Student name:__________

TRUE/FALSE - Write 'T' if the statement is true and 'F'

if the statement is false.
1) A consolidation rotates data to display alternative
presentations of the data.

⊚ true
⊚ false

2) A pivot rotates data to display alternative

presentations of the data.

⊚ true
⊚ false

3) A time-series chart is a graphical representation change in one variable

showing change of a variable over time. Time-series charts over a set amount of time.
are used for data that changes continuously, such as stock
prices. They allow for a clear visual representation of a

⊚ true
⊚ false

4) Digital dashboards offer consolidation, drill-down,

and slice-and-dice capabilities.

⊚ true
⊚ false

5) Source documents are the original transaction records.

⊚ true
⊚ false

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Version 1 2
7) The manipulation of information to create business to as OLTP or online
intelligence in support of strategic decision making is referred transaction processing.

⊚ true
⊚ false

8) A model is a simplified representation or abstraction

of reality.

⊚ true
⊚ false

9) Mutation is the process within a genetic algorithm of

randomly trying combinations and evaluating the success (or
failure) of the outcome.

⊚ true
⊚ false

10) Neural networks use technology allowing humans to

interact with a computer through bodily sensations and
movements—for example, a cell phone vibrating in your
pocket.

⊚ true
⊚ false

11) Augmented reality is a wearable computer with an

optical head-mounted display (OHMD).

⊚ true
⊚ false

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 ⊚ true

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13) Mutation is a mathematical method of handling
imprecise or subjective information.

⊚ true
⊚ false

14) Examples of dynamic processes include running

payroll, calculating taxes, and creating financial statements.

⊚ true
⊚ false

15) A static process uses a systematic approach in an

attempt to improve business effectiveness and efficiency
continuously. Managers constantly attempt to optimize static
process.

⊚ true
⊚ false

16) Core processes are patents that protect a specific set of

procedures for conducting a particular business activity.

⊚ true
⊚ false

17) Core processes are business processes, such as

manufacturing goods, selling products, and providing
services, that make up the primary activities in a value chain.

⊚ true
⊚ false

18) Operational business processes are static, routine,

daily business processes such as stocking inventory, checking
out customers, or daily opening and closing processes.

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 ⊚ true ⊚ false

19) Business process reengineering is the analysis and

redesign of workflow within and between enterprises.

⊚ true
⊚ false

20) Operationalized analytics is the use of software with

artificial intelligence (AI) and machine learning capabilities to
handle high-volume, repeatable tasks that previously required
a human to perform.

⊚ true
⊚ false

21) Robotic process automation makes analytics part of a

business process. Improving business processes is critical to
staying competitive in today’s electronic marketplace.

⊚ true
⊚ false

22) A workflow control system monitors processes to

ensure tasks, activities, and responsibilities are executed as
specified.

⊚ true
⊚ false

23) Data-mining tools use a variety of techniques to find

patterns and relationships in large volumes of information that
predict future behavior and guide decision making.

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 ⊚ true ⊚ false

24) Classification segments a heterogeneous population of

more homogeneous subgroups.

⊚ true
⊚ false

25) Estimation determines which things go together.

⊚ true
⊚ false

26) Affinity grouping determines values for an unknown

continuous variable behavior or estimated future value.

⊚ true
⊚ false

27) Clustering assigns records to one of a predefined set of

classes.

⊚ true
⊚ false

MULTIPLE CHOICE - Choose the one alternative that organizational information

best completes the statement or answers the question. system?
28) Which of the following is a not a type of

D) transactional
A) executive information system processing system
B) decisions support system
C) analysis processing system

29) Which of the following is an important challenge facing managers today?

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 D) All of the
A) making business decisions answer choices are correct.
B) solving business problems
C) competing to win in today’s market

30) Imagine an important customer shows up at a hotel which level would this
that is fully booked, and the reservation is missing. The decision be made?
manager must decide how to respond to the customer. At

C) strategic level
A) operational level D) analysis level
B) structured level

31) When evaluating the six-step decision making process,

what occurs during the solution implementation step?

including ideas that seem

A) The process will begin again if the decisions far-fetched
made were incorrect. D) Selecting the
B) Defining the problem as clearly and precisely as question that best solves
possible the problem
C) Identifying details of every solution possible,

32) Which of the following is not a step in the six-step

decision-making process?

