Decision Making

Decision making is the mental processresulting in the selection of a course ofaction among several alternatives

Every decision making process producesa final choice in an action or an opinionof choice

If a person neither takes and action norgives an opinion, this is also decision

Difference between Decision Making and Problem Analysis

• It is important to differentiate betweenproblem analysis and decision making. Theconcepts are completely distinct from eachanother.

• Traditionally, it is argued that problemanalysis must be done first, so that theinformation gathered in that process may beused towards decision making.

• A problem is a deviation from performance standards -that is, what occurred is different from what was expectedto have occurred.

• In decision making, the objective(s) are first established,and a choice is made among alternatives for action or foran opinion.

• A decision that results in doing nothing - no action, noran opinion rendered - is also considered a decision.

1. Objectivesmust first be established

2. Objectives must be classified and placedin order of importance

3. Alternative actionsmust be developed

4. The alternative actions must be evaluatedagainst all the objectives

5. The alternative actions that is able to achieveall the objectives is the tentative decision

6. The tentative decision is evaluated for morepossible consequences

7. The decision is implemented.

1. Strategic decision making

2. Management Control decision making

3. Operational Control decision making

4. Knowledge-level decision making

Strategic decisionmaking

• Determines the long-term objectives,resources, and policies of the organization.

Management Control

• Principally concerned with how efficiently andeffectively resources are used and how welloperational units are performing.

Operational Control decision making

• Determines how to carry out the specific tasksset forth by strategic and middle-managementdecision makers.

Knowledge-level decision making

• Deals with evaluating new ideas for products andservices, ways to communicate new knowledge, andways to distribute information throughout theorganization.

Intelligence

Design

Choice

Implementation

Is there a problem?

What are the alternatives?

Which should you choose?

Is the choice working?

Business Intelligence (BI) is the set oftechniques and tools for thetransformation of raw data into

meaningful and useful informationfor business analysis purposes.

Common functions of businessintelligence technologies are reporting, onlineanalytical processing, analytics, datamining, process mining, complex eventprocessing, business performancemanagement, benchmarking, textmining, predictive analytics and prescriptive

analytics.

•Multidimensional aggregation and

allocation

•Real-time reporting with analytical alert

•A method of interfacing with unstructured

data sources

•Group consolidation, budgeting and rolling

forecasts

Components of Business Intelligence

•Statistical inference

•Key performance indicators optimization

•Version control and process management

•Open item management

•Business intelligence can be beneficial foranalyzing internal raw data, such as turnoverby department or product, and identifyinefficient business processes that can be re-engineered to better suit your business needs.•However, you have to ensure that your datais clean, trustworthy and of good quality forthose who will use it.

•From strategy to execution, the most criticalfactor affecting performance management is thequality, accuracy and timeliness of anorganization’s information.•Business Intelligence is the enabling technologythat supports an organization’s performancemanagement.

• The Company works with clients to ensure they areready for a BI initiative. They do this by conductinga BI readiness assessment along with a business case.

• Personnel's of trained, certified, and experienced BIconsultants set out a clear BI roadmap that alignswith both the client’s current day-to-daycommitments and their long-term plans.

BI : Corporate Performance management

•They must transform the volumes ofdata an organization collects intomeaningful information that clientcan use to improve decision-makingand performance.

Ethical and Privacy issues in information systems

Ethics refers to the principle of right and wrongthat individuals, acting as free moral agents, use tomake choices to guide their behavior.Information technology and Information systemraise new ethical questions for both individuals andsocieties.

Ethical and Privacy issues in information systems

It create opportunities for intense social change, andthus threaten existing distributions of power, money,rights and obligations

It can also use to commit crimes, and threatenedcherished social values.

How organization develop corporate policies for ethical conduct?

Corporation should develop an ethics policy statement to individuals and to encourage the correctdecisions.Individual information rights: Spell out corporate privacy and due process policies

Property rights: clarify how the corporationwill threat property rights of software owners.

Accountability and control: clarify who is the responsible and accountable for corporate information.

System quality: identify methodologies and quality standards to be achieved

Quality of life: identify corporate policies on family, computer crime-decision making, vulnerability, job loss,and health risks.

Ethical and Privacy issues in information systems

•Information technology has raised new possibilitiesfor behavior for which laws and rules of acceptableconduct have not yet been developed.•The main ethical, social, and political issues raised byinformation systems center around informationrights, and obligations, property rights, accountabilityand control, system quality and quality of life.