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p dir=”ltr”>Loudon Review Questions Chapter 12 MB-40-INT-2

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p dir=”ltr”>Group Member

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p dir=”ltr”>Hardin Zuhdi S

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p dir=”ltr”>Abdullah An-Nur

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p dir=”ltr”>Andini Nur Khansa

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p dir=”ltr”>Naomi BMG

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p dir=”ltr”>Wini Sabrina

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p dir=”ltr”>Number 1

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p dir=”ltr”>1.different types of decision:

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p dir=”ltr”>-1. Programmed and non-programmed decisions:

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p dir=”ltr”>Programmed decisions are concerned with the problems of repetitive nature or routine type matters.

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p dir=”ltr”>A standard procedure is followed for tackling such problems. These decisions are taken generally by lower level managers. Decisions of this type may pertain to e.g. purchase of raw material, granting leave to an employee and supply of goods and implements to the employees, etc. Non-programmed decisions relate to difficult situations for which there is no easy solution.

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p dir=”ltr”>2.Routine and strategic decisions:

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p dir=”ltr”>Routine decisions are related to the general functioning of the organisation. They do not require much evaluation and analysis and can be taken quickly. Ample powers are delegated to lower ranks to take these decisions within the broad policy structure of the organisation.

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p dir=”ltr”>Strategic decisions are important which affect objectives, organisational goals and other important policy matters. These decisions usually involve huge investments or funds. These are non-repetitive in nature and are taken after careful analysis and evaluation of many alternatives. These decisions are taken at the higher level of management.

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p dir=”ltr”>3. Tactical (Policy) and operational decisions:

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p dir=”ltr”>Decisions pertaining to various policy matters of the organisation are policy decisions. These are taken by the top management and have long term impact on the functioning of the concern. For example, decisions regarding location of plant, volume of production and channels of distribution (Tactical) policies, etc. are policy decisions. Operating decisions relate to day-to-day functioning or operations of business. Middle and lower level managers take these decisions.

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p dir=”ltr”>4.Organisational and personal decisions:

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p dir=”ltr”>When an individual takes decision as an executive in the official capacity, it is known as organisational decision. If decision is taken by the executive in the personal capacity (thereby affecting his personal life), it is known as personal decision.

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p dir=”ltr”>Sometimes these decisions may affect functioning of the organisation also. For example, if an executive leaves the organisation, it may affect the organisation. The authority of taking organizational decisions may be delegated, whereas personal decisions cannot be delegated.

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p dir=”ltr”>5.Major and minor decisions:

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p dir=”ltr”>Another classification of decisions is major and minor. Decision pertaining to purchase of new factory premises is a major decision. Major decisions are taken by top management. Purchase of office stationery is a minor decision which can be taken by office superintendent.

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p dir=”ltr”>6.Individual and group decisions:

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p dir=”ltr”>When the decision is taken by a single individual, it is known as individual decision. Usually routine type decisions are taken by individuals within the broad policy framework of the organisation.

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p dir=”ltr”>Group decisions are taken by group of individuals constituted in the form of a standing committee. Generally very important and pertinent matters for the organisation are referred to this committee. The main aim in taking group decisions is the involvement of maximum number of individuals in the process of decision– making.

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p dir=”ltr”>The decision making process work:

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p dir=”ltr”>you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives. This approach increases the chances that you will choose the most satisfying alternative possible.

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p dir=”ltr”>Download the PDF

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p dir=”ltr”>Step 1: Identify the decision

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p dir=”ltr”>You realize that you need to make a decision. Try to clearly define the nature of the decision you must make. This first step is very important.

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p dir=”ltr”>Step 2: Gather relevant information

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p dir=”ltr”>Collect some pertinent information before you make your decision: what information is needed, the best sources of information, and how to get it. This step involves both internal and external “work.” Some information is internal: you’ll seek it through a process of self-assessment. Other information is external: you’ll find it online, in books, from other people, and from other sources.

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p dir=”ltr”>Step 3: Identify the alternatives

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p dir=”ltr”>As you collect information, you will probably identify several possible paths of action, or alternatives. You can also use your imagination and additional information to construct new alternatives. In this step, you will list all possible and desirable alternatives.

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p dir=”ltr”>Step 4: Weigh the evidence

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p dir=”ltr”>Draw on your information and emotions to imagine what it would be like if you carried out each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be met or resolved through the use of each alternative. As you go through this difficult internal process, you’ll begin to favor certain alternatives: those that seem to have a higher potential for reaching your goal. Finally, place the alternatives in a priority order, based upon your own value system.

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p dir=”ltr”>Step 5: Choose among alternatives

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p dir=”ltr”>Once you have weighed all the evidence, you are ready to select the alternative that seems to be best one for you. You may even choose a combination of alternatives. Your choice in Step 5 may very likely be the same or similar to the alternative you placed at the top of your list at the end of Step 4.

