This assignment is due at 23 May 2014 , it's about summary in chapter 12 the title is :
"System Investigation and Analysis"
----------------------------------------------------------------------------------------------------------------------------
ENHANCING DECISION MAKING
1. What are the different types of decisions, and how does the decision-making process work?
The different levels in an organization (strategic, management, operational) have different decision-making requirements. Decisions can be structured, semistructured, or unstructured, with structured decisions clustering at the operational level of the organization and unstructured decisions at the strategic level. Decision making can be performed by individuals or groups and includes employees as well as operational, middle, and senior managers. There are four stages in decision making: intelligence, design, choice, and implementation. Systems to support decision making do not always produce better management and employee decisions that improve firm performance because of problems with information quality, management filters, and organizational culture.
2. How do information systems support the activities of managers and management decision making?
Early classic models of managerial activities stress the functions of planning, organizing, coordinating, deciding, and controlling. Contemporary research looking at the actual behaviour of managers has found that managers’ real activities are highly fragmented, variegated, and brief in duration and that managers shy away from making grand, sweeping policy decisions. Information technology provides new tools for managers to carry out both traditional and newer management roles, enabling them to monitor, plan, and forecast with more precision and speed than ever before and to respond more rapidly to the changing business environment. Information systems have been most helpful to managers by providing support for their roles in disseminating information, providing liaisons between organizational levels, and allocating resources. However, information systems are less successful at supporting unstructured decisions. Where information systems are useful, information quality, management filters, and organizational culture can degrade decision making.
3. How do business intelligence and business analytics support decision making?
Business intelligence (BI) and business analytics (BA) promise to deliver correct, nearly real-time information to decision makers, and the analytical tools help them quickly understand the information and take action. A BI environment consists of data from the business environment, the BI infrastructure, a BA toolset, managerial users and methods, a BI delivery platform (management information systems [MIS], decision support systems [DSS], or executive support systems [ESS]), and the user interface. There are six analytical functionalities that BI systems deliver to achieve these ends: predefined production reports, parameter-driven reports, dashboards and scorecards, ad hoc queries and searches, the ability to drill down, and the ability to model scenarios and create forecasts.
4. How do different decision-making constituencies in an organization use business intelligence?
Operational and middle management are generally charged with monitoring the performance of their firm. Most of the decisions they make are fairly structured. MIS producing routine production reports are typically used to support this type of decision making. For making unstructured decisions, middle managers and analysts will use DSS with powerful analytics and modelling tools, including spreadsheets and pivot tables. Senior executives making unstructured decisions use dashboards and visual interfaces to display key performance information affecting the overall profitability, success, and strategy of the firm. Balanced scorecard and business performance management are two methodologies used in designing ESS.
5. What is the role of information systems in helping people working in a group make decisions more efficiently?
Group decision support systems (GDSS) help people working together in a group arrive at decisions more efficiently. GDSS feature special conference room facilities where participants contribute their ideas using networked computers and software tools for organizing ideas, gathering information, making and setting priorities, and documenting meeting sessions.
Business value of improved decision making
Improving hundreds of thousands of “small” decisions adds up to large annual value for the business
Types of decisions:
Unstructured: Decision maker must provide judgment, evaluation, and insight to solve problem
Structured: Repetitive and routine; involve definite procedure for handling so they do not have to be treated each time as new
Semistructured: Only part of problem has clear-cut answer provided by accepted procedure
Senior managers:
Make many unstructured decisions
E.g. Should we enter a new market?
Middle managers:
Make more structured decisions but these may include unstructured components
E.g. Why is order fulfillment report showing decline in Minneapolis?
Operational managers, rank and file employees
Make more structured decisions
E.g. Does customer meet criteria for credit?
INFORMATION REQUIREMENTS OF KEY DECISION-MAKING GROUPS IN A FIRM
The 4 stages of the decision making process
Intelligence
Discovering, identifying, and understanding the problems occurring in the organization
Design
Identifying and exploring solutions to the problem
Choice
Choosing among solution alternatives
Implementation
Making chosen alternative work and continuing to monitor how well solution is working
Business intelligence and analytics capabilities
Goal is to deliver accurate real-time information to decision-makers
Main functionalities of BI systems
Production reports
Parameterized reports
Dashboards/scorecards
Ad hoc query/search/report creation
Drill down
Forecasts, scenarios, model
Decision-support for senior management (cont.)
Business performance management (BPM)
Translates firm’s strategies (e.g. differentiation, low-cost producer, scope of operation) into operational targets
KPIs developed to measure progress towards targets
Data for ESS
Internal data from enterprise applications
External data such as financial market databases
Drill-down capabilities