MAKING BUSINESS DECISION
The Decision-Making Process
- The process of making decision plays a crucial role in communication and leader-ship for operational, managerial, and strategic projects.
- A few key concepts about organizational structure will help our discussion of MIS decision making tools.
- At the operational level,employees develop, control,and maintain core business business required to run the day-to-day operations.
-Considered as structured decisions, which arise in situations where establish processes offer potential solutions.
- At the managerial level, employees are continuously evaluating company operations to hone the firm's abilities to identify, adapt to, and leverage change.
- It is considered semi-structured 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.
- At the strategic level, manegers develop overall business strategic, goals, and objectives as part of the company's strategic plan.
- It is highly unstructured decisions, occurring situations in which no procedures or rules exist to guide decision makers towards the correct choice.
SUPPORT : ENHANCING DECISION 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.
- A transactional processing system (TPS) is the basic business system that serves the operational level (analysts) and assists in making structured.
- Input for a TPS are source documents.
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.
- Decision support systems (DSSs) model information using OLAP which provides assistance in evaluating and choosing among different course of action.
- The common DSS analysis techniques are :
- 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
- An executive information systems (EIS) is a specialized DSS that supports senior-level executives and unstructured, long-term, nonroutine decisions requiring judgment, evaluation, and sight.
- Visualization produces graphical displays of patterns and complex relationships in large amount of data.
- A common tool that supports visualization is a digital dashboard.
- Digital dashboard offer the following capabilities :
- 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.
- Intelligence systems are various commercial applications of artificial intelligence.
- The most familiar categories of AI systems are :
- Expert systems- computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems
- Neutral networks- attempts to emulate the way the human brain works ;Fuzzy logic – a mathematical method of handling imprecise or subjective information
- Generic algorithms -an artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem
- Intelligent agents- special-purposed knowledge-based information system that accomplishes specific tasks on behalf of its users;Multi-agent systems, Agent-based modelling
- Virtual reality- computer-simulated environment that can be a simulation of the real world or an imaginary world