31266 Lecture Notes - Lecture 8: Online Analytical Processing, Business Intelligence, Data Mining
Document Summary
In this lecture we reviewed the phases of the decision making process: Intelligence phase: managers examine a situation and then identify and define the problem or opportunity. Design phase: decision makers construct a model for addressing the situation. They perform this task by making assumptions that simplify reality and by expressing the relationships among all of the relevant variables. Managers then validate the model by using test data. Finally, decision makers set criteria for evaluating all of the potential solutions that are proposed. Choice phase: involves selecting a solution or course of action that seems best suited to resolve the problem. Implementation phase: is successful if the proposed solution solves the problem or seizes the opportunity. If the solution fails, then the process returns to the previous phases. Computer-based decision support assists managers in the decision-making process. We discussed two dimensions of decisions and the nature of decisions. Structured decisions (routine and repetitive problems with standard procedures and solutions)
