ITM 209 Exam #1 Chapter 2

what are the steps in the OMC?

1. order planning 2. order generation 3. cost estimation and pricing 4. order receipt and handling 5. order selection and prioritization 6. scheduling 7. fulfillment 8. billing 9. returns and claims 10. postsales service

artificial intelligence (AI)

simulates human intelligence such as the ability to reason and learn

what four problems emerge in the OMC?

1. companies don't look at the whole system 2. requires overlapping functional responsibilities 3. CEO doesn't know what order of management looks like 4. customer is far removed from the process

what improvements were recommended?

1. draw your chart, analyze it 2. system focus, put pieces together 3. political strategy -> working horizontally

what are the benefits of stapling yourself to an order?

1. improve customer service 2. improve cross-functional teamwork 3. driving/improved financial performance

what is the order of systems thinking?

1. input 2. process 3. output 4. feedback 5. control

what are some criteria to determine the importance of the process?

1. is the process broken? 2. does it significantly impact customer satisfaction? 3. is it feasible that reengineering of this process will succeed?

6 step decision making process

1. problem identification 2. data collection 3. solution generation 4. solution test 5. solution selection 6. implementation

how much of the world's data has been created in the past two years?

90%

a business process depends on several business functions, ________ or ________

IT, personnel

business process model

a graphic description of a process showing the sequence of process tasks, which is developed for a specific: -as-is process model -to-be process model

what is a process?

a group of business activities undertaken by an organization in pursuit of a common goal

model

a simplified representation or abstraction of reality that help managers asses risk, change variables, understand uncertainty, and manipulate time

executive information systems (EIS)

a specialized decision support system that supports senior level executives within the organization -granularity -visualization -digital dashboard

business process

a standardized set of activities that accomplish a specific task, such as processing a customer's order

systems thinking definition

a way of monitoring the entire system by viewing multiple inputs being processed or transformed to produce outputs while continuously gathering feedback on each part (sub components turning into a whole)

expert systems

an "expert" program methods from expert into a system driver: want to retain and leverage all knowledge

business process reengineering (BPR)

analysis and redesign of workflow within and between enterprises, improvements in cost, quality, speed, and service

what are managerial decision-making challenges?

analyze large amounts of information, apply sophisticated analysis techniques, make quick decisions

continuous process improvement model

attempts to understand and measure the current process, and make performance improvements accordingly (current process used as basis)

what are some benefits of business process management?

better service, more competitive, reduce costs, update processes in real-time

what-if analysis

change of input and what effect does it have on output

virtual reality

computer-simulated environment that can be a simulation of the real-world or an imaginary world (fasting growing area) ex: virtual surgery

most EIS offer the following capabilities

consolidation, drill-down, slice-and-dice, and pivot

what do process flow diagrams help to evaluate?

current IS process VS. improved SHOULD process

operating decision making (bottom)

employees develop, control, and maintain core business activities required to run the day-to-day operations (structured decisions), border entry, transaction processes

managerial decision making (middle)

employees evaluate company operations to identify, adapt to, and leverage change (semi-structured), decision support

why do orders "fall through the cracks"?

everyone is doing their own task and don't pay attention to the entire process

five most common categories of AI

expert systems, neural network, genetic algorithm, intelligent agent, virtual reality

business process management (BPM)

focuses on evaluation and improving processes that include both person-to-person workflow and system-to-system communications (institutionalize business process thinking)

goal-seeking analysis

goal specific in output, what inputs allow you to reach these goals

what are the efforts to improve OMC?

graph gaps from a customer perspective or system focus, move across boundaries or staple yourself to an order

what are the disadvantages of order management cycle

horizontal gaps, incomplete visibility of top management of the OMC

sensitivity analysis

how sensitive is the output to changes in input (must be accurate)

what does process improvement involve?

identifying, analyzing, and improving the process, taking action to ensure process is controlled

process flow diagrams

illustrate the sequence of accomplishments of the business process, makes it visible for analysis, steps are performed by more than one person

business processes transform ________ into _______ for another person or process by using people and tools

inputs, outputs

digital dashboard

integrates information from multiple components and presents it in a unified display to quickly asses performance

are business processes inter or independent?

interdependent

what are characteristics of a business process?

internal and external users, cross-departmental, occur across organizations, based on how work is done in organization

business-facing process

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

intelligent agent

knowledge-based information system that accomplished specific task on behalf of its users (graphical representation) ex: shopping bot that provides comparisons of retailers offerings

what are the three drivers for business process management?

modeling for understanding and documentation (visible), redesign (IS to SHOULD), and execution and compliance (how do we help individual understand?)

what are the reasons for growth of decision-making information systems?

must analyze large amounts of information, make quick decisions, apply modeling and forecasting to make decisions, protect the corporate asset of organizational information

data mining systems

neural networks and expert systems, sift instantly through information to uncover patterns, trends, correlations, and relationships

semi-structured decisions

occur in situations in which a few established processes help to evaluate potential solutions, doesn't lead to a definite recommended decision

what is meant by a "functional silo"?

only functioning as an individual (vertically)

genetic algorithms

optimizing system; finds best combination of inputs that gives the best outputs ex: which combinations of projects a business firm should invest in

what are examples of customer-facing processes

order processing, customer service, sales process, customer billing, order shipping

order management cycle

organizations are organized vertically whereas the orders flow horizontally

how does management eliminate unnecessary work and improve productivity?

process improvement or process reengineering

what are typical business processes?

receiving orders, selling products, delivering services, distributing products, or invoicing for services received

neural network

recognize patterns and images, normal buying of customers ex: protect fraud before it happens

customer-facing process

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

strategic decision making (top)

senior executives/managers develop overall strategies, goals, and objectives (unstructured)

unstructured decisions

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

structured decisions

situations where established processes offer potential solutions

what are examples of business-facing processes

strategic planning, tactical planning, budget forecasting, training, purchasing raw materials

what are process steps?

the activities the customer and store personnel do to complete the transaction

business process modeling (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

what is the goal of artificial intelligence?

to develop computers that can think, see, hear, walk, talk, and feel

how is process improvement used?

to eliminate unnecessary work and improve productivity

why do we improve processes?

to maintain a competitive advantage

the same process can be performed with drastically different results depending on who does the work and what information and technology is being used. T or F. why?

true, levels of training and experience

intelligent system

various commercial applications of artificial intelligence

optimization analysis

what is the max/min needed as inputs

managerial support system models include

what-if, sensitivity, goal-seeking, and optimization