Sunday, 24 August 2014

Role of information systems in business decision making

information systems in business
Access to information
Information systems offer access to information that is needed for decision making. Businesses collect a lot of information about their environment, customers, and competitors among others. This information is meant to guide the decision making process of the business. Information systems will organize this data in order to simplify and provide for quick access to this information.
Collection of Data
Information systems offer an opportunity to collect, store and process information important in decision making.
Interpretation of information
Information systems offer decision an opportunity to recognize trends and patterns. This information helps to guide them in making the right decisions.
Coordination and collaboration
Information systems enable members in the decision making process to collaborate in the process by providing them with access to information from different locations. This fosters team work which is essential in effective decision making.
Information dissemination and presentation
An information system helps in better presentation of information to decision makers and this enables them to make the appropriate given the interpretation of the information. For example bar graphs and pie charts created by Microsoft excel
Before decisions are made information needs to be shared within the process of decision making and it is through information systems that this can be achieved efficiently and effectively
·         Difference between structured, semi-structured and unstructured decisions
Structured decisions
Can be described as a decision whereby all sections of a decision (data, process and evaluation) are determined. This requires that this type of decision be routine, repetitive making the process of dealing with it defined and specific. They are decisions made in clear circumstances.
Unstructured decisions
Although similar to the structured decisions in terms of sections of the decision used there is less agreement on which data and process to be used. The evaluation aspect of the decision is also left to qualified individuals within the organization. This type of decision leaves no room for premeditation of the procedures to be followed and thus they are made in situations which are unclear and one-shot.
Semi structured decisions

The main difference with the other types of decisions is that this types leaves room for human judgment in the decision making process. This type of decision also maintains some level of agreement between the 3 sections of decision making (data, process and evaluation)

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