Week 1 - BI Buy-In Flashcards
(13 cards)
What data do you search for to support decision making in terms of a priority?
- Increase revenue
- Increase customers
- Reduce costs
- Create or break into new markets
- Attract and retain talent
- Attract and retain customers
These data points are critical for guiding effective decision-making in organizations.
What are the components of a good priority?
- WHAT: what is it the organisation should achieve/focus on?
- WHY: why should the organisation do this?
- HOW: how will the organisation achieve this?
This framework helps clarify organizational goals and strategies.
Provide an example of a priority for McDonald’s.
Attract health-conscious customers by introducing a new range in stores across Australia in order to increase the customer base and store sales.
This example illustrates a strategic focus on customer demographics.
What characterizes strategic decision-making?
- Long term
- Complex
- Example: aim to be a market leader
Strategic decisions shape the future direction of an organization.
What characterizes tactical decision-making?
- Medium term
- Less complex
- Example: launching a new product
Tactical decisions are about how to implement strategic goals.
What characterizes operational decision-making?
- Day-to-day
- Simple and routine
- Example: regular ordering of supplies
Operational decisions ensure the organization runs smoothly on a daily basis.
What are descriptive questions?
- Lead to well-defined problems and opportunities
- What happened?
- What is happening?
Descriptive questions help organizations understand their current situation.
What are diagnostic questions?
- Lead to understanding
- Why did it/is it happening?
Diagnostic questions are essential for identifying causes and reasons behind events.
What are predictive questions?
- Insight via prediction (forecasting)
- What will happen?
- Why will it happen?
Predictive questions assist in anticipating future trends and outcomes.
What are prescriptive questions?
- Best possible decisions and actions
- What should I do?
- Why should I do it?
Prescriptive questions guide decision-making towards optimal actions.
Give an example of a descriptive question.
What are the sales figures for the last quarter?
This type of question seeks to gather factual information.
Give an example of a predictive question.
What is the expected sales growth for the next year?
This question aims to forecast future performance.
Give an example of a prescriptive question.
What marketing strategies should we implement to increase sales?
This question focuses on actionable strategies to achieve goals.
