Transcript Slide 1

McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 2
CHAPTER TWO OVERVIEW
Chapter 2
• SECTION 2.1 - DECISION-MAKING SYSTEMS
 Decision Making
 Transaction Processing Systems
 Decision Support Systems
 Executive Information Systems
• SECTION 2.2 – BUSINESS PROCESSES
 Understanding the Importance of Business Processes
 Business Process Improvement
 Business Process Reengineering
 Business Process Modeling
 Business Process Management
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DECISION MAKING
Chapter 2
• Model – a simplified representation or abstraction of
reality
• IT systems in
an enterprise
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TRANSACTION PROCESSING SYSTEMS
Chapter 2
• Moving up users move from requiring transactional information to
analytical information
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DECISION SUPPORT SYSTEMS
Chapter 2
• Decision support system (DSS) – models information to
support managers and business professionals during the
decision-making process
• Three quantitative models used by DSSs include:
1. Sensitivity analysis
2. What-if analysis
3. Goal-seeking analysis
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EXECUTIVE INFORMATION SYSTEMS
Chapter 2
•
Executive information system (EIS) – a specialized
DSS that supports senior level executives within the
organization
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Most EISs offering the following capabilities:
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Consolidation; Drill-down ; Slice-and-dice
Digital dashboard – a common feature of EIS that
integrates information from multiple components
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ARTIFICIAL INTELLIGENCE (AI)
Chapter 2
Artificial intelligence (AI) – simulates human intelligence such
as the ability to reason and learn
Four most common categories of AI include:
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Expert system
Neural Network
Genetic algorithm
Intelligent agent
Data-mining systems sift instantly through information to
uncover patterns and relationships, and include many forms
of AI such as neural networks and expert systems
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UNDERSTANDING THE IMPORTANCE OF
BUSINESS PROCESS
Chapter 2
• Business process – a standardized set of activities that
accomplish a specific task, such as processing a
customer’s order
 Customer facing process - results in a product or
service that is received by an organization’s
external customer
 Business facing process - invisible to the external
customer but essential to the effective management
of the business
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BUSINESS PROCESS IMPROVEMENT
Chapter 2
• Business process improvement model
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BUSINESS PROCESS REENGINEERING
Chapter 2
• Business process reengineering (BPR) - analysis and
redesign of workflow within and between enterprises
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BUSINESS PROCESS MODELING
Chapter 2
• Business process modeling (or 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
• 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
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BUSINESS PROCESS MANAGEMENT
Chapter 2
• Business process management (BPM) - integrates all of an
organization’s business process to make individual processes more
efficient
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