Decision Support and Business Intelligence Systems, 9e (Turban)

Chapter 1 Decision Support Systems and Business Intelligence

1) When faced with a turbulent business environment, organizations are best able to survive or
even excel by minimizing changes until the environment stabilizes.
Answer: FA!"
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$) 'he management of (orfol) !outhern, a large freight railroad com*any, invested in data
warehousing technologies. "ven though railroad trans*ortation is a mature industry, (orfol)
!outhern gained a com*etitive advantage by using its data warehousing technologies to s+ueeze
additional efficiency from its o*erations.
Answer: '&,"
#iff: $ %age &ef: -
.) /lobalization has significantly reduced the com*lexity of the business environment. For
exam*le, com*anies can find su**liers and customers in many countries where materials are
chea*er, which reduces com*etition and com*lexity.
Answer: FA!"
#iff: . %age &ef: 0
-) 1ne of the ma2or ob2ectives of com*uterized decision su**ort is to minimize the ga* between
the current *erformance of an organization and its desired *erformance.
Answer: '&,"
#iff: $ %age &ef: 3
0) 1ne measure of *roductivity is the ratio of in*uts to out*uts.
Answer: FA!"
#iff: $ %age &ef: 4
3) 5anagers, es*ecially those at high managerial levels, are *rimarily hands6on *roblem solvers.
Answer: FA!"
#iff: $ %age &ef: 4
4) 7ecause managerial decision ma)ing is com*lex, it is more im*ortant to em*hasize
methodical, analytical decision ma)ing rather than inter*ersonal communication s)ills.
Answer: '&,"
#iff: . %age &ef: 4
8) /overnment regulations, *olitical instability, com*etition, and changing consumer demands
cause uncertainty that ma)es it difficult to *redict the conse+uences of a decision.
Answer: '&,"
#iff: $ %age &ef: 8
1
9) :om*uter a**lications have *rogressed from transaction *rocessing and monitoring to
*roblem analysis and solution a**lications, and much of the activity is su**orted by s*readsheet
technologies.
Answer: FA!"
#iff: $ %age &ef: 9
1;) :om*uterized systems enable *eo*le to overcome their cognitive limits by +uic)ly accessing
and *rocessing vast amounts of stored information.
Answer: '&,"
#iff: $ %age &ef: 1;
11) Accounts receivable and accounts *ayable *rocesses are highly structured, which ma)es
them easy to *rogram.
Answer: '&,"
#iff: $ %age &ef: 11
1$) &esearch and develo*ment <& = #) *lanning and social res*onsibility *lanning are
unstructured decisions, which cannot be su**orted by com*uterized decision su**ort systems.
Answer: FA!"
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1.) 'he first *hase in the decision6ma)ing *rocess is design which involves inventing,
develo*ing, and analyzing *ossible alternative courses of action or solutions.
Answer: FA!"
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1-) Automated decision systems <A#!) are rule6based systems that *rovide solutions to
re*etitive managerial *roblems, usually in one functional area <e.g., finance, manufacturing).
Answer: '&,"
#iff: . %age &ef: 1-
10) 'he term #ecision !u**ort !ystems <#!!) can be used as an umbrella term to describe any
com*uterized system that su**orts decision ma)ing in an organization.
Answer: FA!"
#iff: 1 %age &ef: 13
13) 'he two ma2or #!! ty*es are the model-oriented DSS, in which +uantitative models are used
to generate a recommended solution to a *roblem, and data-oriented DSS, which su**ort ad hoc
re*orting and +ueries.
Answer: '&,"
#iff: $ %age &ef: 14
14) A 7> system has three ma2or com*onents: a data warehouse with source data? business
performance management (BPM) for monitoring and analyzing *erformance? and a user
interface such as a dashboard.
Answer: FA!"
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18) 5ost #!! are constructed to directly su**ort s*ecific decision ma)ing. >n contrast, 7>
systems, in general ty*ically *rovide accurate and timely information to su**ort decision su**ort
indirectly. 'his difference is diminishing because decision su**ort tools are being added to 7>
software *ac)ages.
Answer: '&,"
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19) #ashboards and information *ortals are data visualization tools.
Answer: '&,"
#iff: $ %age &ef: $3
$;) 'he ob2ective of com*uterized decision su**ort, regardless of its name or nature, is to hel*
managers solve *roblems and assess o**ortunities faster and better than would be *ossible
without com*uters.
