12. Decision Making

Information systems improve decisions when they deliver timely data, useful models, clear analysis, and reusable organizational knowledge. This chapter introduces decision support, judgment, and knowledge management.

Video

Humans vs. AI: Who should make the decision? by IBM Technology

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Learning Objectives

By the end of this chapter, you will be able to:

1. Classify a decision by its structure, information needs, authority, and context.

2. Evaluate dashboard measures and decision-model assumptions through examples.

3. Explain cognitive biases and assign human and system responsibilities.

4. Distinguish capturing, sharing, locating, and applying organizational knowledge.

Concept Map

Decision Making

Decisions

• Structured
• Unstructured
• Roles

Models

• DSS
• Scenarios
• Limits

Judgment

• Bias
• Context
• Interpretation

Knowledge Management

• Expertise
• Tacit Knowledge
• Lessons Learned

Glossary

#	Term	Explanation
1	Decision making	Choosing among alternatives based on goals, information, constraints, and judgment.
2	Structured decision	A routine decision with clear procedures and well-defined inputs.
3	Semi-structured decision	A decision with some repeatable elements but also requiring judgment.
4	Unstructured decision	A novel or complex decision without a clear procedure.
5	Decision support system	An information system that helps analyze alternatives for semi-structured or unstructured decisions.
6	Business intelligence	Reports, dashboards, and analysis tools that help managers monitor and decide.
7	Model	A simplified representation used to analyze a situation or predict outcomes.
8	What-if analysis	Changing assumptions to see how outcomes might change.
9	Sensitivity analysis	Testing how strongly an outcome changes when one input changes.
10	Dashboard	A display of key measures used to monitor performance and support decisions.
11	Key performance indicator	A metric selected to track progress toward an important goal.
12	Managerial role	A recurring responsibility such as monitoring, coordinating, deciding, communicating, or allocating resources.
13	Knowledge management	The practices and systems for creating, storing, sharing, and applying organizational knowledge.
14	Tacit knowledge	Know-how rooted in experience that is difficult to write down fully.
15	Explicit knowledge	Knowledge that can be documented, stored, and shared directly.
16	Expert system	A system that applies encoded expert knowledge to advise or diagnose.
17	Judgment	Human evaluation that weighs context, values, uncertainty, and tradeoffs.
18	Cognitive bias	A systematic pattern in thinking that can distort judgment.
19	Decision quality	How well a decision process uses evidence, alternatives, values, and feedback.
20	Organizational learning	The process by which an organization improves knowledge and behavior from experience.

Lecture Slides

Chapter 12 Slides

These lecture drafts follow the authored sections and aligned assignments.