Chapter 12 - Supporting Info-Centric Decision Making Flashcards
What is decision making?
The process of making choices by identifying a decision, gathering information and assessing alternatives
How do computer systems support decision making?
Through increasing frequenct of automation
What are the types of decision making?
Structured - well-defined methodology and data
Unstructured - knowledge or expertise, reqiure data and models
Semi-Structured - some human judgement, some agreement on method
What is business intelligence?
A wrote set of concepts and technologies to improve the context of decisions.
Gathers and filters data.
Relies on DW and DBs
What is DSS?
Decision support systems
- Computer based info system that helps makes decisions about problems that are rapidly changing
- Combines models and analytics with traditional data anal
What are the three fundamental components of a DSS?
1) Data Base
2) Model Base - decision context and user criteria
3) Software System - DBMS, MBMS, DGMS
And the user
What is data mining?
Uses computers to find unknown correlations from a large data set by finding hiddent patterns and rules to predict trends
What are the data mining techniques?
Associations - Determine occurences linked to a single event
Sequences - Events that are linked over time
Classifications - Discover characteristics of customers and make predictions about behavior of those classes
Clusters - Groups within data
Forecasting - Using current values to estimate what future values will be
What are Executive Information Systems?
An executive summary form of TSS. Used to guide company performance and scan business info.
What is the goal of EIS?
Goal: provide access to summary performance data, use graphics to display data in user friendly fashion, offer minimum of analysis beyond exec summary data
What do EIS usually do?
Supportt senior management
Incorporate data about external events
Summarize info from TSS
What are some common shortfalls of EIS?
Lack of exec support undefinded system objectives Poorly defined requirements inadequate supoprt staff Poorly planned evolutions
What is an expert system?
A real world use of AI
AI mimics human cognition and communication to analyze a situation or solve a problem
What are the components of an expert system?
UI -> Inference engine -> Knowledge Base
How can knowledge be represented in expert systems?
Cases
Neural Network nodes
Rules - knowledge obntained by human experts drawing on experience, expertise, common sense, laws etc…
What are real time enterprises>?
Ensuring enterprises have ability to monitor, capture and analyze events that are critical to its success
What is an enterprise nervous system
A kind of network that provides universal connectivity among people, applications and devices
What are some of the enhanced forms of communication provided by enterprise nervous systems?
- transforms messages
- Redirects messages
- track and control bus processes
What is straight through processing?
Transation data entered just once in a process
What is the goal of straight through processing?
Allow companies to have same info be streamlined through multiple points
Reduce waste effect from process lag and latency
What are communicating objects?
Smart sensors and tags that provide info about the real world via real time data
What is the OODA Framework?
Observe -> Orient -> Design -> Act
Allows individuals, teams or orgs to adapt and react on their own terms
What are the requisites for Real-Time Management Strategy
- real time data
- real time performance matrix
- focus on high value add data
- define key activites and KPIs
What is BI?
Concepts, methods and tech to support decision making by using info centric support
Some numbers about BI
- market for anal tools $4.5 billion in 2005
- tools for advanced anal reach $120 million
What is sense making?
- ability to be aware of and assess situations that seem important to the org
situation awareness -> constructive and inductive process
situation assessment -> fitting observed data in predetermined model
How does BI achieve awareness?
- IT enabled infra to enhance collaboration
- support planning, monitoring and execution of decisions
What is the operational goal of BI?
Help users generate actions to control the assessed situation
- allows id of business obj
- definition of constraints
- eval of alt solutions
- decision making
includes DW, data/doc mining, web mining, scoreboarding, viz, trend anal, multi-d anal, neural networks
What is the role of IT in decision making?
- using IT to get info decision maker needs
- better formulate the problem
- clarify preferences
- process complex reasoning
- better appreciate impacts
What are the five technologies used in BI?
1) Decision support systems
2) Data mining
3) Exec info sys
4) Expert sys
5) Agent-based modelling
What are four ways enterprise nervous systems differ from past systems?
- message based
- event driven
- uses publish and subscribe approach
- common data formats
What is the bullwhip effect?
- when a customer puts in an order, business orders a bit extra
- supplier orders a bit extra
- etc…
RT supply chain reduces discrepancy and therefore the effect of bull whip
What are some disadvantages and challenges to RT management?
- privacy
- speed means things can go bad fast, speed needs to be balanced with caution
- circuit breakers needed to stop deep spirals
What are two aspects orgs need to succeed in with RT mgmt?
- RT data and performance indicators - not all indicators need to be RT, use the few effective ones
- tech readiness - need an integrated and seamless platform
