Decision Making and Decision Support Systems: Phases, Types, and Components - Prof. Christ, Study notes of Introduction to Business Management

Download Decision Making and Decision Support Systems: Phases, Types, and Components - Prof. Christ and more Study notes Introduction to Business Management in PDF only on Docsity! Decision Support Systems February 19 – February 23  Four Phases of Decision Making : o In the intelligence phase, you recognize and detect signals or signs that a problem is occurring or that an opportunity exists. Such signs might include customers asking for a new feature in a product, raising costs, declining sales, etc (p. 181). o In the design phase, you develop as many possible ways to solve a problem or take advantage of an opportunity (p. 181). o In the choice phase, you evaluate each possible solution and pick the best one (p. 181). o In the implementation phase, you implement the choice you made in the last step, monitor the results, and make adjustments as necessary (p. 181). o The four phases do not have to be carried out in order. You may back up and repeat steps as necessary (p. 181).  Types of Decisions: o A structured decision involves processing a certain kind of information in a specified way. No feel or intuition is necessary (p. 182). o A nonstructured decision is one that has no precise way to get a right answer. There are generally several “right” answers (p. 182). o Most decision are a mix of structured and nonstructured (p. 182). o A recurring decision is that happens repeatedly and you follow the same set of rules each time (p. 182). o A nonrecurring decision is one that you make infrequently and you may have to make it using a different set of criteria each time (p. 182).  Decision Support Systems: o A decision support system (DSS) is a highly flexible and interactive IT system that is designed to support decision making when the problem is not structured (p. 183). o DSS is not designed to make a decision for you, but instead to provide a tool to improve your effectiveness as a decision maker. You still must bring your own judgment to the decision making process (p. 184).