Which of the following represents an internal kpi that indicates the earning power of a project?

the science of fact-based decision making

1. problem identification
2. data collection
3. solution generation
4. solution test
5. solution selection
6. solution implementation

employees develop, control, and maintain core business activities required to run the day-to-day operations. Operational decisions are considered structured decisions.

arise when established processes offer potential solutions. Made frequently, almost repetitive; affect short-term business strategies. ex. reordering inventory, creating employees staffing

employees are continuously evaluating company operations to hone the firm's abilities to identify, adapt to, and leverage change. Short-term and medium-range plans, schedules, and budgets along with policies, procedures, and business objectives for the firm. Allocate resources and monitor the performance of organizational subunits. Considered semistructured decisions.

Occur in situations which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision. ex. producing new products or changing employee benefits

managers develop overall business strategies, goals, and objectives as part of the company's strategic plan. Also monitor the strategic performance of the organization and its overall direction in the political, economic, and competitive business environment. Highly unstructured, infrequent, important, related to L-T business plan.

occurring in situations in which no procedures or rules exist to guide decision makers toward the correct choice. ex. decision to enter a new market

a temporary activity a company undertakes to create a unique product, service, or result.

measurements that evaluate results to determine whether a project is meeting its goals. Two core metrics are critical success factors and key performance indicators.

critical success factors (CSFs)

the crucial steps companies perform to achieve their goals and objectives and implement their strategies. ex. create high-quality products

Key performance Indicators (KPIs)

The quantifiable metrics a company uses to evaluate progress toward critical success factors. More specific. ex. turnover rates of employees, number of product returns, new consumers, etc. Internal and external measurements.

The proportion of the market that a firm captures. Common external KPI. Calculated by dividing firm's sales by total market sales for entire industry. 

Return on investment (ROI)

Common internal KPI. Indicates the earning power of a project. Measure it by dividing the profitability of a project by the costs. Can be hard to measure. 

the most successful solutions or problem-solving methods that have been developed by a specific organization or industry. Measuring MIS projects helps determine the best practices for an industry.

measure the performance of MIS itself, such as throughput, transaction speed, and system availability. Focuses on the extent to which a firm is using its resources in an optimal way.

Effectiveness MIS metrics

measure the impact MIS has on business processes and activities, including customer satisfaction and customer conversion rates. Focuses on how well a firm is achieving its goals and objectives.

baseline values the system seeks to attain. Help assess how an MIS project performs overtime.

a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance. 

simplified representation or abstraction of reality. Help managers calculate risks, understand uncertainty, change variables, and manipulate time to make decisions.

transactional information

encompasses all the information contained within a single business process or unit of work, and its primary purpose is to support the performance of daily operational or structured decisions.

online transaction processing (OLTP)

the capture of transaction and event information using technology to (1) process the information according to defined business rules, (2) store the information, and (3) update existing information to reflect the new information. The organization must capture every detail of transactions and events.

transaction processing system (TPS)

the basic business system that serves the operational level (analysts) and assists in making structured decisions. The most common example is operational accounting system such as payroll.

the original transaction record; inputs for TPS

encompasses all organizational information, and its primary purpose is to support the performance of managerial analysis or semistructured decisions. Transactional information as well as market and industry information. ex. product statistics, future growth projections

Online analytical processing (OLAP)

the manipulation of information to create business intelligence in support of strategic decision making.

Decision support systems (DSSs)

model information using OLAP, which provides assistance in evaluating and choosing among different courses of action. Common techniques: What-if, Sensitivity, goal seeking, optimialization

executive information system (EIS)

a specialized DSS that supports senior-level executives and unstructured, long-term, nonroutine decisions requiring judgement, evaluation, and insight. These decisions do not have a right or wrong answer, only efficient and effective answers.

refers to the level of detail in the model or the decision making process. The greater the granularity, the deeper the level of detail or fineness of data.

produces graphical displays of patterns and complex relationships in large amounts of data. EIS use visualization to deliver specific key information to top managers at a glance.

tracks KPIs and CSFs by compiling information from multiple sources and tailoring it to meet user needs. Common tool that supports visualization. Analytical capabilities: consolidation, drill-down, slice-and-dice, and pivot

artificial intelligence (AI)

simulates human thinking and behavior, such as the ability to reason and learn. Its ultimate goal is to build a system that can mimic human intelligence.

various commercial applications of AI. Include sensors, software, devices that emulate human capabilities, etc.

Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems. Most common form of AI

Aka neural network, a category of AI that attempts to emulate the way the human brain works. Analyze large quantities of information to establish patterns and characteristics when the logic or rules are unknown.

a mathematical method of handling imprecise or subjective information.

an AI system that mimics evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem. Its essentially an optimizing system--finds combination of inputs that gives the best outputs.

The process within a genetic algorithm of randomly trying combinations and evaluating the success (or failure) of the outcome.

A special-purpose, knowledge-based information system that accomplishes specific tasks on behalf of its users. Usually have a graphical representation.

software that will search several retailer websites and provide a comparison of each retailer's offerings, including price and availability. Simple example of an intelligent agent.

a computer-simulated environment that can be a simulation of the real world or an imaginary world.

the viewing of the physical world with computer-generated layers of information added to it.

a wearable computer with an optical head-mounted display. Adds an element of augmented reality to the user's world by displaying information in a smart phone-like hands-free format

a work environment that is not located in any one physical space. It is usually a network of several places, connected through Internet, without regard to geographic borders.

uses technology allowing humans to interact with a computer through bodily sensations and movements. Primarily implemented and applied in virtual reality environments and is used in virtual workplaces to enable employees to shake hands, demonstrate products, and collaborate on project.s

customer-facing processes

aka front-office processes, result in a product or service received by an organization's external customer. They include fulfilling orders, communicating with customers, and sending out bills and marketing information.

Business-facing processes

aka back-office processes, are invisible to the external customer but essential to the effective management of the business; they include goal setting, day-to-day planning, giving performance feedback and rewards, and allocating resources.

A patent that protects a specific set of procedures for conducting a particular business activity. 

are business processes, such as manufacturing goods, selling products, and providing service, that make up the primary activities in a value chain.

uses a systematic approach in an attempt to improve business effectiveness and efficiency continuously. 

continuously changing and provides business solutions to ever-changing business operations. Ex. managing layoffs of employees, changing ordering levels based on currency rates

business process modeling

or mapping, is the activity of creating a detailed flowchart or process map of a work process that shows its inputs, tasks, and activities in a structured sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint

business process model and notation (BPMN)

a graphical notation that depicts the steps in a business process. BPMN provides businesses with a graphical view of the end-to-end flow of their business processes

represent the current state of the operation that has been mapped, without any specific improvements of changes to existing processes.

show the results of applying change improvement opportunities to the current (as-os) process model.

layout arranges the steps of a business process into a set of rows depicting the various elements.

includes the tasks, activities, and responsibilities to execute each step in a business process. 

monitor processes to ensure tasks, activities, and responsibilities are executed as specified.

operational business processes

static, routine, daily business processes such as stocking inventory, checking out customers, or daily opening and closing processes. Improving business processes is critical to staying competitive in today's electronic marketplace.

Business process improvement

attempts to understand and measure the current process and make performance improvements accordingly

the process of computerizing manual tasks, making them more efficient and effective, and dramatically lowing operational costs.

managerial business processes

are semidynamic, semiroutine, monthly business processes such as resource allocation, sales strategy, or manufacturing process improvements.

improves business process efficiencies by simplifying or eliminating unnecessary steps.

occur when resources reach full capacity and cannot handle any additional demands; they limit throughput and impeded operations

occurs when a task or activity is unnecessarily repeated, for example, if both the sales department and the accounting department check customer credit

the time required to process an order, is a common KPI for operations management

strategic business processes

dynamic, nonroutine, long-term business processes such a s financial planning, expansion strategies, and stakeholder interactions

business process reengineering (BPR)

the analysis and redesign of workflow within and between enterprises

What is an internal KPI?

What are the 4 main KPIs?

What are the 5 key performance indicators?

Which 3 of the following are examples of key performance indicators?

What 3 aspects do KPIs measure?