Podcast
Questions and Answers
What is a critical factor to consider when generating alternatives in decision-making?
What is a critical factor to consider when generating alternatives in decision-making?
How is the value of an alternative typically evaluated?
How is the value of an alternative typically evaluated?
Which of the following outcomes might be used to measure customer satisfaction?
Which of the following outcomes might be used to measure customer satisfaction?
What is an important task of a decision maker concerning risk in decision alternatives?
What is an important task of a decision maker concerning risk in decision alternatives?
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In decision-making processes, what typically follows the determination of criteria for evaluating alternatives?
In decision-making processes, what typically follows the determination of criteria for evaluating alternatives?
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What often complicates the process of generating alternatives in decision-making?
What often complicates the process of generating alternatives in decision-making?
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Which statement accurately reflects the measurement of outcomes in decision-making?
Which statement accurately reflects the measurement of outcomes in decision-making?
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What role does risk assessment play in decision-making?
What role does risk assessment play in decision-making?
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In which scenario would it be essential to measure the outcome concerning profit maximization?
In which scenario would it be essential to measure the outcome concerning profit maximization?
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In scenario analysis, what is typically prioritized before generating alternatives?
In scenario analysis, what is typically prioritized before generating alternatives?
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Study Notes
Risk in BI/DSS Development
- Vital consideration influencing the design and decision-making process.
Decision Making: Design Phase
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Scenario: A narrative description of the operating environment, aiding in simulations and what-if analyses.
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Scenarios help to identify opportunities, monitor changes, and validate modeling assumptions.
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They allow exploration of system behavior and sensitivity checks for proposed solutions.
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Types of Scenarios:
- Worst possible scenario
- Best possible scenario
- Most likely scenario
- Average scenario
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Scenarios set the analytical context; heuristics guide efficient problem-solving and planning processes.
Decision Making: Choice Phase
- Sensitivity Analysis: Examines changes in input variables and their effect on solutions.
- What-if Analysis: Involves querying the impact of modifications in input data or parameters on outcomes.
Decision Making: Implementation Phase
- Involves introducing changes, which requires managing user expectations.
- Key implementation issues include:
- Resistance to change
- Support from top management
- User training
Supporting Decision Making
- Computer support can enhance the decision-making process, providing tools and frameworks for better analysis.
Generating Alternatives
- Alternatives can be generated automatically in optimization models, though manual generation is often necessary in MSS (Management Support Systems).
- Efficient identification of alternatives occurs after establishing evaluation criteria.
Measuring Outcomes
- Alternatives are assessed based on goal achievement:
- Example 1: Goal of profit maximization evaluated through net profits.
- Example 2: Customer satisfaction maximized by analyzing complaints, loyalty, and survey results.
Risk Assessment in Decision Making
- Decision makers must evaluate risk levels associated with each alternative.
- Alternatives yielding unacceptable risk levels are eliminated from consideration.
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Description
This quiz explores the critical risks involved in Business Intelligence and Decision Support System (BI/DSS) development. You will learn about the design, choice, and implementation phases, along with various types of scenarios and analysis methods used to enhance decision-making processes.