Answer: '&,"
#iff: $ %age &ef: $4
$1) (orfol) !outhern &ailroad built a @@@@@@@@ a**lication that *ulls data from the data
warehouse and then gra*hically de*icts actual *erformance against *lanned *erformance.
A) dashboard
7) gra*hical interface
:) transaction *rocessing
#) forecasting
Answer: A
#iff: $ %age &ef: .
$$) (orfol) !outhern &ailroad invested in a 'eradata @@@@@@@@, which is a central re*ository of
historical data that is organized for easy access and mani*ulation to su**ort decision ma)ing.
A) database
7) data warehouse
:) data re*ository
#) data dis)
Answer: 7
#iff: $ %age &ef: .
$.) (umerous ty*es of business @@@@@@@@ result from todayAs business climate.
A) decisions
7) res*onses
:) su**ort
#) *ressures
Answer: #
#iff: 1 %age &ef: 0
.
$-) :om*anies are facing each of the following im*acts of globalization exce*t:
A) "asier to find su**liers and customers in many countries
7) ess com*lex business environment
:) :hea*er materials
#) 5ore and stronger com*etitors
Answer: 7
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$0) Which of the following is an organizational res*onse to a business environmental factorB
A) customer demand
7) government regulations
:) new business models
#) globalization
Answer: :
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$3) 7usiness environment factors that create *ressures on organizations include all of the
following exce*t:
A) wor)force that is younger and shrin)ing
7) need for real6time, on6demand transactions
:) booming electronic mar)ets on the >nternet
#) innovative mar)eting methods
Answer: A
#iff: 1 %age &ef: 3
$4) 1ne of the ma2or ob2ectives of @@@@@@@@ is to facilitate closing the ga* between the current
*erformance of an organization and its desired *erformance, as ex*ressed in its mission,
ob2ectives, and goals.
A) business alliances
7) customer relationshi*s
:) business models
#) com*uterized decision su**ort
Answer: #
#iff: . %age &ef: 3
$8) 5anagement is a *rocess by which organizational goals are achieved by using resources. 'he
resources are considered @@@@@@@@, and attainment of goals is viewed as the @@@@@@@@ of the
*rocess.
A) ex*enses? *rofits
7) in*uts? out*ut
:) *ressures? o**ortunities
#) scarce? success
Answer: 7
#iff: $ %age &ef: 4
-
$9) 5intzbergAs <198;) classic study of to* managers suggests that managers *erform ten ma2or
roles that can be classified into three ma2or categories. "ach of the following is one of those
ma2or categories exce*t:
A) relational
7) inter*ersonal
:) decisional
#) informational
Answer: A
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.;) For years in the *ast, managers considered decision ma)ing a<n) @@@@@@@@, that is, a talent
ac+uired over a long *eriod through ex*erience and by using intuition.
A) science
7) strategy
:) art
#) methodology
Answer: :
#iff: $ %age &ef: 4
.1) According to 5intzbergAs ten managerial roles, a @@@@@@@@ is res*onsible for the motivation
and activation of subordinates.
A) leader
7) figurehead
:) liason
#) s*o)es*erson
Answer: A
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.$) According to 5intzbergAs ten managerial roles, a @@@@@@@@ is symbolic head? or someone
who is obliged to *erform a number of routine duties.
A) leader
7) figurehead
:) liason
#) s*o)es*erson
Answer: 7
#iff: $ %age &ef: 4
..) 'odayAs com*uterized systems *ossess ca*abilities that can facilitate decision su**ort in a
number of ways, including each of the following exce*t:
A) >ncreased *roductivity of grou* members
7) >m*roved communication and collaboration
:) Agility su**ort
#) &educed environmental *ressures
Answer: #
#iff: $ %age &ef: 9
0
.-) #ecision6ma)ing *rocesses fall along a continuum that ranges from @@@@@@@@ to @@@@@@@@.
A) highly structured? highly unstructured
7) semistructured? unstructured
:) managerial? strategic
#) ad hoc? non*rogrammed
Answer: A
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.0) %hases in the decision6ma)ing *rocess include each of the following exce*t:
A) intelligence
7) analysis
:) design
#) choice
Answer: 7
#iff: $ %age &ef: 1$
.3) !olving semistructured *roblems may involve a combination of both standard solution
*rocedures and human 2udgment. 5anagement science can *rovide models for the *ortion of the
decision6ma)ing *roblem that is @@@@@@@@.
