Download Chapter 2 - Strategic Decision Making

McGraw-Hill/Irwin
Strategic Decision Making
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 2
SECTION 2.1
Chapter 2
DECISION-MAKING
SYSTEMS
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DECISION MAKING
Chapter 2
• Reasons for the growth of decision-making
information systems:
• People must:
 Analyze large amounts of information
 Make decisions quickly
 Apply sophisticated analysis techniques
 Protect the corporate asset of organizational
information
2-7
DECISION MAKING
Chapter 2
• Models
2-8
TRANSACTION PROCESSING
SYSTEMS
Chapter 2
2-9
TRANSACTION PROCESSING
SYSTEMS
Chapter 2
• Transaction processing system (TPS)
• Online transaction processing (OLTP)
• Online analytical processing (OLAP)
2-10
DECISION SUPPORT SYSTEMS
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• Decision support system (DSS)
• Three quantitative models used by DSSs include:
 Sensitivity analysis
 What-if analysis
 Goal-seeking analysis
2-11
DECISION SUPPORT SYSTEMS
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• What-if analysis
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DECISION SUPPORT SYSTEMS
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• Goal-seeking analysis
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DECISION SUPPORT SYSTEMS
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• Interaction between a TPS and a DSS
2-14
EXECUTIVE INFORMATION SYSTEMS
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• Executive information system (EIS)
• Most EISs offering the following capabilities:
 Consolidation
 Drill-down
 Slice-and-dice
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EXECUTIVE INFORMATION SYSTEMS
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• Interaction between a TPS and an EIS
2-16
DIGITAL DASHBOARDS
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• Digital dashboard
2-17
ARTIFICIAL INTELLIGENCE (AI)
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• Intelligent system
• Artificial intelligence (AI)
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ARTIFICIAL INTELLIGENCE (AI)
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• Four most common categories of AI include:
 Expert system
 Neural Network
 Genetic algorithm
 Intelligent agent
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DATA MINING
Chapter 2
• Data Mining
• Data-mining systems include many forms of AI such
as neural networks and expert systems
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SECTION 2.2
Chapter 2
BUSINESS PROCESSES
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UNDERSTANDING THE IMPORTANCE
OF BUSINESS PROCESS
Chapter 2
• Business process
• Businesses gain a competitive edge when they
minimize costs and streamline business processes
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UNDERSTANDING THE IMPORTANCE
OF BUSINESS PROCESS
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• Customer facing process
• Business facing process
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UNDERSTANDING THE IMPORTANCE
OF BUSINESS PROCESS
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UNDERSTANDING THE IMPORTANCE
OF BUSINESS PROCESS
Chapter 2
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BUSINESS PROCESS IMPROVEMENT
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• Business process improvement
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BUSINESS PROCESS IMPROVEMENT
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• Business process improvement model
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BUSINESS PROCESS REENGINEERING
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• Business process reengineering (BPR)
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FINDING OPPORTUNITY USING BPR
Chapter 2
• A company can improve
the way it travels the
road by moving from foot
to horse and then horse to
car
• BPR looks at taking a
different path, such as an
airplane which ignore the
road completely
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FINDING OPPORTUNITY USING BPR
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2-35
FINDING OPPORTUNITY USING BPR
Chapter 2
2-36
SELECTING A PROCESS TO
REENGINEER
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• Criteria to determine the importance of the process
 Is the process broken?
 Will reengineering of this process succeed?
 Does it have a high impact on the strategic direction?
 Does it significantly impact customer satisfaction?
 Is it antiquated?
 Does it fall far below best-in-class?
 Is it crucial for productivity improvement?
 Will savings from automation be clearly visible?
 Is the return on investment high?
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BUSINESS PROCESS MODELING
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• Business process modeling (or mapping)
• Business process model
 As-Is process model
 To-Be process model
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BUSINESS PROCESS MODELING
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BUSINESS PROCESS MANAGEMENT
Chapter 2
• Business process management (BPM)
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BPM EXAMPLES
Chapter 2
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BPM EXAMPLES
Chapter 2
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BPM EXAMPLES
Chapter 2
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BPM EXAMPLES
Chapter 2
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Chapter 2