1. Comparedecision making and problem solving. Determine whether it makes sense todistinguish between the two.
Decisionmaking can be considered as a deliberation that is figuring out what actionneed to be taken in order to maximize the expected benefit. Due to uncertaintythere may be no assure that the result of the action might be the one meant,and the great one can hope for is to maximise the chance of an ideal outcome.The process rests on the idea that an excellent decision is one which outcomesfor an excellent decision-making process that considers all essential elementsand is explicit about decision alternatives, preference and uncertainty (Marekand Roger, 2002). Basedon D’Zurilla and Chang (1995) “problem solving refers to the rational look foran answer through the application of problem solving abilities and techniqueswhich are designed to maximise the chance of locating the “best” or mostadaptive solution for a particular problem”. Decisionmaking and problem solving are quite similar activities but the foremostdistinction among the two are problem solving is a technique whilst decisionmaking is a process. Some people consider decision making as the first threesteps in problem solving that is problem definition, problem analysis andgenerating possible solution. Others use the terms interchangeably. Anothername of problem solving, is solving a problem.
This is means a method in whicha group or a person makes something advantageous out of problem. Meanwhile,decision making is the process that is carried out typically for the durationof problem solving. Decision making is the important thing so that a person canachieve the best conclusion in problem solving. Problem solving is more ananalytical aspects of thinking and also use the intuition in getting the facts.Meanwhile, decision making is more of a judgement where after a person thinksomething then the person will take an action. However, decision making andproblem solving need a certain set of abilities for every different to begreater powerful. 2. Whatis DSS, Business Intelligence, Business Analytics, and Predictive Analytics?How these concepts are related to each other.
Based on Marek and Roger (2002), “decisionsupport systems are interactive, computer-based systems that aid users injudgement and preference activities. It’s provide the information storage andretrieval however decorate the traditional facts get entry to and retrievalcapabilities for model constructing and model-based totally reasoning. Itsassist framing, modelling and problem solving. BusinessIntelligence (BI) is an umbrella term that combines architectures, tools,databases, analytical tools, applications and methodologies. It’s mostimportant goal to enable interactive access (from time to time in real time) todata, enable manipulation of these data, and to provide business managers andanalysts the capacity to behaviour appropriate evaluation. Anapplication and strategies for collecting, storing, analysing and imparting getadmission to data to assist users make higher and strategies decisions andadditionally referred to as an analytical processing, business intelligencetools or business intelligence applications, that is business analytics.
Predictiveanalytics is using statistical techniques and data mining to decide what’slikely to appear inside the future. Business use predictive analytics toforecast whether customers are probable to interchange to a competitor, whatcustomers are likely to shop for, how possibly customers are to respond to anadvertising, and whether or not customer is creditworthy. Predictive analyticsalso have used in sports team to discover the gamers maximum possibly to make contributionsto a group’s achievement (Efraim et al., 2007). These concepts are related to each other where BusinessIntelligence (BI) uses a data warehouse, whereas decision support systems canuse any data supply consisting of dat warehouse.
Most decision support system(DSS) are constructed to support decision making at once, while most business intelligence(BI) systems are constructed to provide data that it is believed will causeprogressed decision making. Business intelligence (BI) has an approach toexecutive orientation while decision support system (DSS) are commonly orientedtoward analysts. Business intelligence (BI) systems have a tendency to beevolved with commercially to be had tools, whereas decision support system(DSS) generally tend to apply more custom programming to cope with issue thatcan be unstructured.
Decision support system (DSS) methodologies and toolsoriginated in large part in academia, whereas business intelligence (BI) arose largelyfrom the software industry. Many business intelligence (BI) tools, such asinformation mining and predictive analysis, have turn out to be taken intoconsideration, decision support system (DSS) tools are properly. Technically, businessanalytics provides a further measurement to business intelligence (BI) modelsand answer methods. These are often buried so deep within the tools, however,that the analyst need not get his or her hands “dirty.” Typically,the terms are used interchangeably.
3. Whyit is important to focus on the effectiveness of a decision, not necessarilythe efficiency of making a decision? The effectiveness of a decisionimpacts a corporation for as long as the decision subjects, and assignificantly because the decision scope. The efficiency of creating thedecision influences most effective the decision-making procedure itself. Thedifferent among effectiveness of a decision-making and efficiency indecision-making enables decision support systems (DSS) analysts understand theimpact of decision support system (DSS) on decision behaviour.
Keen and ScottMorton (1978) present the subsequent reasons of these important concepts,”Effectiveness in decision making requires us to deal with the manner offiguring out what have to be carried out at the same time as efficiency indecision making addresses the way performing a given defined task to be able toobtain outputs in addition to feasible, relative to a few overall performancestandards”. The growing efficiency generallytakes the form of minimizing time, cost or effort to finish a decision makingactivity. Effectiveness specializes in what activities must occur, enhancingthe decision method, and improving data used for a decision making,specifically facts and content material used inside the decision process.
Afocal point on effectiveness requires decision-makers to evolve and examine, tomake a responsive adjustment to modifications within the environment for andwithin which they make decisions (after Bennett 1983, p.2). “Good” decisionsare extra effective decisions and consequently decision support system (DSS)must improve content material utilized by a decision maker and improve thedecision process.