MGT300, Chapter 9: Enabling The Organization (Decision Making)

The Decision-Making Process
- The process of making decision plays a crucial role in communication and leader-ship for operational, managerial, and strategic projects.

Decision-Making Essentials
- A few key concepts about organizational structure will help our discussion of MIS decision making tools.

-  At the operational level,employees develop, control,and maintain core business business required to run the day-to-day operations. 
-Considered as structured decisions, which arise in situations where establish processes offer potential solutions.

- At the managerial level, employees are continuously evaluating company operations to hone the firm's abilities to identify, adapt to, and leverage change. 
- It is considered semi-structured decisions, they occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision.

- At the strategic level, manegers develop overall business strategic, goals, and objectives as part of the company's strategic plan. 
- It is highly unstructured decisions, occurring situations in which no procedures or rules exist to guide decision makers towards the correct choice.

Operational Support Systems
Transactional information encompasses all the information contained within a single business process or unit of work. Primary purpose is to support the performance of daily operational or structured decisions.
Online transactional processing (OLTP) is the capture of transaction and event information using technology.
- A transactional processing system (TPS) is the basic business system that serves the operational level (analysts) and assists in making structured.
- Input for a TPS are source documents.

Managerial Support Systems
Analytical information encompassess all organizational information, and its primary purpose is to support the performance of managerial anlysis 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 assistance in evaluating and choosing among different course of action. 
- The common DSS analysis techniques are :
  • What-if analysis - checks the impacts of a change in a variable or assumption on that model.
  • Sensitive analysis - a special case of what-if analysis, is the study of the impact on the other variables when one variables is changed repeatedly.
  • Goal-seeking analysis - finds the inputs necessary to achieve goal such as a desired level of output.
  • Optimization analysis- an extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables.
Strategic Support Systems

- An executive information systems (EIS) is a specialized DSS that supports senior-level executives and unstructured, long-term, nonroutine decisions requiring judgment, evaluation, and sight.
Visualization produces graphical displays of patterns and complex relationships in large amount of data.
- A common tool that supports visualization is a digital dashboard.
- Digital dashboard offer the following capabilities :
  • Consolidation- the aggregation of data from simple-\ roll-ups to complex groupings of interrelated information.
  • Drill-down- enables users to view details, and details of details, of information.
  • Slice-and-Dice- the ability to look at information from different perspectives.
Artificial intelligence (AI) stimulates human thinking and behaviour, such as the ability to reason and learn.
Intelligence systems are various commercial applications of artificial intelligence.
- The most familiar categories of AI systems are :
  •  Expert systemscomputerized advisory programs that imitate the reasoning processes of experts in solving difficult problems
  • Neutral networksattempts to emulate the way the human brain works ;Fuzzy logic – a mathematical method of handling imprecise or subjective information
  • Generic algorithms -an artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem
  • Intelligent agentsspecial-purposed knowledge-based information system that accomplishes specific tasks on behalf of its users;Multi-agent systems, Agent-based modelling
  • Virtual reality- computer-simulated environment that can be a simulation of the real world or an imaginary world