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Information and Decision Support Systems

Information and Decision Support Systems. Chapter 10. Chapter 10 Outline. Decision Making and Problem Solving An Overview of Management Information Systems (MIS) Functional Aspects of MIS An Overview of Decision Support Systems (DSS) Components of a DSS

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Information and Decision Support Systems

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  1. Information and Decision Support Systems Chapter 10

  2. Chapter 10 Outline • Decision Making and Problem Solving • An Overview of Management Information Systems (MIS) • Functional Aspects of MIS • An Overview of Decision Support Systems (DSS) • Components of a DSS • Group Decision Support Systems (GDSSs) • Executive Support Systems (ESSs)

  3. Decision Making and ProblemSolving

  4. Decision Making as a Component of Problem Solving

  5. Programmed versus Nonprogrammed Decisions • Programmed decisions • Structured situations with well defined relationships • Quantifiable • Management information system • Easy to computerize • Nonprogrammed decisions • Rules and relationships not defined • Problem is not routine • Not easily quantifiable

  6. Problem Solving Approaches • Optimization: find the best solution • Satisficing: find a good solution • Heuristics: rules of thumb

  7. Optimization, Satisficing, and Heuristic Approaches

  8. An Overview of Management Information Systems

  9. Inputs to an MIS

  10. Outputs of an MIS

  11. Outputs of an MIS

  12. Developing Effective Reports

  13. Characteristics of an MIS • Fixed format, standard reports • Hard-copy or soft-copy reports • Uses internal data • User-developed reports • Users must request formal reports from IS department

  14. Functional Aspects of the MIS

  15. Functional Aspects of an MIS

  16. Financial MIS

  17. Manufacturing MIS • Design engineering • Process control • Computer-assisted manufacturing (CAM) • Computer-integrated manufacturing (CIM) • Flexible manufacturing system • Quality control and testing

  18. Overview of a Manufacturing MIS

  19. Master Production Scheduling and Inventory Control

  20. Quality Control and Testing

  21. Marketing MIS

  22. Product Pricing

  23. Product Pricing

  24. Human Resource MIS

  25. Other MIS • Accounting management information systems • Geographic information systems (GIS)

  26. Characteristics of Decision Support Systems • Handle large amounts of data from various sources • Provide report and presentation flexibility • Offer both textual and graphical orientation • Support drill down analysis

  27. An Overview of Decision Support Systems

  28. Characteristics of a DSS • Perform complex, sophisticated analysis • Optimization, satisficing, heuristics • Simulation • What-if analysis • Goal-seeking analysis

  29. Characteristics of a DSS

  30. Capabilities of a DSS • Support all problem-solving phases • Support different decision frequencies • Support different problem structures • Support various decision-making levels

  31. Selected DSS Applications

  32. Support for Various Decision-Making Levels

  33. Comparison of DSSs and MISs

  34. Comparison of DSSs and MISs

  35. Components of a DSS

  36. Components of a DSS

  37. The Model Base • Financial models • Cash flow • Internal rate of return • Statistical analysis models • Summary statistics • Trend projections • Hypothesis testing • Graphical models • Project management models

  38. The Model Base

  39. Data-driven versus Model-driven DSS • Data-driven DSS - primarily performs qualitative analysis based on the company’s databases • Model-driven DSS - primarily performs mathematical or quantitative analysis

  40. Group Decision Support Systems

  41. Group Decision Support System

  42. Characteristics of a GDSS • Special design • Ease of use • Flexibility • Decision-making support • Anonymous input • Reduction of negative group behavior • Parallel communication • Automated record keeping

  43. GDSS Alternatives

  44. The Decision Room

  45. Executive Support Systems

  46. Executive Support Systems

  47. Executive Support Systems (ESS) in Perspective • Tailored to individual executives • Easy to use • Drill down capabilities • Support need for external data • Can help when uncertainty is high • Future-oriented • Linked to value-added processes

  48. Capabilities of an ESS • Support for defining an overall vision • Support for strategic planning • Support for strategic organizing & staffing • Support for strategic control • Support for crisis management

  49. Summary • Management information system - an integrated collection of people, procedures, databases, and devices that provide managers and decision-makers with information to help achieve organizational goals • Decision-making phase: includes intelligence, design, and choice • Problem solving: also includes implementation and monitoring • Decision approaches: optimization, satisficing, and heuristic

  50. Summary • Decision support system (DSS) - an organized collection of people, procedures, software, databases, and devices working to support managerial decision making • Group decision support system (GDSS) - also called a computerized collaborative work system, consists of most of the elements in a DSS, plus software needed to provide effective support in group decision-making settings • Executive support systems (ESSs) - specialized decision support systems designed to meet the needs of senior management

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