Chapter 9 : Enabling The organization - Decision Making

MAKING BUSINESS DECISIONS

The Decision Making Process

•  The process of making decision plays a crucial role in communication  and leadership for operational,managerial and strategic project.

Decision Making Essentials

• A few key concepts about organizational structure will help our discussion of MIS decision making tools.

Operational

• Operational decision are considered structured decision,which are in situations where established processes offer potential solution. 

THE SIX STEP DECISION MAKING PROCESS

Common Company Structure

Operational :

• Employees develop, control and maintain core business activities required.
• Also considered structured decision ,arise in situations where established process offer potential solutions.
• Made frequently and are almost repetitive in nature.

 Managerial :

• Employees are continuously evaluating company operations  to hone the firm's abilities to identify, adapt, to and leverage change.
• Cover short and medium range plans, schedules and budget along with policies, procedure and business objectives for the firm.
• Semistructured decision occur in situation few established process help to evaluate potential solutions.
• EXAMPLE:decision about producing new product changing employee benefits range from unstructured to semistuctured

Strategic:

• Managers develop overall business strategies, goals, and objectives.
• Monitor strategic performance and its overall direction in political,economic and competitive business environment.
• Unstructured decisions,in situation in which procedures or rules exists to guide decision makers.

Transaction Processing Systems

• online  transaction processing (OLTP) =The capturing of transaction and event informative using technology.
• online analytical processing (OLAP) = The manipulated of information to create business intelligence in support of strategic decision making.

Strategic Support Systems 

1. Consolidation
2. Drill Down 
3. Slice and Dice

Artificial Intelligence

Intelligence Systems :

• various commercial application of artificial intelligence.

Artificial Intelligence (AL) :

• simulates human intelligence such as the ability to a reason and learn 

 Categories of AL include :

1. EXPERT SYSTEM : imitate the reasoning processes of expert in solving difficult problems.
2. NEURAL NETWORK : attempt emulate the way the human brain work.
3. GENETIC ALGORITHM : an AI system that mimics the evolutionary, survival of the benefits process to generate increasingly better solution to a problems.
4. INTELLIGENT AGENT: have knowledge of based information systems that accomplishes specific tasks on behalf of its users such as multi agent systems and agent based modeling.