ISM FINAL REVIEW

ISM FINAL REVIEW - ISM FINAL REVIEW Chapter 9 Reasons for...

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ISM FINAL REVIEW Chapter 9 Reasons for growth of decision making information systems: 1. People need to analyze large amounts of information a. Improvements in technology itself, innovations in communication, and globalization have resulted in a dramatic increase in the alternatives and dimensions people need to consider when making a decision or appraising an opportunity 2. People must make decisions quickly a. Time is of the essence and people simply do not have time to sift through all the information manually 3. People must apply sophisticated analysis techniques, such as modeling and forecasting, to make good decisions a. Information systems substantially reduce the time required to perform these sophisticated analysis techniques 4. People must protect the corporate asset of organizational information a. Information systems offer the security required to ensure organizational information remains safe Online Transaction Processing (OLTP) – the capturing 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 new information. The organization must capture every detail of transactions and events. Performed as a daily task at lower levels of an organization. Online Analytical Processing (OLAP) – the manipulation of information to create business intelligence in support of strategic decision making. Performed at the mid levels of the organizational pyramid, typically by managers. Less emphasis on detail and more on meaningful aggregations of information (coarser information), helps them make broader decisions for the organization. Decision Support Systems (DSS) (pg. 105) 1. Sensitivity analysis – the study of the impact that changes in one (or more) parts of the model have on other parts of the model. 2. What-if analysis – checks the impact of a change in an assumption on the proposed solution. 3. Goal-seeking analysis – finds the inputs necessary to achieve a goal such as a desired level of output. Executive Information Systems (capabilities) (pg. 107) 1. Consolidation – involves the aggregation of information and features simple roll-ups to complex groupings of interrelated information. 2. Drill-down – enables users to get details, and details of details, of information. Viewing monthly, weekly, daily, or even hourly information represents drill- down capability
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3. Slice-and-dice – the ability to look at information from different perspectives. One slice of information could display all product sales during a given promotion. Another slice could display a single product’s sales for all promotions Difference between DSS and EIS: EIS interacts with TPS same as DSS except uses additional External Sources of Information – Industry Information Industry Outlook & Stock Market Information Market Outlook. DSS goes to Managerial Reports, EIS goes to Executive Reports Digital dashboards – common feature of an EIS, integrates information from multiple
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ISM FINAL REVIEW - ISM FINAL REVIEW Chapter 9 Reasons for...

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