Lecture Accounting information systems: Basic concepts and current issues (4/e): Chapter 15 - Robert L. Hurt

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.

2.

Discuss and give
examples of the
concept of
information
overload,
including causes,
symptoms, and
countermeasures.
Explain the nature
of decision

3.

4.

Explain why those
two topics are
important in the
study of
accounting
information
systems.
Describe and
apply Wolcott and
Lynch’s Steps for

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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

See the chapter
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
The process through

which organizations

•

Objectives
1.

Create knowledge
repositories.

2.

Improve
knowledge
access.

3.

Enhance the
knowledge
environment.

4.

Manage

generate value from
their intellectual and
knowledge-based
assets

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Knowledge
management
•

To create a

1.

organizational culture.

knowledge
management
system (KMS),

Create a supportive

2.

Define business goals.

3.

Perform a knowledge

follow these

audit.

seven steps:
4.

Create a visual map.
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Knowledge
management
•

5.

management strategy.

To create a
knowledge

6.

follow these
seven steps:

Purchase or build
appropriate tools.

management
system (KMS),

Develop a knowledge

7.

Periodically reassess
the value of the KMS
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
Data
analytics

Big Data

Cloud
computing
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Current
topics
•

•

Big Data
–

Types of Big Data
–

Web and social media

A collection of

–

Machine-to-machine

data from

–

Big transaction

–

Biometric

–

Human-generated

traditional and
digital sources
inside and outside
your company
that represents a
source for

•

A specific example may
fit more than one group

ongoing discovery

and analysis

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Current
topics
•

•

Data analytics
–

Tools decision
makers can use to
analyze Big Data

•

Three broad types
–

Descriptive

–

Predictive

–

Prescriptive

Example tools
–

SAS Enterprise Guide

–

SAS Enterprise Miner

–

R

–

SAP HANA

–

Excel Miner
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Current
topics
•

Cloud
computing
–

•

•

Examples
–

Google Drive

–

Amazon Cloud

Applications

A general term

–

Calendar sharing

for anything

–

Document sharing

that involves

–

Social networking

delivering

–

Data backup

hosted
services over
the Internet

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