CIS 3010 Chapter 09
Decision making and problem solving occur at each level in an organization what are the three levels?
Strategic (top) Managerial (Middle) Operational (Down)
Intelligent system
Various commercial applications of artificial intelligence
Model
a simplified representation or abstraction or reality
Models can help managers to ?
calculate risks understand uncertainty change variables manipulate time to make decisions
Operational decision making
employees develop, control and maintain core business activities required to run the day to day operations
Managerial decision making
employees evaluate company operations to identify, adapt to, and leverage change
Online analytical processing (OLAP)
manipulation of information to create business intelligence in support of strategic decision making
Semistructured decisions
occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision
Unstructured decisions
occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice
Structured Decisions
situations where established processes offer potential solutions
Source Document
the original transaction record
transaction processing system (TPS)
Basic business system that serves the operational level and assist in making structured decisions
Artificial intelligence (AI)
Simulates human intelligence such as the ability to reason and learn
Strategic decision making
managers develop overall strategies, goals, and objectives
The five most common categories of AI are?
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 3. Genetic algorithm- an artificial intelligent system that mimics the evolutionary, survival of the fittest process to generate increasingly better solutions to a problem 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
Four quantitative models used by DSS's include?
1. What is analysis 2. sensitivity analysis 3. goal seeking analysis 4. optimization analysis
Executive information system (EIS)
A specialized DSS that supports senior level executives within the organization
Online transaction processing (OLTP)
Capturing of transaction and event information using technology to process, store, and update
Decision support system (DSS)
Models information to support managers and business professionals during the decision making process
