Enhance Decision making

Introduction:

  • Decision making is very important in organization because every decision making will effect the organization future.
  • A good decision making are came from a good leader in the organization.

Three type Decision Making

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1. Unstructured Decision Making

Is the decision making that are routine. It means that the problem is always happen and know how to solve without the decision from senior manager.

Example:

Customer asking for a warranty because the product that they buy from the company is not function. So, the staff in the company know how to handle the customer without refer to their boss. Every decision making by staff is decision already common make by them so no need a procedure to research of analysis the problem.

2. Semi-structured Decision Making

Decision in middle between structured and unstructured decision making. Its requiring some human judgement (intuition) and at the same time with some agreement on the solution we mad. Only certain problem has provide by accepted procedure.

Example:

In hiring new employee the organization every company have a procedure and qualification what they make and want but during the interview, they have to make a judgement every interviewee that really require what the company needed. They have to make a judgement before hiring the interviewee. So, the procedure and qualification for hiring new employee is a structured decision making and for the interview and judgment is the unstructured decision making.

3. Unstructured Decision Making

This is the decision that does not have a process in place to handle. Decision maker must provide judgement, evaluation and insight to solve problem.

Example:

We want to hiring contractor from outsider. Then, there is 3 contractor that have a capability to run our project. So, senior manager must use their intelligent to choose one of the contractor.

Four Stage Decision Making

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1. Intelligent

Consist of identifying and understand the problem occurring in organization. In this intelligent phase, DSS can improve managerial decision making by produce more timely data.

2. Choice

In this second stage is we must identifying and exploring various solution to the problem. Which means they provide alternatives to solve the problem. DSS can improve managerial decision making by generate more accurate alternative.

3. Choice

This stage is we must selected out of available alternative that develop in design phase. Before make a choice, they must get information to make sure they chase the best decision.

4. Implementation

We will implement the selection course of action. Make sure the decision can generate successful to company. Repeat step 3 if the decision is failed.

Six Element in The Business Intelligent

  1. Data from Business Environment
  2. Business Infrastructure
  3. Business Analytic Tool Set
  4. Managerial Users and Methods
  5. Delivery Platform
  6. User Interface

Data From Business Environment

In the first element, we must take a information from external. It must deal with both structured and unstructured data from many different sources. The data must be summarize to easier used by human decision maker.

Business Infrastructure 

It is a powerful database system that capture all the relevant data to operate the business. The data may be stored in transactional database or combined into data warehouse.

Business Analytic Tool Set 

A set of software tools are used to analyze data and procedure reports, respond to questions pased by manager and track the progress of the business using key indicators of performance.

Managerial Users and Methods

Manager give the order to the system using a variety method that define strategies business goals and specify how progress will be measured.

Delivery Platform

The result from business intelligence and analytic are delivered to managers and employees in a varify of ways, depending on what they need to know to perform their jobs. MIS, DSS and ESS deliver information and knowledge to different people and levels in the firms.

User Interface

Senior manager will get on information in a visual representation of data. Nowadays business analytic software emphasize visual techniques such as dashboard and scoreboard.

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REFERENCE

1)   Kenneth C Laudon and Jane P Laudon, Management Information System: Managing The Digital Firm, 13th Edition,               Prentice Hall, Inc.

 2) Haag S and Cummings M, Mangement Information System for The Information Age, 8th Edition, McGraw Hill. 2010

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