CHAPTER 9:
ENABLING THE ORGANIZATION- DECISION
MAKING
9.1) DECISION
SUPPORT SYSTEMS
-Decision
support systems (DSS) – models information to support managers and
business professionals during the decision-making process
-Three
quantitative models used by DSSs include:
1. Sensitively
analysis – the study of the impact that changes in one (or more) parts of
the model have on other parts of the model
2. What-if
analysis – checks the impact of a change in an assumption on the proposed
solution
3. Goal-seeking
analysis – finds the inputs necessary to achieve a goal such as a desired
level of output
9.2) EXECUTIVE
INFORMATION SYSTEMS
-Executive
information system (EIS) – a specialized DSS that supports senior level
executives within the organization
-most
EISs offering the following capabilities:
1.
consolodation– involves the aggregation of intelligent system that mimics the
evolutionary, survival-of-the-fittest process to generate increasingly better
solutions to a problem
2.
drill-down – enables, users to get details and details of details, of
information
3.
slice-and-dice – looks at information from different perspectives
9.3) ARTIFICIAL
INTELLIGENCE
-INTELLIGENT
SYSTEM – various commercial applications of artificial intelligence
-ARTIFICIAL
INTELLIGENCE (AI) – Simulates human intelligence such as the ability to
reason and learn
-advantages:
can check info on competitor
-the
ultimate goal of AI is the ability to build a system that can mimic human
intelligence
-Four
most common categories of AI include :
1. Expert
system – computerized advisory programs that imitate the reasoning
processes of expert in solving difficult problems
2. Neural
network – attempts to emulate the way the human brain works
-Fuzzy
logic – a mathematical method of handling imprecise or
subjective information
3. Genetic
algorithm – an AI system that mimics the evolutionary,
survival-if-the-fittest process to generate increasingly better solutions to a
problem
4. Intelligent
agent – special-purposed-knowledge-based information system that
accomplishes specific tasks on behalf of its users
9.4) DATA-MINING
-Data-mining
software includes many forms of AI such as neural networks and expert system
-common
forms of data-mining analysis capabilities include:
1. Cluster
analysis
2. Association
detection
3. Statistical
analysis
9.5) CLUSTER
ANALYSIS
-CLUSTER
ANALYSIS – To divide information set into mutually exclusive groups such
that the members of each group are as possible to one another and the different
groups are as far apart as possible
-CRM systems
depend on cluster analysis to segment customer information and identify
behavioral traits
9.6) ASSOCIATION
DETECTION
-Association
detection reveals the degree to which variables are related and the nature
and frequency of these relationships in the information
-Market
basket analysis such items as Web sites and checkout scanner information
to detect customers’ buying behavior and predict future behavior by
identifying affinities among customers’ choices of products and services
STATISTICAL
ANALYSIS performs such functions as information correlations,
distributions, calculations and variance analysis
- Forecast–
predictions made on the basis of time-series information
-time-series
information – time-stamped information collected at a particular frequency
