Chapter 1

Internal memory is stored inside the person or the organization. The brain is the internal memory of a person. It is extremely well organized, very fast, and convenient. The major problem with the brain is that it gets overloaded and the memory decays over time. We use external memories to support our brain. External memories are located outside the person or organization. External memories, such as address books, have no size limits and they do not "forget." However, these external memories have to be well organized, otherwise we are not able to find what we are looking for.

Internal Memories	External Memories
internal to person	external to person
well organized	have to be well organized to be useful
memory decays over time	no memory decay
fast	no size limit
might get overloaded	supports internal memory
convenient

Using paper as an example, here are the common features to most individual memory systems:

• storage medium: paper
• a structure for storing data
• organized for rapid data entry and retrieval
• typically required tradeoff decision, e.g., between portability and spaciousness.

Data are relevant when they help to solve an existing problem. The most difficult thing to decide is which data will be relevant for future decisions.

Measuring the quality of a decision is not a simple task and this problem perplexes many managers. Most people decide that examining the outcome is the best guide to decision quality:

• Were the intended outcomes achieved?
• Did implementation of the decision proceed smoothly?
• Were there any unintended outcomes?

A key point to bring out is that you cannot generally measure the quality of a decision until some time after it is made.

Hypertext is a document storage format. In contrast to linear text, hypertext has built-in linkages between sections of text. These links enable the reader to quickly jump from one part of the text to another. An organizational memory system contains massive amounts of data on various topics. Hypertext can simplify the required data and enable faster access to it.

External memories are memory stores outside of the organization. Often it is too much effort for a single organization to collect all potentially relevant data. Some organizations have specialized in providing data to other organizations (e.g, various government departments and credit bureaus).

A DSS is a computer system that supports decision makers through the use of data and mathematical models. Typically, DSSs are used to analyze existing problems and prepare for the future.

Data are raw, not summarized, and unanalyzed. Information is data that has been processed into a meaningful form. Knowledge is the capacity to use information.