background and the general business environment for the project
It is the combination
of all external and internal factors that influence business and each other
that can be defined as business environment.
The major factors in today’s business environment are:
Markets: strong competition, expansion of
global markets, booming electronic markets on the Internet, innovative
marketing methods, opportunities for outsourcing with IT support, and need for
real time on demand transactions
Consumer demand: wanting customization,
quality, diversity of products, and speed of delivery and customers becoming
powerful and less loyal
Technology: more innovations, new products and
services, increasing obsolescence rate, increasing information overload, social
networking, Web 2.0 and beyond
Societal: growth of government regulations and
deregulation, work force becoming more diversified, older, and composed of more
women, prime concerns of homeland security and terrorist attacks, increasing
social responsibility, greater emphasis on sustainability
Define 10 problems
related to decision making that currently exist in the organization
Defining a problem
Potential causes of problem
Lack of alternative approaches
Selecting best approach to resolve the problem
Lack of clear plan for implementation of
Unreliability of plan implementation
Problem resolve verification
Describe the typical
organizational response to problems using the business pressure-responses-support
Business pressures, companies’ responses to these pressures,
and computerized support are the components of the pressure-response-support
model. It hints that responses are made to counter the pressures or to take
advantage of opportunities, support facilitates environment monitoring (e.g.,
for opportunities) and enhances the response quality.
Responses taken by organizations include, but are not
Employ strategic planning
Breaking down a complex problem
Use new and innovative business models
Restructure business processes
Participate in business alliances
Improve partnership relationships
Encourage innovation and creativity
Improve customer service and relationships
Move to electronic commerce (e-commerce)
Move to make-to-order production and on-demand
manufacturing and services
Use new IT to improve communication, data access
(discovery of information), and collaboration
Respond quickly to competitors’ actions (e.g.,
in pricing, promotions, new products and services)
Automate many tasks of white-collar employees
Automate certain decision processes, especially
those dealing with customers
Improve decision making by employing analytics
qualitative and quantitative impact of the organizational response to the 10
problems on managerial decision making
Defining a problem: When a problem is identified the
organizations break down the problem into small issues. The breaking down of
the problem can be carried out as following:
What all symptoms
are seen for the problem establishing.
The root of
problem should be identified.
What is the
reason for the problem.
At what time is
the problem raised.
After breaking down we will be with the issues where
we need to choose to solve the important ones before unimportant problems. It
is better to choose the problem which should be solved first among the bunch of
Potential causes of problem:
In this phase, it
is good to get information from different people who are affected by the
problem and make a list of opinions. This process of collecting information makes
very easy to find the problem and the issues and reduces the time consumption
for solving the problem.
Also seek advice
regarding the solving procedure of the issue which is helpful to fix the
the cause of the problem in terms of issues like what is happening, where,
when, how, with whom and why.
of alternative approaches:
At this point, it is useful to maintain others
involved which can be achieved via enhancing partnership relations. Brainstorm
for solutions to the problem. Very simply put, brainstorming is accumulating as
many ideas as possible, screening them to discover the excellent idea. It’s
critical when collecting the ideas to not pass any judgment on the ideas —
simply write them down as you hear them.
best approach to resolve the problem:
can be achieved by the organizational response by improving decision making by
selecting the best approach, consider:
which mostly solve the problem in long time run.
approach must be suitable to solve the problem now and check the requirements
the alternatives in case of any emergency.
Plan the implementation of the best alternative (this is your action
must be chosen by considering how the problem is solved by choosing the
Plan the steps to
be done in implementing the alternative.
procedure in each stage.
to solve the problem in terms of money, people and many more.
Make a schedule
for the plan i.e., when to be started and deadline to complete the problem and
make time for completing each stage.
Discuss the plan
and deadlines with the team and implement the plan.
One of the best ways to verify whether a
problem has been solved or not, is to resume normal operations in the organization.
Describe how business
intelligence can be used to support problem solving and decision support in the
case study organization.
Business Intelligence is an umbrella term that combines
architectures, tools, databases, applications, and methodologies
BI’s major objective is to enable
interactive access to data, to enable manipulation of data, and to give
business managers and analysts the ability to conduct appropriate analysis.
The process of BI is based on the transformation
of data to information, then to decisions, and finally to actions.
Data warehouse : (Technical staff
Business analytics: a collection of tools
for manipulating, mining and analyzing the data in the data warehouse.
(Business users realm)
Business Performance Management (BPM):
for monitoring and analyzing performance. (used by Top Managers )
Originally, included historical data that were
organized and summarize, so end users could easily view or manipulate data and
Today, some data warehouses include current data
as well, so they can provide real time decision support
End users can work with the data and information in a data
warehouse by using a variety of tools and techniques. Those techniques fit into
Reporting and queries
Data, text and Web mining and other
sophisticated mathematical and statistical tools
of searching (extracting) for unknown (hidden)
relationships or information in large databases or data warehouses,
using intelligent tools such as neural computing, predictive analytics
techniques, or advanced statistical methods.
There are five styles of BI, each style have special tool:
Delivery and Alerting
Reporting (dashboard, scorecard)
Analysis (Slice and Dice Analysis)
and Data Mining
So each style has
its own functionalities that cater to resolving problems in decision making.