Chapter 2 - Decisions and processes: Value driven business. The goal is for you to learn: Explain the importance of decision making for managers at each of the three primary organization levels along with the associated decision characteristics; define critical success factors (CSFs) and key performance indicators (KPIs), and explain how managers use them to measure the success of MIS projects.
CHAPTER TWO DECISIONS AND PROCESSES VALUE DRIVEN BUSINESS © 2014 by McGraw-Hill Education This is proprietary material solely for authorized instructor use Not authorized for sale or distribution in any manner This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part CHAPTER TWO OVERVIEW SECTION 2.1 – Decision Support Systems • • • • Making Business Decisions Metrics: Measuring Success Support: Enhancing Decision Making with MIS The Future: Artificial Intelligence SECTION 2.2 – Business Processes • • • • Evaluating Business Processes Models: Measuring Performance Support: Enhancing Business Processes with MIS The Future: Business Process Management SECTION 2.1 DECISION SUPPORT SYSTEMS © 2014 by McGraw-Hill Education This is proprietary material solely for authorized instructor use Not authorized for sale or distribution in any manner This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part LEARNING OUTCOMES Explain the importance of decision making for managers at each of the three primary organization levels along with the associated decision characteristics Define critical success factors (CSFs) and key performance indicators (KPIs), and explain how managers use them to measure the success of MIS projects Classify the different operational, managerial, and strategic support systems, and explain how managers can use them to make decisions & gain competitive advantage Describe artificial intelligence and identify its five main types MAKING BUSINESS DECISIONS Managerial decision-making challenges • Analyze large amounts of information • Apply sophisticated analysis techniques • Make decisions quickly The Decision-Making Process The six-step decision-making process Problem identification Data collection Solution generation Solution test Solution selection Solution implementation Decision-Making Essentials Decision-making and problemsolving occur at each level in an organization Decision-Making Essentials Operational decision making - Employees develop, control, and maintain core business activities required to run the day-to-day operations Structured decisions Situations where established processes offer potential solutions OPERATIONAL Decision-Making Essentials Managerial decision making – Employees evaluate company operations to identify, adapt to, and leverage change Semistructured decisions – Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision MANAGERIAL 10 Decision-Making Essentials Strategic decision making – Managers develop overall strategies, goals, and objectives Unstructured decisions – Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice STRATEGIC 43 MODELS: MEASURING PERFORMANCE 44 MODELS: MEASURING PERFORMANCE 45 MODELS: MEASURING PERFORMANCE 46 SUPPORT: CHANGING BUSINESS PROCESSES WITH MIS Workflow – Includes the tasks, activities, and responsibilities required to execute each step in a business process 47 SUPPORT: CHANGING BUSINESS PROCESSES WITH MIS 48 SUPPORT: CHANGING BUSINESS PROCESSES WITH MIS 49 SUPPORT: CHANGING BUSINESS PROCESSES WITH MIS Types of change an organization can achieve, along with the magnitudes of change and the potential business benefit 50 IMPROVING OPERATIONAL BUSINESS PROCESSES - AUTOMATION Customers are demanding better products and services Business process improvement – Attempts to understand and measure the current process and make performance improvements accordingly Automation – The process of computerizing manual tasks 51 IMPROVING OPERATIONAL BUSINESS PROCESSES - AUTOMATION Steps in Business Process Improvement 52 IMPROVING MANAGERIAL BUSINESS PROCESSES - STREAMLINING Streamlining – Improves business process efficiencies by simplifying or eliminating unnecessary steps Bottleneck – Occur when resources reach full capacity and cannot handle any additional demands Redundancy – Occurs when a task or activity is unnecessarily repeated 53 IMPROVING STRATEGIC BUSINESS PROCESSES - REENGINEERING Business process reengineering (BPR) Analysis and redesign of workflow within and between enterprises 54 IMPROVING STRATEGIC BUSINESS PROCESSES - REENGINEERING 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 55 IMPROVING STRATEGIC BUSINESS PROCESSES - REENGINEERING Progressive Insurance Mobile Claims Process 56 THE FUTURE: BUSINESS PROCESS MANAGEMENT Business process management (BPM) – Focuses on evaluating and improving processes that include both person-toperson workflow and system-to-system communications 57 LEARNING OUTCOME REVIEW Now that you have finished the chapter please review the learning outcomes in your text ... Optimization analysis 25 Managerial Support Systems Systems Thinking View of a DSS 26 Managerial Support Systems Interaction Between a TPS and DSS 27 Strategic Support Systems Information Levels... SECTION 2. 2 – Business Processes • • • • Evaluating Business Processes Models: Measuring Performance Support: Enhancing Business Processes with MIS The Future: Business Process Management SECTION 2. 1... value of business processes for a company and differentiate between customer-facing and business- facing processes Demonstrate the value of business process modeling and compare As-Is and To-Be models