Page 202 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Unit 10: Enhancing Decision Making for the Digital Firm

 Design: You design possible solutions: You could watch the television in your neighbor’s Notes
apartment or you could purchase a new one for yourself. Your neighbor will get annoyed
if you keep coming over. On the other hand, you won’t be able to go on vacation if you use
your money to buy a new television.

Figure 10.1: The Decision-making Process

Is there a problem? Intelligence

What are the alternatives? Design

Which should you choose? Choice

Is the choice working? Implementation

 Choice: You gather data that helps you make a better decision: Your neighbor doesn’t like
the same shows you like or she’s getting rather tired of you being there. You also determine
that televisions cost a lot of money so you figure out how you can afford one. You choose
to purchase a new television instead of watching your neighbor’s.
 Implementation: You implement the decision: You stop at the appliance store on your
way home from work and carry out your decision to purchase a new television.

 Feedback: You gather feedback: You’re broke but you can watch anything you want!
Of course, this is a simplified example of the decision-making process. But the same process is
used for almost every decision made by almost every person.

Information Systems help improve the decision-making process by:
 Providing more information about the problem
 Presenting a greater variety of possible alternatives
 Showing consequences and effects of choices

 Measuring the outcome of different possible solutions
 Providing feedback on the decision that is made.
Different types of decisions require different types of systems. All decisions follow the same
pattern although some may be more complex and require several iterations of the decision-
making stages.

LOVELY PROFESSIONAL UNIVERSITY 197