CHAPTER 9 : ENABLING THE ORGANIZATION - DECISION MAKING MAKING BUSINESS DECISIONS 1) Managerial decision-making challenges are analyze large amounts of information, apply sophisticated analysis techniques and make decision quickly. 2) There are six decision making process : -Problem identification -Data collection -Solution generation -Solution test -Solution selection -Solution implementation THE DECISION MAKING ESSENTIAL 1) Operational decision making – employees develop, control, and maintain core business activities required to run the day-to-day operations. 2) Structured decision – situations where established processes offer potential solutions. 3) Managerial decision making – employees evaluate company operation to identify, adapt to, and leverage changes. 4) Semistructured decisions – occur in situations in which a few established processes helps to evaluate potential solution but not enough to lead to a definite recommended decision. 5) Strategic decision making – managers develop overall strategies, goals and objectives. 6) Unstructured decisions – occurs in situations in which no procedures or rules exists to guide decision makers toward the correct choice. DECISION SUPPORT SYSTEM (DSS) 1) Decision support system (DSS) – models information to support managers and business professionals during the decision making process. 2) There are three quantitative models used by DSS - Sensitivity analysis where the study of the impact that changes in one or more parts of the model have on other parts of the model. - What-if-analysis where checks the impact of a change in an assumption on the proposed solution. - Goal-seeking analysis where finds the inputs necessary to achieve a goal such as a desired level of outputs. What is Artificial Intelligence (AI) : is the intelligence of machines and robots and the branch of computer science that aims to create it. AI textbooks define the field as "the study and design of intelligent agents" where an intelligent agent is a system that perceives its environment and takes actions that maximize its chances of success. John McCarthy, who coined the term in 1955, defines it as "the science and engineering of making intelligent machines."AI research is highly technical and specialised, deeply divided into subfields.

CHAPTER 9 : ENABLING THE ORGANIZATION - DECISION MAKING

MAKING BUSINESS DECISIONS

1)  Managerial decision-making challenges are analyze large amounts of information, apply sophisticated analysis techniques and make decision quickly.

2) There are six decision making process :

-Problem identification

-Data collection

-Solution generation

-Solution test

-Solution selection

-Solution implementation

THE DECISION MAKING ESSENTIAL

1) Operational decision making – employees develop, control, and maintain core  business activities required to run the day-to-day operations.

2) Structured decision – situations where established processes offer potential solutions.

3) Managerial decision making – employees evaluate company operation to identify, adapt to, and leverage changes.

4) Semistructured decisions – occur in situations in which a  few established processes helps to evaluate potential solution but not enough to lead to a definite recommended decision.

5) Strategic decision making – managers develop overall strategies, goals and objectives.

6) Unstructured  decisions – occurs in situations in which no procedures or rules exists to guide decision makers toward the correct choice.

DECISION SUPPORT SYSTEM (DSS)

1)  Decision support system (DSS) – models information to support managers and business professionals during the decision making process.

2)  There are three quantitative models used by DSS

-   Sensitivity analysis where the study of the impact that changes in one or more parts of the model have on other parts of the model.

-   What-if-analysis where checks the impact of a change in an assumption on the proposed solution.

-   Goal-seeking analysis where finds the inputs necessary to achieve a goal such as a desired level of outputs.

What is Artificial Intelligence (AI) :

is the intelligence of machines and robots and the branch of computer science that aims to create it. AI textbooks define the field as "the study and design of intelligent agents" where an intelligent agent is a system that perceives its environment and takes actions that maximize its chances of success. John McCarthy, who coined the term in 1955, defines it as "the science and engineering of making intelligent machines."AI research is highly technical and specialised, deeply divided into subfields.

CHAPTER 8 : ACCESSING ORGANIZATIONAL INFORMATION ( DATA WAREHOUSE)

CHAPTER 8 : ACCESSING ORGANIZATIONAL INFORMATION ( DATA WAREHOUSE)

Accessing Organizational Information

 

The company also uses data warehouse information to perform the following:

·         Base labor budgets on actual number or guests served per hour.

·         Develop promotional sale item analysis to help avoid losses from overstocking or understocking inventory.

·         Determine theoretical and actual costs of food and the use of ingredients

 History of Data Warehousing

Operational systems typically include accounting, order entry, customer service, and sales and are not appropriate for business analysis for the following reasons:

·         Information from other operational applications is not included.

·         Operational systems are not integrated, or not available in one place.

·         Operational information is mainly current—does not include the history that is required to make good decisions.

·         Operational information frequently has quality issues —the information needs to be cleansed

·         Without information history, it is difficult to tell how and why things change over time.

·         Operational systems are not designed for analysis and decision support.

Data Ware house Fundamentals

A data warehouse is a logical collection of information—gathered from many different operational databases—that supports business analysis activities and decision-making tasks.

Extraction, transformation, and loading (ETL), which is a process that extracts information form internal and external databases, transforms the information using a common set of enterprise definitions, and loads the information into a data warehouse.

 MULTIDIMENSIONAL ANALYSIS AND DATA MINING

A cube is the common term for the representation of multidimensional information.

Data mining is the process of analyzing data to extract information not offered by the raw data alone.

Data-mining tools use a variety of techniques to find patterns and relationships in large volumes of information and infer rules from them that predict future behavior and guide decision making.

INFORMATION CLEANSING OR SCRUBBING

Information cleansing or scrubbing is a process that weeds out and fixes or discards inconsistent, incorrect, or incomplete information.

Business Intelligence

Business intelligence (BI) refers to applications and technologies that are used to gather, provide access to, and analyze data and information to support decision-making efforts.

A certain school of thought draws parallels between the challenges in business and those of war, specifically:

·         Collecting information.

·         Discerning patterns and meaning in the information.

·         Responding to the resultant information.

 

ENABLING BUSINESS INTELLIGENCE

Technology – the most significant enabler of business intelligence.

People – Understanding the role of people in BI allows organizations to systematically create insight and turn these insights into actions.

Culture – A key responsibility of executives is to shape and manage corporate culture.