A) controlled
7) semistructured
:) unstructured
#) structured
Answer: #
#iff: $ %age &ef: 1.
.4) A<n) @@@@@@@@ is a rule6based system that *rovides a solution, usually in one functional area,
such as finance or manufacturing, to a s*ecific re*etitive managerial *roblem.
A) decision su**ort systems <#!!)
7) transaction *rocessing system <'%!)
:) online analytical *rocessing <1A%) system
#) automated decision system <A#!)
Answer: #
#iff: $ %age &ef: 1-
.8) Which of the following is one of the two ma2or ty*es of #ecision !u**ort !ystemsB
A) (umber6oriented
7) 'ext6oriented
:) 5odel6oriented
#) A**lication6oriented
Answer: :
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3
.9) Which of the following is not a com*onent of #!! architectureB
A) #ata
7) 5odel
:) Cnowledge
#) Web
Answer: #
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-;) 'he ma2or benefit of @@@@@@@@ to the com*any is the ability to *rovide accurate information
when needed.
A) data warehouse
7) analytical models
:) management information systems
#) business intelligence
Answer: #
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-1) 5anagement is a *rocess by which organizational goals are achieved using @@@@@@@@.
Answer: resources
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-$) 5a)ing a decision means selecting the best alternative from two or more @@@@@@@@
solutions.
Answer: alternative
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-.) 'he level of organizationAs @@@@@@@@, or the success of management, de*ends on the
*erformance of managerial functions, such as *lanning, organizing, directing, and controlling.
Answer: *roductivity
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--) @@@@@@@@ indicates that an individualAs *roblem6solving ca*ability is limited when a wide
range of diverse information and )nowledge is re+uired.
Answer: :ognitive limit
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-0) @@@@@@@@ defines long6range goals and *olicies for resource allocation.
Answer: !trategic *lanning
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-3) @@@@@@@@ is the efficient and effective execution of s*ecific tas)s.
Answer: 1*erational control
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4
-4) /orry and !cott65orton suggested, for exam*le, that for semistructured decisions and
unstructured decisions, conventional @@@@@@@@ and management science <5!) tools are
insufficient.
Answer: management information systems <5>!)
#iff: $ %age &ef: 1.
-8) @@@@@@@@ involves transforming the real6world *roblem into an a**ro*riate *rototy*e
structure.
Answer: 5odeling
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-9) !tructured *roblems, which are encountered re*eatedly, have a high level of @@@@@@@@.
Answer: structure
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0;) @@@@@@@@ is the a**lication of scientific a**roach and mathematical models to the analysis
and solution of managerial decision situations.
Answer: 1*erations research
#iff: $ %age &ef: 1.
01) Automated #ecision !ystems <A#!) is a business @@@@@@@@ system that uses intelligence to
recommend solution to re*etitive decisions <such as *ricing).
Answer: rules6based
#iff: $ %age &ef: 1.
0$) #ecision su**ort systems are com*uter6based su**ort systems for management decision
ma)ers who deal with @@@@@@@@ *roblems.
Answer: semistructured
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0.) @@@@@@@@ is the first com*onent of the #!! architecture.
Answer: #ata
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0-) 'he *rocess of business intelligence is based on the @@@@@@@@ of data to information, then to
decisions, and finally to actions.
Answer: transformation
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00) 7usiness intelligenceAs ma2or ob2ective is to enable @@@@@@@@ access to data, enable
mani*ulation of these data, and to *rovide business managers and analysts the ability to conduct
a**ro*riate analysis.
Answer: interactive
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03) @@@@@@@@ is a *rocess of searching for un)nown relationshi*s or information in large
databases or data warehouses, using intelligent tools such as neural com*uting, *redictive
analytics techni+ues, or advanced statistical methods.
Answer: #ata 5ining
#iff: $ %age &ef: $1
04) @@@@@@@@ which is also referred to as cor*orate *erformance management <:%5), is an
emerging *ortfolio of a**lications and methodology that contains evolving 7> architecture and
tools in its core.
Answer: 7usiness *erformance management <7%5)
#iff: $ %age &ef: $$
08) @@@@@@@@ are a ty*e of user interface that *rovides a com*rehensive visual view of cor*orate
*erformance measures, trends, and exce*tions.
