Page 208 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Unit 10: Enhancing Decision Making for the Digital Firm

Figure 10.3 clearly illustrates content similarity among BI and DSS. However structure of BI is Notes
not steady; producers of business intelligence solutions may include only some constituents
into their products or enlarge utility function as per their customer wish. We can say now that
the branch of BI is rising and future components can be completely different.

Self Assessment

Fill in the blanks:
5. .................................... describes the process of turning data into information and then into
knowledge.
6. BI ........................ include ad hoc query, report writing, decision support systems, executive
information systems techniques such as statistical analysis and online analytical processing
(OLAP).

10.3 Business Decision Making and the Decision Making Process

Decision-making more and more appears at all stages of a business. The Board of Directors may
make the striking strategic decisions regarding investment and direction of future growth, and
managers may formulate the more tactical decisions concerning how their own department
may give most efficiently to the whole business goals. But pretty ordinary employees are ever
more expected to make decisions about the manner of their own tasks, responses to clients and
improvements to business practice. This requires careful recruitment and selection, good training,
and progressive management.

10.3.1 Decision Making Process

Decision making is a managerial process of choosing a particular course of action out of several
alternative courses for the purpose of achieving the given objective.
Decision making process is goal oriented process in which, certain goals are achieved like for a
student to pass the examination is a major goal and to achieve this goal he has to take certain
decisions like to study four or five hours in a day, etc.
Decision making process is an ongoing process because at every moment the manager has to
take certain decisions like to conduct a meeting to implement certain policies, etc.

Decision making process is a complex process. Complexity is the result of many factors such as
inter-relationship among the experts, qualification, experience of the decision maker, constraints
from the external world, etc.

Decision making is called a managerial process because it is a combination of several steps
shown in Figure 10.3.
(a) Identification phase: In which, definition of problem as well as its diagnosis is analyzed.

(b) Development Phase: In this, identify the constraints and opportunities and develop
alternatives.
(c) Selection Phase: Evaluate each alternative and choose the best one.

(d) Implementation Phase: In this phase, the decision is implemented and acceptance of the
decision by others taken and follow up monitoring is also done by the decision maker, so
that further action can be taken.

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