Information Systems in Decision Making
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Questions and Answers

Which type of decision is characterized by a lack of predefined procedures and requires judgment?

  • Unstructured Decisions (correct)
  • Structured Decisions
  • Semi-Structured Decisions
  • Routine Decisions
  • What is the primary function of Transactional Processing Systems (TPS) within an organization?

  • Conducting market research and competitive analysis
  • Analyzing business trends and performances
  • Maintaining operational records and routine transactions (correct)
  • Providing strategic insights for long-term planning
  • What is the primary focus of a Decision Support System (DSS)?

  • Utilizing real-time data for operational control
  • Providing routine flow of data for structured problems
  • Assisting users in making non-routine decisions (correct)
  • Generating fixed and scheduled reports
  • What does Management Information System (MIS) primarily provide to middle management?

    <p>Reports on the firm's current performance and basic operations</p> Signup and view all the answers

    Which of the following is a characteristic of a Model Driven DSS?

    <p>Based on mathematical and statistical data</p> Signup and view all the answers

    Which of the following best describes the role of Business Intelligence systems?

    <p>Organizing and analyzing data for decision making</p> Signup and view all the answers

    What differentiates Management Information Systems (MIS) from Decision Support Systems (DSS)?

    <p>MIS generates fixed reports, whereas DSS focuses on unique problems</p> Signup and view all the answers

    Which characteristic differentiates structured decisions from semi-structured decisions?

    <p>Structured decisions follow clear-cut procedures with established criteria.</p> Signup and view all the answers

    What type of information is typically collected via data mining in a business context?

    <p>Trends in consumer preferences over time</p> Signup and view all the answers

    Which of the following best describes Geographic Information Systems (GIS) in the context of DSS?

    <p>Specialized systems for displaying geographically referenced data</p> Signup and view all the answers

    Study Notes

    Chapter 2: Information System Facilitating Organizational Decision Making

    • Information systems collect information from various sources, organize work activities, and enable businesses to manage information and make better decisions.
    • Business processes are how work is organized and coordinated. They involve collections of activities to produce products or services. This includes the flow of physical, intellectual, and information. Knowledge and expertise among participants are critical. Processes can be functional or cross-functional. Smooth execution results in business assets; poor execution leads to liabilities. Examples include university processes (admission, hiring) and manufacturing (product assembly).
    • Information technology (IT) enhances business by automating steps, increasing access to and sharing of information, replacing sequential steps with parallel, and reducing decision-making delays.

    Systems for Different Management Groups

    • Operational, middle, and senior managers have different information needs and require different systems to support their decision-making activities.
    • Senior management needs general, broad-scope, real-time, and ad-hoc information from internal and external sources.
    • Middle management needs focused, specified, internal, real-time, and scheduled information.
    • Operational management needs specific, narrow, internal, and detailed information.

    Types of Decisions

    • Unstructured decisions require judgment and insights (e.g., approving capital budgets, launching new products).
    • Semi-structured decisions have some clear answers provided by procedures (e.g., allocating resources for a marketing plan).
    • Structured decisions follow definite procedures (e.g., restocking inventory, delivering a shipment).

    Types of Management Information Systems

    • Transactional Processing Systems (TPS) support daily routine transactions required for conducting business (e.g., sales, payroll, payments).
    • Management Information Systems (MIS) produce reports on current performance, answer basic questions, and track routine tasks. They rely on data from TPS, making predefined decisions, but offer limited analytical capabilities.
    • Decision Support Systems (DSS) help managers with non-routine decisions, using models and insights from external and internal data to analyze situations, create numerous possible solutions, and test these scenarios for best results.
    • Group Decision Support Systems (GDSS) support collaborative problem solving using interactive computer systems. Facilitates input and discussion from multiple people involved in the decision making process.

    Business Intelligence and Decision Support Systems

    • Business intelligence uses data collection, organization, and analysis that support managerial decision making. Information is gathered from internal and external sources for use in reports and visualization tools (dashboards).
    • A management information system provides reports on current operations to middle managers for operational control. Also utilized for generating data-driven reports for decision making.

    Knowledge Management Systems (KMS)

    • Knowledge management systems (KMS) improve business decisions by storing, retrieving, and sharing organizational knowledge. Explicit knowledge—codified data, policies, and procedures—is easily shared. Tacit knowledge—knowledge gained from experience and intuition—is harder to share.
    • Knowledge creation relies on several modes, such as socialization, externalization, combination, and internalization.

    Knowledge Storage and Sharing

    • Knowledge is stored in a knowledge repository and shared using IT systems. Systems should be designed and formatted in ways that meet the organization's requirements.
    • Knowledge sharing can occur through various means, such as face-to-face interactions, documentation, and communication channels.
    • Effective knowledge storage and sharing improve efficiency by eliminating the need for repeated discovery and retrieval of information.

    Systems for Collaboration and Teamwork

    • Collaboration involves multiple people working together toward a common goal (e.g., business operations, customer service, or product development), using tools like email, instant messaging systems, shared workspaces, social media, and collaboration software..
    • Effective collaboration requires a supportive organizational structure that encourages participation in decisions
    • Social business relies on social networking, internal and external platforms to support employee interactions, customer relationships, and collaboration with external stakeholders.

    IT Infrastructure

    • IT infrastructure encompasses the physical and software components needed for enterprise operations. Including: hardware platforms, operating systems (OS), enterprise software applications, data management systems, networking and communications platforms, and internet platforms.
    • IT consulting services help organizations implement and manage their IT infrastructure, providing necessary systems integrations and maintenance advice.

    Cloud Computing

    • Cloud computing provides access to computing resources and services over a network, usually the internet. Companies can reduce capital expenditures by outsourcing IT functions.
    • Key characteristics of cloud computing are "on-demand" self-service, broad network access, resource pooling, rapid elasticity, and measured service.
    • Types of cloud computing include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).
    • Important factors to consider while choosing a cloud computing option include organization's operational requirements, security risks, and business costs.

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    Description

    Explore Chapter 2, which discusses how information systems facilitate organizational decision-making. Understand the role of business processes, the importance of coordination, and how information technology can enhance business performance. This quiz covers key concepts that streamline operations and improve decision quality.

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