STRATEGIC DECISION MAKING

trainerhungarianAI and Robotics

Oct 20, 2013 (4 years and 25 days ago)

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McGraw
-
Hill/Irwin

©2009 The McGraw
-
Hill Companies, All Rights Reserved

Business Driven Information Systems 2e

CHAPTER 2


STRATEGIC DECISION MAKING


McGraw
-
Hill/Irwin

©2009 The McGraw
-
Hill Companies, All Rights Reserved

SECTION 2.1

DECISION
-
MAKING
SYSTEMS

2
-
3

DECISION MAKING


People must:


Analyze large amounts of information


Make decisions quickly


Apply sophisticated analysis techniques



Systems support these activities

2
-
4

DECISION MAKING



IT systems in


an enterprise



2
-
5

TRANSACTION PROCESSING
SYSTEMS


2
-
6

TRANSACTION PROCESSING
SYSTEMS


Transaction processing system (TPS)
-

basic
business system that serves the operational level



Online transaction processing (OLTP)


capturing
of transaction and event information using
technology



Online analytical processing (OLAP)



manipulation of information to create business
intelligence in support of strategic decision making


2
-
7

DECISION SUPPORT SYSTEMS


Decision support system (DSS)


models
information to support managers and business
professionals during the decision
-
making process



Three quantitative models used by DSSs include:

1.
Sensitivity analysis

2.
What
-
if analysis


3.
Goal
-
seeking analysis


2
-
8

EXECUTIVE INFORMATION SYSTEMS


Executive information system (EIS)



a
specialized DSS that supports senior level
executives within the organization



Most EISs offering the following capabilities:


Consolidation


Drill
-
down


Slice
-
and
-
dice

2
-
9

EXECUTIVE INFORMATION SYSTEMS

2
-
10

Digital Dashboards

2
-
11

ARTIFICIAL INTELLIGENCE (AI)


Intelligent system


various commercial
applications of artificial intelligence



Artificial intelligence (AI)


simulates
human intelligence such as the ability to
reason and learn

2
-
12

ARTIFICIAL INTELLIGENCE (AI)


Four most common categories of AI include:

1.
Expert system

2.
Neural Network


Fuzzy logic

3.
Genetic algorithm

4.
Intelligent agent



2
-
13

Data Mining


Data
-
mining systems sift instantly through
information to uncover patterns and
relationships



Data
-
mining systems include many forms
of AI such as neural networks and expert
systems

McGraw
-
Hill/Irwin

©2009 The McGraw
-
Hill Companies, All Rights Reserved

SECTION 2.2

BUSINESS PROCESSES

2
-
15

UNDERSTANDING THE IMPORTANCE OF
BUSINESS PROCESS


Business process



a standardized set of
activities that accomplish a specific task



Customer facing process


Business facing process



2
-
16

BUSINESS PROCESS
IMPROVEMENT


Business process improvement


attempts to
understand and measure the current process
and make performance improvements
accordingly





2
-
17

BUSINESS PROCESS REENGINEERING


Business process reengineering (BPR)
-

analysis and redesign of workflow within and
between enterprises



2
-
18

Finding Opportunity Using BPR

2
-
19

BUSINESS PROCESS
MODELING


Business process modeling
(or
mapping
)
-

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


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-
20

BUSINESS PROCESS
MODELING

2
-
21

BUSINESS PROCESS
MANAGEMENT


Business process management (BPM)
-

integrates all of
an organization’s business process to make individual
processes more efficient


2
-
22

BPM Examples

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-
23

BPM Examples