Saturday, September 19, 2015

Chapter 9 : Enabling the Organization Decision Making

Making Business Decisions :
  • The decision making process.
  • Decision making essentials.
  • Operational.
  • Managerial.
  • Strategic.

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, and its primary purpose is to support the performance of daily operational or structured decisions.
  • Online transaction processing (OLTP) is the capture of transaction and event information using technology to :
  1. process the information according to defined business rules.
  2. store the information.
  3. update existing information to reflect the new information.
  • Transaction processing system (TPS) is the basic business system that serves the operational level (analysts) and assists in making structured decisions.
Managerial Support Systems
  • Analytical information encompasses all organizational information, and its primary purpose is to support the performance of managerial analysis or semistructured decisions.
  • Online analytical processing (OLAP) is the manipulation of creation to create business intelligence in support of strategic decision making.
  • The following are common decision support systems (DSS) analysis techniques :
  1.  What - If Analysis.
  2. Sensitivity Analysis.
  3. Goal - Seeking Analysis.
  4. Optimization Analysis.
Strategic Support Systems 
  • Executive information system (EIS) is a specialized DSS that supports senior-level executives and unstructured, long - term, nonroutine decisions requiring judgement, evaluation, and insight.
  • Granularity refers to the level of detail in the model or the decision-making process.
  • Visualization produces graphical dispalys of patterns and complex relationships in large amounts of data.
  • Digital dashboard a common tool that supports visualization.
  • Digital dashboards offer the following capabilities :
  1. consolidation.
  2. drill-down.
  3. slice-and-dice.
The Future : Artificial Intelligence

=> Artificial intelligence (AI) simulates human thinking and behavior, such as the ability to reason and learn.
=> Intelligent systems are various commercial applications of artificial intelligence.
=> There are many categories of AI systems such as :
       1. expert systems.
          are computerized advisory programs that imitate the reasoning processes of expert in solving difficult problems.
       2. neural networks.
          also called an artificial neural network, is a category of AI that attempts to emulate the way the human brain works.
       3. genetic algorithms.
          is an artificial intelligence system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem.  
       4. intelligent agents.
          is a special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users. 
       5. virtual reality.
          is a computer-simulated environment that can be a simulation of the real world or an imaginary world.


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