Business Intelligence: Decision-Making & Information Systems
How Different Decision-Making Groups Use Business Intelligence
Operational and middle management are generally charged with monitoring the performance of their firm. Most of the decisions they make are fairly structured. Management information systems producing routine production reports are typically used to support this type of decision making. For making unstructured decisions, middle managers and analysts will use decision-support systems with powerful analytics and modeling tools, including spreadsheets and pivot tables. Senior executives making unstructured decisions use dashboards and visual interfaces displaying key performance information affecting the overall profitability, success, and strategy of the firm. The balanced scorecard and business performance management are two methodologies used in designing executive support systems.
The Role of Information Systems in Group Decision-Making
Group decision-support systems help people working together in a group arrive at decisions more efficiently. GDSS feature special conference room facilities where participants contribute their ideas using networked computers and software tools for organizing ideas, gathering information, making and setting priorities, and documenting meeting sessions.
Business Processes and Information Systems
A business process is a logically related set of activities that defines how specific business tasks are performed, and it represents a unique way in which an organization coordinates work, information, and knowledge. Managers need to pay attention to business processes because they determine how well the organization can execute its business, and they may be a source of strategic advantage. There are business processes specific to each of the major business functions, but many business processes are cross-functional. Information systems automate parts of business processes, and they can help organizations redesign and streamline these processes.
How Systems Serve Different Management Groups
Systems serving operational management are transaction processing systems, such as payroll or order processing, that track the flow of the daily routine transactions necessary to conduct business. Management information systems produce reports serving middle management by condensing information from TPS, and these are not highly analytical. Decision-support systems support management decisions that are unique and rapidly changing using advanced analytical models. All of these types of systems provide business intelligence that helps managers and enterprise employees make more informed decisions. These systems for business intelligence serve multiple levels of management, and include executive support systems for senior management that provide data in the form of graphs, charts, and dashboards delivered via portals using many sources of internal and external information.