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p dir=”ltr”>Step 6: Take action

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p dir=”ltr”>You’re now ready to take some positive action by beginning to implement the alternative you chose in Step 5.

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p dir=”ltr”>Step 7: Review your decision & its consequences

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p dir=”ltr”>In this final step, consider the results of your decision and evaluate whether or not it has resolved the need you identified in Step 1. If the decision has not met the identified need, you may want to repeat certain steps of the process to make a new decision. For example, you might want to gather more detailed or somewhat different information or explore additional alternatives.

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p dir=”ltr”>The stages in decision making:

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p dir=”ltr”>1.intelligence:accumulation of information for identification sets of problem

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p dir=”ltr”>2.design:The design solutions in the form of alternative solutions.

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p dir=”ltr”>3.choice:The chosen solution of an alternative route.

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p dir=”ltr”>4.implementation:The implementing a decision and report results.

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p dir=”ltr”>1.structured decision is a decision taken by the management of the lower level where decisions are repetitive and routine, so it can be programmed.

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p dir=”ltr”>2.semistructured:The decision which may partially in the program,in a part repetitive and routine, and some lack of structure. The decision is often be complicated and requires the calculation and analysis.

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p dir=”ltr”>3.unstructured:The decision made by the management of the top where the decision does not happen over and over again and not always the case. The information required is not easy to get, not easily available, and it came from the outside environment.

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p dir=”ltr”>Different levels of decision making:

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p dir=”ltr”>1.Strategic decisions are long-term in their impact. They affect and shape the direction of the whole business. They are generally made by senior managers. The managers of the bakery need to take a strategic decision about whether to remain in the cafe business. Long-term forecasts of business turnover set against likely market conditions will help to determine if it should close the cafe business.

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p dir=”ltr”>2.Tactical decisions help to implement the strategy. They are usually made by middle management. For the cafe, a tactical decision would be whether to open earlier in the morning or on Saturday to attract new customers. Managers would want research data on likely customer numbers to help them decide if opening hours should be extended.

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p dir=”ltr”>3.Operational decisions relate to the day-to-day running of the business. They are mainly routine and may be taken by middle or junior managers. For example, a simple operational decision for the cafe would be whether to order more coffee for next week. Stock and sales data will show when it needs to order more supplies.

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p dir=”ltr”>Decision-making constituencies in organization:

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p dir=”ltr”>-Senior management dealing with unstructured decisions.

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p dir=”ltr”>- Middle management dealing semi-structured decisions. •

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p dir=”ltr”>-Operational management dealing with structured decisions

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p dir=”ltr”>Decision making requirements differ:

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p dir=”ltr”>-Senior management in dealing with unstructured decisions -provide judgment, evaluation, and insight to solve the problem.

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p dir=”ltr”>-Middle management in dealing with semi-structured decisions – only part of the problem has a clear-cut answer provided by an accepted procedure.

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p dir=”ltr”>-operational management in dealing with structured decisions – repetitive and routine, and they involve a definite procedure for handling them.

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p dir=”ltr”>Number 2

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p dir=”ltr”>How do information systems support the activities of managers and management decision making?

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p dir=”ltr”> Early classical models of managerial activities stress the functions of planning, organizing, coordinating, deciding, and controlling. Contemporary research looking at the actual behavior of managers has found that managers’ real activities are highly fragmented, variegated, and brief in duration and that managers shy away from making grand, sweeping policy decisions. Information technology provides new tools for managers to carry out both their traditional and newer roles, enabling them to monitor, plan, and forecast with more precision and speed than ever before and to respond more rapidly to the changing business environment. Information systems have been most helpful to managers by providing support for their roles in disseminating information, providing liaisons between organizational levels, and allocating resources. However, information systems are less successful at supporting unstructured decisions. Where information systems are useful, information quality, management filters, and organizational culture can degrade decision making

Classical model

Behavioral model

which describes what managers do, was largely unquestioned for the more than 70 years since the 1920s. Henri Fayol and other early writers first described the five classical functions of managers as planning, organizing, coordinating, deciding, and controlling. This description of management activities dominated management thought for a long time, and it is still popular today. The classical model describes formal managerial functions but does not address exactly what managers do when they plan, decide things, and control the work of others. For this, we must turn to the work of contemporary behavioral scientists who have studied managers in daily action

state that the actual behavior of managers appears to be less systematic, more informal, less reflective, more reactive, and less well organized than the classical model would have us believe. Observers find that managerial behavior actually has five attributes that differ greatly from the classical description. First, managers perform a great deal of work at an unrelenting pace—studies have found that managers engage in more than 600 different activities each day, with no break in their pace. Second, managerial activities are fragmented; most activities last for less than nine minutes, and only 10 percent of the activities exceed one hour in duration. Third, managers prefer current, specific, and ad hoc information (printed information often will be too old). Fourth, they prefer oral forms of communication to written forms because oral media provide greater flexibility, require less effort, and bring a faster response. Fifth, managers give high priority to maintaining a diverse and complex web of contacts that act as an informal information system and helps them execute their personal agendas and short- and long-term goals.

