WEEK 11 QUESTIONS

SECTION 9.1
1. Describe the decision-making process proposed by Simon.
The decision-making process begins with the 'intelligence phase', which focusses on organisational objectives, data collection, problem identification etc. The manager then moves onto the 'design phase', which sets criteria for choice, searches for alternatives etc. Managers then proceed to the 'choice phase', which is a solution to the model, selection of the best alternative and a plan for implementation of a solution.
http://www.youtube.com/watch?v=Q3YMb4w-FvU

2. Why do managers need IT support?
Managers need IT support for four main reasons:
- The number of alternatives to be considered are increasing, so they need to be able to compare and explore all alternatives.
- Decisions must be made under time pressure. It is not possible to process all the relevant information manually.
- There is increased uncertainty in the decision environment, so the IT is able to conduct a sophisticated analysis in order to make a good decision.
- It is often necessary to access remote information rapidly, consult experts or conduct group decision-making sessions, all without incurring large expenses. As decision makers can all be in different locations, IT is able to bring them all together quickly.

3. Describe the decision matrix.
The decision matrix is a combination of nine cells, which consists of the three classes of problem structure and the three broad categories of the nature of decisions.

SECTION 9.2
1. Describe the capabilities of data mining.
Data mining can perform 2 basic capabilities. It can predict trends and behaviours and identify previously unknown patterns. Data mining addresses why it is happening and provides predictions of what will happen in the future

SECTION 9.3
1. What are some of the capabilities of digital dashboards?
Some of the capabilities of digital dashboards include:
- Drill down: ability to go to details, at several levels
- Status access: the latest data available on KPI or some other metric, ideally in real time
- Ad hoc analysis: analyses made any time, upon demands and with any desired factors and relationships
- Exception reporting: reports that highlight deviations larger than certain thresholds. Reports may include only deviations.