IS300 Chap 12 Note

• Decision maker must provide judgment, evaluation, and insight to solve problem
• Senior managers: Make many unstructured decisions

• Repetitive and routine; involve definite procedure for handling so they do not have to be treated each time as new
• Operational managers, rank and file employees: Make more structured decisions

• Only part of problem has clear-cut answer provided by accepted procedure
• Middle managers: Make more structured decisions but these may include unstructured components

• 1.Intelligence
• 2.Design
• 3.Choice
• 4.Implementation

Discovering, identifying, and understanding the problems occurring in the organization

Identifying and exploring solutions to the problem

Choosing among solution alternatives

Making chosen alternative work and continuing to monitor how well solution is working

• 5 functions
• Planning, organizing, coordinating, deciding, and controlling

Actual behavior of managers appears to be less systematic, more informal, less reflective, more reactive, and less well organized than in classical model

• –Interpersonal roles
• 1.Figurehead, 2.Leader, 3.Liaison
• –Informational roles
• 4.Nerve center, 5.Disseminator, 6.Spokesperson
• –Decisional roles
• 7.Entrepreneur, 8.Disturbance handler, 9.Resource allocator, 10.Negotiator

• 1.Information quality: High-quality decisions require high-quality information
• 2.Management filters: Managers have selective attention and have variety of biases that reject information that does not conform to prior conceptions
• 3.Organizational inertia and politics: Strong forces within organizations resist making decisions calling for major change

• Infrastructure for collecting, storing, analyzing data produced by business
• Databases, data warehouses, data marts

• Tools and techniques for analyzing data
• OLAP, statistics, models, data mining

Create business intelligence and analytics purchased by firms

• 1.Data from the business environment
• 2.Business intelligence infrastructure
• 3.Business analytics toolset
• 4.Managerial users and methods
• 5.Delivery platform – MIS, DSS, ESS
• 6.User interface

• 1.Production reports
• 2.Parameterized reports
• 3.Dashboards/scorecards
• 4.Ad hoc query/search/report creation
• 5.Drill down
• 6.Forecasts, scenarios, models

Help users see patterns and relationships that would be difficult to see in text lists

Ties location-related data to maps

• 1.One-stop integrated solution: Hardware firms sell software that run optimally on their hardware; Makes firm dependent on single vendor – switching costs
• 2.Multiple best-of-breed solution: Greater flexibility and independence; Potential difficulties in integration; Must deal with multiple vendors

• Help executives focus on important performance information
• Balanced scorecard method

• Framework for operationalizing a firm's strategic plan
• Measures outcomes on four dimensions:
• 1.Financial
• 2.Business process
• 3.Customer
• 4.Learning & growth

measure each dimension of firm performance proposed by senior mgmt for understanding how well the firm is performing along any given dimension

Translates firm’s strategies (e.g. differentiation, low-cost producer, scope of operation) into operational targets

more detailed views of data

• Interactive system to facilitate solution of unstructured problems by group
• Specialized hardware and software; typically used in conference rooms