Week 12: Chapter 9

Section 9.1 -

1. Describe the decision-making process proposed by Simon.

Simon described the decision-making process as composed of three major phases: intelligence, design and choice. A fourth phase was added later; the implementation stage.

Intelligence phase: managers examine a situation and identify and define the problem.

Design phase: decision makers construct a model that simplifies the problem. They do this by making assumptions that simplify reality and by expressing the relationships among all the relevant variables. Managers then validate the model by using test data. Finally, decision makers set criteria for evaluating all potential solutions that are proposed.

Choice phase: involves selecting a solution, which is tested “on paper”.

Implementation phase: Implementation is successful if the proposed solution actually resolves the problem.


2. Why do managers need IT support?

Managers need IT support:

• The number of alternatives to be considered constantly increases. (global market, internet)
• Decisions must be made under time pressure.
• Decisions are more complex (requires modeling)
• Decision makers can be in different locations and so is the information.
  

3. Describe the decision matrix.

A decision matrix is a decision support framework consisting of nine cells and divided between the three primary classes of problem structure and the three broad categories of the nature if decisions.

(Figure 9.2; Rainer and Turban, p.266)

Section 9.2

1. Describe the capabilities of data mining.

Data mining derives its name from searching for valuable business information in a large database, data warehouse, or data mart. Data mining can perform two basic operations: predicting trends and behaviours and identifying previously unknown patterns.


Section 9.3 -

1. What are some of the capabilities of digital dashboards?

• Provide rapid access to timely information.
• Provide direct access to management reports.
• Are very user friendly and supported by graphics.