Tuesday, 11 February 2014

CHAPTER 9 ENABLING THE ORGANIZATION-DECISION MAKING

THREE PRIMARY CHALLENGES MANAGERIAL DECISION MAKING CHALLENGES

 

DECISION MAKING ESSENTIALS.

   
 
OPERATIONAL
  • employees develop,control, and maintain core business activities required to run the day-to-day operations. 
  • considered structured decisions.
  • they affect short term business strategies.
MANAGERIAL 
  • employees are continuously evaluating company operations to hone the firm's abilities.
  • managerial decision cover short- and medium- range plans,budget and so on . 
  •   this considered semistructured decisions.
  • situations on which a few establish processes help to evaluate potential solutions, but not enough to lead a definite recommended decision.
STRATEGIC
  • manager develop overall business strategies, goals, and objectives as part of the company's strategic plan.
  • in political,economic.
  • highly unstructured decisions which no procedures or rule exist to guide decision maker toward the correct choice.
  • example decision to enter new market or even a new industry over.


ENHANCING DECISION MAKING WITH MIS
  1. Operational support systems
  • transactional information encompasses all the information contained within a single business process or unit of work and its primary support the performance of daily operational or structured decisions.
  • online transaction processing(OLTP) is the capture off transaction and event information and event information using technology.
  • transaction processing systems (TPS) is the basic business systems that serves  the operational level and assists in making structured decisions.
  • TPS are source documents.
    2. Managerial support systems
  • analytical information encompasses all the 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 information to create business intelligence in support of strategic decision making .
  • decision support systems ( DSSs) model information using OLAP which provides assistanc in evaluating and choosing among different courses of action. 
  • there are the techniques:
  1. what if analysis- checks the impact of a change in a variable or assumption on the model.
  2. sensitivity analysis- a special case of what-if analysis, is the study of the impact on other variables when one variables is changed repeatedly
  3. goal-seeking analysis- finds the inputs necessary to achieve a goal such as desired level of output. 
  4. optimization analysis- an extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables.

3. strategic support systems
  •  executive information systems- specialized DSS that supports senior-level executives and unstructured,long term, non routine.
  • visualization- produces graphical displays of pattern and complex relationships in large amount of data.
  1. consolidation- the aggregation of data from simple roll-ups to complex groupings of interrelated information.
  2.  drill-down- enables users to view details, and details of details, of information.
  3. slice-and-dice- is the ability to look information from different perspectives.
 
THE FUTURE:ARTIFICIAL INTELLIGENCE
  • artificial intelligence- simulates human thinking and behavior.
  • intelligence systems- various commercial applications of artificial intelligence.
  1. EXPERT SYSTEMS-are computerized advisory programs that imitate the reasoning processes of expert in solving  difficult problems.
  2. NUERAL NETWORKS- called an artificial nueral networks, is the category of AI that attempts to emulate the way the human brain works.
  3. GENETIC ALGORITHMS- systems that mimics the evolutionary,survival-of-the-fittest- procss to generate increasingly better solutions to a problems.
  4. INTELLIGENCE AGENTS- special-purpose knowledge-based information systems that accomplishes specific tasks on behalf of its users.
  5. VIRTUAL REALITY- a computer-simulated environment that can be a simulation of the real world or an imaginary world.




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