chapter 2 notes - Chapter 2 Strategic Decision Making...

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Chapter 2 Strategic Decision Making Model - simplified representation or abstraction of reality. Can be used to calculate risks, understand uncertainty, change variables, and manipulate time. 3 common types of decision making information systems use: transaction processing systems (TPS), decision support systems (DSS), and executive information systems (EIS). Transaction processing systems Transactional information - encompasses all of the information contained within a single business process or unit of work. Its primary purpose is to support the performing of daily operational tasks. Example: purchasing stocks, withdrawing from an ATM. Used for daily analyzing of sales reports to determine how much inventory to carry. Analytical information - encompasses all organizational information and its primary purpose is to support the performing of managerial analysis tasks. Examples: trends, sales, product statistics and future growth projections. Used when building a new manufacturing plant or hiring additional sales personnel. Online transaction processing (OLTP) - capturing of transaction and event information using technology to process the information according to defined business rules, store the information and update existing information to reflect the new information. Transaction processing systems (TPS) - basic business system that serves the operational level (analysts) in an organization. Example: payroll system or an order-entry system. Online analytical processing (OLAP) - the manipulation of information to create business intelligence in support of strategic decision making. Business intelligence - broad, general term describing information that people use to support their decision-making efforts. Decision support systems
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This note was uploaded on 12/04/2011 for the course ITM 309 taught by Professor Rodammer during the Spring '08 term at Michigan State University.

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chapter 2 notes - Chapter 2 Strategic Decision Making...

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