1. Chapter Extension 3 Information Systems and Decision Making

2. 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? Study Questions CE3-2

3. Decision-Making Dimensions CE3-3 Decision Level ‒ Operational ‒ Managerial ‒ Strategic Decision Process ‒ Structured ‒ Semistructured ‒ Unstructured

4. Q1: How Do Decisions Vary by Organization Level? Broader-scope, organizational issues Executive information systems (EIS)Executive information systems Strategic Allocation and utilization of resources Management information systems (MIS) Managerial Day-to-day activities Transaction processing systems (TPS) Operational Video Decisions Occur at Three Levels CE3-4

5. Example of an Executive Information System CE3-5

6. Structured decisions Understood and accepted method for making decision Formula for computing reorder quantity Allocating furniture and equipment to employees Unstructured decisions No agreed-on or standardized decision- making method Predicting direction of economy or stock market How well suited an employee is for a particular job Q2: What Is the Difference Between Structured and Unstructured Decisions? CE3-6

7. Q3: How Do Decision Level and Decision Process (Type) Relate? CE3-7

8. Q4: What Is the Difference Between Automation and Augmentation? CE3-8

9. How Decision Level, Decision Type, and IS Type Are Related (Putting it all together) CE3-9

10. 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 Why Does All This Matter? CE3-10

11. Recognize problem exists Gather intelligence to understand problem domain, type, and nature Formulate alternative solutions Choice─test alternatives and select one to implement Implementation─Action Plan Decision Making Process CE3-11 Problem solved? No Stop Yes Review Result

12. Q5: How Does IS Support Decision Steps? Figure 6 CE3-12