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p dir=”ltr”>Specific managerial roles that can be supported by IF

Information

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p dir=”ltr”>When you base your decisions on data available from management information systems, they reflect information that comes from the operations of your company. Management information systems take data generated by the working level and organize it into useful formats. Management information systems typically contain sales figures, expenses, investments and workforce data. If you need to know how much profit your company has made each year for the past five years to make a decision, management information systems can provide accurate reports giving you that information.

Scenarios

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p dir=”ltr”>The capability to run scenarios is a key decision-making tool. Some management information systems have this feature built in, while others can provide the information required for running scenarios on other applications, such as spreadsheets. Your decision is influenced by what happens if you decide a certain way. What-if scenarios show you how different variables change when you make a decision. You can enter reduced staff levels or increased promotion budgets and see what happens to revenue, expenses and profit for different levels of cuts or increases. Management information systems systems play a critical role in making realistic scenarios possible.

Projections

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p dir=”ltr”>Any decisions you make result in changes in the projected company results and may require modifications to your business strategy and overall goals. Management information systems either have trend analysis built in or can provide information that lets you carry out such an analysis. Typical business strategies include projections for all fundamental operating results. A trend analysis allows you to show what these results would be in the current situation and how they will change once you have implemented the decisions you have taken. The new values form the basis of your strategic approach going forward.

Implementation

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p dir=”ltr”>While you make your decisions with specific goals in mind and have the documentation from management information systems and trend analysis to support your expectations, you have to track company results to make sure they develop as planned. Management information systems give you the data you need to determine whether your decisions have had the desired effect, or whether you have to take corrective action to reach your goals. If specific results are not on track, you can use management information systems to evaluate the situation and decide to take additional measures if necessary.

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p dir=”ltr”>Number 3

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p dir=”ltr”>No.1

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p dir=”ltr”>-Business intelligence (BI) is a term used by hardware and software vendors and information technology con,

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p dir=”ltr”>sultants to describe the infrastructure for warehousing integrating, reporting, and analyzing data that comes from the business environment, including big data. Business analytics (BA) is also a vendor- defined term that focuses more on tools and techniques for analyzing and understanding data.

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p dir=”ltr”>No. 2

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p dir=”ltr”>• Data from the business environment: data need to be integrated and organized so that they can be

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p dir=”ltr”>analyzed and used by human decision makers.

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p dir=”ltr”>• Business intelligence infrastructure: a powerful database system captures all the data to be stored in transactional

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p dir=”ltr”>databases or combined and integrated into an enterprise-data warehouse or

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p dir=”ltr”>series of interrelated data marts.

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p dir=”ltr”>•Business analytics toolset: A set of software tools are used to analyze data

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p dir=”ltr”>and produce reports, respond to questions posed by managers, and track the

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p dir=”ltr”>progress of the business using key indicators of performance.

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p dir=”ltr”>• Managerial users and methods :managerial methods define strategic business goals and specify how progress will be

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p dir=”ltr”>measured. These include business performance management and balanced

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p dir=”ltr”>scorecard approaches focusing on key performance indicators and industry

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p dir=”ltr”>strategic analyses focusing on changes in the general business environment,

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p dir=”ltr”>with special attention to competitors.

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p dir=”ltr”>• Delivery platform—MIS, DSS, ESS: MIS, DSS, and ESS, deliver information and knowledge to different people and levels in the firm—operational employees, middle managers, and senior executives.

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p dir=”ltr”>• User interface: business analytics software suites emphasize visual techniques such as dashboards and

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p dir=”ltr”>scorecards, they also are able to deliver reports on BlackBerrys, iPhones, and

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p dir=”ltr”>other mobile handhelds as well as on the firm’s Web portal for sending data. BA software is adding capabilities to post information on Twitter, Facebook, or internal social media to support decision making in an online group setting rather than in a face-to-face meeting.

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p dir=”ltr”>No 3

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p dir=”ltr”>•Production reports: These are predefined reports based on industry-

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p dir=”ltr”>specific requirements

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p dir=”ltr”>• Parameterized reports: Users enter several parameters as in a pivot table

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p dir=”ltr”>to filter data and isolate impacts of parameter. This finding might lead to different marketing and ad campaigns in each region.

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p dir=”ltr”>• Dashboards/scorecards: These are visual tools for presenting performance

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p dir=”ltr”>data defined by users.