Answer: #ashboards
#iff: $ %age &ef: $$
09) A @@@@@@@@ is a system in which human *artici*ants andDor machines *erform a business
*rocess, using information, technology, and other resources, to *roduce *roducts andDor services
for internal or external customers.
Answer: wor) system
#iff: $ %age &ef: $0
3;) ist four ma2or business environmental factors in todayAs business environment.
Answer: !ee 'able 1.1 in the textboo).
#iff: $ %age &ef: 0
31) ist and define the three inter*ersonal roles of a manager as described by 5intzberg.
Answer:
E Figurehead. !ymbolic head? obliged to *erform a number of routine duties of a legal or
social nature.
E eader. &es*onsible for the motivation and activation of subordinates? res*onsible for
staffing, training, and associated duties.
E iaison. 5aintains self6develo*ed networ) of outside contacts and informers who *rovide
favors and information.
#iff: $ %age &ef: 8
3$) ist and define the three informational roles of a manager as described by 5intzberg.
Answer:
E Monitor. !ee)s and receives a wide variety of s*ecial information to develo* a thorough
understanding of the organization and environment.
E Disseminator. 'ransmits information received from outsiders or from subordinates to
members of the organization.
E Spo!esperson. 'ransmits information to outsiders on the organizationAs *lans, *olicies,
actions, and results.
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3.) ist and define the four decisional roles of a manager as described by 5intzberg.
Answer:
E "ntrepreneur. !earches the organization and its environment for o**ortunities and initiates
im*rovement *ro2ects to bring about change.
E Disturbance handler. &es*onsible for corrective action when the organization faces
unex*ected disturbances.
E #esource allocator. &es*onsible for the allocation of organizational resources of all )inds.
E $egotiator. &es*onsible for re*resenting the organization at ma2or negotiations
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3-) #escribe the four *hases in the decision6ma)ing *rocess.
Answer: %ntelligence. !earching for conditions that call for decisions.
Design. >nventing, develo*ing, and analyzing *ossible courses of action.
&hoice. !electing a course of action from those available.
%mplementation' Ada*ting the selected course of action to the decision situation.
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30) #istinguish between structured and unstructured *roblems.
Answer: ,nstructured *roblems are fuzzy, com*lex *roblems in which all of the factors are not
ty*ically )nown. 'here is no cut6and6dry solution to the *roblem. !tructured *roblems are
routine and re*etitive for which standard solutions exist.
#iff: 1 %age &ef: 1$
33) #escribe the three categories that com*rise AnthonyAs taxonomy of management.
Answer:
E Strategic planning. #efine long6range goals and *olicies for resource allocation.
E Management control. 'he ac+uisition and efficient use of resources in the accom*lishment of
organizational goals
E (perational control. 'he efficient and effective execution of s*ecific tas)s
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34) ist the ste*s involved in the management science <5!) a**roach to *roblem solving.
Answer:
E #efine the *roblem.
E :lassify the *roblem into a standard category.
E :onstruct a mathematical model that describes the real6world *roblem.
E Find *ossible solutions to the modeled *roblem and evaluating them.
E :hoose and recommend a solution to the *roblem.
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1;
38) ist the com*onents of the architecture of business intelligence.
Answer:
E #ata warehouse with source data
E 7usiness analytics, a collection of tools for mani*ulating, mining, and analyzing the data in
the data warehouse
E 7usiness *erformance management <7%5) for monitoring and analysis of *erformance
E ,ser interface
#iff: 1 %age &ef: $;
39) #escribe the nine elements of a wor) system.
Answer:
1. Business process. Fariations in the *rocess rationale, se+uence of ste*s, or in the methods
used for *erforming *articular ste*s
$. Participants. 7etter training, better s)ills, higher levels of commitment, and better real6time
or delayed feedbac)
.. %nformation. 7etter information +uality, information availability, and information
*resentation
-. )echnology. 7etter data storage and retrieval, models, algorithms, statistical or gra*hical
ca*abilities? better com*uter interaction
0. Product and services. 7etter ways to evaluate *otential decisions
3. &ustomers. 7etter ways to involve customers in the decision *rocess and to obtain greater
clarity about their needs
4. %nfrastructure. 5ore effective use of shared infrastructure might lead to im*rovements
8. "nvironment. 7etter methods for incor*orating concerns from the surrounding environment
9. Strategy. A fundamentally different o*erational strategy for the wor) system
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