Chapter 12

The management methodology of using a firm's strategy to generate operational targets for the business and measuring progress towards them using the firm's enterprise systems is called: benchmarks. Key Performance Indicators (KPIs). the balanced scorecard method. Business Performance Measurement (BPM). business intelligence.

Business performance management (BPM) Another tool for executives to systematically translate the strategy they've developed for their company into operational targets. BPM methods use KPIs to help users measure the organization's progress toward the targets. BPM is similar to the balanced scorecard approach but with a stronger strategic viewpoint than an operational viewpoint.

Which quality dimension of information is concerned that all the necessary data needed to make a decision is present? Timeliness Consistency Completeness Accessibility Validity

Completeness

________ are visual tools for presenting performance data in a BI system. Dashboards and scorecards Parameterized reports Reports and the drill-down feature Scenarios and models Ad hoc report creation

Dashboards and scorecards

Which of the following types of systems would be used to present senior marketing executives with in-depth information about customer retention, satisfaction, and quality performance? CDSS MIS DSS TPS ESS

ESS An ESS can supply the summarized information executives need and yet provide the opportunity to drill down to more detail if necessary. As technology advances, ESS are able to link data from various sources, both internal and external, to provide the amount and kind of information executives find useful. As common software programs include more options and executives gain experience using these programs, they're turning to them as an easy way to manipulate information.

GDSS requires a dedicated conference room with special hardware and software tools. True or False

False

Structured decision making is most prevalent at senior organizational levels. True or False

False

KPI analysis is the leading methodology for understanding the most important information needed by a firm's executives. True or False

False It is a balanced scorecard method. Using a balanced scorecard method, executives combine their company's internal financial information with additional perspectives such as customers, internal business processes, and learning and growth. By focusing on key performance indicators (KPIs) in each of these areas, executives gain a better understanding of how the organization is performing overall. After senior management establishes KPIs for each area, then and only then can the flow of information be established. Figure 12.7 depicts the framework for a balanced scorecard.

Sensitivity analysis predicts outcomes from constant inputs. True or False

False The "what-if" decisions most commonly made by executives use sensitivity analysis models to help them predict what effect the decisions will have on the organization. Executives don't make decisions based solely on intuition. The more information they have, the more they experiment with different outcomes in a safe mode, the better their decisions. That's the benefit of the models used in the software tools.

GDSS are designed to display data in the form of digitized maps. True or False

False group decision-support system the hardware includes more than just computers and peripheral equipment. It also includes the conference facilities, audiovisual equipment, and networking equipment that connect everyone. More sophisticated GDSS require meeting facilitators and other staff that keep the hardware operating correctly. Many companies are bypassing specially equipped rooms in favor of having group participants "attend" the meeting through their individual desktop computers.

The concept of management ________ describes situations in which managers act on preconceived notions that reject information that does not conform to their prior conceptions. filters backgrounds biases inefficiency politics

Filters Management Filters: Everyone processes information through personal filters and biases. Managers are no different. For instance, you may suggest to your manager that the department purchase a piece of equipment from a certain manufacturer. Your manager disapproves the suggestion because he had a bad experience with that company ten years ago. The manager's bias negates the fact that the company has since improved and is the best and cheapest choice.

Which type of information system uses data visualization technology to analyze and display data for planning and decision making in the form of digitized maps? GIS DSS Location analytics Executive support systems GDSS

GIS Geographic information systems(GIS) rely heavily on demographic data from the U.S. Census Bureau. This type of decision-support system helps managers visualize geographic information more easily and make better decisions based on digitized maps. GIS data can be coupled with an organization's internal data to better allocate resources, money, people, time, and material.

Which of the following companies is not identified in the text as one of the leading producers of business intelligence and analytics products? Google Microsoft SAP IBM SAS

Google

The role of spokesperson falls into which of Mintzberg's managerial classifications? Decisional Informational Interpersonal Symbolic Leading

Informational 3 managerial classifications: Interpersonal, Informational, Decisional Interpersonal behaves as a figurehead, leader, and liaison Information behaves as a nerve center, disseminator, and spokesperson Decisional behaves as an entrepreneur, disturbance handler, resource allocator, and negotiator.

An information system for a building company that tracks construction costs for various projects across the United States would be categorized as a type of: BPM. MIS. KPI. GSS. GDSS.

MIS Operational managers access management information systems (MIS) for a broader look at their company's performance. Middle management also relies on MIS systems for the bulk of their information. Here are the characteristics of a typical MIS system: Used for structured and semi-structured decisions Reports based on routine flows of data Provide general control of the organization Routine production reports are the primary output Exception reports are available

What are managerial roles and what are the three main categories of managerial roles?

