ICS321 IBM205 Management Information Systems

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ICS321 / IBM205 Management Information Systems

• Dr. Ken Cosh
• Lecture 16

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This week

• Todays Topic
• Enhancing Management Decision Making
• Decision Support Systems

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Decision Support Systems (2 Challenges)

• Building Information Systems which can fulfill
  executives information needs
• Providing the information needed to make
  decisions
• Create meaningful reporting and decision making
  tools
• The challenge to persuade managers to actually
  use the data and information available when
  making decisions

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Decision Support Systems

• Many systems weve already discussed could be
  considered to be DSS, as they turn data into
  information to help people make decisions
• Built up from original M.I.S. era, where the
  objective was to informate and then later
  developed to higher executive / strategic levels
  (S.I.S.)

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Approaches to D.S.S.

• Model Driven
• Data Driven

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Model Driven

• What If sensitivity analysis
• Based on strong theories / models different
  scenarios can be investigated.
• E.g. Logistics, what would happen if we rerouted
  our deliveries?

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Data Driven

• Data mining is a key example
• Searching for hidden patterns relationships
  from a large pool of data (such as a data
  warehouse or data mart).

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Data mining results

• Associations
• Occurrences linked to a single event
• 65 of customers buy a coke with large fries.
• 85 of customers buy a coke with large fries,
  during a promotion.
• Sequences
• Events linked over time
• 65 of new home buyers buy a refrigerator within
  2 weeks

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Data Mining Results

• Classifications
• Grouping items into existing groups, groups which
  have been developed by some inferred rule (see
  below).
• E.g. Identifying the kinds of customers who are
  high spenders and developing promotions to retain
  them.
• Clustering
• Identifying the groups for the first time.

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Data Mining Results

• Forecasting
• Predicting the future based on existing and
  historical trends
• Using A.I. and Fuzzy Logic etc.
• Note this is where a model based approach meets a
  data based approach.

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Enterprise Application Architecture
Suppliers
Employees
Partners
KMS, Collaboration, Decision Support
PRM Selling / Distribution
SCM Sourcing, Procurement
ERP Internal Business Process
CRMMarketing, Sales, Service
Customers