Chapter 09: Information, Decision Support, and Special-Purpose Systems

1. Chapter 09:Information, Decision Support, and Special-Purpose Systems

2. 2 Objectives Define the stages of decision making and problem solving Discuss the use of management information systems in providing reports to help solve structured problems Describe how decision support systems are used to solve nonprogrammed and unstructured problems

3. 3 Objectives Explain how a group decision support system can help people and organizations collaborate on team projects Discuss the uses of hybrid and special-purpose systems

4. Chapter Content Decision Making and Problem Solving Management Information Systems Decision Support Systems The Group Decision Support System Hybrid Systems and Special-Purpose Systems 4

5. Decision Making and Problem Solving Decision making Process that takes place in three stages Intelligence Design Choice 5

6. Decision Making and Problem Solving Intelligence stage Identify and define potential problems or opportunities Design stage Develop alternative solutions Choice stage Select a course of action 6

7. Decision Making and Problem Solving Problem solving Includes and goes beyond decision making Implementation stage Action is taken to put the solution into effect Monitoring stage Decision makers evaluate the implementation of the solution 7

8. Decision Making and Problem Solving Reactive problem-solving approach Wait until problem surfaces before taking action Proactive approach Seek out potential problems before they become serious 8

9. Decision Making and Problem Solving 9

10. Programmed Versus Nonprogrammed Decisions Programmed decisions Made using a rule, procedure, or quantitative method Easily automated Nonprogrammed decisions Deal with unusual or exceptional situations Require human knowledge or software containing human knowledge 10

11. Programmed Versus Nonprogrammed Decisions Decision support systems Expert support systems Used to solve a variety of nonprogrammed decisions Unstructured problems Problems are not routine Rules and relationships are not well-defined 11

12. Optimization and Heuristic Approaches Optimization model Will find the best solution Utilizes problem constraints Heuristics (“rules of thumb”) Commonly accepted guidelines Usually find a good solution, but not the optimal solution 12

13. Optimization and Heuristic Approaches 13

14. Management Information System Often used to Support programmed decisions made in response to structured problems Primary purpose To help individuals and organizations achieve their goals Provide reports and information used to make better decisions 14

15. Inputs to a Management Information System Input data can originate from internal or external sources TPS Most significant internal source of data for the MIS Major activity is to capture and store data resulting from ongoing transactions Databases Supply data to MIS 15

16. Inputs to a Management Information System 16

17. Outputs of a Management Information System Most MIS output is in the form of reports Produced on paper or on an executive dashboard Business intelligence (BI) Information produced in MIS reports Scheduled reports Produced periodically or on a schedule Key-indicator report Special type of scheduled report Summarizes previous day’s critical activities Available at the beginning of each workday 17

18. Outputs of a Management Information System 18

19. Outputs of a Management Information System Demand reports Give certain information at a person’s request Exception reports Automatically produced when a situation is unusual or requires action Used to help fight terrorism 19

20. Outputs of a Management Information System 20

21. Functional Aspects of Management Information Systems Supply chain management systems (SCM) Help streamline production Customer relationship management systems (CRM) Gauge customer satisfaction Respond to customer issues 21

22. Functional Aspects of Management Information Systems 22

23. Enterprise Resource Planning Enterprise resource planning system (ERP) Integrates all data processing into one system drawing from one database 23

24. Enterprise Resource Planning 24

25. Decision Support Systems Focus is on decision-making effectiveness Should assist people and organizations with all aspects of decision making The approach realizes that people, not machines, make decisions 25

26. 26 Decision Support Systems

27. Characteristics of a Decision Support System Handle a Range of Data Obtain and Process Data from Different Sources Provide Report and Presentation Flexibility Perform complex, sophisticated analysis and comparisons using advanced software packages 27

28. Characteristics of a Decision Support System Support Optimization and Heuristic Approaches Perform What-if and Goal-seeking Analysis What-if analysis Process of making hypothetical changes to problem data and observing the impact on the results Goal-seeking analysis Process of determining what problem data is required for a given result Perform Simulation DSS attempts to mimic an event that could happen in the future 28

29. Characteristics of a Decision Support System 29

30. Characteristics of a Decision Support System 30

31. Group Decision Support System DSS approaches Many not suitable for a group decision-making environment Group decision support system (GDSS) Also called a computerized collaborative work system Hardware, software, people, databases, and procedures needed to provide effective support in group decision-making settings 31

32. Group Decision Support System 32

33. Characteristics of a GDSS Flexibility Support for anonymous input Reduction of negative group behavior Support of positive group behavior 33

34. GDSS Software or Groupware Helps with joint work group scheduling, communication, and management Lotus Notes Popular groupware package Can capture, store, manipulate, and distribute memos and communications Using groupware Gives every employee rapid access to a vast source of information 34

35. Hybrid Systems and Special-Purpose Systems Hybrid systems Contains multiple information systems accessed through one central interface Corporate portal The interface used to access the hybrid system 35

36. Hybrid Systems and Special-Purpose Systems 36

37. Knowledge Management Systems Knowledge management system (KM) Helps organizations to capture, store, distribute information for use and reuse by the organization 37

38. Geographic Information Systems Geographic information systems (GIS) Stores, manipulates, displays geographic information Maps of locations and regions around the world Uses include 911 systems Display sales information for specific regions Military strategy Urban planning, social work, law enforcement 38

39. Geographic Information Systems 39

40. Other Specialized Systems Informatics Combines traditional disciplines with computer systems Bioinformatics Combines biology and computers Helps map the human genome and conduct research Medical informatics Combines medical research and computers 40

41. Summary Three phases of decision making Intelligence, design, and choice Problem solving Takes decision making a step further Implements the choice Monitors the effects of the decision MIS Provide managers with insight into operations Output Scheduled reports, demand reports, and exception reports 41

42. Summary Decision support systems Can handle large amount of data Can obtain and process data from different sources Can provide report and presentation flexibility Group decision support system (GDSS) A computerized collaborative work system 42

43. Summary Hybrid systems Contain multiple types of information accessed through one central interface called a corporate portal Special-purpose systems include Geographic information systems (GIS) Informatics 43