Chapter 4: Analyzing Information for Business Decision making

Structured Operational Control

Accounting Systems, order processing, inventory control, order processing

Structured Managerial Control

Human resources reporting, short-term forcasting

Structured Strategic Planning

Investment analysis, distribution system analysis

Semi-Structured Operational Control

Production planning

Semi-Structured Managerial Control

Budget variance analysis

Semi-Structured Strategic Planning

Compensation planning

Unstructured Operational Control

Cash management, project management

Unstructured Managerial Control

Budget preparation, sales planning

Unstructured Strategic Planning

New product planning, social responsibility planning

Intelligence

Sensing conditions and predicting what conditions will require action

Intelligence Examples

• Data analysis (spreadsheets, statistical software, visualization)

• Communication systems

• Data retrieval and document management systems

Design

Developing alternative approaches to bringing about the required change or achieving the required goals

Design Examples

• Group support systems

• Communication systems

• Document management systems

• Data analysis systems

Choice

Selecting the most effective and efficient alternative

Choice Examples

Data analysis systems

Implementation

The selective alternative is carried out

Implementation Examples

• Project management systems

• Data analysis systems

• Communication systems

Identify the Problem

the “5 Whys”

Requirements

Must have - minimum

Goals

Beyond minimum essential requirements

Decision Criteria

Objective measures of the requirements and goals that help you discriminate among alternatives

Pros and Cons

List advantages and disadvantages - simple decision making

Paired Comparisons

Evaluate each alternative against all other alternatives