Business Intelligence Core Subject – 15 Unit Credits

Lecture 6 Business Processes : Management Operational Support Improving the efficiency of a business process Automating processes

Business Process : Management In the first lecture, you have learned that Business processes have 3 categories : Operational processes, Supporting processes and Management processes. So, how does Business process help supporting decision-making? BPM help you automate high-volume operational decisions. Because BPM can help make sure that your managers have __________________. By using BPM, you can be sure that most decisions are made in a consistent and timely manner.

Managerial Decision Making Management is a process by which organizational goals are achieved by using resources Inputs: resources Output : ________________ Measure of success : output / inputs

There are 4 types of information systems for supporting the levels of decision making : Decision Support System (DSS) Group Support System(GSS) Management Information System (MIS) Executive Support System (ESS)

Decision Support System (DSS) Decision Support System (DSS) is a computer-based information system that provides a flexible tool for analysis and help managers ______________. Support for Problem-Solving phases Help managers make decisions that are unique and rapidly changing. The objective of the DSS is to assist ______________ with the phases of problem solving. DSS combine data, analytical models, tools and user-friendly software into a powerful system.

Support for Various Decision Frequencies Decision can range from one-of-a-kind to __________________. One-of-a-kind decisions are handled by an ad hoc DSS. It is concerned with situations or decisions that come up only a few times during the life of the organization. Support for Various Problem Structures Decisions can range from ____________ and programmed to _________________and non- programmed. Highly structured problems are straightforward, requiring known facts and relationships. Semi-structured or unstructured problems are more complex. The data are not always clear, be in variety of formats and might be difficult to _______________________.

Support for Various Decision-making Levels DSS can provide help for managers at various levels within the organization. Operational managers can get ______________ with daily and routine decision making. Tactical decision makers can use analysis tools to ensure proper _______________. At the strategic level, DSS can help managers by providing analysis for long-term decisions requiring both internal and external information.

Group Support System (GSS) Also called as Group Decision Support System (GDSS) is a software application that consists of most elements in a DSS, plus software to provide effective support in group decision making. Social networking Internet sites such as Facebook, can be used to support group decision making.

Characteristics of a GSS that enhance Decision Making : Ease of Use A GSS must be easy to learn and use. Systems that are complex and hard to operate will seldom be used. Flexibility An effective GSS not only has to support the different approaches that managers use to make decisions, but also must find a means to ______________________ into a common view of the task at hand. Decision-making support GSS can support different decision-making approaches, including the Delphi approach, in which group decision makers are geographically dispersed throughout the country or the world. Another approach called Brainstorming, members offer ideas “off the top of their heads”, fostering creativity and free thinking.

Characteristics of a GSS that enhance Decision Making : Reduction of Negative Group Behavior One key characteristic of any GSS is the ability to suppress or eliminate group behavior that is counterproductive or harmful to effective decision making. Parallel and Unified Communication With traditional group meetings, people must take turns addressing various issues. With a GSS, every group member can address issues or make comments at the same time by entering them into a PC or workstation. ___________________can speed meeting times and result in better decisions. Organizations are using _____________________ to support group decision making. Automated Recordkeeping Most GSS can keep detailed records of a meeting automatically. Literally hundreds of comments can be stored for future review and analysis. Most GSS packages have automatic voting and ranking features.

GSS Alternatives Decision room – A room that supports decision making, with the decision makers in the same building, combining _________________ with technology to make the meeting more efficient and effective. Local area decision network – Used when group members are located in the same building or geographic area and under conditions in which group decision making is______________. Teleconferencing – Used when the decision frequency is low and the location of group members is _____________. Wide area decision network – Used when the decision frequency is high and the location of group members is distant. Decision makers require frequent use of GSS approach.

Management Information System (MIS) Primary purpose of MIS is to help an organization achieve its goals by providing managers with insight into the regular operations of the organization so that they can control, organize and plan more effectively. One important role of MIS is to provide the __________________________in the right format at the right time. Typically provides managers with information in reports that supports effective decision making and provides feedback on daily operations.

