CH 2 CIS 3330

Operational decisions

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

Use case

A description of how a system, product, or service can be used to achieve specific goals, tasks, or objectives

Bias

A disproportionate weight in favor of or against an idea or thing, usually in a way that is closed-minded, prejudicial, or unfair

Business process model

A graphic description of a process, showing the sequence of process tasks, which is developed for a specific

Business Process Model and Notation (BPMN)

A graphical notation that depicts the steps in a business process

Fuzzy logic

A mathematical method of handling imprecise or subjective information

Variance bias

A mathematical property of an algorithm

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

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

Prejudice bias

A result of training data that is influenced by cultural or other stereotypes

Model

A simplified representation or abstraction of reality Models help managers to -Calculate risks -Understand uncertainty -Change variables -Manipulate time to make decisions

Executive information system (EIS)

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

Project

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

Affinity bias

A tendency to connect with, hire, and promote those with similar interests, experiences, or backgrounds

Strong AI (also called Artificial General Intelligence)

A type of artificial intelligence that can perform any intellectual task that a human can perform

Machine learning

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

Conformity bias

Acting similarly, or conforming to those around you, regardless of your own views

Confirmation bias

Actively looking for evidence that backs up preconceived ideas about someone

Genetic algorithm

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

Business process reengineering (BPR)

Analysis and redesign of workflow within and between enterprises

Weak AI (also called narrow AI)

Artificial intelligence systems that simulate human reasoning can perform a specific task with a true purpose

Neural Network

Attempts to emulate the way the human brain works

Business process improvement

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

Online transaction processing (OLTP)

Capturing of transaction and event data using technology to process, store, and update

Expert Systems

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

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

Bottleneck

Occur when resources reach full capacity and cannot handle any additional demands

Unstructured decisions

Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice

Underfitting

Occurs when a machine learning model has poor predictive abilities because it did not learn 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

Redundancy

Occurs when a task or activity is unnecessarily repeated

Measurement bias

Occurs when there is a problem with the data collected that skews the data in one direction

Generalized AI, also known as Artificial General Intelligence (AGI)

Refers to AI systems that possess human-level intelligence and are capable of understanding, learning, and performing any intellectual task a human being can do

Natural language processing (NLP)

Refers to the development of algorithms that can analyze and understand human language, including text and speech

Computer Vision

Refers to the development of algorithms that can interpret and analyze visual information, including images and videos

As-Is process model

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

Customer facing process

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

Managerial business processes

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

To-Be process model

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

Artificial intelligence (AI)

Simulates human intelligence such as the ability to reason and learn, focusing on three cognitive skills: learning, reasoning, and self-correction

Structured decisions

Situations where established processes offer potential solutions

Operational business process

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

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

Digitization

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

Critical success factors (CSF's)

The crucial steps companies make to perform to achieve their goals and objectives and implement strategies -Create high-quality products -Retain competitive advantages -Reduce product costs -Increase customer satisfaction -Hire and retain the best professionals

Source document

The original transaction record

Automation

The process of computerizing manual tasks, making them more efficient and effective, and dramatically lowering operational costs

Digital transformation

The process of using digital technologies to fundamentally transform business processes, operations, and customer experiences.

Key performance indicators (KPI's)

The quantifiable metrics a company uses to evaluate progress toward critical success factors -Turnover rates of employees -Number of product returns -Number of new customers -Average customer spending

Name bias

The tendency to prefer certain types of name

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

Managerial decisions

These concern how the organization should achieve the goals and objectives set by its strategy

Digital dashboard

Tracks KPI's and CSF's by compiling information from multiple sources and tailoring it to meet user needs

Benchmark

Baseline values the system seeks to attain

Transaction processing system (TPS)

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

Analytical Information

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

Robotics

Focuses on creating artificial intelligence devices that can move and react to sensory input

Black box algorithm

Decision-making process that cannot be easily understood or explained by the computer or researcher

Strategic business processes

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

Operational level

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

Managerial level

Employees evaluate company operations to identify, adapt to, and leverage change

Transactional Data

Encompasses all of the data contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational or structured decisions

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

Business facing process

Invisible to the external customer but essential to the effective management of the business

Strategic decisions

Involve higher-level issues concerned with the overall direction of the organization

Strategic level

Managers develop overall strategies, goals, and objectives

Online analytical processing (O͏L͏A͏P)

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

Algorithm

Mathematical formula places in software that performs analytics on a dataset. Algorithms are step-by-step procedure of rules for solving a problem or accomplishing a particular task

Efficiency M͏I͏S metrics

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

Metrics

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

Effectiveness M͏I͏S metrics

Measures the impact M͏I͏S has on business processes and activities, including customer satisfaction and customer conversation rates

Decision support system (DSS)

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