Chapter 4 Testbank

What are the three nonfinancial objectives of the balanced scorecard?

1. Customer 2. Internal Business Process 3. Learning and Growth

In the Expedia case study, what three steps were taken to convert drivers of departmental performance into a scorecard?

1. Deciding how to measure satisfaction 2. Setting the right performance targets 3. Putting data into context

Six Sigma rests on a simple performance improvement model known as DMAIC. What are the steps involved?

1. Define 2. Measure 3, Analyze 4. Improve 5. Control

List five types of specialized charts and graphs.

1. Histograms 2. Gantt Charts 3. PERT Charts 4. Geographic Maps 5. Heat Maps

What are the basic ingredients of a good collection of performance measures?

1. Measures should focus on key factors 2. Should be a mix of past, present, and future 3. Should balance the needs of shareholders, employees, partners, suppliers, and other stakeholders 4. Should start at the top and flow down to the bottom 5. Need to have targets that are based on research and reality rather than arbitrary

List and describe the three major categories of business reports.

1. Metric Management Reports - Reports that contain information according to an outcome-oriented metric. 2. Dashboard Type Reports - A set of predefined reports with static elements and fixed structure. Also allow for customization of the dashboard widgets, views, and set targets for various metrics. 3. Balanced Scorecard Type Reports - Views the organization from four perspectives and develop objectives, measures, targets, and initiatives.

According to Eckerson (2006), a well-known expert on BI dashboards, what are the three layers of information of a dashboard?

1. Monitoring 2. Analysis 3, Management

List five best practices of dashboard design.

1. Prioritize and rank alerts/exceptions streamed to the dashboard 2. Enrich dashboard with business users comments 3. Present information in three different layers 4. Pick the right visual construct using dashboard design principles 5. Provide for guided analytics

What are the four processes that define a closed-loop BPM cycle?

1. Strategize 2. Plan 3. Monitor/Analyze 4. Act and Adjust

Which type of question does visual analytics seeks to answer? A) Why did it happen? B) What happened yesterday? C) What is happening today? D) When did it happen?

A) Why did it happen?

Why is the customer perspective important in the balanced scorecard methodology? A) because dissatisfied customers will eventually hurt the bottom line B) because customers should always be included in any design methodology C) because customers understand best how the firm's internal processes should work D) because companies need customer input into the design of the balanced scorecard

A) because dissatisfied customers will eventually hurt the bottom line

What is the management feature of a dashboard? A) operational data that identify what actions to take to resolve a problem B) summarized dimensional data to analyze the root cause of problems C) summarized dimensional data to monitor key performance metrics D) graphical, abstracted data to monitor key performance metrics

A) operational data that identify what actions to take to resolve a problem

What is Six Sigma? A) a letter in the Greek alphabet that statisticians use to measure process variability B) a methodology aimed at reducing the number of defects in a business process C) a methodology aimed at reducing the amount of variability in a business process D) a methodology aimed at measuring the amount of variability in a business process

B) a methodology aimed at reducing the number of defects in a business process

When you tell a story in a presentation, all of the following are true EXCEPT A) a story should make sense and order out of a lot of background noise. B) a well-told story should have no need for subsequent discussion. C) stories and their lessons should be easy to remember. D) the outcome and reasons for it should be clear at the end of your story.

B) a well-told story should have no need for subsequent discussion.

Kaplan and Norton developed a report that presents an integrated view of success in the organization called A) metric management reports. B) balanced scorecard-type reports. C) dashboard-type reports. D) visual reports.

B) balanced scorecard-type reports.

Which component of a reporting system contains steps detailing how recorded transactions are converted into metrics, scorecards, and dashboards? A) data supply B) business logic C) extract, transform and load D) assurance

B) business logic

Which type of visualization tool can be very helpful when a data set contains location data? A) bar chart B) geographic map C) highlight table D) tree map

B) geographic map

Contextual metadata for a dashboard includes all the following EXCEPT A) whether any high-value transactions that would skew the overall trends were rejected as a part of the loading process. B) which operating system is running the dashboard server software. C) whether the dashboard is presenting "fresh" or "stale" information. D) when the data warehouse was last refreshed.

B) which operating system is running the dashboard server software.

________ charts are useful in displaying nominal data or numerical data that splits nicely

Bar

For those executives who do not have the time to go through lengthy reports, the best alternative is the A) last page of the report. B) raw data that informed the report. C) executive summary. D) charts in the report.

C) executive summary.

The Internet emerged as a new medium for visualization and brought all the following EXCEPT A) worldwide digital distribution of visualization. B) immersive environments for consuming data. C) new forms of computation of business logic. D) new graphics displays through PC displays.

C) new forms of computation of business logic.

Which type of visualization tool can be very helpful when the intention is to show relative proportions of dollars per department allocated by a university administration? A) heat map B) bullet C) pie chart D) bubble chart

C) pie chart

All of the following statements about balanced scorecards and dashboards are true EXCEPT A) scorecards are less preferred at operational and tactical levels. B) dashboards would be the preferred choice to monitor production quality. C) scorecards are best for real-time tracking of a marketing campaign. D) scorecards are preferred for tracking the achievement of strategic goals.

C) scorecards are best for real-time tracking of a marketing campaign.

Dashboards can be presented at all the following levels EXCEPT A) the visual dashboard level. B) the static report level. C) the visual cube level. D) the self-service cube level.

C) the visual cube level.

Benefits of the latest visual analytics tools, such as SAS Visual Analytics, include all of the following EXCEPT A) mobile platforms such as the iPhone are supported by these products. B) it is easier to spot useful patterns and trends in the data. C) they explore massive amounts of data in hours, not days. D) there is less demand on IT departments for reports.