D) solution test
A) data collection
B) employee decisions
C) solution generation

33) Which of the following is a step in the six-step

decision-making process?

C) detail
A) employee engagement
B) data collection

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collection
D) data-driven decision management

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34) Which of the following represents the structure of a
typical organization?

C) circle
A) flat line D) cube
B) pyramid

35) Which of the following represents the three different

levels of a company pyramid from the top to the bottom?

D) strategic—
A) managerial—strategic—operational operational—managerial
B) strategic—managerial—operational
C) operational—managerial—strategic

36) Which of the following would you include as managerial level of a

decisions and responsibilities typically found at the company?

D) All of the
A) monthly plans answer choices are correct.
B) monthly budgets
C) monthly staffing

37) Data collection, solution generation, and solution

implementation are all concepts associated which of the
following processes?

D) the four-step
A) the six-step problem identification process decision making process
B) the six-step decision making process
C) the four-step problem solving process

38) Review the following key terms. Which one defines established processes offer
an operational decision that involves situations where potential solutions?

A) optimization

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analysis decision D) unstructured
B) artificial intelligence decision decision
C) structured decision

39) Which of the following is considered a structured

decision or strategic decision?

D) creating the
A) reordering inventory employee weekly
B) deciding to enter a new market production schedule
C) creating the employee weekly staffing schedule

40) Which of the following is considered a managerial

decision or semistructured decision?

amount of errors per day

A) determining how many employees are out sick D) tracking how
B) determining the impact of last month’s marketing much inventory is in the
campaign warehouse
C) determining which employee makes the least

41) Which of the following is considered an operational

decision or structured decision?

D) monitoring
A) determining how many employees are out sick performance of a project
B) determining the impact of last month’s marketing team over the last six
campaign months
C) allocating resources to a department for a new
system

42) Which of the following key terms represents the types

of decisions made at the operational, managerial, and strategic
levels of a company?

B) unstructured
A) structured decisions decisions

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 C) semistructured decisions
D) All of the answer choices are correct.

43) What occurs in situations in which no procedures or

rules exist to guide decision makers toward the correct
choice?

D) semistructured
A) key performance indicators decisions
B) structured decisions
C) unstructured decisions

44) What occurs in situations in which a few established to lead to a definite

processes help to evaluate potential solutions, but not enough recommended decision?

D) semistructured
A) key performance indicators decisions
B) structured decisions
C) critical success factors

45) Chuck Biggs has been hired to oversee all of the plans as it is completed. How
that the city of Denver has created to expand its train would you categorize the
transportation system by adding six more lines in the majority of the decisions
metropolitan area. Chuck will be responsible for planning the Chuck will have to make
project, managing the processes, and finalizing each new line to complete his job?

D) key
A) unstructured decisions performance indicators
B) semistructured decisions
C) structured decisions

46) Bill Schultz works

at a high-powered
investment firm in Los
Angeles. Bill is responsible
for promoting the firm’s

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vision and creating the companywide goals and strategies. He what level of the
also monitors the overall strategic performance of the organizational pyramid
company and its direction for future business strategies. At would you categorize Bill?

D) managerial
A) strategic level level
B) owner level
C) operational level

47) Andy Benton works at the local Starbucks coffee organizational pyramid
shop, and his responsibilities include taking orders, fulfilling would you categorize
orders, and ringing in sales. At what level of the Andy?

D) managerial
A) strategic level level
B) owner level
C) operational level

48) Jenny Welch works at a retail store selling sports organizational pyramid
equipment. Her daily tasks include opening the store, creating would you categorize
the work schedules, processing payroll, overseeing sales and Jenny?
inventory, and training employees. At what level of the

C) strategic level
A) managerial level D) owner level
B) operational level

49) At which level do managers develop the overall

business strategies and monitor the performance of the
organization and the competitive business environment?

D)
A) operational level communications level
B) strategic level
C) managerial level

50) What type of decision is the following: How will new data laws impact the

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business?

D) analytics
A) operational decision decision
B) managerial decision
C) strategic decision

51) What type of decision is the following: What was the

difference between forecasted sales and actual sales last year?

