1. Describe the decision-making process proposed by Simon.
It is composed of 4 major phases. Intelligence, design, choice and implementation
Intelligence phase is comprised of:
-Organisational objectives
-Search and scanning procedures
-Data Collection
-Problem Identification, Classification and Statement
Design phase is comprised of:
-Formulate a Model(assumptions)
-Set criteria for choice
-Search for alternatives
-Predict and measure outcomes.
Choice phase is comprised of:
-Solution to the model
-Sensitivity Analysis
-Selection Analysis
-Selection of best alternative
-Plan for implementation(action)
-Design of a control system
Implementation is comprised of:
-Implementation of solution.
2. Why do managers need IT support?
Managers need IT support because it is very difficult to make decision without relevant or valid information. Decision making is becoming more difficult due to:
-Number of alternatives to consider
-Time pressure
-Increase in complex decisions
3. Describe the decision matrix.
The decision matrix is the 3 primary classes of problem structure and the 3 broad categories of the nature of decisions can be combined in a decision support matrix that consists of 9 cells(as seen on pg 266) of your textbook).
It states that lower management perform the structured and operational control orientated tasks where as middle managers have more responsibility and senior executives have the most and perform the highest responsibility tasks.
Data mining is the search for valuable business information in a large database or data warehouse.
Capabilities are to predict trends and identify unknown patterns.
Data mining address the issue of why something is happening and provides predictions of what will happen in the future.
9.3 - Before You Go On… 1. What are some of the capabilities of digital dashboards?
Digital dashboards are an evolved version of executive information systems which are information systems designed for the information needed for top executives.
But now it is widely used across whole businesses.
It provides rapid access to timely information and direct access to management reports.
Advantages include it is very easy to use as it displays information in graphic form.
Also allow the information to be drilled down into specific details.
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