Optimizing is finding the best solution and is usually best fit for problems that can be modeled mathematically with a low degree of estimation risk. For example, find how many products an organization should produce to meet a profit goal.
Satisficing is finding a good, but not necessarily the best, solution. Satisficing does not look at all possible solutions, but at those that are likely to give good results. Satisficing is a good decision method because it is sometimes too expensive to analyze every alternative to get the best solution. A satisficing example is when you have to select a location for a new plant.
Heuristics are guidelines or procedures that usually find a good solution by using “rules of thumb”.
Different Types of Information Systems for Different Types of Decisions
Automated information systems are those by which the computer hardware and program components do most of the work.
Humans start the programs and use the results.
Augmentation information systems are those in which humans do the bulk of the work.
These systems augment, support, or supplement the work done by People (email, instant messaging, video-conferencing, etc) to aid in decision making.