CHAPTER 9 : DECISION MAKING

Model – a simplified representation or abstraction of reality

Transaction Processing Systems ( TPS )

TPS – the basic business system that seves the operational level in an organization.

Online Transaction Processing ( OLTP )

OLTP – the capturing of transaction and event information using technology.

Online Analytical Processing ( OLAP )

OLAP – the manipulation of information to create business intelligence in support of stratergic decision making.

Decision Support System

- models info to support managers and business professionals during the decision making process.

3 quantitative models used by DSS include :

        

 Sensitivity analysis – the study of impact that changes in one parts of the model have on other    parts of the model.

   
 What-If analysis – checks the impact of a change in an assumption on the proposed solution.  

   Goal-seeking analysis – finds the inputs necessary to achieve a goal such as desired level of output.

Executive Information System ( EIS )

A specialized DSS that supports senior level executives within the organization.

Digital Dashboard – intergrates information from multiple components and presents it in a unified display.

Artifical Intelligence

Simulates human intelligence such as the ability to reason and learn.

4 common Artifical Intelligence :

1. Expert system - computerized advisory programs that imiate the reasoning processess of experts in     solving problems.

2. Neutral Network - attempts to emulate the way the human brain works

3. Genetic Algorithm - an artifical intelligent systems that mimics the evolutionary.

4. Intelligent Agent - special purposed knowledge based info system that accomplishes specific tasks     on behalf of the users.

Cluster Analysis

A technique used to divide an information set into mutually exclusive groups such that the members of each group are as close as together.

Association Detection

Reveals the degree to which variables are related and the nature and frequency of these relationships in the info.

Statistical Analysis

Performs such functions as information correlation and varience analysis.