D) analytics
A) operational decision decision
B) managerial decision
C) strategic decision

52) What type of decision is the following: What was the

impact of last month’s loyalty 10 percent discount on all
grocery sales?

D) analytics
A) operational decision decision
B) managerial decision
C) strategic decision

53) What type of decision is the following: How many

employees do we need to staff for Memorial Day?

D) analytics
A) operational decision decision
B) managerial decision
C) strategic decision

54) What are the quantifiable metrics a company uses to

evaluate progress toward critical success factors?

C) key
A) return on investment
B) critical success factors

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performance indicators
D) None of the answer choices are correct.

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55) What is consolidation?

of information
A) involves the aggregation of information and D) finds the
features simple roll-ups to complex groupings of interrelated inputs necessary to achieve
information a goal such as a desired
B) provides the ability to look at information from level of output
different perspectives
C) enables users to get details, and details of details,

56) What can a model accomplish?

D) All of the
A) calculate risks answer choices are correct.
B) understand uncertainty
C) manipulate time

57) Which of the following represent the top-down

(executives to analysts) organizational levels of information
technology systems?

from organization to
A) TPS, DSS, EIS organization.
B) DSS, TPS, EIS
C) EIS, DSS, TPS
D) None of the answer choices are correct: It varies

58) What is pivot?

of information
A) involves the aggregation of information and D) finds the
features simple roll-ups to complex groupings of interrelated inputs necessary to achieve
information a goal such as a desired
B) rotates data to display alternative presentations of level of output
the data
C) enables users to get details, and details of details,

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59) What is drill-down capability?

of information
A) involves the aggregation of information and D) finds the
features simple roll-ups to complex groupings of interrelated inputs necessary to achieve
information a goal such as a desired
B) the ability to look at information from different level of output
perspectives
C) enables users to get details, and details of details,

60) What is slice-and-dice capability?

of information
A) involves the aggregation of information and D) finds the
features simple roll-ups to complex groupings of interrelated inputs necessary to achieve
information a goal such as a desired
B) the ability to look at information from different level of output
perspectives
C) enables users to get details, and details of details,

61) Which of the following is considered part of the

process in the systems thinking example of a transaction
process system?

C) report
A) source document D) forecast
B) calculate

62) Which of the following is considered the output in the

systems thinking example of a transaction process system?

D) source
A) CRUD document
B) calculate
C) report

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63) Which of the following is considered the input in the
systems thinking example of a decision support system?

C) optimization
A) transaction processing system D) forecasts
B) what-if analysis

64) Which of the following is considered the process in

the systems thinking example of a decision support system?

C) forecasts
A) transaction processing system. D) reports
B) optimization

65) Which of the following is considered the output in the

systems thinking example of a decision support system?

C) goal seeking
A) transaction processing system D) forecasts
B) optimization

66) Which of the following represents the knowledge

planning area for artificial intelligence?

D) using stored
A) using language as an input that a computer data to make predictions
system can decipher and act upon its meaning, such as Siri and decisions in real-time,
and Alexa such as in goal-seeking
B) determining a user's intentions based on what the analysis
user typed or said
C) storing large amounts of data with fast access

67) Which of the following is not one of the primary

overview areas for artificial intelligence?

C) knowledge
A) expert processing
B) natural language understanding

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representation
D) knowledge planning

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68) What uses language as an input that a computer
system can decipher and act upon its meaning, such as Siri
and Alexa?

D) knowledge
A) natural language processing planning
B) natural language understanding
C) knowledge representation

69) What determines a user's intentions based on what the

user typed or said?

D) knowledge
A) natural language processing planning
B) natural language understanding
C) knowledge representation

70) What stores large amounts of data with fast access?

D) knowledge
A) natural language processing planning
B) natural language understanding
C) knowledge representation

71) What is prejudice bias?

D) a
A) a problem with using incorrect training data to mathematical property of
train the machine an algorithm; this is the
B) a result of training data that is influenced by only bias not associated
cultural or other stereotypes with the input or training
C) occurs when there is a problem with the data data
collected that skews the data in one direction

72) Which type of bias occurs as a mathematical property

of an algorithm?

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 D) variance bias
A) sample bias
B) prejudice bias
C) measurement bias

73) What is sample bias?

