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Information Systems and Decision Making

Chapter Extension 3. Information Systems and Decision Making. Study Questions. Q1: How do decisions vary by organization level?. Q2: What is the difference between structured and unstructured decisions?. Q3: How do decision level and decision process relate?.

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Information Systems and Decision Making

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  1. Chapter Extension 3 Information Systems and Decision Making

  2. Study Questions Q1: How do decisions vary by organization level? Q2: What is the difference between structured and unstructured decisions? Q3: How do decision level and decision process relate? Q4: What is the difference between automation and augmentation? Q5: How does IS support decision steps?

  3. Decision-Making Dimensions • Decision Level • Operational • Managerial • Strategic • Decision Process • Structured • Semistructured • Unstructured

  4. Q1: How Do Decisions Vary by OrganizationLevel? Strategic • Broader-scope, organizational issues • Executive information systems (EIS) Video Managerial • Allocation and utilization of resources • Management information systems (MIS) Operational • Day-to-day activities • Transaction processing systems (TPS) Decisions Occur at Three Levels

  5. Example of an Executive Information System

  6. Q2: What Is the Difference Between Structured and Unstructured Decisions? Structured decisions Unstructured decisions Predicting direction of economy or stock market Understood and accepted method for making decision Formula for computing reorder quantity No agreed-on or standardized decision-making method How well suited an employee is for a particular job Allocating furniture and equipment to employees

  7. Q3: How Do Decision Level and Decision Process (Type) Relate?

  8. Q4: What Is the Difference Between Automation and Augmentation?

  9. How Decision Level, Decision Type, and IS Type Are Related (Putting it all together)

  10. Why Does All This Matter? Goal of this class─help you be a more knowledgeable user and decision maker of IS and IT Knowing type of decisions can help you determine type of information system that can help Organizations waste millions by not understanding basic relationships between decision level, decision type, and IS type

  11. Decision Making Process Stop Recognize problem exists Yes Gather intelligence to understand problem domain, type, and nature No Problem solved? Formulate alternative solutions Choice─test alternatives and select one to implement Implementation─Action Plan Review Result

  12. Q5: How Does IS Support Decision Steps? Figure 6

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