ICT FOR STRATEGIC DECISION MAKING

Decision Making
Definition:
• Refers to making choices among alternative courses of action—
which may also include inaction.
– Unique and important decisions require conscious thinking,
information gathering, and careful consideration of alternatives.
Definition
Types of Decisions:
and Types of
• Programmed Decisions:
Decisions
– Decisions that are repeated over time and for which an existing set of
rules can be developed.
• Non-programmed Decisions:
– Decisions that are novel and not based on well-defined or known
criteria (non-routine /high-involvement).
 Decision Making ….Cont’d
• Decisions can be classified into three categories based
on the level at which they occur.
– Strategic decisions set the course of an organization. 
Classification – Tactical decisions are decisions about how things will get
/ Categories done.
of Decisions – Operational decisions refer to decisions that employees
make each day to make the organization run.
 Decision Making ….Cont’d
Level of Decision

Strategic Decisions Tactical Decisions Operational Decisions

• Should we merge with • What should be done to • Frequency of
another entity / help facilitate employees communicating with
company? from the two entities to team members /
• Should we start a new work harmoniously? coworkers
Examples of decisions product line? • Which staff should be • What information should
• Should we downsize the retrenched from the be given to customers
company company? regarding new products?
• How to balance the
demands of the new
job?

Top Management Teams,

Decision Makers CEO’s and Boards of Managers Employees
Directors
 Making Rational Decisions
The rational
decision-making 1.
1. Problem
Problem Identification
Identification

model describes a 2.
2. Establish
Establish decision
decision
series of steps that 8.
8. Evaluate
Evaluate the
the decision
decision
criteria
criteria (Including
has
(Including who
has authority
authority to
who
to make
make
decision)
decision makers decision)

should consider if
their goal is to
maximize the
quality of their 7.
Information
7. Implement
Implement decisions
decisions 3.
3. Weigh
Weigh decision
decision criteria
criteria
outcomes. / Knowledge
In order to make
sure that you make
the best choice,
going through the 6.
6. Choose
Choose best
best 4.
4. Generate
Generate Alternatives
Alternatives
alternative
formal steps of the alternative

rational decision-
5.
5. Evaluate
Evaluate Alternatives
making model may Alternatives

make sense.
 Overview – ICT Systems and Decision Making

DECISION-MAKING SYSTEMS
• Transaction Processing Systems
• Decision Support Systems
• Executive Information Systems

ENTERPRISE SYSTEMS
• Supply Chain Management
• Customer Relationship Management
• Business Process Reengineering
• Enterprise Resource Planning
Decision-enabling, problem-solving, and opportunity-seizing systems
 Management Information Systems (MIS)
• MIS is a great tool for the organizations and companies to
track the various activities happening in the organization.
• These activities can include the product produced, bought
or sold; services, inventory, business partners, people,
MIS processes and a lot more.
• The MIS helps the managers to create reports about and
for the various resources and stakeholders of the
organization.
• MIS keeps company’s information organized which can be
utilized when required.
Gives a Comprehensive picture of the
company’s performance at any point of time. A secure MIS solution can be very
transparent and can help organizations to
keep a check on any malpractices happening
MIS improves the problem solving capabilities
in the organization.
of the Organization

Strength

MIS helps in maintaining the three pillars of

The flow of information among the various security in any organization. If used properly,
departments of the organization becomes it can help the organization in keeping the
lucid, smooth and accurate. confidentiality, integrity and availability of the
data.

SWOT analysis of MIS Systems (General Perspective)

MIS is totally based on transactions. This
is one of the key weaknesses of the MIS.
If transactions are not captured properly,
the resulting information would also be
faulty. This is an inherent flaw of MIS
which cannot be mitigated
With the amount of data growing, MIS
would require a lot of processing
power to produce the expected results
in time.

Weakness

MIS is highly sensitive to changes. Due to

The requirement gathering for the
system should be very comprehensive,
detailed and effective. As discussed,
the system is highly sensitive to
changes
the enormous data, any change in the
meta data would require a careful
observation of the system. A small gap in
the change may lead to drastic and
devastating results.

SWOT analysis of MIS Systems (General Perspective)

Marketing and sales departments can be more
accurate in their demand forecasting if a good
MIS system is available to them. This
forecasting can be used by the production and
the whole organization can be benefitted by
this.
A system in the manufacturing firm can
control the flow of materials. This can
reduce the cost of inventory. The concept of
just-in-time can only be implemented if it is
backed by a flawless MIS

Opportunities

Human Resource MIS manages employees

The decisions supported with flawless
information combined with the wisdom of
the directors of the company can lead to
unforeseen opportunities. One of the basic
decisions of investment can be made
through the information given by the MIS.
and selection of employees. Human resource
MIS looks at needs of the employees, the
workforce rules, hiring process, training, and
job assignments. The company's Human
resource MIS is in charge of payroll and
medical care for its employees

SWOT analysis of MIS Systems (General Perspective)

 As
As discussed in the weakness part, the system is is
As with any IT system, security is a big threat to totally
totally dependent on the transactions. The
the MIS system. All the data is on the network. transaction capturing system should be very
Any vulnerability or loophole can turn into a accurate
accurate in capturing the
the data.
data. Any
Any violation in
potential security flaw. Very keen care should be any of the rules in the captured data would
taken for the system on this aspect. percolate
percolate to the
the upper
upper layer.

Threats

Natural threats can

can turn out to be devastating of
The designing of the information can also turn no backup ofof the
the system
system is
is taken. A complete
out
out to be
be aa threat
threat if the design is
is not
not flexible backup policy and business continuity
continuity plan
enough to entertain the change
change requests.
requests. MIS is should be in place for even the smallest
smallest part of
a supporting
supporting system for for the management. Any the
the MIS.
MIS.
change in management
management may may require in the MIS is nothing without the human wisdom. If
change
change in the MIS. The system should be these
these systems or the
the information about the
capable enough to handle such changes. system falls into wrong hands, it can
can be misused.

SWOT analysis of MIS Systems (General Perspective)