5 IT in Decision-Making Flashcards
What is IT in decision-making?
The use of technology, digital tools, and data analytics to support and improve business decisions.
Why is IT important in decision-making?
✅ Eliminates reliance on intuition
✅ Uses real-time data for accuracy
✅ Helps businesses optimize processes and reduce risks
What gives companies a competitive advantage?
IT-driven decision-making enables faster and more precise choices.
What is DDDM?
A process of making business decisions based on data analysis instead of intuition.
What are the key steps of DDDM?
1️⃣ Data Collection – Gathering information from transactions, customers, and digital sources.
2️⃣ Data Processing – Cleaning and organizing data.
3️⃣ Data Analysis – Using AI, statistics, and BI tools to identify patterns.
4️⃣ Decision Implementation – Applying insights to business strategy.
Pros & Cons of DDDM?
✅ Improves accuracy, efficiency, and trend prediction
❌ Requires high-quality data, can be costly, and has privacy risks
What are key technologies in DDDM?
✔ Big Data Analytics – Processes large datasets for real-time insights
✔ AI & Machine Learning (ML) – Predicts trends and automates analysis
✔ Cloud Computing – Secure storage and remote data access
✔ Internet of Things (IoT) – Gathers real-time data from devices
✔ Blockchain – Ensures security and data integrity
What are the steps to implement DDDM?
1️⃣ Define business objectives
2️⃣ Collect & integrate data
3️⃣ Ensure data quality
4️⃣ Use Business Intelligence (BI) tools
5️⃣ Train employees
6️⃣ Continuously monitor & optimize
What are BI tools?
Software applications that analyze data and generate insights through dashboards, reports, and visualizations.
Examples of BI Tools
📊 Power BI – Microsoft’s analytics tool, great for standardized reporting
📈 Tableau – Advanced data visualization for large datasets
📊 Google Data Studio – Free tool for interactive reports
How do BI tools help decision-making?
✅ Improve data visualization
✅ Automate reporting
✅ Enable real-time tracking of trends
What are the challenges of BI tools?
❌ Requires expertise to use effectively
❌ High initial cost for advanced tools
❌ Data security concerns
How does Netflix use DDDM?
✔ Personalized Recommendations – AI suggests content based on viewing habits
✔ Content Production – Data-driven decisions on which shows to greenlight
✔ User Engagement Analysis – Tracks pause & rewatch behavior
✔ Dynamic Pricing Models – Adjusts subscription pricing based on data
✔ Marketing Optimization – Uses analytics to refine ad campaigns
How does BI help financial decision-making?
✔ Budget Forecasting – Predicts revenue and expenses
✔ Fraud Detection – Uses AI to identify suspicious transactions
✔ Risk Assessment – Evaluates financial stability
✔ Investment Optimization – Analyzes market trends for smarter decisions
✔ Automated Reporting – Reduces human errors in financial statements
How does AI assist HR?
✔ Automates resume screening
✔ Predicts which candidates will succeed
✔ Tracks employee performance
What are top cybersecurity risks?
🚨 Data Breaches – Unauthorized access to sensitive information
🚨 AI Manipulation – Hackers can trick AI-driven decisions
🚨 Cloud Security Issues – Storing data remotely increases risks
How does IT reduce cybersecurity risks?
✔ AI detects unusual network activity
✔ Automated fraud detection in banking
✔ Predictive algorithms identify cyber threats
How does Amazon use IT for decision-making?
✔ AI-driven recommendations – Suggests products based on browsing history
✔ Dynamic Pricing – Adjusts product prices in real-time
✔ Inventory Optimization – Uses predictive analytics for stocking decisions
✔ AI-powered chatbots – Automates customer support
How does ML improve business decisions?
✔ Automated Data Analysis – Processes massive datasets
✔ Predictive Analytics – Forecasts customer behavior & risks
✔ Anomaly Detection – Identifies fraud & cybersecurity threats
✔ Personalization – Tailors content for users (Netflix, Spotify)
What is IT Governance?
Ensures IT aligns with business goals while managing risks and compliance.
Why is IT Governance important?
✔ Prevents cybersecurity threats
✔ Ensures compliance with laws like GDPR & CCPA
✔ Aligns IT investments with company strategy
What is predictive analytics?
AI-powered forecasting using past data to predict future trends.
Business applications of predictive analytics?
✔ Sales forecasting
✔ Customer churn prevention
✔ Inventory management
✔ Fraud detection
Future Trends in IT Decision-Making
🔮 AI will assist but not replace human decision-making
🔮 5G & IoT will enable real-time decision-making
🔮 Ethics & regulation in AI will become more critical
