Learning Outcome 2.2: De0ne critical success factors (CSFs) and key
performance indicators (KPIs), and explain how managers use them
to measure the success of MIS projects.
Metrics are measurements that evaluate results to determine whether a
project is meeting its goals. Two core metrics are critical success factors and
key performance indicators. CSFs are the crucial steps companies perform to
achieve their goals and objectives and implement their strategies and
include creating high-quality products, retaining competitive advantages,
and reducing product costs. KPIs are the quanti1able metrics a company
uses to evaluate progress toward critical success factors. KPIs are far more
specific than CSFs; examples include turnover rates of employees,
percentage of help-desk calls answered in the first minute, and number of
It is important to understand the relationship between critical success factors
and key performance indicators. CSFs are elements crucial for a business
strategy’s success. KPIs measure the progress of CSFs with quanti1able
measurements, and one CSF can have several KPIs. Of course, both
categories will vary by company and industry. Imagine improved graduation
rates as a CSF for a college.
Learning Outcome 2.3: Classify the different operational support
systems, managerial support systems, and strategic support
systems, and explain how managers can use these systems to make
decisions and gain competitive advantages.
Being able to sort, calculate, analyze, and slice-and-dice information is
critical to an organization’s success. Without knowing what is occurring
throughout the organization there is no way that managers and executives
can make solid decisions to support the business. The different operational,
managerial, and strategic support systems include:
Operational: A transaction processing system (TPS) is the basic
business system that serves the operational level (analysts) in an
organization. The most common example of a TPS is an operational
accounting system such as a payroll system or an order-entry system.
Managerial: A decision support system (DSS) models information to
support managers and business professionals during the
Strategic: An executive information system (EIS) is a specialized DSS
that supports senior level executives within the organization.
Learning Outcome 2.4: Describe arti0cial intelligence and identify
its 0ve main types.
Arti1cial intelligence (AI) simulates human thinking and behavior, such as the
ability to reason and learn. The 1ve most common categories of AI are:
1. Expert systems—computerized advisory programs that imitate the
reasoning processes of experts in solving diCcult problems.