McGraw-Hill/Irwin © 2013 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 15 Decision-Making Models and Knowledge Management

15-2 Outline Expected outcomes Relevance to AIS Information overload Knowledge management Steps for Better Thinking

15-3 Expected outcomes Discuss and give examples of the concept of information overload, including causes, symptoms and countermeasures. Explain the nature of decision models and knowledge management. Explain why those two topics are important in the study of AIS. Describe and apply Wolcott and Lynch’s Steps for Better Thinking. Develop a personal strategy for making decisions and managing knowledge, including available IT and other resources.

15-4 Relevance to AIS An accounting information system is a set of interrelated: –Activities –Documents –Technologies Designed to: –Collect data –Process it –Report information To a diverse group of: –Internal decision makers –External decision makers In all kinds of organizations

15-5 Relevance to AIS Thus, the accounting information system is one source of knowledge in organizations. –Financial knowledge –Non-financial knowledge That knowledge must be managed to create value for stakeholders.

15-6 Information overload The experience of having too much information Can lead to suboptimal, inefficient decisions –Satisficing –Bounded rationality –Relapse errors

15-7 Information overload Causes –Personal factors –Information characteristics –Information technology –Organizational design –Task and process parameters

15-8 Information overload Lecture break 15-1 –Which causes of information overload have you experienced in your AIS course this term? How have they manifested? –What strategies have you used to cope with them?

15-9 Knowledge management One way to cope with information overload Application of relational database ideas A critical success factor in organizations today considering the prominence of knowledge workers & the competitive advantage of information

15-10 Knowledge management Objectives of a knowledge management system (KMS) –To create knowledge repositories –To improve knowledge access –To enhance the knowledge environment –To manage knowledge as an asset

15-11 Knowledge management Steps to create a KMS –Create conducive organizational culture. –Define business goals of KMS. –Perform a knowledge audit. –Create a visual map. –Develop a strategy for managing knowledge based on the previous steps. –Purchase / build appropriate tools. –Periodically reassess and revise the system.

15-12 Knowledge management Lecture break 15-2 Many accounting majors aspire to professional certification / licensure with one or more of the following: Certified Public Accountant Certified Management Accountant Certified Fraud Examiner Consider one of those credentials or some other that interests you. Outline the content of the associated exam. Create a personalized KMS for it.

15-13 Steps for Better Thinking A structured methodology for managing knowledge and making good decisions Five steps –Knowing –Identifying –Exploring –Prioritizing –Evaluating

15-14 Classroom assessment This chapter has focused on: –Information overload –Knowledge management systems –Steps for Better Thinking The chapter & lecture have laid the “foundation” by providing background knowledge about information overload and KMS.

15-15 Classroom assessment BRS Corporation has hired you as a consultant to help them: –Cope with information overload –Develop a KMS. Work with a group of three to five students on one of those two tasks. Use Steps for Better Thinking to help BRS complete the task you chose.

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