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Chapter 15

Chapter 15. Decision-Making Models and Knowledge Management. Outline. Expected outcomes Relevance to AIS Information overload Knowledge management Steps for Better Thinking. Expected outcomes.

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Chapter 15

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  1. Chapter 15 Decision-Making Models and Knowledge Management

  2. Outline • Expected outcomes • Relevance to AIS • Information overload • Knowledge management • Steps for Better Thinking

  3. Expected outcomes • 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 AIS. • Describe and apply Wolcott and Lynch’s Steps for Better Thinking. • Develop a personal strategy for making decisions and managing knowledge, including available IT and other resources.

  4. Relevance to AIS • An accounting information system is a set of interrelated: • Activities • Documents • Technologies • Designed to: • Collect data • Process it • Report information • To a diverse group of: • Internal decision makers • External decision makers • In all kinds of organizations

  5. Relevance to AIS • Thus, the accounting information system is one source of knowledge in organizations. • Financial knowledge • Non-financial knowledge • That knowledge must be managed to create value for stakeholders.

  6. Information overload • The experience of having too much information • Can lead to suboptimal, inefficient decisions • Satisficing • Bounded rationality • Relapse errors

  7. Information overload • Causes • Personal factors • Information characteristics • Information technology • Organizational design • Task and process parameters

  8. Information overload • Lecture break 15-1 • Which causes of information overload have you experienced in your AIS course this term? How have they manifested? • What strategies have you used to cope with them?

  9. Knowledge management • One way to cope with information overload • Application of relational database ideas • A critical success factor in organizations today considering the prominence of knowledge workers & the competitive advantage of information

  10. Knowledge management • Objectives of a knowledge management system (KMS) • To create knowledge repositories • To improve knowledge access • To enhance the knowledge environment • To manage knowledge as an asset

  11. Knowledge management • Steps to create a KMS • Create conducive organizational culture. • Define business goals of KMS. • Perform a knowledge audit. • Create a visual map. • Develop a strategy for managing knowledge based on the previous steps. • Purchase / build appropriate tools. • Periodically reassess and revise the system.

  12. Knowledge management • Lecture break 15-2 Many accounting majors aspire to professional certification / licensure with one or more of the following: • Certified Public Accountant • Certified Management Accountant • Certified Fraud Examiner • Consider one of those credentials or some other that interests you. • Outline the content of the associated exam. • Create a personalized KMS for it.

  13. Steps for Better Thinking • A structured methodology for managing knowledge and making good decisions • Five steps • Knowing • Identifying • Exploring • Prioritizing • Evaluating

  14. Classroom assessment • This chapter has focused on: • Information overload • Knowledge management systems • Steps for Better Thinking • The chapter & lecture have laid the “foundation” by providing background knowledge about information overload and KMS.

  15. Classroom assessment • BRS Corporation has hired you as a consultant to help them: • Cope with information overload • Develop a KMS. • Work with a group of three to five students on one of those two tasks. • Use Steps for Better Thinking to help BRS complete the task you chose.

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