Using Data for Efficiency and Effectiveness
Read this chapter for a discussion of how business organizations make decisions and the role information technology plays in decision making. What is the process that uses technology to make automated decisions? Consider system input, decision-making algorithms, and output. How does an organization track the decisions made by the system?
Conclusion
Even if people wish to use a rational approach to decision making, significant obstacles face those who attempt it. Decision makers within organizations are frequently faced with stressful environments of tight deadlines, interruptions, multiple issues requiring attention, and inadequate information.
Information systems may be used in many ways to improve decision making. Systems which capture raw data and transform it into information can help control business processes. Decisions which are very structured may be automated. For more unstructured or complex decision environments, decision support systems can help bring more structure and provide an initial assessment of alternatives. Expert systems can help capture the expertise of one or more humans, and make that expertise more widely available. Knowledge management systems can be used to both retain organizational knowledge when people leave, and to facilitate knowledge sharing among organizational members. Business intelligence systems are used to identify trends and relationships within large databases or data warehouses.
In short, information systems can be used in many ways to improve both the efficiency and effectiveness of organizational operations and decision making.