CHAPTER 9: ENABLING THE ORGANIZATIONAL - DECISON MAKING

Decision Making

Reasons for growth of Decision Making information :

• people need to analyze large amount of information
• people must make decisions quickly.
• people must apply sophisticated analysis techniques, such as modeling and foracasting to make good decisions.
• people must protect the corporate asset of organizational information.
• Model : a simplified representation or abstraction of reality. And IT systems in an enterprise.

Transaction Processing Systems  

• Moving up through the organizational pyramid users move from requiring transactional information to analytical information

transaction processing systems is the basic business systems that serves th

operational level (analysis) in an organization.

Decision Support Systems : 

 models information to support managers and business professionals during the decison making process.

3 quantitative models used by DSS: 

• sensitivity analysis : the study of the impact that changes in one or more parts of the  model have on other parts of the model
• what is nalysis : checks the impact of a change in an assumption on the proposed solution
• goal- seeking analysis : finds the inputs necessary to achieve a goal such as a desired level of outputs.

 Executive Information Systems : 

• is a specialized DSS that support senior level executives within the organization.
• Digital Dashboard : integrates information from multiple components and present it in a unified display.

Artificial Intelligence : 

• Intelligence systems is various commercial applications of artificial intelligence.
• Artificial intelligence (AI) is simulates human intelligence such as the ability to reason and learn.
• 4 categories of AI : expert system, neural network, genetic algorithm and intelligent agent.

Data Mining : 

• Data mining software includes many forms of AI such as neural networks and expert systems.