Business Driven
Technology
Unit 3
Streamlining Business
Operations
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Unit Three
O Chapter Nine – Enabling the Organization –
Decision Making
O Chapter Ten – Extending the Organization – Supply
Chain Management
O Chapter Eleven – Building a Customer-centric
Organization – Customer Relationship
Management
O Chapter Twelve – Integrating the Organization from
End to End – Enterprise Resource Planning
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Chapter 9
Enabling the Organization—
Decision Making
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LEARNING OUTCOMES
1. Explain the importance of decision making for
managers at each of the three primary
organization levels along with the associated
decision characteristics
2. Classify the different operational support
systems, managerial support systems, and
strategic support systems, and explain how
managers can use these systems to make
decisions and gain competitive advantages
3. Describe artificial intelligence and identify its
five main types
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MAKING BUSINESS
DECISIONS
O Managerial decision-making challenges
O
Analyze large amounts of information
O
Apply sophisticated analysis techniques
O
Make decisions quickly
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The Decision-Making Process
O The six-step decision-making process
1.
Problem identification
2.
Data collection
3.
Solution generation
4.
Solution test
5.
Solution selection
6.
Solution implementation
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Decision-Making Essentials
Decision-making and
problem-solving
occur at each level
in an organization
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Decision-Making Essentials
O Operational decision making -
Employees develop, control,
and maintain core business
activities required to run the
day-to-day operations
O Structured decisions -
Situations where established
processes offer potential
OPERATIONAL
solutions
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Decision-Making Essentials
O Managerial decision making –
Employees evaluate company
operations to identify, adapt
to, and leverage change
O Semistructured decisions –
Occur in situations in which a
few established processes
MANAGERIAL
help to evaluate potential
solutions, but not enough to
lead to a definite
recommended decision
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Decision-Making Essentials
O Strategic decision making –
Managers develop overall
strategies, goals, and
objectives
O Unstructured decisions –
STRATEGIC
Occurs in situations in which
no procedures or rules exist to
guide decision makers toward
the correct choice
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SUPPORT: ENHANCING
DECISION MAKING WITH MIS
O Model – A simplified
representation or abstraction of
reality
O Models help managers to
 Calculate risks
 Understand uncertainty
 Change variables
 Manipulate time to make
decisions
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SUPPORT: ENHANCING
DECISION MAKING WITH MIS
Types of Decision Making MIS Systems
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Operational Support Systems
O Transaction processing system (TPS) –
Basic business system that serves the
operational level and assists in making
structured decisions
O Online transaction processing (OLTP) -
Capturing of transaction and event
information using technology to
process, store, and update
O Source document – The original
transaction record
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Operational Support Systems
Systems Thinking View of a TPS
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Managerial Support Systems
O Online analytical processing (OLAP)
– Manipulation of information to
create business intelligence in
support of strategic decision
making
O Decision support system (DSS) –
Models information to support
managers and business
professionals during the decisionmaking process
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Managerial Support Systems
O Four quantitative models used by DSSs
include
1. What-if analysis
2. Sensitivity analysis
3. Goal-seeking analysis
4. Optimization analysis
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Managerial Support Systems
Systems Thinking View of a DSS
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Managerial Support Systems
Interaction Between a TPS and DSS
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Strategic Support Systems
Information Levels Throughout An Organization
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Strategic Support Systems
O Executive information system (EIS) – A
specialized DSS that supports senior level
executives within the organization
O Granularity
O Visualization
O Digital dashboard
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Strategic Support Systems
Interaction Between a TPS and EIS
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Strategic Support Systems
O Most EISs offering the following capabilities
O
Consolidation
O
Drill-down
O
Slice-and-dice
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Artificial Intelligence (AI)
O Artificial intelligence (AI) – Simulates human
intelligence such as the ability to reason and
learn
O Intelligent system – Various commercial
applications of artificial intelligence
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Artificial Intelligence (AI)
O Five most common categories of AI
1. Expert system – Computerized advisory
programs that imitate the reasoning
processes of experts in solving difficult
problems
2. Neural Network – Attempts to emulate the
way the human brain works
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Artificial Intelligence (AI)
3. Genetic algorithm – An artificial intelligent system
that mimics the evolutionary, survival-of-the-fittest
process to generate increasingly better solutions
to a problem
- Shopping bot – Software that will search several
retailer websites and provide a comparison of
each retailer’s offerings including price and
availability
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Artificial Intelligence (AI)
4. Intelligent agent – Special-purpose
knowledge-based information system that
accomplishes specific tasks on behalf of its
users
5. Virtual reality - A computer-simulated
environment that can be a simulation of the
real world or an imaginary world
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LEARNING OUTCOME REVIEW
O Now that you have finished the
chapter please review the learning
outcomes in your text
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