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

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

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 Information overload
See the chapter
• Selected countermeasures for a full list.

– 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.

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

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Knowledge
management
To create a
1. Create a supportive

knowledge organizational culture.

management 2. Define business goals.
system (KMS),
3. Perform a knowledge
follow these
seven steps: audit.

4. Create a visual map.

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

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

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Current
• Three broad types
topics
Data analytics – Descriptive
Tools decision – Predictive
makers can use to
– Prescriptive
analyze Big Data
• Example tools
– SAS Enterprise Guide
– SAS Enterprise Miner
–R
– SAP HANA
– Excel Miner
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Current
• Examples
topics
– Google Drive
Cloud
– Amazon Cloud
computing
A general term
• Applications
for anything that – Calendar sharing
involves – Document sharing
delivering hosted – Social networking
services over the
– Data backup
Internet

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