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Published byJordan Sparks Modified over 9 years ago
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CIS 429—Chapter 9 Enabling the Organization— Decision Making
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Decision Making An organization may acquire and store vast amounts of data and ______________ How can these data be used to make good business decisions? A _____ is an abstraction (simplification) of reality An organization can use information to construct a model for decision-making
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Transaction Processing Systems Online transaction processing (OLTP) captures and stores basic transactional data A transaction processing system (TPS) is the system that serves ___________ tasks; for example – Payroll system – Order-entry system Online __________ processing (OLAP) is the processing of information to create business intelligence to support strategic decision making
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Decision Support Systems A decision _________ system (DSS) models information to support managerial decision- making Three quantitative models used by DSSs – What-if analysis What happens to the output, IF various inputs are changed? Often performed using ______________ – Sensitivity analysis How sensitive are the ________ to changes in the inputs? – Goal-seeking analysis What inputs are necessary to achieve predetermined goals? A _____ supplies the basic data used by a DSS
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Executive Information Systems An EIS is a DSS that supports top-level executive decision-making Capabilities of many EISs – Consolidation (___________ of information to complex groupings) – Drill-down (acquiring more detailed information when needed) – Slice-and-dice (viewing information from different perspectives) Digital dashboards – EIS that integrates information from multiple sources, _________ to the individual preferences of executives
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Artificial Intelligence (AI) Artificial intelligence is HW and SW that simulates _______ intelligence to solve problems An AI system is a commercial application of artificial intelligence; types of AI systems are – Expert systems (imitate the reasoning of an expert) – Neural networks (imitate the working of the human ______ by detecting patterns in data or using fuzzy logic) – Genetic algorithms (imitates evolutionary, survival of the fittest processes) – Intelligent ______ (a special-purpose knowledge-based system that performs specific task for a user)
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Data Mining Wal-Mart applies to point-of-______ (POS) data to create business intelligence resulting in highly accurate sales forecast by product and store. Data mining uses existing data sets to create ___________, which are then applied to new data sets. Types of data mining analysis: – Cluster analysis: divide data into __________ exclusive groups that can then be treated differently Cluster analysis – Association detection: degree to which variables are related (e.g., market basket analysis)market basket analysis – Statistical analysis: correlations, distributions, statistical models (e.g., ___________ information for forecasting)
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