Podcast
Questions and Answers
What type of decision-making primarily involves defining the organization's overall goals and aspirations for the future?
What type of decision-making primarily involves defining the organization's overall goals and aspirations for the future?
Which category of decisions is typically the responsibility of midlevel management?
Which category of decisions is typically the responsibility of midlevel management?
What is the primary focus of descriptive analytics?
What is the primary focus of descriptive analytics?
What is the first step in the decision-making process?
What is the first step in the decision-making process?
Signup and view all the answers
Which technique is NOT typically associated with predictive analytics?
Which technique is NOT typically associated with predictive analytics?
Signup and view all the answers
Which approach to decision making is characterized by relying on instincts rather than data?
Which approach to decision making is characterized by relying on instincts rather than data?
Signup and view all the answers
What distinguishes prescriptive analytics from other types of analytics?
What distinguishes prescriptive analytics from other types of analytics?
Signup and view all the answers
What defines business analytics in decision making?
What defines business analytics in decision making?
Signup and view all the answers
Which of the following is NOT a common approach to making decisions?
Which of the following is NOT a common approach to making decisions?
Signup and view all the answers
Which of the following is an example of a technique used in descriptive analytics?
Which of the following is an example of a technique used in descriptive analytics?
Signup and view all the answers
In what way do tools of business analytics assist in decision making?
In what way do tools of business analytics assist in decision making?
Signup and view all the answers
How does predictive analytics utilize past data?
How does predictive analytics utilize past data?
Signup and view all the answers
Which type of decision is concerned with the day-to-day operations of a company?
Which type of decision is concerned with the day-to-day operations of a company?
Signup and view all the answers
What type of model is commonly referred to as a rule-based model?
What type of model is commonly referred to as a rule-based model?
Signup and view all the answers
Which statement about optimization models is true?
Which statement about optimization models is true?
Signup and view all the answers
Which function is least likely to be performed by descriptive analytics?
Which function is least likely to be performed by descriptive analytics?
Signup and view all the answers
What is the main purpose of portfolio models in finance?
What is the main purpose of portfolio models in finance?
Signup and view all the answers
Which model is used to determine optimal discount levels in retailing?
Which model is used to determine optimal discount levels in retailing?
Signup and view all the answers
What are the four Vs of Big Data as defined by IBM?
What are the four Vs of Big Data as defined by IBM?
Signup and view all the answers
What type of analytics combines probability and statistics with optimization techniques?
What type of analytics combines probability and statistics with optimization techniques?
Signup and view all the answers
In decision analysis, which theory is used to value outcomes based on risk preferences?
In decision analysis, which theory is used to value outcomes based on risk preferences?
Signup and view all the answers
What is the primary objective of financial analytics?
What is the primary objective of financial analytics?
Signup and view all the answers
What do supply network design models aim to achieve?
What do supply network design models aim to achieve?
Signup and view all the answers
Which statement best describes predictive analytics?
Which statement best describes predictive analytics?
Signup and view all the answers
Which analytics technique is most crucial for improving scheduling and treatment in health care?
Which analytics technique is most crucial for improving scheduling and treatment in health care?
Signup and view all the answers
What is a primary focus of HR analytics within an organization?
What is a primary focus of HR analytics within an organization?
Signup and view all the answers
Which of the following is NOT a benefit of marketing analytics?
Which of the following is NOT a benefit of marketing analytics?
Signup and view all the answers
What aspect of supply-chain analytics focuses on logistics companies achieving efficiency?
What aspect of supply-chain analytics focuses on logistics companies achieving efficiency?
Signup and view all the answers
Which type of data is foundational for marketing analytics to understand consumer behavior?
Which type of data is foundational for marketing analytics to understand consumer behavior?
Signup and view all the answers
What is one of the key outcomes of using web analytics?
What is one of the key outcomes of using web analytics?
Signup and view all the answers
How does asset allocation relate to investment portfolios?
How does asset allocation relate to investment portfolios?
Signup and view all the answers
Which of the following roles does simulation play in financial analytics?
Which of the following roles does simulation play in financial analytics?
Signup and view all the answers
Which type of decision focuses on the overall goals and aspirations of an organization?
Which type of decision focuses on the overall goals and aspirations of an organization?
