Decision Making Process A. INTELLIGENCE: 1. Problem identification and understanding. 2. State the expectation. 3. Gather data. B. DESIGN: 4. Develop alternatives. 5. Evaluate the alternatives. C. CHOICE: 6. Choose the best alternative. D. IMPLEMENTATION: 7. Implement and monitor the decision. 1 Pengampu: Taufik Hidayat, S.Kom., MMSI, Lektor Kepala

Macam Keputusan Keputusan terstruktur (structured decision), Keputusan semiterstruktur (semistructured decision) Keputusan tak terstruktur (unstructured decision)

Problem Structure A structured problem consists of elements and relationships between elements, all of which are understood by the problem solver An unstructured problem is one that contains no elements or relationships between elements that are understood by the problem solver A semi structured problem is one that contains some elements or relationships that are understood by the problem solver and some that are not

Types of Decisions Programmed decisions are: repetitive and routine a definite procedure has been worked out for handling them Non programmed decisions are: novel, unstructured, and unusually consequential. There ’ s no cut-and-dried method for handling the problem it needs a custom-tailored treatment

Keputusan Terstruktur Keputusan terstruktur adalah keputusan yang dilakukan secara berulang-ulang dan bersifat rutin Prosedur untuk pengambilan keputusan sangat jelas Keputusan ini terutama dilakukan pada manajemen tingkat bawah Keputusan pemesanan barang dan keputusan penagihan piutang merupakan contoh keputusan yang terstruktur

Keputusan Semiterstruktur Keputusan semiterstruktur adalah keputusan yang mempunyai sifat yakni sebagian keputusan dapat ditangani oleh komputer dan yang lain tetap harus dilakukan oleh pengambil keputusan Pengevaluasian kredit, penjadwalan produksi, pengendalian sediaan merupakan beberapa contoh keputusan ini

Keputusan Tak Terstruktur Keputusan tak terstruktur adalah keputusan yang penanganannya rumit, karena tidak terjadi berulang-ulang atau tidak selalu terjadi Keputusan ini menuntut pengalaman dan berbagai sumber yang bersifat eksternal Keputusan ini umumnya terjadi pada manajemen tingkat atas Pengembangan teknologi baru, keputusan untuk bergabung dengan perusahaan lain, dan perekrutan eksekutif merupakan contoh keputusan yang tak terstruktur

Business Intelligence Applications and technologies that are used to gather, provide access to, and analyze data and information to support decision making process. Examples: Retail and sales: predicting sales, determining correct inventory level and distribution schedules among outlets, and loss prevention. Banking: credit card spending by new customers Insurance: forecasting claim amounts and medical coverage costs. Etc. 9

Artificial Intelligence A system that simulates human intelligence such as the ability to reason and learn from experience and to use reasoning to solve problems. Example: Matsushita’s courier robot navigates hospital hallways, deliver patient files, X-ray films, and medical supplies. General Categories of AI: expert systems, neural networks, genetic algorithms, and intelligent agents. 10

REDESIGNING AN ORGANIZATION WITH INFORMATION SYSTEMS 11

Business Process A standardized set of activities that accomplish a specific task. Examples: * Customers’s order processing. * Disabilities employment policies * Employee hiring policies * Health care benefits * Resignations and terminations * Workplace safety rules and guidelines, etc 12

Business Process Reengineering (BPR) The analysis and redesign of workflow within, between, and among enterprises because the present workflow is irrelevant, doesn’t work properly, or is broken and must be overhauled from scratch. 13 Set project scope Study Competition Create new process Implement solution

Business Process Modelling / Mapping The activity of creating a detailed flowchart or process map of a work process that sows its input, tasks / activities, and output in a structured sequence. 14

Example of a BP Modelling Present Burger ProcessNear Future 15 Customer approaches cashier Order Burger Want Fries? Want drink? Customer pays cashier Order fries Order drink Customer Approaches cashier Order Combo meal Customer pays cashier yes no yes no

Business Process Management (BPM) Integrating all of an organization’s business process to make individual processes more eficient. Information technology (IT) is used to improve byusiness processes to be faster and smarter. 16

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Using CSFs to Develop Systems Figure 12-2

Automation : Speeding up performanceAutomation : Speeding up performance Rationalization of procedures: Streamlining of operating proceduresRationalization of procedures: Streamlining of operating procedures Business process reengineering: Radical design of business processesBusiness process reengineering: Radical design of business processes Paradigm shift: Radical reconceptualizationParadigm shift: Radical reconceptualization SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Systems Development and Organizational Change

SYSTEMS AS PLANNED ORGANIZATIONAL CHANGE Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Organizational Change Carries Risks and Rewards Figure 12-3

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BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Redesigning Mortgage Processing in the United States Figure 12-4a

BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Redesigning Mortgage Processing in the United States Figure 12-4b

Senior management needs to develop broad strategic visionSenior management needs to develop broad strategic vision Management must understand and measure performance of existing processes as baselineManagement must understand and measure performance of existing processes as baseline Information technology should be allowed to influence process design from startInformation technology should be allowed to influence process design from start IT infrastructure should be able to support business process changesIT infrastructure should be able to support business process changes BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Steps in Effective Reengineering

BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems The Systems Development Process Figure 12-5

Feasibility study Determining achievability of solutionDetermining achievability of solution Establishing information requirements Stating information needs that new system must satisfyStating information needs that new system must satisfy Identifying who, when, where and how components of informationIdentifying who, when, where and how components of information OVERVIEW OF SYSTEMS DEVELOPMENT Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Overview

Details how system will meet information requirements as determined by systems analysisDetails how system will meet information requirements as determined by systems analysis Increases users’ understanding and acceptance of the systemIncreases users’ understanding and acceptance of the system Reduces problems caused by power transfers, intergroup conflict, and unfamiliarity with the new systemReduces problems caused by power transfers, intergroup conflict, and unfamiliarity with the new system BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Systems Design

Programming Process of translating system specifications into program codeProcess of translating system specifications into program codeTesting Checks whether the system produces desired results under known conditionsChecks whether the system produces desired results under known conditions Unit testing, system testing, acceptance testing, test planUnit testing, system testing, acceptance testing, test plan BUSINESS PROCESS REENGINEERING AND TOTAL QUALITY MANAGEMENT (TQM) Essentials of Management Information Systems Chapter 12 Redesigning the Organization With information Systems Completing the Systems Development Process