Chapter Nine Questions and Answers

Chapter 9
Section 9.1

1. Describe the decision-making process proposed by Simon.
The decision-making process proposed by Simon includes the four following phases:
Intelligence: where managers examine a situation and identify and define the problem
Design: decision makers construct a model that simplifies the problem
Choice: involves selecting a solution, which is tested “on paper”
Implementation: is only successful if the proposed solution resolves the problem.

2. Why do managers need IT support?
Managers need IT support, as information is vital in all decision-making processes. The availability of information and making decisions is becoming increasingly difficult due to; the number of alternative information, time pressures, conducting sophisticated analysis and large expenses.

3. Describe the decision matrix.
The decision matrix is composed of three primary classes. These three broad categories of the nature of decisions can be combined in a decision support matrix that consists of nine cells.Lower-level manager usually perform the structured and operational control-orientated tasks (cells 1,2 and 4). The tasks in cells 3,5 and 7 are normally performed by middle managers and professional staff. Lastly, in cells 6,8 and 9 the responsibility of these tasks mainly fall on the senior executives.

Section 9.2

1. Describe the capabilities of data mining.
Data mining can perform two basic operations; predicting tends and behaviors and identifying previously unknown patterns. Data mining addresses why it is happening and provides predictions of what will happen in the future. Data mining automated the process of finding predictive information in large databases. Data mining can also identify previously hidden patterns in a single step.

Section 9.3

1. What are some of the capabilities of digital dashboards?
A digital dashboard provides rapid access to timely information and direct access to management reports.
Some of the capabilities associated with digital dashboards include:
* Drill-down: the ability to go to details, at several levels which can be done by a series of menus or by direct queries.
* Status access: the latest data available on KPI or some other metric, ideally in real time.
* Exception reporting: reports that highlight deviations larger than certain thresholds. Reports may include only deviations.