Front | Back |
Model
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- a simplified representation or abstraction of reality
- can be used to: (calculate risks, understand uncertainty, change variables, manipulate time) - |
Systems Used in Decision Making
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(1) Transaction Processing System (TPS)
(2) Decision Support Systems (DSS) (3) Executive Information Systems (EIS) |
OLTP
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Online Transaction Processing System:
the capturing of transaction and event information technology to: a. Process the information according to defined business rules b. Store the Information c. Updates existing information to reflect new information |
TPS
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Transaction Processing System:
the basic business system that serves the operational level (analysts) |
OLAP
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Online Analytical Processing:
the manipulation of information to create business intelligence in support of strategic decision making |
DSS
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Decision Support System:
(1) Sensitivity Analysis (2) What-if Analysis (3) Goal-seeking Analysis |
Organizational Levels
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- Executives: Executive Information Systems (EIS)
- Managers: Decision Support Systems (DSS) - Analysts: Transaction Processing Systems (TPS) |
Sensitivity Analysis
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The study of the impact that changes in one (or more) parts of the model have on other parts of the model
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What-if Analysis
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Checks the impact of a change in an assumption on the proposed solution
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Goal-seek Analysis
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Finds the inputs necessary to achieve a goal such as a desired level of output
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Decision Making:
- Strategic |
- Senior executives
- "what to do" |
Decision Making:
- Tactical |
- VP's
- "how to do it" |
Decision Making:
- Operational |
- Operations manager
- "do it" |
EIS
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Executive Information System:
a specialized DSS that supports senior-level executives within the organization |
Capabilities of EIS's
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Consolidation = aggregation of info. and features simple roll-ups to complex groupings of interrelated info.
Drill-down = enables users to get details, and details, of info. Slice-and-dice = the ability to look at information from different perspectives |