Principles and Learning Objectives

2. Principles and Learning Objectives • Good decision-making and problem-solving skills are the key to developing effective information and decision support systems. • 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 unstructured. • Specialized support systems, such as group support systems (GSSs) and executive support systems (ESSs), use the overall approach of a DSS in situations such as group and executive decision making.

3. What do Managers Do?

4. Decision Making as a Component of Problem Solving Figure 6.1: How Decision Making Relates to Problem Solving

5. Programmed Versus Nonprogrammed Decisions • Programmed decisions • ___________ made using a rule, procedure, or quantitative method • Easy to computerize using traditional information systems • Non- ___________ decisions • Decision that deals with unusual or exceptional situations • Not easily quantifiable

6. Programmed • How many workers to staff line A • What is the EOQ for raw material Z • How many turbines to power Lethbridge? • Non-Programmed • What are the benefits of merging with XYZ • How will consumer react if we lower the price by 10% • What are the benefits of MacDonald's opening up Hotels

7. Optimization, Satisficing, and Heuristic Approaches • ___________ model: a process that finds the best solution, usually the one that will best help the organization meet its goals • ___________ model: a process that finds a good—but not necessarily the best—problem solution • Heuristics: commonly accepted guidelines or procedures that usually find a good solution

8. Management Information Systems in Perspective • A management information system (MIS) provides managers with information that supports effective decision making and provides feedback on daily operations • The use of MISs spans all levels of management

9. Management Information Systems in Perspective (continued) Figure 6.3: Sources of Managerial Information

10. Inputs to a Management Information System • Internal data sources • TPSs and ERP ___________ and related databases; data warehouses and data marts; specific functional areas throughout the firm • External data sources • Customers, ___________ , competitors, and stockholders, whose data is not already captured by the TPS; the Internet; extranets

11. Outputs of a Management Information System • ___________ report: produced periodically, or on a schedule • Key-indicator report: summary of the previous day’s critical activities • Demand report: developed to give certain information at someone’s request • ___________ report: automatically produced when a situation is unusual or requires management action • Drill-down ___________ : provides increasingly detailed data about a situation

12. Functional Aspects of the MIS • Most organizations are structured along functional lines or areas • The MIS can be divided along functional lines to produce reports tailored to individual functions

13. Functional Aspects of the MIS (continued) Figure 6.5: The MIS is an integrated collection of functional information systems, each supporting particular functional areas.

14. Financial Management Information Systems (continued) Figure 6.6: Overview of a Financial MIS

15. Manufacturing Management Information Systems (continued) Figure 6.7: Overview of a Manufacturing MIS

16. Marketing Management Information Systems (continued) Figure 6.8: Overview of a Marketing MIS – Peppers and Rogers

17. Human Resource Management Information Systems (continued) Figure 6.9: Overview of a Human Resource MIS

18. Other Management Information Systems • ___________ MIS: provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications • ___________ information system (GIS): capable of assembling, storing, manipulating, and displaying geographic information • Customer Analysis • Market Analysis • Site Selection • Risk Analysis • Territory Management • Facility/Property/Asset Management • Supply Chain Management • Logistics

19. An Overview of Decision Support Systems • A DSS is an ___________ collection of people, procedures, software, databases, and devices used to support problem-specific decision making and problem solving • The focus of a DSS is on decision-making ___________ when faced with unstructured or semistructured business problems

20. Capabilities of a Decision Support System • Support all problem-solving phases • Support different decision frequencies • One of kind to continuous • Support different problem structures • Structured to no structured • Support various decision-making levels • All levels of decision making • Pres-Dean-Prof

21. A Comparison of DSS and MIS Table 6.3: Comparison of DSSs and MISs

22. A Comparison of DSS and MIS (continued) Table 6.3: Comparison of DSSs and MISs (continued)

23. Components of a Decision Support System (continued) Figure 6.11: Conceptual Model of a DSS

24. Group Support Systems • Group support system (GSS) • Consists of most ___________ in a DSS, plus software to provide effective support in group decision making • Also called group decision support system or computerized collaborative work system

25. Group Support Systems (continued) Figure 6.12: Configuration of a GSS

26. Characteristics of a GSS That Enhance Decision Making • Special design • Ease of use • Flexibility • Decision-making support • Anonymous input • Reduction of negative group behavior • Parallel communication • Automated record keeping

27. GSS Software • Often called groupware or workgroup software • Helps with joint workgroup scheduling, communication, and management • Examples: Lotus Notes, Microsoft’s NetMeeting, Microsoft Exchange, NetDocuments Enterprise, Collabra Share, OpenMind, TeamWare • Some transaction processing and enterprise resource planning packages include collaboration software

28. GSS Alternatives Figure 6.13: GSS Alternatives

29. GSS Alternatives (continued) Figure 6.14: The GSS Decision Room

30. Executive Support Systems • Executive support system (ESS): specialized DSS that includes all hardware, software, data, procedures, and people used to assist senior-level executives within the organization

31. Executive Support Systems in Perspective • Tailored to ___________ executives • Easy to use • Drill-down capable • Support the need for external data • Can help when ___________ is high • Future-oriented • Linked to value-added processes

32. Capabilities of Executive Support Systems • Support for defining an overall ___________ • Support for strategic ___________ • Support for strategic ___________ and staffing • Support for ___________ control • Support for ___________ management

33. Executive Support Systems • ___________– integrates information from multiple components and present it in a unified display