chapter 9,10

1. Describe the decision-making process proposed by Simon.
Simon proposed a system that used intelligence, design and choice. The intelligence phase; managers examine the situation and identify and define the problem. In the design phase; decision makers construct a model that simplifies the problem. The choice phase, involves selecting a solution, which is tested on paper.

2. Why do managers need IT support?
Managers need IT support, as information is vital in all decision-making processes. The availability of information and making decisions is becoming increasingly difficult due to; the number of alternative information, time pressures, conducting sophisticated analysis and large expenses.

3. Describe the decision matrix.
The three primary classes of problem structure and the three broad categories of the nature of decisions can be combined in the decision support matrix. Lower-level managers usually perform the structured and operational control-orientated tasks.


1. Describe the capabilities of data mining.
Data mining can perform two basic operations; predicting tends and behaviors and identifying previously unknown patterns. Data mining addresses why it is happening and provides predictions of what will happen in the future. Data mining automated the process of finding predictive information in large databases. Data mining can also identify previously hidden patterns in a single step.

1. What are some of the capabilities of digital dashboards?
Some of the capabilities of digital dashboards are drill down, the ability to go into details, Critical success factors (CSFs), Key performance indicators (KPIs), Status success, Trend analysis, Ad-hoc analysis and exception reporting.

Chapter 10 questions

1. What are some problems associated with assessing the costs of IT?
Fixed costs are those costs that remain the same regardless of any change in the activity level. Another complication is that the cost of a system does not end when the system is installed. Costs for debugging and improving the system can accumulate over many years.

2. What difficulties accompany the intangible benefits from IT?
Intangible benefits are hard to quantify.

3. Define NPV and ROI, and business case approaches.
NPV is the net present value calculation for cost-benefit analysis. ROI is return on investment; it measures the management’s effectiveness in generating profits with its available assets.


1. What type of companies provides outsourcing service?
Software companies; (IBM to Oracle), IT outsourcers; (EDS), also large CPA companies and management consultants; (Accenture).

2. Define ASPs and list their advantages to companies using them.
ASPs Application service provider is an agent or vendor who assembles the software needed by enterprises. The advantages; saves expenses in development stage, helps reduce the cost of software maintenance and upgrading and the company can select another software product from the vendor to meet its changing needs.

3. List some disadvantages of ASPs.
Developing and operating IT application in-house can be time consuming and expensive for these entities.


1. List the major steps of selection of a vendor and a software package.
Companies can identify potential software application vendors through various sources: software catalogues, lists provided by hardware vendors, technical and trade vendors, consultants and industry

2. Describe a request for proposal (RFP).
An RFP is a document that is sent to potential vendors inviting them to submit a proposal that describes their software package and explains how it would meet the companies needs.

3. Describe SLAs.
Service level agreement SLAs are formal agreements that specify how work is to be divided between the company and it vendors.