SECTION 9.1
1. Describe the decision-making process proposed by Simon.
The decision-making process begins with the 'intelligence phase', which focusses on organisational objectives, data collection, problem identification etc. The manager then moves onto the 'design phase', which sets criteria for choice, searches for alternatives etc. Managers then proceed to the 'choice phase', which is a solution to the model, selection of the best alternative and a plan for implementation of a solution.
http://www.youtube.com/watch?v=Q3YMb4w-FvU
2. Why do managers need IT support?
Managers need IT support for four main reasons:
- The number of alternatives to be considered are increasing, so they need to be able to compare and explore all alternatives.
- Decisions must be made under time pressure. It is not possible to process all the relevant information manually.
- There is increased uncertainty in the decision environment, so the IT is able to conduct a sophisticated analysis in order to make a good decision.
- It is often necessary to access remote information rapidly, consult experts or conduct group decision-making sessions, all without incurring large expenses. As decision makers can all be in different locations, IT is able to bring them all together quickly.
3. Describe the decision matrix.
The decision matrix is a combination of nine cells, which consists of the three classes of problem structure and the three broad categories of the nature of decisions.
SECTION 9.2
1. Describe the capabilities of data mining.
Data mining can perform 2 basic capabilities. It can predict trends and behaviours and identify previously unknown patterns. Data mining addresses why it is happening and provides predictions of what will happen in the future
SECTION 9.3
1. What are some of the capabilities of digital dashboards?
Some of the capabilities of digital dashboards include:
- Drill down: ability to go to details, at several levels
- Status access: the latest data available on KPI or some other metric, ideally in real time
- Ad hoc analysis: analyses made any time, upon demands and with any desired factors and relationships
- Exception reporting: reports that highlight deviations larger than certain thresholds. Reports may include only deviations.
Friday, October 23, 2009
Tuesday, October 13, 2009
WEEK 10 QUESTIONS
Section 8.1
1. What is a Transactional Processing and the role of TP systems. State the key objective of TP/TPSs.
A transaction is any business event that generates data worthy of being captured and stored in a database. The role of Transactional Processing systems is to monitor, collect, store, and process data generated from all business transactions. The key objective of TP/TPSs is to handle high volume and large variations in volume (for example, during peak times) efficiently, avoid errors and downtime, record results accurately and securely, and maintain privacy and security.
Section 8.2
1. What is a functional area information system? List its major characteristics.
Functional area information systems provide information mainly to lower and middle level managers in the functional areas. They use this information to help them plan, organise and control operations
2. How does an FAIS support management by exception? How does it support on-demand reports?
FAIS support management by exception reports by collecting and analysing all data that is required for the report. For example in a sales example, management would establish sales quotas, the the company would implement FAIS that collects and analyses all sales data.
FAIS support ad hoc (on demand) reports by providing drill-down reports, which show a greater level of detail; key indicator reports, which summarise the performance of critical activities; and comparative reports, which compare ther performances of different business units or time periods.
Section 8.3
1. Define ERP and describe its functionalities.
Enterprise resource planning systems integrate the planning, management, and the use of all of an organisation's resources. The major functionalities of ERP systems are to tightly integrate the functional areas of the organisation and to enable information to flow seamlessly across the functional areas
2. List some drawbacks of ERP software.
Drawbacks of ERP software include that it can be extremely complex, expensive, and time consuming to implement. Also, companies may need to change existing business processes to fit the predefined business processes of the software.
Section 8.5
1. Define a supply chain and supply chain management (SCM).
A supply chain refers to the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses to the end customers. It includes the organisations and processes that create and deliver products, information and services to end customers.
Supply chain management is to plan, organise, and optimise the supply chain's activities. The goal of SCM systems is to reduce friction along the supply chain.