Signup and view all the answers
What type of analytics is utilized to predict future outcomes based on past data?
What type of analytics is utilized to predict future outcomes based on past data?
Signup and view all the answers
Which analytical method describes patterns and relationships in large data sets?
Which analytical method describes patterns and relationships in large data sets?
Signup and view all the answers
What is the main goal of optimization models?
What is the main goal of optimization models?
Signup and view all the answers
Which type of decision focuses on the day-to-day operations of an organization?
Which type of decision focuses on the day-to-day operations of an organization?
Signup and view all the answers
What concept examines the overall worth of an outcome based on a decision maker's attitude towards various factors?
What concept examines the overall worth of an outcome based on a decision maker's attitude towards various factors?
Signup and view all the answers
What is the role of simulation optimization in decision making?
What is the role of simulation optimization in decision making?
Signup and view all the answers
What is a key characteristic of big data?
What is a key characteristic of big data?
Signup and view all the answers
Study Notes
Decision Making
- Managers make strategic, tactical, or operational decisions every day
- Strategic decisions are high-level and deal with the organization's overall direction and future goals
- Tactical decisions focus on achieving the strategic goals and objectives, typically made by middle-level management
- Operational decisions concern the day-to-day running of the organization, made by operations managers
Decision Making Process
- Identifying and defining the problem is crucial
- Criteria for evaluating alternative solutions must be established
- A set of alternative solutions need to be determined and evaluated
- Selection of the best alternative is the final step
Common Approaches to Decision Making
- Tradition, intuition, rules of thumb, and using the relevant data are common methods
Business Analytics Defined
- The significant challenge in decision making is overcoming uncertainty and the vast number of alternatives
- Business analytics aims to transform data into insights for making better decisions
- It promotes data-driven or fact-based decision making, which is perceived as more objective
Benefits of Business Analytics for Decision Making
- Generates insights from data
- Improves forecasting accuracy for planning purposes
- Quantifies risk more effectively
- Provides better alternatives through analysis and optimization
Categorization of Analytical Methods
-
Descriptive Analytics describes what has happened in the past, using techniques like data queries, reports, and descriptive statistics
- Data mining is a crucial part of descriptive analytics, using techniques like cluster analysis and sentiment analysis to understand patterns and relationships in large datasets
-
Predictive Analytics uses models based on past data to predict the future and understand the impact of variables
- Common techniques include linear regression, time series analysis, and simulation
-
Prescriptive Analytics indicates the best course of action to take, guiding decision-makers
- Optimization models determine the best decision within constraints
- Examples include portfolio models in finance, supply network design models in operations, and price-markdown models in retail
- Simulation Optimization combines probability, statistics, and optimization techniques to find good decisions in complex and uncertain situations
- Decision Analysis helps develop optimal strategies faced with various decision alternatives and uncertain future events
- Optimization models determine the best decision within constraints
Big Data
- Big data refers to datasets too large or complex for standard data-processing techniques and typical software
- IBM defines big data using the 4Vs: Volume, Velocity, Variety, and Veracity
Business Analytics in Practice
- Financial Analytics uses models to forecast financial performance, assess investment risks, construct financial instruments, and optimize investment portfolios, often employing simulation
- Human Resource Analytics, a newer field, aims to ensure the organization has the right mix of skills, recruits top talent, retains employees, and achieves diversity goals
- Marketing Analytics uses data from scanner data and social media to understand consumer behavior for better advertising, pricing, demand forecasting, product management, and customer satisfaction and loyalty
- Healthcare Analytics employs descriptive, predictive, and prescriptive analytics to improve patient, staff, and facility scheduling, patient flow, purchasing, and inventory control
- Supply-Chain Analytics focuses on efficient delivery of goods, utilizing analytics for optimized sorting, vehicle and staff scheduling, vehicle routing, inventory and processing control, and supply chain resilience
- Web Analytics analyzes online activity like website and social media visits, using descriptive and advanced analytics to configure websites, position ads, and utilize social networks for product and service promotion
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz explores the various aspects of decision making within a business context, including the types of decisions managers face, the decision-making process, and common approaches to making effective choices. It emphasizes the importance of analytical tools in overcoming uncertainty and evaluating alternatives.