Information and Decision Support Systems

1
Information and Decision Support Systems

• Chapter 6

2
Principles and Learning Objectives

• Good decision-making and problem-solving skills
  are the key to developing effective information
  and decision support systems.
• Define the stages of decision making.
• Discuss the importance of implementation and
  monitoring in problem solving.

3
Principles and Learning Objectives

• The management information system (MIS) must
  provide the right information to the right person
  in the right fashion at the right time.
• 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.

4
Principles and Learning Objectives

• Decision support systems (DSSs) are used when the
  problems are more unstructured.
• 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.

5
Principles and Learning Objectives

• 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.
• 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.

6
Decision Making and Problem Solving
7
How Decision Making Relates to Problem Solving
8
Programmed versus Nonprogrammed Decisions

• Programmed decisions
• Easy to computerize
• Nonprogrammed decisions
• Rules and relationships not defined
• Problem is not routine
• Not easily quantifiable

9
Problem Solving Approaches

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

10
Optimization, Satisficing, and Heuristic
Approaches
11
An Overview of Management Information Systems
12
Sources of Managerial Information
13
Reports Generated by an MIS
14
Reports Generated by an MIS
15
Guidelines for Developing MIS Reports
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Functional Aspects of the MIS
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Functional Aspects of MIS
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Overview of a Financial MIS
19
Manufacturing MIS

• Material requirements planning (MRP)
• Manufacturing resource planning (MRPII)
• Just in time (JIT) inventory system

20
Overview of a Manufacturing MIS
21
Overview of a Marketing MIS
22
Human Resource MIS

• 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

23
Overview of a Human Resource MIS
24
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.

25
An Overview of Decision Support Systems
26
Capabilities of a Decision Support System

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

27
Selected DSS Applications
28
Support for Various Decision-Making Levels
29
Comparison of DSSs and MISs
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Components of a DSS
31
Conceptual Model of a DSS
32
The Model Base
33
Group Decision Support Systems
34
Configuration of a DSS
35
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

36
GDSS Alternatives
37
The GDSS Decision Room
38
Executive Support Systems
39
The Layers of Executive Decision Making
40
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

41
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

42
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

43
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