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Business Driven Information Systems 2e

Business Driven Information Systems 2e

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Business Driven Information Systems 2e

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  1. Business Driven Information Systems 2e CHAPTER 2 STRATEGIC DECISION MAKING

  2. SECTION 2.1 DECISION-MAKING SYSTEMS

  3. DECISION MAKING • People must: • Analyze large amounts of information • Make decisions quickly • Apply sophisticated analysis techniques • Systems support these activities

  4. DECISION MAKING • IT systems in an enterprise

  5. TRANSACTION PROCESSING SYSTEMS

  6. TRANSACTION PROCESSING SYSTEMS • Transaction processing system (TPS) - basic business system that serves the operational level • Online transaction processing (OLTP) – capturing of transaction and event information using technology • Online analytical processing (OLAP) – manipulation of information to create business intelligence in support of strategic decision making

  7. DECISION SUPPORT SYSTEMS • Decision support system (DSS) – models information to support managers and business professionals during the decision-making process • Three quantitative models used by DSSs include: • Sensitivity analysis • What-if analysis • Goal-seeking analysis

  8. EXECUTIVE INFORMATION SYSTEMS • Executive information system (EIS) – a specialized DSS that supports senior level executives within the organization • Most EISs offering the following capabilities: • Consolidation • Drill-down • Slice-and-dice

  9. EXECUTIVE INFORMATION SYSTEMS

  10. Digital Dashboards

  11. ARTIFICIAL INTELLIGENCE (AI) • Intelligent system – various commercial applications of artificial intelligence • Artificial intelligence (AI) – simulates human intelligence such as the ability to reason and learn

  12. ARTIFICIAL INTELLIGENCE (AI) • Four most common categories of AI include: • Expert system • Neural Network • Fuzzy logic • Genetic algorithm • Intelligent agent

  13. Data Mining • Data-mining systems sift instantly through information to uncover patterns and relationships • Data-mining systems include many forms of AI such as neural networks and expert systems

  14. SECTION 2.2 BUSINESS PROCESSES

  15. UNDERSTANDING THE IMPORTANCE OF BUSINESS PROCESS • Business process – a standardized set of activities that accomplish a specific task • Customer facing process • Business facing process

  16. BUSINESS PROCESS IMPROVEMENT • Business process improvement – attempts to understand and measure the current process and make performance improvements accordingly

  17. BUSINESS PROCESS REENGINEERING • Business process reengineering (BPR) -analysis and redesign of workflow within and between enterprises

  18. Finding Opportunity Using BPR

  19. BUSINESS PROCESS MODELING • Business process modeling (or mapping) - creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence • 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

  20. BUSINESS PROCESS MODELING

  21. BUSINESS PROCESS MANAGEMENT • Business process management (BPM) - integrates all of an organization’s business process to make individual processes more efficient

  22. BPM Examples

  23. BPM Examples