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Lecture 1

ITM 102 Lecture Notes - Lecture 1: Business Intelligence, Accounts Payable, Financial Statement

4 pages87 viewsFall 2014

Information Technology Management
Course Code
ITM 102
Bob Hudyma

of 4
Chapter 2
Personal Notes
Different levels of business require different information types
Operational – Employees develop, control and maintain core business activities required to run
the day-to-day operations. Operational decisions are structural decisions, which arise in
situations where established processes offer potential solutions. Made frequently and often
repetitive, such as employee staffing schedules, weekly production schedules, etc
Managerial (Sometimes called Tactical) – Managers cover short and medium range plans,
schedules and budgets, as well as procedures, policies and business practices. They also
allocate resources to and monitor the performance of sub-units (project teams, work groups),
and these situations are called “semi-structured decisions” in which structured process offer
potential solutions, but not enough to lead a definite decision
Strategic – At the strategic level, managers develop overall business strategies, goals and
objectives as part of the company’s overall direction in relation to politics, economy and
business environment. There are highly unstructured decisions where decision makers have
no procedures or rules to guide them to the right choice
Transactional Data – encompasses all the raw facts within a single business process or unit of
work, primary purpose is to support daily operations tasks
Analytical Information – encompasses all summarized or aggregated transactional data, and
its primary purpose is to support performing analysis tasks. Also include information from the
outside market and industry sources
Online Transaction Processing (OLTP) – is the capturing of transaction and event data to (1)
process the data according to defined business rules (2) store the data and (3) update the old
data to reflect the new additions
Online Analytical Processing (OLAP) – analysis of summarized or aggregated information
sourced from transaction processing systems and sometimes from outside sources.
Chapter 2 Class 2 In Class Notes
Key Themes: Decision Making in Business, Business Processes
Managerial decision-making challenges
oAnalyze large amounts of information
oApply sophisticated analysis techniques
oMake decisions quickly
Decision making and problem solving occur at each level in an organization
oFrom bottom to top : Operational, Managerial, Strategic
Metrics – measurements that evaluate results to determine whether a project is meeting
its goals. Common types include:
oKPIs – Key Performance Indicators
oEfficiency and Effectiveness
oEfficiency is how fast transactions can be processed (Transaction speed and
oEffectiveness is the rate of return of your customers and their satisfaction
Benchmark – Baseline (where we are right now) values the system seeks to attain
Benchmarking – How do we improve the above? A process of continuously measuring
system results, comparing those results to optimal system performance (benchmark
values), and identifying steps and procedures to improve system performance.
oCompares to previous benchmark to identify better/worse conditions, etc
Key Performance Indicators (KPIs) – The quantifiable metrics a company uses to
evaluate progress toward critical success factors
Efficiency Metrics – Measure the performance of IS itself, such as throughput,
transaction speed, and system availability
Effectiveness Metrics – Measures the impact IS has on business processes and
activities, including customer satisfaction and customer conversion rates
Conversion rates is to get a person who is THINKING about buying something, to buy
something and become a customer
Common Types of Efficiency IS Metrics
Throughput – The amount of information that can travel through a system at any point
in time
Transaction Speed – The amount of time a system takes to perform a transaction
System Availability – The number of hours a system is available for users
Web Traffic – Includes a host of benchmarks such as the number of pages viewed, the
number of unique visitors and the average length of viewing time
Response Time – the time it takes to respond to interactions such as a mouse click
Common Types of Effectiveness IS Metrics
oUsability – the ease of which people perform transactions and/or find information
oCustomer Satisfaction –
Transaction Processing System (TPS) – Basic business system that serves the operational
level and assists in making structured decisions. All about efficiency, speed and customer
satisfaction. (Example: Oder processing system, Inventory Tracking System, Distribution
Online transaction processing (OLTP) – Capturing of transaction and event information using
technology to process, store and update.
Source Document – The original transaction record
Decision Support System (DSS) – models information to support managers and business
professionals during the decision-making process. Example: In a class the cut off line is at 75%
and they weed everyone else out. Uses Three quantitative models used by DSS include:
oWhat-If Analysis (Ex: What if we allow students with a lower average to enter Ryerson?)
oSensitivity Analysis
oGoal-Seeking Analysis (EX: If I wanted 90% of the class to graduate, what would I need
in terms of entrance requirements from grade 12?)(What are the implications of setting
that goal?)

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