C04 Flashcards
(24 cards)
Information:
Data that has context and meaning.
Data together in a relevant and purposeful way, with a similar context.
Knowledge:
Human beliefs about the relationship of facts.
Cause and effect relationships: If A happens, then B will happen.
Decision-making:
Process of thinking through possible options and choosing one.
Decision-making process:
- Recognize the problem (recognize that a decision needs to be made).
- Generate multiple alternatives.
- Analyze the alternatives.
- Select an alternative.
- Implement it.
- Evaluate its effectiveness.
Structured decision:
A decision that is made often and once one knows the necessary information, one knows the decision that needs to be made.
Heuristics:
Mental shortcuts for making decisions.
- Does not produce optimal solutions, but good solutions.
- Saves time.
Unstructured decision:
Involves lots of unknowns. Needing thoughtful judgement and creativity to reach a good solution.
Semi-structured decision:
A decision where most of the factors needed to make the decision are known however human experience and other factors that are unknown may also impact the decision.
Strategic decisions:
Decisions that set the course of an organization.
- Tends to be more unstructured decisions.
- Made by top management.
- Supported by TPS (Transaction Processing Systems).
Managerial/ tactical decisions:
Decisions about how things will get done.
- Influenced by the strategic decisions.
- Supported by Management Information systems (MIS).
Operational decisions:
Decisions for day-to-day activities.
- Decisions are influenced by managerial decisions.
- Tends to be more structured decisions.
- Supported by Executive Information Systems (EIS).
Decision support system (DSS):
Helps give recommendations and key indicators to answer “what if’ questions for decision-making.
Helps answer “what if” questions by giving recommendations or reporting key indicators to be used in the decision-making process.
Inputs are put into the system, and then the system analyzes them based on the specific rules and concepts programmed into it, it then reports its recommendations or key indicators to be used in the decision-making process.
Executive information system (EIS):
An information system customized for executives which provides specific information to them for strategic decisions (by showing key metrics and performance indicators, positive and negative trends).
Business Intelligence:
The technologies, tools, and practices used to collect, store, access, and analyze data to help organizations make more informed business decisions.
Including data warehousing, data mining, OLAP (Online analytical processing), Reporting and visualization, and dashboards.
Data warehouse:
Large amounts of historical data collected and stored in a centralized location.
Data mining:
Analyzing data to find previously unknown and interesting trends, patterns, and associations (to make decisions).
OLAP (Online analytical processing):
Technology that enables users to interactively analyze large amount of data from multiple dimensions and levels of detail to make decisions.
Can sum, account, average, etc on groups of data.
OLAP helps with business decision-making by providing powerful tools for analyzing large amounts of data, identifying patterns, trends, and insights that can inform business decisions and by providing the ability to forecast and plan for the future. More for strategical decisions.
Data brokers:
Collect data on online activity and sell it.
Data science:
The analysis of large data sets to find new knowledge.
Data analytics:
Looks at past data to try to understand what happened in the past and also to make predictions about the future.
OLTP (Online Transaction Processing):
A system that collects real-time data electronically (that can be used to track business performance) and processes transactions online.
- Provides raw information about transactions and status for decision-making.
OLTP helps make business decisions by providing real-time data that can be used to track the performance of the business and identify trends and patterns that inform business decisions. Used more for operational decisions.
Data cube:
A special database where data is stored. Helps OLAP be fast.
Dashboards:
Data visualization that provide a heads-up display of critical indicators (that let managers get a visual glance of key performance metrics).
Data warehouse & ETL (Extract-Transformation-Load):
The process of standardizing data from various databases to the standard of the data warehouse.
