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

Chapter 15 - Decision-making models and knowledge management. When you''ve finished studying this chapter, and completing the activities at its conclusion, you should be able to: Discuss and give examples of the concept of information overload, including causes, symptoms, and countermeasures; explain the nature of decision models and knowledge management; explain why those two topics are important in the study of accounting information systems;...

Chapter 15

Decision-Making Models

and Knowledge Management

Outline

• Learning objectives

• Information overload

• Knowledge management

• Steps for Better Thinking

• Current topics

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.

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

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.

Knowledge management

• Definition

The process through

which organizations

generate value from

their intellectual and

knowledge-based

assets

• Objectives

1. Create knowledge

repositories

2. Improve

knowledge access

3. Enhance the

knowledge environment

4. Manage

knowledge as an asset

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:

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:

Steps for Better Thinking

• Developmental problem-solving and

decision-making process

• Developed by Wolcott and Lynch

• Applied throughout accounting and other

areas

Steps for Better Thinking

Current topics

analytics

Cloud computing

Current

– Web and social media

– Machine-to-machine

– Big transaction

– Biometric

– Human-generated

• A specific example may fit more than one group

• Big Data

data from

traditional and

digital sources

inside and outside

your company

that represents a

source for

ongoing discovery

and analysis

Current

– Descriptive

– Predictive

– Prescriptive

• Example tools

– SAS Enterprise Guide

– SAS Enterprise Miner

– R

– SAP HANA

– Excel Miner

• Data analytics

makers can use to

analyze Big Data

Current

– 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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