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ITD2011- Introduction to MIS. جـامعـــة الـجــزيــرة. UNIVERSITY OF JAZEERA. Dr. Mohamed Sammouda. Information and Decision Support Systems. Chapter 3. Objectives. Define the stages of decision making. Discuss the importance of implementation and monitoring in problem solving.
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ITD2011- Introduction to MIS جـامعـــة الـجــزيــرة UNIVERSITY OF JAZEERA Dr. Mohamed Sammouda
Information and Decision Support Systems Chapter 3
Objectives • Define the stages of decision making. • Discuss the importance of implementation and monitoring in problem solving. • Define the term MIS and clearly distinguish the difference between a TPS and an MIS. • Discuss information systems in the functional areas of business organizations. • List and discuss important characteristics of DSSs that give them the potential to be effective management support tools. • Identify and describe the basic components of a DSS. • State the goals of a GDSS and identify the characteristics that distinguish it from a DSS. • Identify the fundamental uses of an ESS and list the characteristics of such a system.
Introduction • Good decision-making and problem-solving skills are the key to developing effective information and decision support system. • The management information system (MIS) must provide the right information to the right person in the right fashion at the right time. • Decision support systems (DSSs) are used when the problems are more unstructured. • Specialized support systems, such as group decision support systems (GDSSs) and executive support systems (ESSs), use the overall approach of a DSS in situations such as group and executive decision making.
How Decision Making Relates to Problem Solving Intelligence phase: the first stage in which potential problems or opportunities are identified and defined. Design phase: the second stage in which alternatives solutions to the problem are developed. Choice phase: the third stage which requires selecting a course of action. Problem Solving: A process that goes beyond decision making to include the implementation stage. Implementation phase: A stage of problem solving in which a solution is put into effect. Monitoring phase: final stage of the problem solving, in which decision makers evaluate the implementation.
Programmed versus Nonprogrammed Decisions • Programmed decisions: decisions made using a rule, procedure, or quantitative methods. • Easy to computerize • Nonprogrammed decisions: decisions that deal with unusual or exceptional situations. • Rules and relationships not defined • Problem is not routine • Not easily quantifiable
Problem Solving Approaches • Optimization: find the best solution. A process to find the best solution, usually the one that will help the organization meet its goals. • Satisficing: find a good solution. A model that will find a good solution, but not necessary the best problem solution. • Heuristics: rules of thumb. Commonly accepted guidelines or procedures that usually find a good solution.
Reports Generated by an MIS Scheduled report: reports produced periodically, or on a schedule, such as daily, weekly, or monthly. Key-indicator report: summary of the previous day’s critical activities, typically available at the beginning of each workday. Demand reports: reports developed to give certain information at a manager’s request. Exception reports: reports automatically produced when a situation is unusual or requires management action.
Overview of a Financial MIS Financial MIS: an information system that provides financial information to all financial managers within an organization. Auditing: analysis of an organization’s financial condition to determine whether financial statements and reports produced by the financial MIS are accurate.
Human Resource MIS An information system that is Concerned with activities related to employees and potential employees of the organization. • Subsystems include: • needs and planning assessments • recruiting • training and skills development • scheduling and assignment • employee benefits
Other Management Information Systems • Accounting MIS - provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications. • Geographic Information Systems - computer system capable of assembling, storing, manipulating, and displaying geographic information.
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
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
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
Summary • Decision-making phase - includes intelligence, design, and choice • Problem solving - also includes implementation and monitoring • Decision approaches - optimization, satisficing, and heuristic • 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
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
