Blog Week 3- Strategic Decision Making

2.1. Explain the difference between transactional information and analytical information. Be sure to provide an example of each.

Transactional information primarily focuses on daily operational tasks. It is specific to information in single business units of work. An example of this would be making an airline reservation. Analytical information includes transactional information but also all organizational information while focusing on managerial analysis tasks. An example of analytical information includes trends and future growth projections.

2.2. Define TPS, DSS, and EIS and explain how an organization can use these systems to make decisions and gain competitive advantages.

TPS is defined as a transaction processing system that functions at the operational level in an organization. A payroll system or other forms of operational accounting system is an example of this. Decision support systems (DSS) aids managers and other business professionals by modeling information through sensitivity analysis, what-if analysis and goal seeking analysis.  Senior level executives have a specialized decision support system known as executive information system. Executive information systems directly impact business performance by allowing executives to approach a daily strategy of solving problems.

2.3. Describe the three quantitative models typically used by decision support systems.

Three quantitative models typically used by decision support systems include sensitivity analysis, what-if analysis and goal-seeking analysis.  Sensitivity analysis focuses its study on the models. This model analyzes the impacts of the change in one part on the model on another. What-if analysis focuses on all possible outcomes due to any possible future change in a variety of situations. The model that sets a goal and modifies variables until that goal is achieved is the goal-seeking analysis. It determines the necessary inputs in order to achieve the desired outputs.

2.4. Describe the relationship between digital dashboards and executive information systems.

Executive information systems use data from all sources within an organization. Digital dashboards use multiple sources of data in order to alter the information to compliment individual preferences. Both systems use the information in order to enhance the efficiency and the performance of executives by providing them with accurate information.

2.5. Identify the four types of artificial intelligence systems.

The four types of artificial intelligence systems include expert systems, neural networks, genetic algorithms and intelligent agents.  The first artificial intelligent systems, expert systems, are used as an alternative to human experts when they are difficult or rare to find. Expert systems imitate the expertise of humans that provide specific advice. Neural networks imitate the responses and functions of the human brain. This system analyzes patterns and images when logic and rules are absent.  The system that generates better solutions by the survival-of-the-fittest process is a genetic algorithm. This system gives the best outputs by identifying the best possible inputs. It is most effective in a system that has an infinite about of solutions possible. The final artificial intelligence system is intelligent agents. Intelligent agents accomplish tasks based on user intentions.