CHAPTER 9 : ENABLING THE ORGANIZATION - DECISION MAKING

MAKING BUSINESS DECISIONS

1)  Managerial decision-making challenges are analyze large amounts of information, apply sophisticated analysis techniques and make decision quickly.

2) There are six decision making process :

-          Problem identification

-          Data collection

-          Solution generation

-          Solution test

-          Solution selection

-          Solution implementation

THE DECISION MAKING ESSENTIAL

1)  Operational decision making – employees develop, control, and maintain core business activities required to run the day-to-day operations.

2) Structured decision – situations where established processes offer potential solutions.

3) Managerial decision making – employees evaluate company operation to identify, adapt to, and leverage changes.

4) Semistructured decisions – occur in situations in which a  few established processes helps to evaluate potential solution but not enough to lead to a definite recommended decision.

5) Strategic decision making – managers develop overall strategies, goals and objectives.

6) Unstructured  decisions – occurs in situations in which no procedures or rules exists to guide decision makers toward the correct choice.

DECISION SUPPORT SYSTEM (DSS)

1)  Decision support system (DSS) – models information to support managers and business professionals during the decision making process.

2)  There are three quantitative models used by DSS

-   Sensitivity analysis where the study of the impact that changes in one or more parts of the model have on other parts of the model.

-   What-if-analysis where checks the impact of a change in an assumption on the proposed solution.

-   Goal-seeking analysis where finds the inputs necessary to achieve a goal such as a desired level of outputs.

What is Artificial Intelligence (AI) :

 

is the intelligence of machines and robots and the branch of computer science that aims to create it. AI textbooks define the field as "the study and design of intelligent agents" where an intelligent agent is a system that perceives its environment and takes actions that maximize its chances of success. John McCarthy, who coined the term in 1955, defines it as "the science and engineering of making intelligent machines."AI research is highly technical and specialised, deeply divided into subfields.