1. Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 15 Decision-Making Models and Knowledge Management

2. 15-2 Outline Learning objectives Information overload Knowledge management Steps for Better Thinking Current topics

3. 15-3 Learning objectives 1.Discuss and give examples of the concept of information overload, including causes, symptoms, and countermeasures. 2.Explain the nature of decision models and knowledge management. 3.Explain why those two topics are important in the study of accounting information systems. 4.Describe and apply Wolcott and Lynch’s Steps for Better Thinking. 5.Explain fundamental concepts associated with Big Data, data analytics and cloud computing.

4. 15-4 Information overload Definitions –The point at which information incorporated into a decision begins to decline –Information supplied exceeds human processing capacity Causes –Personal factors –Information characteristics –Task and process parameters –Organizational design –Information technology

5. 15-5 Information overload Selected countermeasures –Allow more time to complete important tasks. –Compress, aggregate, categorize, and structure information. –Formalize the language used to describe information. –Handle information as it comes to you—don’t put it off! –Use graphs and other visual aids. See the chapter for a full list.

6. 15-6 Knowledge management Definition The process through which organizations generate value from their intellectual and knowledge-based assets Objectives 1.Create knowledge repositories. 2.Improve knowledge access. 3.Enhance the knowledge environment. 4.Manage knowledge as an asset.

7. 15-7 Knowledge management 1.Create a supportive organizational culture. 2.Define business goals. 3.Perform a knowledge audit. 4.Create a visual map. To create a knowledge management system (KMS), follow these seven steps:

8. 15-8 Knowledge management 5.Develop a knowledge management strategy. 6.Purchase or build appropriate tools. 7.Periodically reassess the value of the KMS and adjust accordingly. To create a knowledge management system (KMS), follow these seven steps:

9. 15-9 Steps for Better Thinking Developmental problem-solving and decision-making process Developed by Wolcott and Lynch Applied throughout accounting and other areas

10. 15-10 Steps for Better Thinking

11. 15-11 Current topics Big Data Data analytics Cloud computing

12. 15-12 Current topics Types of Big Data –Web and social media –Machine-to-machine –Big transaction –Biometric –Human-generated A specific example may fit more than one group Big Data A collection of data from traditional and digital sources inside and outside your company that represents a source for ongoing discovery and analysis

13. 15-13 Current topics Three broad types –Descriptive –Predictive –Prescriptive Example tools –SAS Enterprise GuideSAS Enterprise Guide –SAS Enterprise MinerSAS Enterprise Miner –RR –SAP HANASAP HANA –Excel MinerExcel Miner Data analytics Tools decision makers can use to analyze Big Data

14. 15-14 Current topics Examples –Google DriveGoogle Drive –Amazon CloudAmazon Cloud Applications –Calendar sharing –Document sharing –Social networking –Data backup Cloud computing A general term for anything that involves delivering hosted services over the Internet

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