1. Business Driven Technology Unit 3 Streamlining Business Operations Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. 9-2 Unit Three O Chapter Nine – Enabling the Organization – Decision Making O Chapter Ten – Extending the Organization – Supply Chain Management O Chapter Eleven – Building a Customer-centric Organization – Customer Relationship Management O Chapter Twelve – Integrating the Organization from End to End – Enterprise Resource Planning

3. Chapter 9 Enabling the Organization— Decision Making 9-3

4. 9-4 LEARNING OUTCOMES 1. Explain the importance of decision making for managers at each of the three primary organization levels along with the associated decision characteristics 2. Classify the different operational support systems, managerial support systems, and strategic support systems, and explain how managers can use these systems to make decisions and gain competitive advantages 3. Describe artificial intelligence and identify its five main types

5. 9-5 MAKING BUSINESS DECISIONS O Managerial decision-making challenges O Analyze large amounts of information O Apply sophisticated analysis techniques O Make decisions quickly

6. 9-6 The Decision-Making Process O The six-step decision-making process 1. Problem identification 2. Data collection 3. Solution generation 4. Solution test 5. Solution selection 6. Solution implementation

7. 9-7 Decision-Making Essentials Decision-making and problem-solving occur at each level in an organization

8. 9-8 Decision-Making Essentials O Operational decision making - Employees develop, control, and maintain core business activities required to run the day-to-day operations O Structured decisions - Situations where established processes offer potential solutions OPERATIONAL

9. 9-9 Decision-Making Essentials O Managerial decision making – Employees evaluate company operations to identify, adapt to, and leverage change O Semistructured decisions – Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision MANAGERIAL

10. 9-10 Decision-Making Essentials O Strategic decision making – Managers develop overall strategies, goals, and objectives O Unstructured decisions – Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice STRATEGIC

11. 9-11 SUPPORT: ENHANCING DECISION MAKING WITH MIS O Model – A simplified representation or abstraction of reality O Models help managers to  Calculate risks  Understand uncertainty  Change variables  Manipulate time to make decisions

12. 9-12 SUPPORT: ENHANCING DECISION MAKING WITH MIS Types of Decision Making MIS Systems

13. 9-13 Operational Support Systems O Transaction processing system (TPS) – Basic business system that serves the operational level and assists in making structured decisions O Online transaction processing (OLTP) - Capturing of transaction and event information using technology to process, store, and update O Source document – The original transaction record

14. 9-14 Operational Support Systems Systems Thinking View of a TPS

15. 9-15 Managerial Support Systems O Online analytical processing (OLAP) – Manipulation of information to create business intelligence in support of strategic decision making O Decision support system (DSS) – Models information to support managers and business professionals during the decision- making process

16. 9-16 Managerial Support Systems O Four quantitative models used by DSSs include 1. What-if analysis 2. Sensitivity analysis 3. Goal-seeking analysis 4. Optimization analysis

17. 9-17 Managerial Support Systems Systems Thinking View of a DSS

18. 9-18 Managerial Support Systems Interaction Between a TPS and DSS

19. 9-19 Strategic Support Systems Information Levels Throughout An Organization

20. 9-20 Strategic Support Systems O Executive information system (EIS) – A specialized DSS that supports senior level executives within the organization O Granularity O Visualization O Digital dashboard

21. 9-21 Strategic Support Systems Interaction Between a TPS and EIS

22. 9-22 Strategic Support Systems O Most EISs offering the following capabilities O Consolidation O Drill-down O Slice-and-dice

23. 9-23 O Artificial intelligence (AI) – Simulates human intelligence such as the ability to reason and learn O Intelligent system – Various commercial applications of artificial intelligence Artificial Intelligence (AI)

24. 9-24 Artificial Intelligence (AI) O Five most common categories of AI 1. Expert system – Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems 2. Neural Network – Attempts to emulate the way the human brain works

25. 9-25 Artificial Intelligence (AI) 3. Genetic algorithm – An artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem - Shopping bot – Software that will search several retailer websites and provide a comparison of each retailer’s offerings including price and availability

26. 9-26 Artificial Intelligence (AI) 4. Intelligent agent – Special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users 5. Virtual reality - A computer-simulated environment that can be a simulation of the real world or an imaginary world

27. 9-27 LEARNING OUTCOME REVIEW O Now that you have finished the chapter please review the learning outcomes in your text