Managers perform a great deal of work at an unrelenting pace. Their daily activities are fragmented. They prefer current, specific, and ad hoc information. Managers prefer oral communications rather than written documentation and maintain a diverse and complex web of contacts. They adopt behaviors that help them perform their positions. The three main categories of managerial roles are: Interpersonal: Act as figureheads, leaders, and liaisons Informational: Act as nerve centers, disseminators, and spokespersons Decisional: Act as entrepreneurs, handle disturbances, allocate resources, negotiate and mediate conflicts

Which of the following are most likely to rely primarily on production reports for their decision-making needs? Operational supervisors Senior managers Analytic modelers Business analysts Executives

Operational supervisors

Which of the following is not one of the six main elements in the business intelligence environment discussed in this chapter? Managerial users and methods Organizational culture User interface Data from the business environment Delivery platform

Organizational Culture Six Main Elements in BI Environment: Data from the business environment: Integrating and organizing structured and unstructured data from different sources that people can analyze and use. Business intelligence infrastructure: Database systems that process relevant data stored in transactional databases, data warehouses, or data marts. Business analytics toolset: Software tools that managers use to analyze data, produce reports, respond to questions, and track their progress using key performance indicators (KPI). Managerial users and methods: Business performance management and balanced scorecard methods that help managers focus on key performance indicators and industry strategic analyses. Requires strong executive oversight to ensure managers are focusing on the right issues and not just producing reports and dashboard screens because they can. Delivery platform—MIS, DSS, and ESS: All the information from MIS, DSS, and ESS are integrated and delivered to the appropriate level of management. User interface: BI and BA systems make it easy to visually display data, thereby making it easy to quickly understand information on a variety of computing devices.

Which of the following is not one of the Simon's four stages of decision making? Implementation Intelligence Prediction Choice Design

Prediction Intelligence - consists of gathering information by examining reality, then identifying and defining the problem. In this phase problem ownership should also be established. Design - consists of determining alternatives and evaluating them. If the evaluation will require construction of a model, that is done in this phase as well. Choice - consists of selecting a tentative solution and testing its validity. Implementation - of the decision consists of putting the selected solution into effect

BI Intelligence systems help receiving reports and important information quickly and accurately in five different ways:

Production reports: Predefined reports based on industry specific requirements. Parameterized reports: Pivot tables help users filter data and isolate impacts of parameters chosen by users. Dashboards/scorecards: Visual reports that present performance data chosen by users. Ad hoc query/search/report creation: Users create their own reports based on data they choose. Drill down: Users initially receive high-level data summaries and then drill down to more specific data. Forecasts, scenarios, models: User can perform linear forecasting, what-if scenario analysis, and analyze data using standard statistical tools.

Which of the following systems support a manager's role as figurehead of an organization? DSS Telepresence systems E-mail MIS ESS

Telepresence systems

You are the CIO at an insurance firm and a manager has proposed implementing expensive new project management software that would help increase the efficiency of the IT staff. The idea of improved efficiency sounds good, but is there any way you can evaluate her decision before purchasing the software? Be specific.

The first question would be to ask if there was an issue with efficiency in the first place and ask if the issue is presenting a significant problem to the company. When deciding there was an issue to evaluate, what alternative solutions did the manager think of. During brainstorming the solutions how did the manager identify the best solution and what was measured to determine it to be the best scenario? Since the manager does not specialize in the project management software this would be a good opportunity for the CIO to check the accuracy of what the manager had come up with in their solutions. As the CIO, I would need to be sure it makes sense, that it positively effects the company all around and not just one department, and if it is worth the money and time to invest in.

Which of the following statements best describes the term business intelligence? Software developed exclusively for business management The tools and techniques used to analyze and understand business data The infrastructure for collecting, integrating, and analyzing business data Information systems involved in business decision making Enterprise systems used to make business decisions

The infrastructure for collecting, integrating, and analyzing business data

A structured decision is repetitive and routine, for which known procedures provide solutions. True or False

True

What-if analysis works forward from known or assumed conditions. True or False

True

A GIS is a DSS designed specifically to work with spatial information. True or False

True Geographic information systems(GIS) rely heavily on demographic data from the U.S. Census Bureau. This type of decision-support system (DSS) helps managers visualize geographic information more easily and make better decisions based on digitized maps. GIS data can be coupled with an organization's internal data to better allocate resources, money, people, time, and material

GDSS facilitate the solution of unstructured problems by a set of decision makers working together as a group in either the same location or different locations. True or False

True group decision-support system the hardware includes more than just computers and peripheral equipment. It also includes the conference facilities, audiovisual equipment, and networking equipment that connect everyone. More sophisticated GDSS require meeting facilitators and other staff that keep the hardware operating correctly. Many companies are bypassing specially equipped rooms in favor of having group participants "attend" the meeting through their individual desktop computers.