D) a
A) a problem with using incorrect training data to mathematical property of
train the machine an algorithm; this is the
B) a result of training data that is influenced by only bias not associated
cultural or other stereotypes with the input or training
C) occurs when there is a problem with the data data
collected that skews the data in one direction

74) What is measurement bias?

D) a
A) a problem with using incorrect training data to mathematical property of
train the machine an algorithm; this is the
B) a result of training data that is influenced by only bias not associated
cultural or other stereotypes with the input or training
C) occurs when there is a problem with the data data
collected that skews the data in one direction

75) What is variance bias?

D) a
A) a problem with using incorrect training data to mathematical property of
train the machine an algorithm; this is the
B) a result of training data that is influenced by only bias not associated
cultural or other stereotypes with the input or training
C) occurs when there is a problem with the data data
collected that skews the data in one direction

76) Which of the following is not a type of machine

learning?

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 D) overfitting
A) supervised machine learning machine learning
B) unsupervised machine learning
C) transfer machine learning

77) What is a wearable computer with an optical head-

mounted display?

D) virtual reality
A) augmented reality
B) Google Glass
C) haptic interface

78) What is augmented reality?

D) a work
A) the viewing of the physical world with computer- environment that is not
generated layers of information added to it located in any one physical
B) a wearable computer with an optical head- space
mounted display
C) uses technology allowing humans to interact with
a computer through bodily sensations and movements

79) What uses technology allowing humans to interact for example, a cell phone
with a computer through bodily sensations and movements— vibrating in your pocket?

D) virtual reality
A) augmented reality
B) Google Glass
C) haptic interface

80) What is Google Glass?

mounted display
A) the viewing of the physical world with computer- C) uses
generated layers of information added to it technology allowing
B) a wearable computer with an optical head- humans to interact with a

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computer through bodily sensations and movements physical space
D) a work environment that is not located in any one

81) What is a haptic interface?

D) a work
A) the viewing of the physical world with computer- environment that is not
generated layers of information added to it located in any one physical
B) a wearable computer with an optical head- space
mounted display
C) uses technology allowing humans to interact with
a computer through bodily sensations and movements

82) What is a virtual workplace?

D) a work
A) the viewing of the physical world with computer- environment that is not
generated layers of information added to it located in any one physical
B) a wearable computer with an optical head- space
mounted display
C) uses technology allowing humans to interact with
a computer through bodily sensations and movements

83) Which of the following offers an example of an

intelligent agent that uses a multi-agent system?

D) All of the
A) cargo transport system answer choices are correct.
B) book distribution center
C) flu epidemic

84) For what types of business decisions would an

executive information system use artificial intelligence?

C) structured
A) semistructured decisions
B) multistructured decisions

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decisions
D) unstructured decisions

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85) Which of the following business ideas is not using AI?

from the coffee machines

A) Best Buy implements a software system that will to the counters.
determine how many customers are needed to increase gross D) A golf course
profits to $5 million. creates an automated golf
B) McDonald’s unveils a robot that cleans and tidies cart that can offer swing
the restaurant, while also asking guests if it can take their and club suggestions and
trays to the trash. even navigate the course
C) Starbucks creates a system that works like a hand for the driver.
and lifts and moves the mixing pots for the coffees to and

86) What is the viewing of the physical world with

computer-generated layers of information added to it?

D) information
A) virtual reality reality
B) augmented reality
C) virtual workforce

87) What is a computer-simulated environment that can be

a simulation of the real world or an imaginary world?

D) information
A) virtual reality reality
B) augmented reality
C) virtual workforce

88) What displays the path in which the process flows?

D) BPMN
A) BPMN event gateway
B) BPMN activity
C) BPMN flow

89) What is a task in a business process?

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 D) BPMN
A) BPMN event gateway
B) BPMN activity
C) BPMN flow

90) What is anything that happens during the course of a

business process?

D) BPMN
A) BPMN event gateway
B) BPMN activity
C) BPMN flow

91) What is used to control the flow of a process?

D) BPMN
A) BPMN event gateway
B) BPMN activity
C) BPMN flow

92) What is the primary goal of using As-Is and To-Be

process models?

