Business Driven Technology - Unit 9

1. Business Driven
Technology
Unit 3
Streamlining Business
Operations
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin

2. Unit Three
OChapter Nine – Enabling the Organization –
Decision Making
OChapter Ten – Extending the Organization –
Supply Chain Management
OChapter Eleven – Building a Customer-centric
Organization – Customer Relationship
Management
OChapter Twelve – Integrating the Organization
from End-to-End – Enterprise Resource
Planning 9-2

3. Chapter 09
Enabling the Organization –
Decision Making
9-3

4. LEARNING OUTCOMES
1. Explain the importance of decision making
for managers at each of the three primary
organization levels along with the
associated decision characteristics
2. Classify the different operational support
systems, managerial support systems,
and strategic support systems, and
explain how managers can use these
systems to make decisions and gain
competitive advantages
3. Describe artificial intelligence and identify
its five main types 9-4

5. MAKING BUSINESS
DECISIONS
OManagerial decision-making challenges
O Analyze large amounts of information
O Apply sophisticated analysis techniques
O Make decisions quickly
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6. The Decision-Making Process
OThe six-step decision-making process
1. Problem identification
2. Data collection
3. Solution generation
4. Solution test
5. Solution selection
6. Solution implementation
9-6

7. Decision-Making Essentials
Decision-making
and problem-
solving occur at
each level in an
organization
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8. Decision-Making Essentials
OOperational decision
making - Employees develop,
control, and maintain core
business activities required to
run the day-to-day operations
OStructured decisions -
Situations where established
processes offer potential
solutions OPERATIONAL
9-8

9. Decision-Making Essentials
OManagerial decision making –
Employees evaluate company
operations to identify, adapt to,
and leverage change
OSemistructured 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
9-9

10. Decision-Making Essentials
OStrategic decision
making – Managers
develop overall strategies,
goals, and objectives
OUnstructured decisions
– Occurs in situations in
which no procedures or
rules exist to guide
decision makers toward
the correct choice
STRATEGIC
9-10

11. SUPPORT: ENHANCING
DECISION MAKING WITH MIS
OModel – A simplified
representation or abstraction
of reality
OModels help managers to
 Calculate risks
 Understand uncertainty
 Change variables
 Manipulate time to make
decisions 9-11

12. SUPPORT: ENHANCING
DECISION MAKING WITH MIS
Types of Decision Making MIS Systems
9-12

13. Operational Support Systems
OTransaction processing system
(TPS) – Basic business system that
serves the operational level and assists
in making structured decisions
OOnline transaction processing
(OLTP) - Capturing of transaction and
event information using technology to
process, store, and update
OSource document – The original
transaction record
9-13

14. Operational Support Systems
Systems Thinking View of a TPS
9-14

15. Managerial Support Systems
OOnline analytical processing
(OLAP) – Manipulation of
information to create business
intelligence in support of strategic
decision making
ODecision support system (DSS)
– Models information to support
managers and business
professionals during the decision-
making process
9-15

16. Managerial Support Systems
OFour quantitative models used by DSSs
include
1. What-if analysis
2. Sensitivity analysis
3. Goal-seeking analysis
4. Optimization analysis
9-16

17. Managerial Support Systems
Systems Thinking View of a DSS
9-17

18. Managerial Support Systems
Interaction Between a TPS and DSS
9-18

19. Strategic Support Systems
Information Levels Throughout An Organization
9-19

20. Strategic Support Systems
O Executive information system (EIS) –
A specialized DSS that supports senior
level executives within the organization
O Granularity
O Visualization
O Digital dashboard
9-20

21. Strategic Support Systems
Interaction Between a TPS and EIS
9-21

22. Strategic Support Systems
O Most EISs offering the following capabilities
O Consolidation
O Drill-down
O Slice-and-dice
9-22

23. O Artificial intelligence (AI) – Simulates human
intelligence such as the ability to reason and
learn
O Intelligent system – Various commercial
applications of artificial intelligence
THE FUTURE:
ARTIFICIAL INTELLIGENCE (AI)
9-23

24. Artificial Intelligence (AI)
O Five most common categories of
AI
1. Expert system – Computerized
advisory programs that imitate the
reasoning processes of experts in
solving difficult problems
2. Neural Network – Attempts to emulate
the way the human brain works
– Fuzzy logic – A mathematical method of
handling imprecise or subjective information
9-24

25. Artificial Intelligence (AI)
3. Genetic algorithm – An artificial
intelligent system that mimics the
evolutionary, survival-of-the-fittest
process to generate increasingly
better solutions to a problem
- Shopping bot – Software that will
search several retailer websites and
provide a comparison of each
retailer’s offerings including price
and availability
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26. Artificial Intelligence (AI)
4. Intelligent agent – Special-purpose
knowledge-based information system that
accomplishes specific tasks on behalf of its
users
5. Virtual reality - A computer-simulated
environment that can be a simulation of the
real world or an imaginary world
9-26

27. LEARNING OUTCOME
REVIEW
ONow that you have finished the
chapter please review the learning
outcomes in your text
9-27