Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior w of McGraw-Hill Education. Chapter 15 Decision-Making Models and Knowledge Management
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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 examples of the concept of information overload, including causes, symptoms, and countermeasures.
2. Explain the nature of decision models and knowledge management.
3. Explain why those two topics are important in the study of accounting information systems.
4. Describe and apply Wolcott and Lynch’s Steps for Better Thinking.
5. Explain fundamental concepts associated with Big Data, data analytics and cloud computing.
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Information overload
• Definitions– The point at which
information incorporated into a decision begins to decline
– Information supplied exceeds human processing capacity
• Causes– Personal factors– Information
characteristics– Task and process
parameters– Organizational design– Information technology
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Information overload
• Selected countermeasures– 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.
See the chapter for a full list.
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Knowledge management
• Definition
The process through
which organizations
generate value from their
intellectual and
knowledge-based assets
• Objectives1. Create knowledge
repositories.2. Improve knowledge
access.3. Enhance the
knowledge environment.
4. Manage knowledge as an asset.
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Knowledge management
1. Create a supportive
organizational culture.
2. Define business goals.
3. Perform a knowledge
audit.
4. Create a visual map.
To create a
knowledge
management
system (KMS),
follow these
seven steps:
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Knowledge management
5. Develop a knowledge
management strategy.
6. Purchase or build
appropriate tools.
7. Periodically reassess
the value of the KMS
and adjust accordingly.
To create a
knowledge
management
system (KMS),
follow these
seven steps:
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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
– Web and social media
– Machine-to-machine
– Big transaction
– Biometric
– Human-generated
• A specific example may fit more than one group
Big DataA collection of data
from traditional and
digital sources inside
and outside your
company that
represents a source
for ongoing
discovery and
analysis
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Current topics • Three broad types
– Descriptive
– Predictive
– Prescriptive
• Example tools– SAS Enterprise Guide– SAS Enterprise Miner– R– SAP HANA– Excel Miner
Data analyticsTools decision
makers can use to
analyze Big Data
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Current topics • Examples
– Google Drive
– Amazon Cloud
• Applications– Calendar sharing
– Document sharing
– Social networking
– Data backup
Cloud computing
A general term
for anything that
involves
delivering hosted
services over the
Internet
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