U9 - Ch.8 - Decision Making Flashcards
Why is decision making complicated?
- Concept of rationality is hard to define
- Good outcomes may result from irrational processes and vice versa
- There are limits to human rationality and cognitive abilities
What are Management Misinformation Systems?
Designers of MIS make bad assumptions about managerial decision making thus the systems may not provide good solutions.
What are the three assumptions of Management Misinformation Systems?
- Manager will make better decisions if they get proper data
- Poor decisions are made because of a look of good data
- Managers need to know what kind of data they need
What is information overload?
When managers receive too much data and they don’t know what data is valuable and what isn’t.
What are problems with data?
Sometimes it can be dirty, missing values, inconsistent, non-integrated and improper granularity.
What is OLTP
Online Transaction Processing system collects data electronically and processes the transactions online.
Backbone of all functional, cross and interorg systems.
Support decision making by providing raw info. on transactions and status.
What is OLAP?
Online Analytic Processing systems focus on making OLTP-collected data useful for decision making.
Provides the ability to perform arithmetic operations on groups of datas.
Report measures, facts and dimensions in regard to the data provided by OLTP.
What is the data resource challenge?
Having a lot of data and thinking it’s valuable, but not knowing how to actually use it in a meaningful way.
What are BIS?
Business Intelligence systems provides information for improving decision making. Types include:
- Group Decision support systems (GDSS)
- Reporting systems
- Data-mining systems
- Knowledge-management systems (KM)
- Expert Systems
What is an expert system?
Expert systems encapsulate knowledge into the form of If/Then rules. I.e. IF condition is true, THEN initiate procedure.
What is a data warehouse?
A place that obtains, cleanses, organizes, relates, and catalogs data. Also stores metadata.
Difference between data warehouse and data mart
Data mart is smaller than data warehouse and it’s simply a data collection created to address needs of a specific problem.
What is data mining?
The process of finding valuable information from data. Usually using statistical techniques to find patterns and relationships among data to classify and predict.
Supervised vs unsupervised data-mining techniques.
Unsupervised: analysts do not create model before running the analysis
Supervised: analysts create hypothesis and use statistical techniques applied to data to estimate parameters of their model. I.e. regression analysis and neural networks (eg. determining items that tend to be bought together).
What is Big Data?
Large amounts of varied data from a variety of sources over a period of time could be used to make better decisions.
However it lacks precision in its definition, adds to excessive data collection and is expensive.
