Define the three primary types of decision-making systems, and explain how a customer of Actionly might use them to find business intelligence.
The three primary types of decision-making systems are: the transactional support system, the management information system, and the decisions support system (FreeTutes.com, 2014).
First, the transactional support system encompasses all of the information contained within a single business process or unit of work, and its primary purpose is to support the performing of daily operational or structured decisions. Some examples of transactional information are when customers purchase stocks, make an airline reservation, or withdraw cash from an A.T.M. (Baltzan, 54). A customer of Actionly could use this information for behavioral targeting purposes. Behavioral targeting refers to a range of techniques and technologies which allows advertisers to increase the effectiveness of their campaigns (I.S.P., 2009). Actionly’s customer could then apply this information to its current advertising strategy to ensure that they are getting the most return on their advertising investments. For example, McDonalds may choose to advertise grilled chicken sandwiches on the screen of an A.T.M. machine close to one of its restaurants at 12:00 p.m. if transactional information gathered by Actionly suggests that there is a spike in the frequency of the A.T.M.’s use at that time.
Next, the management information systems are business functions like accounting and human resources, which moves information about people, products, and processes across the company which facilitates decision making and problem solving (Baltzan, p.14) Electronic communications such as Facebook and Twitter have provided many new tools to support and develop businesses, however there also challenges associated with these electronic communications such as reputation management and sentiment analysis. Actionly could monitor the posts and organize the conversations by hashtags to observe trending conversations about the customer’s products and services. Tweets are the social equity of the company’s brand. Each time a person tweets about the brand it signifies that someone recognized the brand. These tweets also depict the brands social reputation, its digital footprint. Actionly can monitor these posts and tweets and provide this feedback to the customer. The customer can then analyze the feedback and use this information to modify their products and services to better fit their customer’s needs. This proactive practice should enhance customer sentiment favorably towards the brand, thus boosting its reputation among consumers.
And lastly, the decision support system models information and uses online analytical processing, which provides assistance in evaluating and choosing among different courses of action. Managers need to analyze large amounts of information, make decisions quickly, and managers must apply sophisticated analysis techniques to make...