Questions and Answers
What is a critical factor to consider when generating alternatives in decision-making?
How is the value of an alternative typically evaluated?
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?
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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?
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Which statement accurately reflects the measurement of outcomes in decision-making?
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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?
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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.
