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 ID: 929944
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Slide1
Chapter 12
Enhancing Decision Making
Slide2Unstructured
: Decision maker must provide judgment, evaluation, and insight to solve
problemStructured: Repetitive and routine; involve definite procedure for handling so they do not have to be treated each time as newSemistructured: Only part of problem has clear-cut answer provided by accepted procedure
Types of
decisions
Slide3Senior managers:
Make many unstructured decisions
E.g. Should we enter a new market?Middle managers:Make more structured decisions but these may include unstructured componentsE.g. Why is order fulfillment report showing decline in Minneapolis?
Operational managers, rank and file employees
Make more structured decisionsE.g. Does customer meet criteria for credit?
Types of Decisions by Level
Slide4Decision Making Process
The decision-making process is broken down into four stages.
Slide5Mintzberg’s
10 managerial
roles (3 categories)Interpersonal roles FigureheadLeader
Liaison
Informational roles
Nerve center
Disseminator
SpokespersonDecisional rolesEntrepreneur
Disturbance handler
Resource allocatorNegotiator
Managerial Roles
Slide6Three main reasons why investments in information technology do not always produce positive results
Information quality (see table 12-3 page 460)
Management filtersOrganizational inertia and politicsHigh velocity automated decision makingAutomate those structured, routine decision makingDecision Making and Information
Slide7Business intelligence
Infrastructure for collecting, storing, analyzing data produced by business
Databases, data warehouses, data martsBusiness analyticsTools and techniques for analyzing dataOLAP, statistics, models, data miningBusiness intelligence vendorsTop five vendors SAP, Oracle, IBM, SAS Institute, and Microsoft (manage big data)
Business Intelligence
Slide8Business Intelligence Environment
Slide9Main functionalities of BI systems
Production reports
Parameterized reportsDashboards/scorecardsAd hoc query/search/report creationDrill downForecasts, scenarios, models
Pre-defined/prepackaged production reports most widely used (see table 12-5)
Business Intelligence and Analytics Capabilities
Slide10Examples of BI applications
Predictive analytics
Use patterns in data to predict future behaviorE.g. Credit card companies use predictive analytics to determine customers at risk for leaving Data visualizationHelp users see patterns and relationships that would be difficult to see in text lists (dashboards help)Geographic information systems (GIS)Ties location-related data to maps
Business Intelligence and Analytics Capabilities (cont)
Slide11Use mathematical or analytical models
Allow varied types of analysis
“What-if” analysisSensitivity analysis (see page 472)Backward sensitivity analysisMultidimensional analysis / OLAPE. g. pivot tables (see page 473)Use Management Information Systems (MIS)Structured and semistructured decisions; data flow reports; routine production reports; exception reports
Decision
Support Systems
(Operational and Middle Mgmt)
Slide12Use Executive Support Systems (ESS)
Help executives focus on important performance information; allow them to drill down to detailed views of data
MethodologyBalanced scorecard method:Measures outcomes on four dimensions: FinancialBusiness process
Customer
Learning & growthKey performance indicators (KPIs) measure each dimension
Business Performance Management (BPM)
Decision Support Systems
(Senior Management)
Slide13Slide14Decision Support Systems
(Groups)
Group Decision Support Systems (GDSS)Used for tasks involving idea generation, complex problems, large groupsExample