CHAPTER 2 MIS

Intelligence Agent

Software agent that incorporates artificial intelligence capabilities such as learning and reasoning; software that assists you, or acts on your behalf, in performing repetitive computer-related tasks (shopping bot)

Key Performance Indicators

The quantifiable metrics a company uses to evaluate progress towards CSFs (turnover rates of employees, number of product returns, number of new customers, average customer spending)

Digital Dashboard

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

Intelligence System

Various commercial applications of artificial intelligence. Including: sensors, software, and devices that emulate and enhance human capabilities, learn or understand from experience, make sense of ambiguous or contradictory information, and even use reasoning to solve problems and make decisions effectively

Drill-down

Enables users to get details, and details of details, of information

Managerial decision making challenges

1. Analyze large amounts of information 2. Apply sophisticated analysis techniques 3. Make decisions quickly

Decision making process

1. Problem Identification 2. Data collection 3. Solution generation 4. Solution test 5. Solution selection 6. Solution implementation

Neutral Network

A computer program that mimics the processes of the human brain and thus is capable of learning from examples to find patterns in data.

Virtual Reality

A computer-simulated environment that can be simulation of the real world/imaginary worlds

Sensitivity Analysis (DSS)

A quantitative risk analysis and modeling technique used to help determine which risks have the most potential impact on the project.

Executive information system (strategic)

A specialized DSS that supports senior level executives

General Algorithm

AI system that mimics the evolutionary, survival of the fittest process to generate increasingly better solutions (which combo of projects a firm should invest in)

Fuzzy Logic

AI systems that use approximate reasoning to process ambiguous data "degrees of truth"

Slice and Dice

Ability to look at information from different perspectives

Business Process Reengineering (BPR)

Analysis and redesign of workflow within and between enterprises

Transaction Processing System (TPS) (operational)

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

Artificial Intelligence (AI)

Behavior performed by a machine that, if performed by a human being, would be called "intelligent"

Online Transaction Processing (OLTP) (operational)

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

Expert System

Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems (ex. assist in medical diagnosis)

Critical Success Factors

Crucial steps companies make to preform to achieve their goals and objectives and implement strategies (create high quality products, retain competitive advantages, reduce product costs, competitive advantages, reduce product costs, increase customer satisfaction, hire and retain best professionals)

Consolidation

Data for different sales reps can be rolled up into office level - state level - regional sales level

Operational Level

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

Managerial Level

Employees evaluate company operations to identify, adapt to leverage change

Optimization analysis (DSS)

Finding an optimum value for selected variables in a mathematical model, given certain constraints.

Goal-seeking analysis (DSS)

Finds the inputs necessary to achieve a goal such as a desired level of output.

Business Process Managment (BPM)

Focuses on evaluating and improving processes that include both person to person workflow and system to system communications

Steamlining

Improves business processes by eliminating unecessary steps

Workflow

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

Semistructured Decisions

Made at the managerial level; occur in situations in which few established processes help to evaluate potential solutions, but not enought to lead to a definite recommended decisions

Structured Decisions

Made at the operational level; situations where established processes offer potential solutions

Unstructured Decisions

Made at the strategical level; occurs in situations in which no procedures or rules exsist to guide decision makers toward a correct choice

Strategic Level

Managers develop overall strategies, goals and objectives

Online Analytical Processing (OLAP) (managerial)

Manipulation of information to create business intelligence in support of making strategic decisons (consolidaton, roll-up, slice & dice)

External KPI

Market share; the portion of the market that a firm captures

Metrics

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

Decision Support System (DSS) (managerial)

Models of information to support managers and business professionals during decision making processes

Redundancy

Occurs when a task or activity is unnecessrily repeated

Bottleneck

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

Source Demand (operational)

Original transaction record

What-if Analysis (DSS)

Process of changing values in cells to see how those changes affect the outcome of formulas in the worksheet

Automation

Process of computerizing manual tasks

Internal KPI

Return on investment (ROI); indicates the earning power of a project