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6.4 - Coggle Diagram
6.4
Managing Data to Make Better Decisions
(How Technology can be used to manage data to enhance the decision making process)
Management Information Systems (
MIS
)
an integrated, man/machine system for providing information to support the operations, management, and decision-making functions in an organisation (Davis, 1974, p.5).
Aims to improve the efficiency of an organisation by reducing costs, times, etc. by automating processes and removing personnel
Used to monitor, control and improve operational processes
It is of limited value in formulating strategy
Decision Support Systems (
DSS
)
Used to improve the range and capability of managers' decisions
More strategic than operational
DSS might incorporate some decision aids explored in Unit 3
Spreadsheets are one tool used to support DSS
Herbert Simon (1960) decision-making
iterative
model
Intelligence
The identification of a problem/opportunity
is thoroughly investigated
Design
The creation of a model that represents the system in which the problem resides (
create/develop alternative responses/solutions)
Choice
Selecting an alternative
from those offered by the model
Decision Support Systems (DSS)
Knowledge Management based DSS
(Arnott & Pervan, 2005)
KM: the process of capturing, distributing, and effectively using knowledge.
Han et al. (2012) see data mining as part of a process they call knowledge discovery from data (KDD)
Seven step process to move from data to knowledge:
Data
transformation
(Consolidate, aggregate)
Data
mining
(Where intelligent methods are applied to extract patterns and trends)
Data
selections
(choose what is required)
Trends evaluation
Data
integration
(bring groups and sets together)
Knowledge presentation
(use graphics maybe)
Data
cleaning
(Remove inaccurate data)
Data mining techniques
Descriptive (Statistical)
Summarize historical data to identify patterns and trends
Regression/Predictive (Probabilistic)
Using probability and modeling to predict what is likely to happen
Detection
Highlighting data records that appear unusual
Intelligent DSS
(Using AI techniques)
such a system would have some of the key characteristics of human intelligence (Phillip-Warn, 2013) such as:
Learn from experience
Make sense out of ambiguity
Respond appropriately and timely to a new situation
Apply knowledge to understand the environment