Decision Making Basics and Concepts

1. Sanjivani Rural Education Society’s
Sanjivani College of Engineering, Kopargaon-423 603
(An Autonomous Institute, Affiliated to Savitribai Phule Pune University, Pune)
NACC ‘A’ Grade Accredited, ISO 9001:2015 Certified
Department of Computer Engineering
(NBA Accredited)
Prof. S.A.Shivarkar
Assistant Professor
E-mail :
shivarkarsandipcomp@sanjivani.org.in
Contact No: 8275032712
Subject- Business Intelligence
Unit-II:Decision Making Concepts

2. Course Contents
DEPARTMENT OF COMPUTER ENGINEERING, Sanjivani COE, Kopargaon 2
Unit-II :Decision Making Concepts
Concepts of Decision Making, Techniques of Decision
Support System (DSS),Development of Decision Support
System (DSS), Applications of DSS, Role of Business
Intelligence in DSS.

3. Decision making
 Decision making is a process of choosing among
two or more alternative courses of action for the
purpose of attaining one or more goals.
 A decision support system (DSS) is an
interactive computer-based application that
combines data and mathematical models to help
decision makers solve complex problems faced
in managing the public and private enterprises
and organizations.

4. Decision making

5. Decision making

6. Characteristics of decision making
 Groupthink (i.e., group members accept the
solution without thinking for themselves) can lead
to bad decision.
 Decision makers are interested in evaluating what-
if scenarios.
 Experimentation with a real system (e.g., develop a
schedule, try it, and see how well it works) may
result in failure.
 Experimentation with a real system is possible only
for one set of conditions at a time and can be
disastrous.

7. Characteristics of decision making
 Changes in the decision-making environment may occur continuously,
leading to invalidating assumptions about a situation (e.g., deliveries
around holiday times may increase, requiring a different view of the
problem).
 Changes in the decision-making environment may affect decision quality by
imposing time pressure on the decision maker.
 Collecting information and analyzing a problem takes time and can be
expensive. It is difficult to determine when to stop and make a decision.
 There may not be sufficient information to make an intelligent decision.
 Too much information may be available (i.e., information overload).

8. Decision Style
 Decision style is the manner by which decision makers think and react to
problems.
 This includes the way they perceive a problem, their cognitive responses,
and how values and beliefs vary from individual to individual and from
situation to situation.
 As a result, people make decisions in different ways

9. Decision Making Style
 These include heuristic and analytic styles.
 One can also distinguish between autocratic versus democratic styles.
Another style is consultative (with individuals or groups).
 Of course, there are many combinations and variations of styles.
 For example, a person can be analytic and autocratic, or consultative (with
individuals) and heuristic.

10. Simon's four phases of decision making

11. Impacts of the Web on the phases of decision making