Chapter 6 – Analyzing Information for Business Decision Making Information Systems, First Edition...
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Chapter 6 – Analyzing Information for Business Decision Making Information Systems, First Edition John Wiley & Sons, Inc by France Belanger and Craig Van
Chapter 6 Analyzing Information for Business Decision Making
Information Systems, First Edition John Wiley & Sons, Inc by
France Belanger and Craig Van Slyke Contributor: Brian West,
University of Louisiana at Lafayette 6-1Copyright 2012 John Wiley
& Sons, Inc.
Slide 2
Practice: Focus Story Discussion What role did information play
in this decision? An electronic spreadsheet was very helpful in
making this decision. What would have been different if spreadsheet
software was not available? Copyright 2012 John Wiley & Sons,
Inc.6-2
Slide 3
Good decision making skills One of the skills that sets apart
successful business professionals These skills are directly related
to being able to make good decisions Copyright 2012 John Wiley
& Sons, Inc.6-3
Slide 4
Practice Learning Activity 6.1 (p. ) Suppose that you are in
the market for a new apartment. How would you go about making the
decision of which new apartment to choose? What information would
you gather? What would be the consequences of making a bad
decision? Copyright 2012 John Wiley & Sons, Inc.4
Slide 5
Types of Decisions Operational controlManagerial
controlStrategic planning Structured Human resources reporting,
short-term forecasting Investment analysis, distribution system
analysis Semi-structuredCompensation planning, UnstructuredCash
management, project management Budget preparation, sales planning
Figure 6.1 Gorry and Scott-Mortons Information Systems Framework
Copyright 2012 John Wiley & Sons, Inc.6-5
Slide 6
Practice Learning Activity 6.2 (p. ) You will face many
different types of decisions throughout your business career. Some
decisions are well defined, have clear alternatives and information
requirements. Others are much less clear. For each decision, answer
the following questions: What information would you need in order
to make the decisions? How confident are you that you have
accurately identified the needs? Why do you feel this way?
Copyright 2012 John Wiley & Sons, Inc.6
Slide 7
Decision Making Process Intelligence involves sensing
conditions and predicting what conditions will require action
Choice selects the most effective and efficient alternative
Copyright 2012 John Wiley & Sons, Inc.6-7
Slide 8
Expanded Decision Making Identify and clearly define the
problem Identify alternatives Copyright 2012 John Wiley & Sons,
Inc.6-8
Slide 9
Identify the Problem The 5 Whys Begin with the problem and ask
why? Why are our sales declining? Why are costs rising? Keep asking
why until you uncover the problem Copyright 2012 John Wiley &
Sons, Inc.6-9
Slide 10
Requirements Must have vs. Like to have Goals may conflict
Original requirements sometimes are changed to like to haves
Copyright 2012 John Wiley & Sons, Inc.6-10
Slide 11
Practice Learning Activity 6.3 (p. ) Suppose that you are in
the market for a new vehicle. Establish at least five requirements
and goals (five combined). For each requirement and goal, determine
one or more criteria. Copyright 2012 John Wiley & Sons,
Inc.11
Slide 12
Does the solution solve the problem? Make sure that it actually
solves the original problem If the problem is poorly defined, you
are likely to develop inappropriate requirements and goals
Copyright 2012 John Wiley & Sons, Inc.6-12
Slide 13
Practice Learning Activity 6.4 (p. ) What grade will I get if I
score a 75% on the final? You have probably asked yourself a
similar question. While you can certainly figure this out without a
computer, a properly designed spreadsheet can make this much
easier. Use the spreadsheet available on the books website to
calculate your overall course grade under three different final
exam scores. Copyright 2012 John Wiley & Sons, Inc.13
Slide 14
Information retrieval and analysis tools Copyright 2012 John
Wiley & Sons, Inc.6-14 Figure 6.6 SAP Business Objects
Screen
Slide 15
What-if Analysis Copyright 2012 John Wiley & Sons, Inc.6-15
Figure 6.7 Spreadsheet Example
Data Visualization Software Copyright 2012 John Wiley &
Sons, Inc.6-19 Figure 6.11 Visualization Example
Slide 20
Practice Learning Activity 6.5 (p. ) Spreadsheets are used
extensively to understand outcomes based on different levels of
input variables. Go to the course website and click on the link for
Learning Activity 6.4. Follow the instructions. Copyright 2012 John
Wiley & Sons, Inc.20
Slide 21
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Reproduction or translation of this work beyond that permitted in
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Publisher assumes no responsibility for errors, omissions, or
damages caused by the use of these programs or from the use of the
information herein. 6-21Copyright 2012 John Wiley & Sons,
Inc.