chapter 4 outline

chapter 4 outline - Page 1 of 6 Joseph Criscuolo CIS...

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Page 1 of 6 Joseph Criscuolo CIS 9.2/Bus 31.1 Outline Chapter 4 Haag, Cummings Decision Support and Artificial Intelligence Decision making is crucial to business, using all forms of intellectual assets Herbert Simon’s proposed decision making phases 1.) Intelligence : you can find or recognize a problem, opportunity, or need. This phase involves interpreting and detecting signs that indicate a given situation that needs your own attention. These signs come in many forms that include threat of new competition, declining sales, rising costs and consistent customer requests for new product features. 2.) Design : you can consider possible ways of solving problems, taking advantage of opportunity or filling the need. You develop all solutions possible. 3.) Choice : you must weigh and examine the merits, estimate the consequences and choose the best one. The solution that is best may depend on factors like ease of implementation, cost, timing and staffing requirements. 4.) Implementation : carry out the chosen solution, monitor the results, and make the necessary adjustments. The solution you chose will always need fine tuning, especially for complex problems. Herbert Simon’s proposed second model is satisficing. Satisficing is making a choice that not only meets your needs, but is satisfactory without necessarily being the best possible choice available. The term is a combination of words satisfied and sufficient. Organizations in both private and public sectors are satisficing all the time in setting reasonable profit and fair price. 4 main types of decisions: Structured decision: - Processing a certain kind of information in a specified way so that your answers are always right. - An example is calculating gross pay for hourly work, you can easily automate with IT Non-structured decision: - There may be several right answers and no precise way to get that right answer. There are no rules that guarantee you a good solution.
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Page 2 of 6 - Examples include introducing a new product line, employ new market campaign and changing corporate image. Recurring decision: - Happens periodically and repeatedly whether it is weekly, monthly or yearly. - Examples of recurring decisions is deciding how much inventory to carry and deciding what price to sell it at. Non-recurring decision (ad-hoc): - A decision that you make frequently and may even have different criteria for determining the best solution each time. - An example of this is deciding where to build a distribution center or company mergers Decision support system (DSS) – - a highly flexible and interactive system that is designed to support decision making when the problem is not structured - Decision support systems help you analyze, but you must know how to solve the
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This note was uploaded on 03/12/2010 for the course BUS 1234 taught by Professor Fishman during the Spring '09 term at Brooklyn Law School.

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chapter 4 outline - Page 1 of 6 Joseph Criscuolo CIS...

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