Information and Decision Support Systems

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Information and Decision Support Systems

• Chapter 10

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Learning Objectives

• List describe the stages of a problem-solving
  process.
• Define management information system (MIS) and
  clearly distinguish an MIS from a TPS.
• Discuss information systems in the functional
  areas of businesses.

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Learning Objectives

• Describe important characteristics of decision
  support systems (DSS)
• Describe the basic components of a decision
  support system.

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Learning Objectives

• State the goal of a group decision support system
  (GDSS)
• Identify the characteristics of a group decision
  support system that distinguish it from a DSS
• Identify basic uses of an executive support
  system list its characteristics

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Decision Making and Problem Solving
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Figure 10.1
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Programmed versus Nonprogrammed Decisions

• Programmed decisions
• Structured situations with well defined
  relationships
• Quantifiable
• Management information system

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Programmed versus Nonprogrammed Decisions

• Nonprogrammed decisions
• Ill-structured situations with vague or changing
  relationships between variables
• Not easily quantifiable in advance
• Decision support systems

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Problem Solving Approaches

• Optimization find the best solution
• Satisficing find a good solution
• Heuristics use rules of thumb

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Figure 10.2
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An Overview of Management Information Systems
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Figure 10.3
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Figure 10.4
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Figure 10.4 contd
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Table 10.1
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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

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Functional Aspects of the MIS
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Figure 10.5
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Figure 10.6
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Figure 10.7
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Figure 10.8
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Manufacturing MIS

• Inventory management (MRP, JIT)
• Process control
• Computer-assisted manufacturing (CAM)
• Computer integrated manufacturing
• Flexible manufacturing system
• Quality control

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Figure 10.9
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Figure 10.10
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Figure 10.11
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Figure 10.12
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Figure 10.13
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Other Management Information Systems

• Accounting management information systems
• Geographic information systems (GIS)

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An Overview of Decision Support Systems
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Characteristics of Decision Support Systems

• Handle lots of data from various sources
• Report presentation flexibility
• Text and graphics capabilities
• Support drill down analysis

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Characteristics of a DSS

• Complex analysis, statistics, and forecasting
• Optimization, satisficing, heuristics
• Simulation
• What-if analysis
• Goal-seeking analysis

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Figure 10.14
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Capabilities of a DSS

• Support all problem-solving phases
• Support different decision frequencies
• Support different problem structures
• Support various decision-making levels

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Figure 10.15
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Table 10.2
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Table 10.3
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Components of a DSS
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Figure 10.16
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The Model Base

• Financial models
• Cash flow
• Internal rate of return
• Statistical analysis models
• Averages, standard deviations
• Correlations
• Regression analysis

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The Model Base

• Graphical models
• Project management models

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Group Decision Support Systems
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Figure 10.17
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Characteristics of a GDSS

• Special design
• Ease of use
• Flexibility
• Decision-making support

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Characteristics of a GDSS

• Anonymous input
• Reduction of negative group behavior
• Parallel communication
• Automated record keeping

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Figure 10.18
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Figure 10.19
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Executive Support Systems
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Figure 10.20
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Executive Support Systems (ESS) in Perspective

• Tailored to individual executives
• Easy to use
• Drill down capabilities
• Access to external data
• Can help when uncertainty is high
• Future-oriented
• Linked to value-added processes.

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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 for crisis management