Purdue MGMT 382 Chapter 2

operational business processes

static, routine, daily business processes such as stocking inventory, checking out customers, or daily opening and closing processes

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

slice and dice

the ability to look at information from different perspectives; often performed along a time axis to analyze trends and find time-based patterns in the information

Mapping

the activity of creating a detailed flowchart or process map of a work process that shows its inputs, tasks, and activities in a structured sequence

Consolidation

the aggregation of data from simple roll-ups to complex groupings of interrelated information

Business Process Reengineering (BPR)

the analysis and redesign of workflow within and between enterprises

Digitization

the automation of existing manual and paper-based processes and workflows to a digital format

Online Transaction Processing (OLTP)

the 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

best practices

the most successful solutions or problem-solving methods that have been developed by a specific organization or industry

source document

the original transaction record

data mining

the process of analyzing data to extract information not offered by the raw data alone

data profiling

the process of collecting statistics and information about data in an existing source

classification analysis

the process of organizing data into categories or groups for its most effective and efficient use

data replication

the process of sharing information to ensure consistency between multiple data sources

Mutation

the process within a genetic algorithm of randomly trying combinations and evaluating the success (or failure) of the outcome

market share

the proportion of the market that a firm captures

cycle time

the time required to process an order

reinforcement learning

the training of machine learning models to make a sequence of decisions

Robotic Process Automation (RPA)

the use of software with artificial intelligence (AI) and machine learning capabilities to handles high-volume, repeatable tasks that previously required a human to perform

augmented reality

the viewing of the physical world with computer-generated layers of information added to it

digital dashboard

tracks KPIs and CSFs by compiling information from multiple sources and tailoring it to meet user needs

data mining tools

use a variety of techniques to find patterns and relationships in large volumes of information that predict future behavior and guide decision making

BPMN gateway

used to control the flow of a process

haptic interface

uses technology allowing humans to interact with a computer through bodily sensations and movements

Online Analytical Processing (OLAP)

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

Efficiency MIS metrics

Measure the performance of MIS itself, such as throughput, transaction speed, and system availability

Metrics

Measurements that evaluate results to determine whether a project is meeting its goals

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

redundancy

Occurs when a task or activity is unnecessarily repeated

unstructured decisions

Occurs when no procedures or rules exist to guide decision makers toward the correct choice.

Bottleneck

Occurs when resources reach full capacity and cannot handle any additional demands; it limits throughput and impedes operations

Customer facing process

Results in a product or service that is received by an organization's external customer

artificial intelligence (AI)

Simulates human intelligence such as the ability to reason and learn

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

Key performance indicators (KPIs)

The quantifiable metrics a company uses to evaluate progress toward critical success factors

Time-series information

Time-stamped information collected at a particular frequency

nuetral network

a category of AI that attempts to emulate the way the human brain works

bar chart

a chart or graph that presents grouped data with rectangular bars with lengths proportional to the values that they represent

recommendation engine

a data-mining algorithm that analyzes a customer's purchases and actions on a website and then uses the data to recommend complementary products

business process model

a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint

business process model and notation (BPMN)

a graphical notation that depicts the steps in a business process

time series chart

a graphical representation showing change of a variable over time

fuzzy logic

a mathematical method of handling imprecise or subjective information

variance bias

a mathematical property of an algorithm

case-based reasoning

a method whereby new problems are solved based on the solutions from similar cases solve in the past

business process patent

a patent that protects a specific set of procedures for conducting a particular business activity

Deep Learning

a process that employs specialized algorithms to model and study complex datasets; the method is also used to establish relationships among data and datasets

infographic (information graphic)

a representation of information in a graphical format designed to make the data easily understandable at a glance

prejudice bias

a result of training data that is influences by cultural or other stereotypes

autonomous robotics

a robot capable of making its own decisions and perform an action accordingly

model

a simplified representation or abstraction of reality

Sparkline

a small embedded line graph that illustrates a single trend

Sensitivity Analysis

a special case of what-if analysis, is the study of the impact on other variables when one variable is changed repeatedly

prediction

a statement about what will happen or might happen in the future; for example, predicting future sales or employee turnover

regression model

a statistical process for estimating the relationships among variables

BPMN activity

a task in a business process

cluster analysis

a technique used to divide an information set into mutually exclusive groups such that the members of each group are as close together as possible to one another and the different groups are as far apart as possible

pie chart

a type of graph in which a circle is divided into sectors that each represent a proportion of the whole.

