Business Driven Information Systems, Paige Baltzan, 7th Edition, Chapter 2

Six-step decision-making process

1. problem identification

2. data collection

3. solution generation

4. solution test

5. solution selection

6. solution implementation

Operational decision making

Employees develop, control, and maintain core business activities required to run the day-to-day operations

structured decisions

Situations where established processes offer potential solutions

Managerial decision making

Employees evaluate company operations to identify, adapt to, and leverage change

semistructured 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

strategic decision making

Managers develop overall strategies, goals, and objectives

unstructured decisions

Occurs in situations in which no procedures or rules exist to guide decision makers toward the correct choice

model

a simplified representation or abstraction of reality

Transaction Processing System (TPS)

Basic business system that serves the operational level and assists in making structured decisions

Online Transaction Processing (OLTP)

Capturing of transaction and event information using technology to process, store, and update

source document

the original transaction record

Online Analytical Processing (OLAP)

Manipulation of information to create business intelligence in support of strategic decision making

Decision Support System (DSS)

Models information to support managers and business professionals during the decision-making process

Executive information system (EIS)

A specialized DSS that supports senior level executives within the organization

artificial intelligence

Simulates human intelligence such as the ability to reason and learn

Weak AI

machines can still make their own decisions based on reasoning and past sets of data. Most of the AI systems on the market today are weak AI.

Strong AI

The field of artificial intelligence that works towards providing brainlike powers to AI machines; in effect, it works to make machines as intelligent as humans.

Expert Systems

Computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems

genetic algorithm

An artificial intelligent system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problem

case-based reasoning

a method whereby new problems are solved based on the solutions from similar cases solved in the past

Mutation

the process within a genetic algorithm of randomly trying combinations and evaluating the success (or failure) of the outcome

Machine Learning

A type of artificial intelligence that enables computers to both understand concepts in the environment, and also to learn.

Data Augmentation

occurs when adding additional training examples by transforming existing examples

Overfitting

occurs when a machine learning model matches the training data so closely that the model fails to make correct predictions on new data

Underfitting

Occurs when a machine learning model has poor predictive abilities because it did not learn the complexity in the training data

Neural Network

Attempts to emulate the way the human brain works

fuzzy logic

a mathematical method of handling imprecise or subjective information

Deep Learning

a process that employs specialized algorithms to model and study complex datasets; the method is also used to establish relationships among data and datasets

reinforcement learning

The training of machine learning models to make a sequence of decisions

virtual reality

A computer-simulated environment that can be a simulation of the real world or an imaginary world

augmented reality

the viewing of the physical world with computer-generated layers of information added to it

Google Glass

a wearable computer with an optical head mounted display

virtual workplace

a work environment that is not located in any one physical space

haptic interface

uses technology allowing humans to interact with a computer through bodily sensations and movements

Customer facing process

Results in a product or service that is received by an organization's external customer

Business facing process

Invisible to the external customer but essential to the effective management of the business

business process modeling

The activity of creating a detailed flow chart or process map of a work process showing its inputs, tasks, and activities, in a structured sequence

business process model

a graphic description of a process, showing the sequence of process tasks, which is developed for a specific purpose and from a selected viewpoint

data mining

the process of analyzing data to extract information not offered by the raw data alone

Data

foundation for data-directed decision making

discovery

process of identifying new patterns, trends, and insights

development

process of implementing discoveries to drive success

data profiling

the process of collecting statistics and information about data in an existing source

data replication

the process of sharing information to ensure consistency between multiple data sources

recommendation engine

a data-mining algorithm that analyzes a customer's purchases and actions on a website and then uses the data to recommend complementary products

prediction

A statement of what will happen or might happen in the future; for example, predicting future sales or employee turnover