2. List the major components of supply chains.
Supply chains have 3 segments:
-Upstream: where sourcing or procurement from external suppliers occurs
-Internal: where packaging, assembly, or manufacturing takes place
-Downstream: where distribution takes place, frequently by external distributors
3. What is the bullwhip effect?
The bullwhip effect refers to erratic shifts in orders up and down the supply chain. Basically, customer demand variables can become magnified when they are viewed through the eyes of managers at each link in the supply chain. If each distinct entity that makes ordering and inventory decisions places its own interests above those of the chain, then stockpiling can occur at as many as seven or eight locations among the supply chain.
Section 8.6
1. Define EDI and list its major benefits and limitations
EDI is a communication standard that enables business partners to exchange routine documents, such as purchasing orders, electronically. EDI formats these documents according to agreed-upon standards and then transmits messages using a converter, called a translator.
Benefits of EDI's include that it minimises data entry errors because each entry is checked by the computer. In addition, the length of the messages can be shorter, and the messages are secured. EDI also reduces cycle time, increases productivity, enhances customer service, and minimises paper usage and storage.
Limitations include it involves a significant initial investment. Also, ongoing operation costs are high, due to the use of expensive, private VAN's. Another limitation is that the traditional EDI system is inflexible. Furthermore, business processes must sometimes be restructured to fit EDI requirements.
1. What is a Transactional Processing and the role of TP systems. State the key objective of TP/TPSs.
A transaction is any business event that generates data worthy of being captured and stored in a database. The role of Transactional Processing systems is to monitor, collect, store, and process data generated from all business transactions. The key objective of TP/TPSs is to handle high volume and large variations in volume (for example, during peak times) efficiently, avoid errors and downtime, record results accurately and securely, and maintain privacy and security.
Section 8.2
1. What is a functional area information system? List its major characteristics.
Functional area information systems provide information mainly to lower and middle level managers in the functional areas. They use this information to help them plan, organise and control operations
2. How does an FAIS support management by exception? How does it support on-demand reports?
FAIS support management by exception reports by collecting and analysing all data that is required for the report. For example in a sales example, management would establish sales quotas, the the company would implement FAIS that collects and analyses all sales data.
FAIS support ad hoc (on demand) reports by providing drill-down reports, which show a greater level of detail; key indicator reports, which summarise the performance of critical activities; and comparative reports, which compare ther performances of different business units or time periods.
Section 8.3
1. Define ERP and describe its functionalities.
Enterprise resource planning systems integrate the planning, management, and the use of all of an organisation's resources. The major functionalities of ERP systems are to tightly integrate the functional areas of the organisation and to enable information to flow seamlessly across the functional areas
2. List some drawbacks of ERP software.
Drawbacks of ERP software include that it can be extremely complex, expensive, and time consuming to implement. Also, companies may need to change existing business processes to fit the predefined business processes of the software.
Section 8.5
1. Define a supply chain and supply chain management (SCM).
A supply chain refers to the flow of materials, information, money, and services from raw material suppliers, through factories and warehouses to the end customers. It includes the organisations and processes that create and deliver products, information and services to end customers.
Supply chain management is to plan, organise, and optimise the supply chain's activities. The goal of SCM systems is to reduce friction along the supply chain.
2. List the major components of supply chains.
Supply chains have 3 segments:
-Upstream: where sourcing or procurement from external suppliers occurs
-Internal: where packaging, assembly, or manufacturing takes place
-Downstream: where distribution takes place, frequently by external distributors
3. What is the bullwhip effect?
The bullwhip effect refers to erratic shifts in orders up and down the supply chain. Basically, customer demand variables can become magnified when they are viewed through the eyes of managers at each link in the supply chain. If each distinct entity that makes ordering and inventory decisions places its own interests above those of the chain, then stockpiling can occur at as many as seven or eight locations among the supply chain.
Section 8.6
1. Define EDI and list its major benefits and limitations
EDI is a communication standard that enables business partners to exchange routine documents, such as purchasing orders, electronically. EDI formats these documents according to agreed-upon standards and then transmits messages using a converter, called a translator.