MIS typically produce fixed, regularly scheduled reports based on data extracted and summarized from the firm's underlying transaction processing systems. True or False

True Operational managers access management information systems (MIS) for a broader look at their company's performance. Middle management also relies on MIS systems for the bulk of their information. Here are the characteristics of a typical MIS system: Used for structured and semi-structured decisions Reports based on routine flows of data Provide general control of the organization Routine production reports are the primary output Exception reports are available

The leading methodology for understanding the really important information needed by a firm's executives is called the ________ method. digital dashboard balanced scorecard KPI data visualization predictive analytics

balanced scorecard executives combine their company's internal financial information with additional perspectives such as customers, internal business processes, and learning and growth. By focusing on key performance indicators (KPIs) in each of these areas, executives gain a better understanding of how the organization is performing overall.

A(n) ________ is a BI feature that presents performance data defined by users. ad hoc query parameterized report interface portal dashboard

dashboard Dashboards/scorecards: Visual reports that present performance data chosen by users.

All of the following managerial roles can be supported by information systems except: liaison. resource allocator. nerve center. disseminator. entrepreneur.

entrepreneur

Group Decision Support Systems (GDSS): are designed to allow meeting attendees to share their thoughts in real-time with their peers. support decisions that require knowledge about the geographic distribution of resources. are only used with geographically dispersed attendees. facilitate the solution of unstructured problems. provide tools that allow managers to visualize data.

facilitate the solution of unstructured problems. group decision-support system the hardware includes more than just computers and peripheral equipment. It also includes the conference facilities, audiovisual equipment, and networking equipment that connect everyone. More sophisticated GDSS require meeting facilitators and other staff that keep the hardware operating correctly. Many companies are bypassing specially equipped rooms in favor of having group participants "attend" the meeting through their individual desktop computers.

Executive Support Systems (ESS): support the structured decision making of senior executives. have the ability to drill down into lower levels of detail. easily integrate data from different systems. are primarily driven by information derived from a company's transaction processing systems. enable operational managers to create parameterized reports.

have the ability to drill down into lower levels of detail.

GDSS capabilities have improved along with all of the following except: improved power of desktop PCs. explosion of mobile computing. growth of cellular networks. increase in dedicated conference rooms. expansion of Wi-Fi bandwidth.

increase in dedicated conference rooms. group decision-support system the hardware includes more than just computers and peripheral equipment. It also includes the conference facilities, audiovisual equipment, and networking equipment that connect everyone. More sophisticated GDSS require meeting facilitators and other staff that keep the hardware operating correctly. Many companies are bypassing specially equipped rooms in favor of having group participants "attend" the meeting through their individual desktop computers.

Mintzberg outlined three categories of managerial roles: interpersonal, informational, and decisional. control, leadership, oversight. operational, management, and executive. cultural, organizational, and technical. middle management, senior management, executive.

interpersonal, informational, and decisional. 3 managerial classifications: Interpersonal, Informational, Decisional Interpersonal behaves as a figurehead, leader, and liaison Information behaves as a nerve center, disseminator, and spokesperson Decisional behaves as an entrepreneur, disturbance handler, resource allocator, and negotiator.

Behavioral models of management see managers as being ________ than does the classical model. more systematic more informal more reflective more well organized less reactive

more informal behavioral models show the actual behavior of managers is less systematic, more informal, less reflective, more reactive, and less well organized.

Decisions regarding managing and monitoring day-to-day business activities are referred to as ________ intelligence. business analytical operational transactional production

operational Operational intelligence and analytics software gives organizations the ability to analyze all of the big data as they are generated in real time. The data can feed dashboards for employees or managers and give them a heads-up about ongoing, real time operations.

A pivot table is a(n): spreadsheet tool that displays two or more dimensions of data in a convenient format. type of relational database. chart tool that can rotate columnar data quickly and visually. tool for performing sensitivity analysis. integral data visualization tool used in digital dashboards and scorecards.

spreadsheet tool that displays two or more dimensions of data in a convenient format.

Checking store inventory is an example of a(n) ________ decision. procedural structured ad hoc unstructured semi-structured

structured