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- Identify someone you know that works for a relatively large organization (e.g., a bank, insurance company, manufacturer, electric utility, etc.). Ask that person to identify an
information system (along the lines of the ones mentioned in this chapter) that is used by the organization to automate or support decision making. By interviewing your contact person (and
possibly others within the organization, if appropriate), try to address the following issues:
- Describe the data that is used as input to the information system. How is the data obtained? How is it input into the system? How good is the data (e.g., using characteristics such as accuracy, timeliness, completeness)? How expensive is it to obtain the data?
- How were the decision rules or algorithms that are used by the system developed? By interviewing experts? By reviewing historical data?
- What outputs (e.g., recommendations, decisions, actions) are generated by the system? Does the system make decisions, provide recommendations, or both?
- Does the company keep track of the outcomes of decisions made (or recommended) by the system? If so, how?
- Does the system get updated or modified (e.g., by updating the decision rules)? If so, how?
- In what ways does the system improve the efficiency and/or effectiveness of the organization? Does the organization attempt to measure the impact of the system? If so, how?
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Think of an organization that you are familiar with (e.g., a
university, a bank, an online retailer). Identify:
- Two decisions that must be made on a regular basis which are highly structured, and hence probably could be automated. Are these decisions currently automated, or performed by humans? If they are not automated, how challenging would it be to do so? Would it make sense to create a system (or systems) to automate them? Consider issues such as how many people are currently used to make the decisions, how much their salaries are, how long it takes them to make decisions, etc.
- Two decisions that are unstructured, and hence probably should not be automated. Even if they are not automated, are there ways that an information system could provide decision-makers with information that could help them make the decisions? What information would help? Is it currently available to the decision maker?
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