Information-Systems-Study-Guide (1) - Information Systems Study Guide Week 10 Lecture 1 Decisions and Information A decision is simply a choice among

Information-Systems-Study-Guide (1) - Information Systems...

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Information Systems Study Guide Week 10 – Lecture 1: Decisions and Information: - A decision is simply a choice among alternatives - Good decision making requires, o Good information o Skills o Tools…..to appropriately analyze the relevant information Good decision making depends upon, - Access to pertinent, reliable, timely, quality data - Robust, comprehensive tools and methodologies - Tight, well-maintained processes IMPACT of decision is, - Greater when made my personnel who are higher in organization - When more resources are committed by decision - When more people are impacted by the outcome - Decision making can be seen as choosing between alternative inputs based on target outputs TYPES OF DECISIONS - Structured or Programmed Decisions: Decisions that are routine and repetitive, and often have a well defined procedure - Example: Manager of a fast food restaurant needs to decide on the number of hamburger buns to buy for tomorrow o Target output: Ensure a very low probability that the restaurant will run out of hamburger buns tomorrow o Input: Potential number of hamburger buns needed o Process Information: Effect of the day of the week and month on sales Effect of local events on sales Effect of weather on sales Constraints on the number of hamburger buns - Manager could program a spreadsheet that would output the probability of a stockout given a certain number of hamburger buns for each day - Semi-structured Decisions: Decisions that have some elements that are structured and other elements that are unstructured - Example: Planning annual compensation for employees in a large company o DSS - Unstructured or Non-programmed Decisions: Decisions that are novel, that do not have a pre-existing procedure - Example: 1
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o Decision to introduce a new smart watch by an electronics company o EIS AUTOMATED DECISION MAKING: - Some structured decisions can be automated leading to what is called automated decisions making - Example: o Algorithmic trading systems stock equities use automated decision making to made trades on behalf of investors o Daniel Suarez, “The kill decision shouldn’t belong to a robot” ORGANIZATIONAL LEVELS OF DECISION MAKING - Strategic Planning (More unstructured Decisions) o Choosing the organization’s objectives o Deciding how to achieve those objectives o Predicting the future - Managerial Control (More Semi-structured Decisions) o Ensuring efficient, effective use of resources o Detailed plan and enactment of achieving objectives - Operational Control (More Structured Decisions) o Ensuring efficient, effective conducting of tasks o Ensuring processes are well-maintained, followed and tight DECISION MAKING PROCESS 1) Identifying the problem , (Intelligence) o Includes describing both where you are now and where you want to be o Requires being careful to not confuse problem with symptoms 2) Determining the requirements and goals , (Intelligence) o Understanding the difference between them Requirements are minimally acceptable solutions (must haves) Goals are ideal solutions (Like to haves)
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