONAL BUSINESS PROCESSES - AUTOMATION  Business process improvement – Attempts to understand and measure the current process and make performance improvements accordingly  Automation – The process of computerizing manual tasks  Robotic process automation - The use of software with artificial intelligence (AI) and machine learning capabilities to handle high- volume, repeatable tasks that previously required a human to perform Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu  OPERATIONAL BUSINESS PROCESSES - AUTOMATION  Machine vision – The ability of a computer to “see: by digitizing an image, processing the data it contains, and taking some kind of action  Machine vision sensitivity - The ability of a machine to see in dim light or to detect weak impulses at invisible wavelengths  Machine vision resolution - The extent to which a machine can differentiate between objects. In general, the better the resolution, the more confined the field of vision Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu MANAGERIAL BUSINESS PROCESSES STREAMLINING  Streamlining – Improves business process efficiencies by simplifying or eliminating unnecessary steps  Bottleneck – Occur when resources reach full capacity and cannot handle any additional demands  Redundancy – Occurs when a task or activity is unnecessarily repeated Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu STRATEGIC BUSINESS PROCESSES REENGINEERING  Business process reengineering (BPR) - Analysis and redesign of workflow within and between enterprises Copyright 2020 © McGraw-Hill Education. All rights reserved. No reprodu ction or distribution without the prior written consent of McGraw-Hill Edu STRATEGIC BUSINESS PROCESSES REENGINEERING Progressive Insurance Mobile Claims Process STRATEGIC BUSINESS PROCESSES REENGINEERING STRATEGIC BUSINESS PROCESSES REENGINEERING STRATEGIC BUSINESS PROCESSES REENGINEERING