ibis - chapter 11

Managerial decision-making challenges

• finds the inputs necessary to achieve a goal such as a desired level of output.
• 1. Managers need to analyze large amounts of information
• machine learning
• Strong AI

2. Managers must make decisions quickly

• 2. Managers must make decisions quickly
• Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision
• Top: Strategic
• Supervised

3. Managers must apply sophisticated analysis techniques, such as Porter's strategies or forecasting, to make strategic decisions

• Occur in situations in which a few established processes help to evaluate potential solutions, but not enough to lead to a definite recommended decision
• 3. Managers must apply sophisticated analysis techniques, such as Porter's strategies or forecasting, to make strategic decisions
• - reverse of consolidation
• analyze massive quantities of data to establish patterns and characteristics when the logic or rules are unknown

The six-step decision-making process

• 1. problem identification
• pie chart
• - a user can view regional sales data and then drill down all the way to each sales representative's data at each office.
• 4. pivot

2. data collection

• Encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational tasks
• 2. data collection
• a mathematical method of handling imprecise or subjective information
• 2. Sensitivity analysis

3. solution generation

• a method whereby new problems are solved based on the solutions from similar cases solved in the past
• 3. solution generation
• - Analyzing nonlinear relationships in information. (They have been called fancy regression analysis systems.)
• haptic interface

4. solution test

• Affect how the firm is run from day to day.
• the process within a generic algorithm of randomly trying combinations and evaluating the success (or failure) of the outcome.
• 4. solution test

5. solution selection

• overfitting
• - enable employees to move beyond reporting to using the information to directly increase business performance
• 5. solution selection
• - solve problems with incomplete information

6. solution implementation

• - increase the speed and consistency of decision making
• 6. solution implementation
• They are the domain of operations managers, who are the closest to the customer.
• The training of machine learning models to make a sequence of decisions

Common Company Structure: Pyramid

• Supervised
• 4. pivot
• arise in situations where established processes offer potential solutions
• Top: Strategic