Decision Making, Decision Levels and Types of Problems - Essay Example

This root of the system is primordial and through interactions with each other and combinations becomes more advanced and complex assembling progressively more complex level of systems that cooperate and exchange information and ultimately forming an information system. Information systems theory postulates a system as a symbol within a representational medium (idiom) and the representational medium in itself. The general systems theory can be applied in structured problems to solve information system problems, where the problem and desired solution is clearly defined and can be split into a series of steps that are well defined (Skyttner 2001).

For example, in developing an information system for an online retailer, a structured approach would be to list the products being sold, the available staff and the processes that will lead to making a sale, in which case a product inventory can be made. Members of staff are then allocated duties such as customer service and dispatch then how data on available inventory and deliveries will be made. In this case, what is needed is clearly defined. The inventory, who will handle what and how items will be delivered to customers so a system development sequence is employed.

The general systems theory can be applied in structured problems to solve information system problems, where the problem and desired solution is clearly defined and can be split into a series of steps that are well defined (Skyttner 2001). For example, in developing an information system for an online retailer.. A decision support system (DSS) then comes in handy, as there is a need for some level of intuition. The DSS will do most of the ‘thinking’ as it provides data and models to help management make decisions.

Non-structured situations would be for example designing a web site that can process payments from customers online, receive orders and queries and interact with a customer. Intuition will be needed on what would be most suitable for the customer and how to reduce threats of credit card fraud to the customer. The exact situation is not fully known but forms the wider system requirement and hence the solutions are not straight forward (Mathews 2008) General systems thinking is the practice of appreciating how different parts of an information system can impact and influence each other.

For example, in designing a database system for a supermarket, one has to know how the accounting system will interact with the stock and inventory system and the payroll. In terms of structured problems, a designer can look at how the check out system will update the daily sales records and the stocks. The problem is defined as updating the daily sales account and knowing how much of what was sold. The problem can be designed in defined steps from what system to capture what has been sold, and for how much and then the stocks must be updated.

A semi-structured problem would be how to know when stocks are running low or when to take money to the bank. A threshhold for cash sales will have to be established that alerts the finance manager to call in the couriers to deliver money to the bank. The system to know how much sales came from what products and how many were paid for by credit card. A non-structured problem would be how to handle customer complaints, track their