Professional Documents
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STRATEGIC
DECISION
MAKING
Opening Case
Revving Up Sales
at Harley-Davidson
McGraw-Hill/Irwin
2-2
Decision Making
Transaction Processing Systems
Decision Support Systems
Executive Information Systems
Enterprise Systems
Supply Chain Management
Customer Relationship Management
Business Process Reengineering
Enterprise Resource Planning
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SECTION 2.1
DECISIONMAKING
SYSTEMS
McGraw-Hill/Irwin
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LEARNING OUTCOMES
1. Explain the difference between transactional
information and analytical information. Be sure
to provide an example of each
2. Define TPS, DSS, and EIS and explain how an
organization can use these systems to make
decisions and gain competitive advantages
3. Describe the three quantitative models
typically used by decision support systems
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LEARNING OUTCOMES
4. Describe the relationship between digital
dashboards and executive information
systems
5. Identify the four types of artificial
intelligence systems
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DECISION MAKING
Reasons for the growth of decision-making
information systems
People need to analyze large amounts of
information
People must make decisions quickly
People must apply sophisticated analysis
techniques, such as modeling and forecasting, to
make good decisions
People must protect the corporate asset of
organizational information
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DECISION MAKING
Model a simplified representation or
abstraction of reality
IT systems in
an enterprise
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TRANSACTION PROCESSING
SYSTEMS
Moving up through the organizational pyramid users move
from requiring transactional information to analytical
information
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TRANSACTION PROCESSING
SYSTEMS
Transaction processing system (TPS) - the basic business
system that serves the operational level (analysts) in an
organization
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, (3) update existing information to
reflect the new information
Online analytical processing (OLAP) the manipulation of
information to create business intelligence in support of
strategic decision making
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Digital Dashboards
Digital dashboard integrates information
from multiple components and presents it in
a unified display
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Data Mining
Data-mining systems sift instantly through
information to uncover patterns and
relationships
Data-mining systems include many forms
of AI such as neural networks and expert
systems
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SECTION 2.2
ENTERPRISE
SYSTEMS
McGraw-Hill/Irwin
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LEARNING OUTCOMES
6. Describe the four basic components of supply
chain management
7. Explain customer relationship management
and the benefits it can provide an organization
8. Define enterprise resource planning and
explain its importance to an organization
9. Identify how an organization can use business
process reengineering to improve its business
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ENTERPRISE SYSTEMS
Organizations can undertake high-profile
strategic initiatives including:
Supply chain management (SCM)
Customer relationship management (CRM)
Business process reengineering (BPR)
Enterprise resource planning (ERP)
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CUSTOMER RELATIONSHIP
MANAGEMENT
Customer relationship management
(CRM) involves managing all aspects of a
customers relationship with an organization
to increase customer loyalty and retention
and an organization's profitability
Many organizations, such as Charles
Schwab and Kaiser Permanente, have
obtained great success through the
implementation of CRM systems
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CUSTOMER RELATIONSHIP
MANAGEMENT
CRM is not just technology, but a strategy,
process, and business goal that an organization
must embrace on an enterprisewide level
CRM can enable an organization to:
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CUSTOMER RELATIONSHIP
MANAGEMENT
CRM
overview
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ERP SOFTWARE
ERP functions offered by all ERP vendors
include:
Finance, accounting, sales, marketing, human
resources, operations, and logistics
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