SYSTEMS DEVELOPMENT AND DECISION
MAKING TEST PAPER QUESTIONS AND
SOLUTIONS VERIFIED ANSWERS
●● What type of decisions are operational decisions?
Answer: Operational decisions are structured decisions made frequently
and repetitively, affecting short-term business strategies.
●● What do managerial decisions cover?
Answer: Managerial decisions cover short- and medium-range plans,
schedules, budgets, policies, procedures, and business objectives.
●● What are strategic decisions?
Answer: Strategic decisions are highly unstructured, infrequent, and
related to long-term business strategy.
●● What are critical success factors (CSFs)?
Answer: CSFs are the crucial steps companies perform to achieve their
goals and objectives.
●● What are key performance indicators (KPIs)?
Answer: KPIs are quantifiable metrics used to evaluate progress toward
critical success factors.
,●● How do CSFs and KPIs relate to each other?
Answer: CSFs are elements crucial for a business strategy's success,
while KPIs measure the progress of CSFs.
●● What is a transaction processing system (TPS)?
Answer: A TPS is the basic business system that serves the operational
level in an organization.
●● What is a decision support system (DSS)?
Answer: A DSS models information to support managers and business
professionals during the decision-making process.
●● What is an executive information system (EIS)?
Answer: An EIS is a specialized DSS that supports senior-level
executives within the organization.
●● What is a business process?
Answer: A business process is a standardized set of activities that
accomplish a specific task.
●● What are customer-facing processes?
Answer: Customer-facing processes result in a product or service
received by an organization's external customer.
,●● What are business-facing processes?
Answer: Business-facing processes are invisible to the external customer
but essential for effective business management.
●● What is business process modeling?
Answer: Business process modeling is the activity of creating a detailed
flowchart or process map of a work process.
●● What is the difference between As-Is and To-Be models?
Answer: As-Is models represent current processes, while To-Be models
represent desired future processes.
●● What is the starting point of business process modeling?
Answer: A functional process representation of the As-Is process model.
●● What do As-Is process models represent?
Answer: The current state of the operation without specific
improvements.
●● What is a To-Be process model?
Answer: It displays how the process problem will be solved or
implemented.
, ●● What is the purpose of business process improvement?
Answer: To understand and measure the current process and make
performance improvements.
●● What is automation in business processes?
Answer: The process of computerizing manual tasks to increase
efficiency and lower costs.
●● What does streamlining involve in business processes?
Answer: Improving efficiencies by simplifying or eliminating
unnecessary steps.
●● What are bottlenecks in business processes?
Answer: They occur when resources reach full capacity and limit
throughput.
●● What is business process reengineering (BPR)?
Answer: The analysis and redesign of workflow within and between
enterprises.
●● What are the three cognitive skills focused on by artificial
intelligence (AI)?
Answer: Learning, reasoning, and self-correction.
MAKING TEST PAPER QUESTIONS AND
SOLUTIONS VERIFIED ANSWERS
●● What type of decisions are operational decisions?
Answer: Operational decisions are structured decisions made frequently
and repetitively, affecting short-term business strategies.
●● What do managerial decisions cover?
Answer: Managerial decisions cover short- and medium-range plans,
schedules, budgets, policies, procedures, and business objectives.
●● What are strategic decisions?
Answer: Strategic decisions are highly unstructured, infrequent, and
related to long-term business strategy.
●● What are critical success factors (CSFs)?
Answer: CSFs are the crucial steps companies perform to achieve their
goals and objectives.
●● What are key performance indicators (KPIs)?
Answer: KPIs are quantifiable metrics used to evaluate progress toward
critical success factors.
,●● How do CSFs and KPIs relate to each other?
Answer: CSFs are elements crucial for a business strategy's success,
while KPIs measure the progress of CSFs.
●● What is a transaction processing system (TPS)?
Answer: A TPS is the basic business system that serves the operational
level in an organization.
●● What is a decision support system (DSS)?
Answer: A DSS models information to support managers and business
professionals during the decision-making process.
●● What is an executive information system (EIS)?
Answer: An EIS is a specialized DSS that supports senior-level
executives within the organization.
●● What is a business process?
Answer: A business process is a standardized set of activities that
accomplish a specific task.
●● What are customer-facing processes?
Answer: Customer-facing processes result in a product or service
received by an organization's external customer.
,●● What are business-facing processes?
Answer: Business-facing processes are invisible to the external customer
but essential for effective business management.
●● What is business process modeling?
Answer: Business process modeling is the activity of creating a detailed
flowchart or process map of a work process.
●● What is the difference between As-Is and To-Be models?
Answer: As-Is models represent current processes, while To-Be models
represent desired future processes.
●● What is the starting point of business process modeling?
Answer: A functional process representation of the As-Is process model.
●● What do As-Is process models represent?
Answer: The current state of the operation without specific
improvements.
●● What is a To-Be process model?
Answer: It displays how the process problem will be solved or
implemented.
, ●● What is the purpose of business process improvement?
Answer: To understand and measure the current process and make
performance improvements.
●● What is automation in business processes?
Answer: The process of computerizing manual tasks to increase
efficiency and lower costs.
●● What does streamlining involve in business processes?
Answer: Improving efficiencies by simplifying or eliminating
unnecessary steps.
●● What are bottlenecks in business processes?
Answer: They occur when resources reach full capacity and limit
throughput.
●● What is business process reengineering (BPR)?
Answer: The analysis and redesign of workflow within and between
enterprises.
●● What are the three cognitive skills focused on by artificial
intelligence (AI)?
Answer: Learning, reasoning, and self-correction.
