Business Analysis An Overview of Business Decision Making

Decision Making Process INTELLIGENCE Fact Finding Problem/Opportunity Sensing Analysis/Exploration DESIGN Formulation of Solutions Generation of Alternatives Modeling/Simulation CHOICE Alternative Selection Goal Maximization Decision Making Implementation

Decision Environment UNCERTAINTY Facts not known Gather Information Fact Finding /.Analysis DATA BASED COMPLEXITY Too many facts Generate Information Simulation/Synthesis MODEL BASED EQUIVOCALITY Facts not Clear Interpret Information Application of Expertise KNOWLEDGE BASED

Decision Support Systems Data Base Model Base Knowledge Base User Interface

Types and Levels of Decisions STRATEGIC TACTICAL OPERATIONAL UNSTRUCTURED STRUCTURED TRANSACTION PROCESSING MANAGEMENT INFORMATION DECISION SUPPORT

Enterprise Wide Decision Making CRM Applications Suppliers Customers Tactical Apps. Strategic Apps. ERP ApplicationsSCM Applications Business Intelligence Customer acquisition Pricing Promotion Customer retention Loyalty programs Capacity Planning Material Flow Resources People/Money

Analytical Methods Quantitative Methods Mathematical / Algebraic / Calculus Methods Statistical Modeling and Analysis Management Science / Operations Research Techniques Accounting / Financial Modeling Qualitative Methods Nominal Group Techniques Heuristic Based Methods Expert Systems / AI

Modeling Process Objective Hierarchies Measures/ Variables Model Relationships Evaluate / Build DSS Control (Dashboards)

Course Outline 1.Basic DSS - Spreadsheet Models 2.Descriptive Analysis of Data 3.Forecasting 4.Simulation, Optimization 5.DSS Revisited