Google Glass

a wearable computer with an optical head mounted display (OHMD)

virtual workplace

a workplace that is not located in any one physical space

genetic algorithm

an artificial intelligence system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem

Optimization Analysis

an extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints

BPMN event

anything that happens during the course of a business process

business process improvement

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

benchmarks

baseline values the systems seeks to attain

core processes

business processes, such as manufacturing goods, selling products, and providing service, that make up the primary activities in a value chain

What-if analysis

checks the impact of a change in a variable or assumption on the model

Managerial Decisions

concern how the organization should achieve the goals and objectives set by its strategy, and they are usually the responsibility of mid-level management

dynamic process

continuously changing and provides business solutions to ever-changing business operations

Critical Success Factors (CSFs)

crucial steps companies perform to achieve their goals and objectives and implement their strategies

estimation analysis

determines values for an unknown continuous variable behavior or estimated future value

BPMN Flow

displays the path the process flows

strategic business process

dynamic, nonroutine, long-term business processes such as financial planning, expansion strategies, and stakeholder interactions

managerial level

employees are continuously evaluating company operations to hone the firm's abilities to identify, adapt to, and leverage change

drill down

enables users to view details, and details of details, of information. this is the reverse of consolidation

Transactional Information

encompasses all of the info contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks

market basket analysis

evaluates such items as websites and checkout scanner information to detect customers' buying behavior and predict future behavior by identifying affinities among customers' choices of products and services

Goal-seeking analysis

finds the inputs necessary to achieve a goal such as a desired level of output. it is the reverse of what-if and sensitivity analysis

Streamlining

improves business process efficiencies by simplifying or eliminating unnecessary steps

Workflow

includes the tasks, activities, and responsibilities required to execute each step in a business process

Return on Investment (ROI)

indicates the earning power of a project

Strategic Decisions

involve higher-level issues concerned with the overall direction of the organization; these decisions define the organization's overall goals and aspirations for the future

automation

involves computerizing manual tasks making them more efficient and effective and dramatically lowering operational costs

structured decisions

involves situations where established processes offer potential solutions

swim lane

layout arranges the steps of a business process into a set of rows depicting the various elements

operationalized analytics

makes analytics part of a business process

strategic level

managers develop overall business strategies, goals, and objectives as part of the company's strategic plan

Effectiveness MIS metrics

measure the impact MIS has on business processes and activities, including customer satisfaction and customer conversion rates

Decision Support System (DSS)

model information using OLAP, which provides assistance in evaluating and choosing among different courses of action

workflow control systems

monitor processes to ensure tasks, activities, and responsibilities are executed as specified

Underfitting

occurs when a machine learning model has poor predictive abilities because it did not lean the complexity in the training data

Overfitting

occurs when a machine learning model matches the training data so closely that the model fails to make correct predictions on new data

Data Augmentation

occurs when adding additional training examples by transforming existing examples

measurement bias

occurs when there is a problem with the data collected skewing the data in one direction

Forecasting Models

predictions based on time-series information allowing users to manipulate the time series for forecasting activities

static process

process that uses a systematic approach in an attempt to improve business effectiveness and efficiency continuously

Visualization

produces graphical displays of patterns and complex relationships in large amounts of data

Granularity

refers to the level of detail in the model or the decision-making process

As-Is process models

represents the current state of the operation that has been mapped, without any specific improvements or changes to existing processes

affinity grouping analysis

reveals the relationship between variables along with the nature and frequency of the relationships

pivot

rotates data to display alternative presentations of the data

managerial business processes

semidynamic, semiroutine, monthly business processes such as resource allocation, sales strategy, or manufacturing process improvements

To-Be process models

show the results of applying change improvement opportunities to the current (As-Is) process model

virtual reality

A computer-simulated environment that can be a simulation of the real world or an imaginary world

Histogram

A graphical display of data using bars of different heights

sample bias

A problem with using incorrect training data to train the machine

Benchmarking

A process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance

Executive information system (EIS)

A specialized DSS that supports senior level executives and unstructured, long-term, nonroutine decisions requiring judgement, evaluation, and insight

optimization model

A statistical process that finds the way to make a design, system, or decision as effective as possible, for example, finding the values of controllable variables that determine maximal productivity or minimal waste.

project

A temporary activity a company undertakes to create a unique product, service, or result

Machine Learning

A type of artificial intelligence that enables computers to both understand concepts in the environment, and also to learn.

operational decisions

Affect how the firm is run from day to day. They are the domain of operations managers, who are the closest to the customer.

Transaction Processing System (TPS)

Basic business system that serves the operational level and assists in making structured decisions

expert system

Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems

operational level

Employees develop, control, and maintain core business activities required to run the day-to-day operations

Analytical Information

Encompasses all organizational information, and its primary purpose is to support the performance of managerial analysis or semistructured decisions

Business facing process

Invisible to the external customer but essential to the effective management of the business; they include goal setting, day-to-day planning, giving performance feedback and rewards, and allocating resources.