IT Ch. 9

Intelligent Agent

Special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users.

Semi structured decisions

These are decisions that occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision.

Optimization analysis

an extension of goal-seeking analysis, finds the optimum value for a target variable by repeatedly changing other variables, subject to specified constraints. By changing revenue and cost variables in an optimization managers can calculate the highest potential profits.

Source Documents

are the inputs for the TPS system. or the original transaction records.Sources documents for a payroll system can include time sheets, wage rates, and employee benefit reports.

Goal Seeking Anslysis

finds the inputs necessary to achieve a goal such as a desired level of output. It is the reverse of what if and sensitivity. analysis. Instead of observing changes in a variable affect other variables, goal-seeking analysis sets a target value or goal for a variable and then repeatedly changes other variables until the target volume is achieved. For example, goal seeking analysis could determine how many customers must purchase a new product to increase gross profits to $5 million.

EIS Executive Information System

is a specialized DDS that supports senior-level executives and unstructured, long-term, non routine decisions requiring judgement, evaluations, and insight. Offer the following 1) Consolidation 2) Drill-down 3) Slice and Dice

Consolidation

is the aggregation of data from simple roll-ups to complex groupings of interrelated information. For example dads from different sales representatives can then be rolled up to an office level, then a state level, then a regional sales level.

TPS Transaction Processing System

is the basic business system that serves the operational (analysts) and assist in making structured decisions. The most common example is the an operational accounting system like a payroll system or an order-entry system.

OLTP Online transaction Processing

is the capture of transaction and event information using technology to process the information according to defined business rules, 2) store the information, and, 3) update existing information to reflect the new informaitn

OLAP Online Analytical Processing

is the manipulation of information to create business intelligence in support of strategic decision making

DSS Decision support systems

model information using OLAP, which provides assistance in evaluating and choosing among different courses of action.

Structural Decision Making

Situations were established processes offer potential solutions

AI Systems

1) Expert system 2) Neural Network 3) Generic Algorithm 4) Intelligent agent 5) Virtual Reality

What is the 6 step decision making process?

1) Problem Identification 2) Data Collection 3) Solution Generation 4) Solution Test 5) Solution Selection 6) Solution Implementation

Sensitivity Analysis

A system that is used by DSS. is a special case of what-if analysis, is the study of the impact on other variables when only one variable is changed repeatedly. Sensitivity analysis is useful when users are uncertain about the assumptions made in estimating the value of certain key variables. For example, repeatedly changing revenue in small increments to determine on other variables would help a manager understand the impact of various revenue levels on other decision factors.

Digital Dashboard

A visualization tool which tracks key performance indicators (KPI's) and critical success factors (CSF's) by compiling information from multiple sources and tailoring it to meet user needs.

Expert Systems

Are computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems. Typically they include a knowledge base containing continuous accumulated experience and a set of rules for applying the knowledge base to each particular situation. Expert systems are the most common form of AI in the business arena because they fill the gap when human experts are difficult to find or retain or are too expensive. The best known systems play chess and assist in medical diagnosis.

Neural Network

Attempts to emulate the way the human brain works. Neural networks analyze large quantities of information to establish patterns and characteristics in situations where the logic or rules are unknown.

What IF Analysis

Checks the impact of a change in a viable or assumption on the model. For example"What will happen to the supply chain if a hurricanes in South Caroline reduces holding inventory from 30 percent to 10 percent?". A user should be able to observe and evaluate any changes that occurred to the value in the model, especially to a variable such as profits. User repeat this analysis with different variables until they understand all the effects of various situations.

Expert System

Computerized advisory programs that imitate the reasoning processes of experts in solving difficult probelms

Managerial Level

Employees are continuously evaluating company operations to hone the firms abilities to identify, adapt to, and leverage change. These plans are short to medium range planning.

Operational Decision Making

Employees develop, control, and maintain core business activities required to run the day-to-day operations

Drill Down

Enables users to view details, and details of details, of informality. This is the reverse of consolidation: a user can view regional sales data and then drill down all the way to each sale representative data at each office. Drill-down capability lets manager view monthly, weekly, daily, or even hourly information.

Slice & Dice

Is the ability to look at information form different perspectives. One slice of information could display all product sales during a given promotion. Another slice could display a single products sales for all promotions. Slicing and dicing is often performed along a time axis to analyze trends and find time-based patterns in the information.

How does MIS help make decisions?

MIS helps to make decisions based on previously modeled behaviors. ?????????????????????????