Accounting Information System

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Chapter 15
Decision-Making Models and
Knowledge Management

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Outline
• Learning objectives
• Information overload
• Knowledge management
• Steps for Better Thinking
• Current topics

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Learning objectives
1. Discuss and give
examples of the concept
of information overload,
including causes,
symptoms, and
countermeasures.
2. Explain the nature of
decision models and
knowledge
management.
3. Explain why those two
topics are important in
the study of accounting
information systems.
4. Describe and apply
Wolcott and Lynch’s
Steps for Better
Thinking.
5. Explain fundamental
concepts associated
with Big Data, data
analytics and cloud
computing.

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Information overload
• Definitions
– The point at which
information
incorporated into a
decision begins to
decline
– Information supplied
exceeds human
processing capacity
• Causes
– Personal factors
– Information
characteristics
– Task and process
parameters
– Organizational design
– Information technology

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Information overload
• Selected countermeasures
– Allow more time to complete important tasks.
– Compress, aggregate, categorize, and
structure information.
– Formalize the language used to describe
information.
– Handle information as it comes to you—don’t
put it off!
– Use graphs and other visual aids.
See the chapter
for a full list.

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Knowledge management
• Definition
The process through
which organizations
generate value from their
intellectual and
knowledge-based assets
• Objectives
1. Create knowledge
repositories.
2. Improve knowledge
access.
3. Enhance the
knowledge
environment.
4. Manage knowledge
as an asset.

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Knowledge
management
1. Create a supportive
organizational culture.
2. Define business goals.
3. Perform a knowledge
audit.
4. Create a visual map.
To create a
knowledge
management
system (KMS),
follow these
seven steps:

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Knowledge
management
5. Develop a knowledge
management strategy.
6. Purchase or build
appropriate tools.
7. Periodically reassess
the value of the KMS
and adjust accordingly.
To create a
knowledge
management
system (KMS),
follow these
seven steps:

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Steps for Better Thinking
• Developmental problem-solving and
decision-making process
• Developed by Wolcott and Lynch
• Applied throughout accounting and other
areas

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Steps for Better Thinking

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Current topics
Big Data Data
analytics
Cloud
computing

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Current
topics • Types of Big Data
– Web and social media
– Machine-to-machine
– Big transaction
– Biometric
– Human-generated
• A specific example may
fit more than one group
Big Data
A collection of data
from traditional and
digital sources inside
and outside your
company that
represents a source
for ongoing
discovery and
analysis

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Current
topics
• Three broad types
– Descriptive
– Predictive
– Prescriptive
• Example tools
– SAS Enterprise Guide
– SAS Enterprise Miner
– R
– SAP HANA
– Excel Miner
Data analytics
Tools decision
makers can use to
analyze Big Data

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Current
topics • Examples
– Google Drive
– Amazon Cloud
• Applications
– Calendar sharing
– Document sharing
– Social networking
– Data backup
Cloud
computing
A general term
for anything that
involves
delivering hosted
services over the
Internet

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