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p dir=”ltr”>• Ad hoc query/search/report creation: These allow users to create their

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p dir=”ltr”>own reports based on queries and searches.

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p dir=”ltr”>• Drill down: This is the ability to move from a high-level summary to a more

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p dir=”ltr”>detailed view.

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p dir=”ltr”>• Forecasts, scenarios, models: These include the ability to perform linear

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p dir=”ltr”>forecasting, what-if scenario analysis, and analyze data using standard

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p dir=”ltr”>statistical tools.

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p dir=”ltr”>No 4.

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p dir=”ltr”>-One-stop integrated solutions carries the risk that a single vendor provides your firm’s total hardware and software solution, making your firm dependent on its pricing power. It also offers the advantage of dealing with a single vendor who can deliver on a global scale. carries the risk that a single vendor provides your firm’s total hardware and software solution, making your firm dependent on its

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p dir=”ltr”>pricing power. It also offers the advantage of dealing with a single vendor who

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p dir=”ltr”>can deliver on a global scale

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p dir=”ltr”>Multiple best-of-breed vendor solutions offers greater flexibility and

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p dir=”ltr”>independence, but with the risk of potential difficulties integrating the software to the hardware platform, as well as to other software.

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p dir=”ltr”>Number 4

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p dir=”ltr”>• 1. lower supervisory (operational) management

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p dir=”ltr”>- monitoring all organization’s operational aspects

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p dir=”ltr”>2. middle management (managers)

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p dir=”ltr”>-monitoring the performance of key aspects of the business and manage the reports

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p dir=”ltr”>3. senior management (vice president and above)

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p dir=”ltr”>- focused on important performance information that affect the overall profitability and success of the firm.

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p dir=”ltr”>• 1. Management information systems (MIS) are typically used by middle managers to support user in monitoring the performance of key aspects of the business, ranging from the down-time of machines on a factory floor, to the daily or even hourly sales at franchise food stores, to the daily traffic at a company’s Web site.

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p dir=”ltr”>2. Decision-support systems (DSS) are the BI delivery platform for some users who want to create their own reports, and use more sophisticated analytics and models to find patterns in data, to model alternative business scenarios, or to test specific hypotheses, with the ability to support semistructured decision making.

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p dir=”ltr”>3. executive support systems (ESS) is to help C-level executive managers focus on the really important performance information that affect the overall profitability and success of the firm.

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p dir=”ltr”>• Balance Scorecard method is the leading methodology for understanding the really important information needed by a firm’s executives, a framework for operationalizing a firm’s strategic plan by focusing on measurable outcomes on four dimensions of firm performance: financial, business process, customer, and learning and growth. scorecard is developed by consultants and senior executives, the next step is automating a flow of information to executives and other managers for each of the key performance indicators. There are literally hundreds of consulting and software firms that offer these capabilities. after these systems are implemented, they are often referred to as ESS.

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p dir=”ltr”>Number 5

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p dir=”ltr”>Information technology provides new tools for managers to carry out both traditional and newer management roles, enabling them to monitor, plan, and forecast with more precision and speed than ever before and to respond more rapidly to the changing business environment. Information systems have been most helpful to managers by providing support for their roles in disseminating information, providing liaisons between organizational levels, and allocating resources. However, information systems are less successful at supporting unstructured decisions. Where information systems are useful, information quality, management filters, and organizational culture can degrade decision making.

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p dir=”ltr”>Difference of GDSS and DSS

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p dir=”ltr”>GDSS is Group-DSS, in contrast with DSS, GDSS mainly solely used by a group to tiny team, so the one that need the decision support and the one that will makes one will not just one user, but one group or collective bunch of people. Difference can be seen in the infrastructure itself, GDSS will have the means for the group to communicate and pool their idea, concerns and knowledge together, to make sure that one group will collectively choose decision, not each want to choose their own decision.

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p dir=”ltr”>DSS in other hands, focus on one user only, usually a manager that has subordinates.

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p dir=”ltr”>GDSS helps to solve decision problem solving with providing way and means to collaborate and create a collective together decision with a kind of decision room. With GDSS, a team can pool together concerns and another thing, just like a meeting.

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p dir=”ltr”>**** **** ****

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p dir=”ltr”>Progress and Discussion of Dolibar

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p dir=”ltr”>We reinstate our expired Dolibar

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p dir=”ltr”>We divided ourselves again and are half way into getting hang of dollibar which is quite complex in our mind, we have set and play around the system, such as setting up product, invoices, salary, tax, setting up new employee, training, and other kind of thing

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p dir=”ltr”>We have tried on HRM and Financial and other things

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p dir=”ltr”>We are set to about creating the videos for each respective member starting on this week if everything go well, we are going to create video that every member will act as a tutor to explain on how to use Dolibar for their own financial position, such as financial officer will explain how to manage financial, fiscal and money flow of the company