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ENHANCING MANAGEMENT DECISION MAKING

13. ENHANCING MANAGEMENT DECISION MAKING. LEARNING OBJECTIVES. DIFFERENTIATE DECISION-SUPPORT SYSTEMS (DSS) FROM GROUP DECISION-SUPPORT SYSTEMS (GDSS) DESCRIBE COMPONENTS OF DSS & GDSS *. LEARNING OBJECTIVES. DEMONSTRATE HOW DSS & GDSS ENHANCE DECISION-MAKING

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ENHANCING MANAGEMENT DECISION MAKING

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  1. 13 ENHANCING MANAGEMENT DECISION MAKING

  2. LEARNING OBJECTIVES • DIFFERENTIATE DECISION-SUPPORT SYSTEMS (DSS) FROM GROUP DECISION-SUPPORT SYSTEMS (GDSS) • DESCRIBE COMPONENTS OF DSS & GDSS *

  3. LEARNING OBJECTIVES • DEMONSTRATE HOW DSS & GDSS ENHANCE DECISION-MAKING • DESCRIBE CAPABILITIES OF EXECUTIVE SUPPORT SYSTEMS (ESS) • ASSESS BENEFITS OF ESS *

  4. MANAGEMENT CHALLENGES • DECISION-SUPPORT SYSTEMS • GROUP DECISION-SUPPORT SYSTEMS • EXECUTIVE SUPPORT SYSTEMS *

  5. DECISION SUPPORT SYSTEMS (DSS) MANAGEMENT LEVEL COMPUTER SYSTEM COMBINES DATA, MODELS, USER - FRIENDLY SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION MAKING *

  6. DECISION SUPPORT SYSTEM • MODEL DRIVEN DSS: Uses models for what-if and other analysis • DATA-DRIVEN DSS: Allows extraction, analysis of information from databases *

  7. DECISION SUPPORT SYSTEM EXTERNAL DSS DATA TPS DATA BASE DSS SOFTWARE SYSTEM MODELS USER INTERFACE OLAP TOOLS DATAMINING TOOLS USER

  8. DECISION SUPPORT SYSTEM • TPS: Transaction processing system • MODEL: Representation of a problem • OLAP: On-line analytical processing • USER INTERFACE: How user enters problem & receives answers • DSS DATABASE: Current data from applications or groups *

  9. DECISION SUPPORT SYSTEM • DATA MINING: Technology for finding relationships in large data bases for prediction • DSS SOFTWARE SYSTEM: Tools for data analysis • SENSITIVITY ANALYSIS: “What-if” questions about changes in model factors *

  10. DECISION SUPPORT SYSTEM APPLICATIONS: • SUPPLY CHAIN MANAGEMENT • CUSTOMER RELATIONSHIP MANAGEMENT • SIMULATING BUSINESS SCENARIOS *

  11. DECISION SUPPORT SYSTEM • GEOGRAPHIC INFORMATION SYSTEM (GIS): Software to display digital maps • WEB-BASED DSS: Available on Internet for decisions, information, software • CUSTOMER DSS (CDSS): System supports buying decisions of customers *

  12. DECISION SUPPORT SYSTEM EXAMPLES: • GENERAL ACCIDENT INSURANCE: Customer buying patterns, fraud detection • BANK OF AMERICA: Customer profiles • FRITO-LAY: Price, advertising, promotion selection *

  13. DECISION SUPPORT SYSTEM • BURLINGTON COAT FACTORY: Store location, inventory mix • KEYCORP: Targeting direct mail marketing customers • NATIONAL GYPSUM: Corporate planning & forecasting *

  14. DECISION SUPPORT SYSTEM • SOUTHERN RAILWAY: Train dispatching and routing • TEXAS OIL & GAS: Evaluating drilling sites • UNITED AIRLINES: Flight scheduling, passenger demand forecasting *

  15. GROUP DECISION-SUPPORT SYSTEM (GDSS) INTERACTIVE COMPUTER-BASED SYSTEM FACILITATES SOLUTION OF UNSTRUCTURED PROBLEMS BY DECISION MAKERS WORKING AS GROUP *

  16. GDSS ENHANCED DECISION MAKING ALLOWS: Improved pre-planning • Increased participation • Open, collaborative atmosphere • Idea generation free of criticism • Evaluation objectivity • Idea organization & evaluation *

  17. GDSS ENHANCED DECISION MAKING ALLOWS: Setting priorities & decision making • Documentation of meetings • Access to external information • Preservation of organizational memory *

  18. TOOLS OF GDSS • ELECTRONIC QUESTIONNAIRES • ELECTRONIC BRAINSTORMING • IDEA ORGANIZERS • QUESTIONNAIRE TOOLS • TOOLS FOR VOTING, SETTING PRIORITIES *

  19. TOOLS OF GDSS • STAKEHOLDER IDENTIFICATION & ANALYSIS TOOLS • POLICY FORMATION TOOLS • GROUP DICTIONARIES *

  20. ELECTRONIC MEETING SYSTEM (EMS) COLLABORATIVE GDSS: Uses information technology to make group meetings more productive facilitates communication decision making *

  21. EXECUTIVE SUPPORT SYSTEMS (ESS) STRATEGIC INFORMATION SYSTEM DESIGNED FOR UNSTRUCTURED DECISION MAKING THROUGH ADVANCED GRAPHICS AND COMMUNICATIONS *

  22. EXECUTIVE SUPPORT SYSTEMS • DRILL DOWN: ability to move from summary to lower levels of detail • Designed for specific needs of CEO • Extensive support staff • Executive has 24 hour per day ability to examine, control progress throughout organization *

  23. EXECUTIVE SUPPORT SYSTEMS BENEFITS: • FLEXIBILITY • ABILITY TO ANALYZE, COMPARE, HIGHLIGHT TRENDS • GRAPHICS HELP EXPLORE SITUATION • MONITOR PERFORMANCE • TIMELINESS, AVAILABILITY OF DATA ALLOWS PROMPT ACTION *

  24. EXECUTIVE SUPPORT SYSTEMS USES IN A DIGITAL FIRM: • BUSINESS INTELLIGENCE: Info on salespeople, distributors, retailers • MONITORING BUSINESS PERFORMANCE: Balanced scorecard shows perspectives of customers, internal processes, learning, growth • ENTERPRISE WIDE REPORTING & ANALYSIS *

  25. 13 ENHANCING MANAGEMENT DECISION MAKING

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