D) to determine
A) to determine employee specific errors what the problem is and
B) to determine measurement metrics then how to solve it.
C) to determine the worst way to solve a problem

93) Which of the following typically occurs during

operational business process improvement?

C) reengineering
A) automation D) improvement
B) streamlining

94) Which of the following typically occurs during managerial business

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process improvement?

C) reengineering
A) automation D) improvement
B) streamlining

95) Which of the following typically occurs during

strategic business process improvement?

C) reengineering
A) automation D) improvement
B) streamlining

96) What does business process reengineering assume

about the current process?

scratch.
A) the current process is irrelevant. D) All of the
B) the current process is broken. answer choices are correct.
C) the current process must be overhauled from

97) What is a common association detection analysis

technique in which you analyze certain items to detect
customers’ buying behavior and predict future behavior?

D) drill-down
A) clustering factors basket analysis
B) mashup technology
C) market basket analysis

98) What is prediction?

example, finding the

A) a statement about what will happen or might values of controllable
happen in the future, for example, predicting future sales or variables that determine
employee turnover maximal productivity or
B) a statistical process that finds the way to make a minimal waste
design, system, or decision as effective as possible, for C) predictions

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based on time-series information relationships among
D) a statistical process for estimating the variables

99) What is optimization?

C) predictions
A) a statement about what will happen or might based on time-series
happen in the future, for example, predicting future sales or information
employee turnover D) a statistical
B) a statistical process that finds the way to make a process for estimating the
design, system, or decision as effective as possible, for relationships among
example, finding the values of controllable variables that variables
determine maximal productivity or minimal waste

100) What are forecasts?

C) predictions
A) a statement about what will happen or might based on time-series
happen in the future, for example, predicting future sales or information
employee turnover D) a statistical
B) a statistical process that finds the way to make a process for estimating the
design, system, or decision as effective as possible, for relationships among
example, finding the values of controllable variables that variables
determine maximal productivity or minimal waste

101) What is regression?

C) predictions
A) a statement about what will happen or might based on time-series
happen in the future, for example, predicting future sales or information
employee turnover D) a statistical
B) a statistical process that finds the way to make a process for estimating the
design, system, or decision as effective as possible, for relationships among
example, finding the values of controllable variables that variables
determine maximal productivity or minimal waste

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ESSAY. Write your answer in the space provided or on a along with the associated
separate sheet of paper. decision characteristics.
102) Explain the importance of decision making for
managers at each of the three primary organization levels

103) Define critical success factors (CSFs) and key them to measure the
performance indicators (KPIs) and explain how managers use success of MIS projects.

104) Classify the different operational support systems, decisions and gain
managerial support systems, and strategic support systems, competitive advantages.
and explain how managers can use these systems to make

105) Explain the value of business processes for a

company, and differentiate between customer-facing and
business-facing processes.

106) Demonstrate the value of business process modeling,

and compare As-Is and To-Be models.

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107) Differentiate among business process improvements,
streamlining, and reengineering.

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Answer Key

Test name: Chapter 2

1) FALSE
2) TRUE
3) TRUE
4) TRUE
5) TRUE
6) FALSE
7) FALSE
8) TRUE
9) TRUE
10) FALSE
11) FALSE
12) FALSE
13) FALSE
14) FALSE
15) TRUE
16) FALSE
17) TRUE
18) TRUE
19) TRUE

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20) FALSE
21) FALSE
22) TRUE
23) TRUE
24) FALSE
25) FALSE
26) FALSE
27) FALSE
28) C
29) D
30) A
31) A
32) B
33) B
34) B
35) B
36) D
37) B
38) C
39) B
40) B

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41) A
42) D
43) C
44) D
45) B
46) A
47) C
48) A
49) B
50) C
51) C
52) B
53) A
54) C
55) A
56) D
57) C
58) B
59) C
60) B
61) B

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62) C
63) A
64) B
65) D
66) D
67) A
68) A
69) B
70) C
71) B
72) D
73) A
74) C
75) D
76) D
77) B
78) A
79) C
80) B
81) C
82) D

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83) D
84) D
85) A
86) B
87) A
88) C
89) B
90) A
91) D
92) D
93) A
94) B
95) C
96) D
97) C
98) A
99) B
100) C
101) D
102) Decision-making skills are essential for level, who make
all business professionals, at every company decisions that run