Characteristics of Management Information System (MIS) MIS perform the following functions : Provide reports with fixed and standard formats Produce hard-copy and soft-copy reports Use internal data stored in the computer system Allow users to develop custom reports Require user requests for reports developed by systems personnel

Functional aspects of MIS Financial Management Information Systems Provides financial information not only for executives, but also for a broader set of people who need to make better decisions on a daily basis. Financial MIS are often used to streamline reports of transactions. Most financial MIS perform the following functions : Analyze historical and current financial activity Monitor and control the use of funds over time Integrate financial and operational information from _____________, including the internet, into a single system Easy access to data for both financial and non-financial users through the corporate intranet

Functional aspects of MIS Marketing Management Information Systems An information system that supports managerial activities in product development, distribution, pricing decisions, promotional effectiveness and sales forecasting. Marketing functions are increasingly being performed on the Internet such as Facebook and YouTube. Subsystem for marketing MIS includes market research, sales analysis, promotion and advertising and product pricing. These help marketing managers increase sales, reduce marketing expenses and develop plans for future products and services to meet ____________________. Accounting Management Information System An information system that provides ____________________ on accounts payable, accounts receivable, payroll and many other applications. Transaction Processing Systems is also used to capture accounting data.

Executive Support Systems (ESS) Specialized DSS that includes all hardware, software, data, procedures and people used to assist senior-level executives within the organization. Some cases, ESS also called as Executive Information System (EIS), supports decision making of members of the Board of Directors. An ESS can also be used by individuals at middle levels in the organizational structure. Once targeted at the top-level executive decision makers, ESS are now marketed to and used by employees at other levels in the organization.

Capabilities of ESS Support for Strategic Planning Involves determining the long-term objectives by analyzing the strengths and weaknesses of the organization, predicting future trends and projecting the development of new product lines. Support for Strategic Organizing and Staffing Top-level executives are concerned with the organizational structure. ESS can help executives analyze _________________-, potential pay raises, change in employees benefits and new work rules. Support for Strategic control Involves monitoring and managing the overall operation of the organization. Effective ESS approaches can help top-level managers make the most of their existing resources and control all aspects of the organization.

BP : Align Operations with New Business Strategy Implementing or modifying a business strategy usually requires changes to operations and people performing the work. And by nature people resist change. So the processes, rules and the personal involved in the old strategy can have an impact on the new strategy. Business Process Modeling facilitates this by : helping managers and executives maintain consistency across processes while keeping an eye on the overall strategy of the organization Implement Business Process Re-engineering (BPR) by ________________________________________________– Business process analysis helps in identifying bottlenecks and inefficiencies in the processes and thus improving them. By ensuring that the operational tasks and activities performed by the team members actually help the organization implement its strategy. If the processes and the strategies are not aligned it usually leads to failure in execution. Because even if the operational tasks are performed correctly, the overall organizational goals are not achieved.

Business Process : Support Customer Relationship Management (CRM) software is traditionally used for sales teams. They can be _____________ for support and customer service purposes. Support is provided by IT works support and technical staff

BP : Improve Operational Efficiency The Process simulation and analysis steps of Business Process Modeling are critical tools for managers and analysts to ensure that their processes are optimized and are running accurately. Process Simulation helps managers know if there is room for further optimization and efficiencies. It helps spot needed improvements and reduce process cycle time Process analysis enables better ______________________. Process simulation allows modeling of process designs before actually implementing them thus minimizing disruptions.

Business process: Automated Decision Making A relatively new approach to supporting decision making Applies to highly structures decisions Process automation allow the organizations to project, execute, observe, monitor and continually improve the business processes. Automated decision systems (ADS) (or decision automation systems) An ADS is a rule-based system that provides a solution to a repetitive managerial problem in a specific area ADS initially appeared in the airline industry called revenue (or yield) management (or revenue optimization) systems dynamically price tickets based on actual demand

Automated Decision-Making Framework

Advantages of Business Process Automation Get rid of ____________- and process inconsistencies. ______________________in real time in a global aspect as well in a detailed way, helping the decision-making process. The process automation ________________________- from different areas of the organization (e.g.: accountability, human resources, supply, sales and regional representatives) in just one system of shared information. It reduces the number of errors and increases the data process speed.

End of the chapter REFERENCE : CENGAGE LEARNING International Edition - Information Systems Essentials 6th Edition (Ralph Stair | George Reynolds) PEARSON – DECISION SUPPORT AND BUSINESS INTELLIGENCE SYSTEMS NINTH EDITION (Efraim Turban | Ramesh Sharda | Dursun Delen)  https://www.heflo.com/blog/process-automation/what-is-process-automation/ https://creately.com/blog/diagrams/importance-of-business-process-modeling/

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