Benefits of EDI's include that it minimises data entry errors because each entry is checked by the computer. In addition, the length of the messages can be shorter, and the messages are secured. EDI also reduces cycle time, increases productivity, enhances customer service, and minimises paper usage and storage.
Limitations include it involves a significant initial investment. Also, ongoing operation costs are high, due to the use of expensive, private VAN's. Another limitation is that the traditional EDI system is inflexible. Furthermore, business processes must sometimes be restructured to fit EDI requirements.
Tuesday, October 6, 2009
WEEK 9 QUESTIONS
1. What are some of the difficulties in managing data?
Difficulties in managiing data include:
- the amount of data increases exponentially with time
- data is often scattered throughout the organisation and is handled by many individuals
- data comes from many different sources (internal, personal and external), therefore it is hard to keep a track of the data
- data decays over time
2. What are the various sources for data?
There are 3 main sources of data. These are internal sources (corporate databases), personal sources (personal thoughts, opinions and experiences) and external sources (commercial databases, government reports etc)
3. What is a primary key and a secondary key?
A primary key is the identifier field or attribute that uniquely identifies a record. A secondary key is an identifier field or attribute that has some identifying information, but typically does not identify the file with complete accuracy
4. What is an entity and a relationship?
An entity is a person, place, thing, or event about which information is maintained in a record. There are 3 types of relationships:
- one to one: a single-entity instance of one type is related to a single-entity instance of another type
- one-to-many: for example, a professor can have many courses, but each course can only have one professor
- many-to-many: for example, a student can have many courses, and a course can have many students
5. What are the advantages and disadvantages of relational databases?
An advantage of relational databases is that it is usually designed with a number of related tables, which means there is not too much data redundancy. It also allows for flexibility in the variety of queries they can make.
A disadvantage is because large-scale databses can be composed of many interrelated tables, the overall design can be complex and therefore hace slow search and access times
6. What is knowledge management?
Knowledge Management is a process that helps organisations identify, select, organise, disseminate, transfer, and apply information and expertise that are part of the organisation's memory and that typically reside within the organisation in an instructured manner
7. What is the difference between tacit knowledge and explicit knowledge?
Explicit knowledge is the more objective, rational and technical types of knowledge. Tacit knowledge is the cumulative store of subjective or experiential learning; highly personal and hard to formalise knowledge
Difficulties in managiing data include:
- the amount of data increases exponentially with time
- data is often scattered throughout the organisation and is handled by many individuals
- data comes from many different sources (internal, personal and external), therefore it is hard to keep a track of the data
- data decays over time
2. What are the various sources for data?
There are 3 main sources of data. These are internal sources (corporate databases), personal sources (personal thoughts, opinions and experiences) and external sources (commercial databases, government reports etc)
3. What is a primary key and a secondary key?
A primary key is the identifier field or attribute that uniquely identifies a record. A secondary key is an identifier field or attribute that has some identifying information, but typically does not identify the file with complete accuracy
4. What is an entity and a relationship?
An entity is a person, place, thing, or event about which information is maintained in a record. There are 3 types of relationships:
- one to one: a single-entity instance of one type is related to a single-entity instance of another type
- one-to-many: for example, a professor can have many courses, but each course can only have one professor
- many-to-many: for example, a student can have many courses, and a course can have many students
5. What are the advantages and disadvantages of relational databases?
An advantage of relational databases is that it is usually designed with a number of related tables, which means there is not too much data redundancy. It also allows for flexibility in the variety of queries they can make.
A disadvantage is because large-scale databses can be composed of many interrelated tables, the overall design can be complex and therefore hace slow search and access times
6. What is knowledge management?
Knowledge Management is a process that helps organisations identify, select, organise, disseminate, transfer, and apply information and expertise that are part of the organisation's memory and that typically reside within the organisation in an instructured manner
7. What is the difference between tacit knowledge and explicit knowledge?
Explicit knowledge is the more objective, rational and technical types of knowledge. Tacit knowledge is the cumulative store of subjective or experiential learning; highly personal and hard to formalise knowledge
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