Making Business Decisions
The decision-making process
- process of making decision plays a crucial role in
communication and leader-ship for operational, managerial, and strategic
projects.
Decision-making essentials
- a few key concepts about organizational structure will
help our discussion of MIS decision making tools.
Operational
- at the operational level, control,and maintain core
business business required to run the day-to-day operations. Considered
structured decisions, which arise in situations where establish processes offer
potential solutions.
Managerial
- at the managerial level, employees are continuously
evaluating company operations to hone the firm's abilities to identify, adapt
to, and leverage change. Considered semistructured decisions, they occur in
situations in which a few established processes help to evaluate potential
solutions, but not enough to lead to a definite recommended decision.
Strategic
- at the strategic level, manegers develop overall business
strategic, goals, and objectives as part of the company's strategic plan.
Highly unstructured decisions, occurring situations in which no procedures or
rules exist to guide decision makers towards the correct choice.
Support : Enhancing Decisions Making with MIS
Operational support systems
- Transactional information encompasses all the information
contained within a single business process or unit of work. Primary purpose is
to support the performance of daily operational or structured decisions.
- Online transactional processing (OLTP) is the capture of
transaction and event information using technology.
- Transactional processing system (TPS) is the basic
business system that serves the operational level (analysts) and assists in
making structured.
Managerial support systems
- Analytical information encompassess all organizational
information, and its primary purpose is to support the performance of
managerial anlysis or semistructured decisions.
- Online analytical processing (OLAP) is the manipulation of
information to create business intelligence in support of strategic decision
making.
What-if analysis - checks the impacts of a change in a
variable or assumption on that model.
Sensitive analysis - a special case of what-if analysis, is
the study of the impact on the other variables when one variables is changed
repeatedly.
Goal-seeking analysis - finds the inputs necessary to
achieve goal such as a desired level of output.
Optimization analysis
- an extension of goal-seeking analysis, finds the optimum
value for a target variable by repeatedly changing other variables.
Strategic Support Systems
Executive information systems (EIS) is a specialized DSS
that supports senior-level executives and unstructured, long-term, nonroutine
decisions requiring judgment, evaluation, and sight.
Consolidation
- the aggregation of data from simple-\ roll-ups to complex
groupings of interrelated information.
Drill-down
- enables users to view details, and details of details, of
information.
Slice-and-Dice
- the ability to look at information from different
perspectives.
The Future : Artificial Intelligence
Artificial intelligence (AI) - stimulates human thinking
and behaviour, such as the ability to reason and learn.
* Expert systems
*Neutral networks
*Generic algorithms
*Intelligent agents
*Virtual reality
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