Sunday, September 26, 2010

Strategic Decision Making

1. Define TPS & DSS, and explain how an organisation can use these systems to make decisions and gain competitive advantages?
TPS=  a transaction processing system is the basic business system that serves the operational level (analysis) in an organisation.
DSS= a decision support system models information to support managers and business professionals during the decision-making process.

2. Describe the three quantitative models typically used by decision support systems?

  • Sensitivity analysis  - this is the study of the impact that changes in one (or more) parts of the model have on other parts. Users change the value of one variable repeatedly and observe the resulting changes in other variables.
  • What if analysis - what will happen if this changes. Looks at the impact of the change within the organisation. Users repeat this analysis until they understand all the effects of various situations.
  • Goal seeking analysis - right to left/left to right. Start with on sequence and carry out the operation until the companies target is met. This sets a target value (a goal) for a variable and then repeatedly changes other variables until the target value is achieved.

3. Describe a business processes and their importance to an organisation?

A business process is a standardised set of activities that accomplish a specific task, such as processing a customers order. A business process is  aimed to convert input within the company to outputs. It is hidden for the user and by using a business process productivity is increased. The importance of this is by knowing your business process organisation goals will be achieved.



4. Compare business process improvement and business process re-engineering?

  • Business process improvement - this attempts to understand and measure the current process and make  performance improvements accordingly.

Document as
Is process
Establish
Measurement
Follow process
Measure
Performance
Identify and implement
improvement


The loop repeats over and over again as it is continuously improved.

  • Business process re-engineering - this is the analysis and the redesign of workflow within and between enterprises.  The basic steps involved include the following:

Set project scope
Stud competition.
Create new processes.
Implement solution.
5. Describe the importance of business process modelling (or mapping) and business process  models?

Business process modelling (or mapping) is the activity of creating a detailed flowchart or process map of a work process, showing its inputs, tasks and activities in a structured sequence. A business process model is a graphic description of a process showing the sequence of process tasks, which is developed for a specific purpose and from a selected view point. The purpose of a process model is:
  • Expose process detail gradually and in a controlled manner.
  • Encourage conciseness and accuracy in describing the process model.
  • Focus attention on the process model interfaces.
  • Provide a powerful process analysis and consistent design vocabulary.

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