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the business. At the operational level, organization and its
employees develop, control, and maintain core overall direction in
business activities required to run the day-to- the political,
day operations. Operational decisions are economic, and
considered structured decisions, which arise in competitive
situations in which established processes offer business
potential solutions. Structured decisions are environment.
made frequently and are almost repetitive in Strategic decisions
nature; they affect short-term business are highly
strategies. At the managerial level, employees unstructured
are continuously evaluating company decisions, occurring
operations to hone the firm’s abilities to in situations in
identify, adapt to, and leverage change. which no
Managerial decisions cover short- and procedures or rules
medium-range plans, schedules, and budgets exist to guide
along with policies, procedures, and business decision makers
objectives for the firm. These types of toward the correct
decisions are considered semistructured choice. They are
decisions; they occur in situations in which a infrequent,
few established processes help to evaluate extremely
potential solutions, but not enough to lead to a important, and
definite recommended decision. At the typically related to
strategic level, managers develop overall long-term business
business strategies, goals, and objectives as strategy.
part of the company’s strategic plan. They
also monitor the strategic performance of the
103) Metrics are measurements that evaluate indicators. CSFs are
results to determine whether a project is the crucial steps
meeting its goals. Two core metrics are companies perform
critical success factors and key performance to achieve their

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goals and objectives and implement their measure the
strategies and include creating high-quality progress of CSFs
products, retaining competitive advantages, with quantifiable
and reducing product costs. KPIs are the measurements, and
quantifiable metrics a company uses to one CSF can have
evaluate progress toward critical success several KPIs. Of
factors. KPIs are far more specific than CSFs; course, both
examples include turnover rates of employees, categories will vary
percentage of help-desk calls answered in the by company and
first minute, and number of products returned. industry. Imagine
It is important to understand the relationship improved
between critical success factors and key graduation rates as a
performance indicators. CSFs are elements CSF for a college.
crucial for a business strategy’s success. KPIs
104) Being able to sort, calculate, analyze, and managers and
slice-and-dice information is critical to an business
organization’s success. Without knowing what professionals during
is occurring throughout the organization, there the decision making
is no way that managers and executives can process; and (3)
make solid decisions to support the business. strategic: An
The different operational, managerial, and executive
strategic support systems include: (1) information system
operational: A transaction processing system (EIS) is a
(TPS) is the basic business system that serves specialized DSS
the operational level (analysts) in an that supports senior
organization. The most common example of a level executives
TPS is an operational accounting system such within the
as a payroll system or an order-entry system; organization.
(2) managerial: A decision support system
(DSS) models information to support

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105) A business process is a standardized set customer. Business-
of activities that accomplish a specific task, facing processes are
such as processing a customer’s order. invisible to the
Business processes transform a set of inputs external customer
into a set of outputs (goods or services) for but essential to the
another person or process by using people and effective
tools. Without processes, organizations would management of the
not be able to complete activities. Customer- business.
facing processes result in a product or service
that is received by an organization’s external
106) Business process modeling (or mapping) problem will be
is the activity of creating a detailed flowchart solved. To-Be
or process map of a work process showing its process models
inputs, tasks, and activities in a structured show the results of
sequence. A business process model is a applying change
graphic description of a process, showing the improvement
sequence of process tasks, which is developed opportunities to the
for a specific purpose and from a selected current (As-Is)
viewpoint. Business process modeling usually process model. This
begins with a functional process approach ensures
representation of what the process problem is, that the process is
or an As-Is process model. As-Is process fully and clearly
models represent the current state of the understood before
operation that has been mapped, without any the details of a
specific improvements or changes to existing process solution are
processes. The next step is to build a To-Be decided upon.
process model that displays how the process
107) Business process improvement attempts and make
to understand and measure the current process performance

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improvements accordingly. Streamlining workflow within
improves business process efficiencies by and between
simplifying or eliminating unnecessary steps. enterprises and
Bottlenecks occur when resources reach full occurs at the
capacity and cannot handle any additional systems level or
demands; they limit throughput and impede companywide level
operations. Streamlining removes bottlenecks, and the end-to-end
an important step if the efficiency and view of a process.
capacity of a business process are being
increased. Business process reengineering
(BPR) is the analysis and redesign of

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