C) they explore massive amounts of data in hours, not days.

Why is a performance management system superior to a performance measurement system? A) because performance measurement systems are only in their infancy B) because measurement automatically leads to problem solution C) because performance management systems cost more D) because measurement alone has little use without action

D) because measurement alone has little use without action

Which kind of chart is described as an enhanced variant of a scatter plot? A) heat map B) bullet C) pie chart D) bubble chart

D) bubble chart

What is the fundamental challenge of dashboard design? A) ensuring that users across the organization have access to it B) ensuring that the organization has the appropriate hardware onsite to support it C) ensuring that the organization has access to the latest web browsers D) ensuring that the required information is shown clearly on a single screen

D) ensuring that the required information is shown clearly on a single screen

Which of the following is LEAST related to data/information visualization? A) information graphics B) scientific visualization C) statistical graphics D) graphic artwork

D) graphic artwork

All of the following are true about external reports between businesses and the government EXCEPT A) they can include tax and compliance reporting. B) they can be filed nationally or internationally. C) they are standardized for the most part to reduce the regulatory burden. D) their primary focus is government.

D) their primary focus is government.

A Six Sigma deployment can be deemed effective even if the number of defects are not reduced to 3.4 defects per million.

False

Data is the contextualization of information, that is, information set in context.

False

For best results when deploying visual analytics environments, focus only on power users and management to get the best return on your investment.

False

In the Dallas Cowboys case study, the focus was on using data analytics to decide which players would play every week.

False

The BPM development cycle is essentially a one-shot process where the requirement is to get it right the first time.

False

The balanced scorecard is a type of report that is based solely on financial metrics.

False

The best key performance indicators are derived independently from the company's strategic goals to enable developers to "think outside of the box."

False

The dashboard for the WebFOCUS BI platform in the Travel and Transport case study required client side software to operate.

False

The data storage component of a business reporting system builds the various reports and hosts them for, or disseminates them to users. It also provides notification, annotation, collaboration, and other services.

False

When telling a story during a presentation, it is best to avoid describing hurdles that your character must overcome, to avoid souring the mood.

False

With the balanced scorecard approach, the entire focus is on measuring and managing specific financial goals based on the organization's strategy.

False

________ are typically used together with other charts and graphs, as opposed to by themselves, and show postal codes, country names, etc.

Maps

________ management reports are used to manage business performance through outcome-oriented metrics in many organizations.

Metric

________ charts or network diagrams show precedence relationships among the project activities/tasks.

PERT

List and describe five distinguishing features of key performance indicators.

Strategy. KPIs embody a strategic objective. • Targets. KPIs measure performance against specific targets. Targets are defined in strategy, planning, or budgeting sessions and can take different forms (e.g., achievement targets, reduction targets, absolute targets). • Ranges. Targets have performance ranges (e.g., above, on, or below target). • Encodings. Ranges are encoded in software, enabling the visual display of performance (e.g., green, yellow, red). Encodings can be based on percentages or more complex rules. • Time frames. Targets are assigned time frames by which they must be accomplished. A time frame is often divided into smaller intervals to provide performance mileposts. • Benchmarks. Targets are measured against a baseline or benchmark. The previous year's results often serve as a benchmark, but arbitrary numbers or external benchmarks may also be used.

Google Maps has set new standards for data visualization with its intuitive Web mapping software.

True

In the FEMA case study, the BureauNet software was the primary reason behind the increased speed and relevance of the reports FEMA employees received.

True

Information density is a key characteristic of performance dashboards.

True

One comparison typically made when data is presented in business intelligence systems is a comparison against historical values.

True

The WebFOCUS BI platform in the Travel and Transport case study decreased clients' reliance on the IT function when seeking system reports.

True

The main difference between service level agreements and key performance indicators is the audience.

True

There are basic chart types and specialized chart types. A Gantt chart is a specialized chart type.

True

Visualization differs from traditional charts and graphs in complexity of data sets and use of multiple dimensions and measures.

True

With key performance indicators, driver KPIs have a significant effect on outcome KPIs, but the reverse is not necessarily true.

True

A(n) ________ is a communication artifact, concerning business matters, prepared with the specific intention of relaying information in a presentable form.

business report

Travel and Transport created an online BI self-service system that allowed ________ to access information directly.

clients

Business performance management comprises a ________ set of processes that link strategy to execution with the goal of optimizing business performance.

closed-loop

Performance dashboards enable ________ operations that allow the users to view underlying data sources and obtain more detail.

drill-down

There are only a few categories of business report: informal, ________, and short.

formal

The ________ perspective of the organization suggested by the balanced scorecard focuses on business processes and how well they are running.

internal business process

In the Delta Lloyd Group case study, the ________ is the stage of the reporting process in which consolidated figures are cited, formatted, and described to form the final text of the report.

last mile

With a dashboard, information on sources of the data being presented, the quality and currency of underlying data provide contextual ________ for users.

metadata

With dashboards, the layer of information that uses graphical, abstracted data to keep tabs on key performance metrics is the ________ layer.

monitoring

A strategically aligned metric is also known as a key ________.

performance indicator

Visual analytics is widely regarded as the combination of visualization and ________ analytics.

predictive

Dashboards present visual displays of important information that are consolidated and arranged on a single ________.

screen

In the Mace case study, the IBM Cognos software enabled the rapid creation of integrated reports across 60 countries, replacing a large and complex ________.

spreadsheet

In the Blastrac case study, Tableau analytics software was used to replace massive ________ that were loaded with data from multiple ERP systems.

spreadsheets

Typical charts, graphs, and other visual elements used in visualization-based applications usually involve ________ dimensions.

two

In the Saudi Telecom company case study, information ________ software allowed managers to see trends and correct issues before they became problems.

visualization