9-1

Supporting Management and Decision Making

9-2

The Managers and Decision Making

• The Manager’s job

• Manager decisions and computerized support

• Modeling and models

• Computerized decision aids

• Framework for computerized decision support

9-3

Manager’s JobManager’s Roles

• Interpersonal role

• Informational role

• Decisional role

9-4

Modeling and Models

• Iconic (scale) models

• Analog models

• Mathematical (quantitative) models

• Mental models

9-5

Computerized Decision Aids

• Why managers need the support of IT

• How to determine the information needs of managers

• Can the manager’s job be fully automated?

• What information technologies are available to support managers

9-6

Framework for Computerized Decision Support

• Structured versus unstructured problems

• Computer support for structured problems– Management science approach

• Unstructured problems - decision support systems

9-7

Management Science Approach

• Define the problem

• Classify the problem

• Construct a mathematical model

• Find alternatives

• Choose the correct solution

9-8

Decision Support Systems (DSS)

• DSS concepts

• Characteristics and capabilities of DSS

• Structure and components

9-9

Characteristics and Capabilities of DSS

• Provides support for managers– semistructured and unstructured problems

• Supports interdependent and / or sequential problems

• Supports all phases of decision making

• Adaptable

9-10

Characteristics and Capabilities of DSS

• Easy to construct

• Promotes learning

• Utilizes models– Knowledge components

• Sensitivity analysis

9-11

Structure and Components

9-12

Corporate Level Decision Support

• Organizational decision systems

• Executive Information Systems (EIS) / Executive Support Systems (ESS)

• Capabilities and characteristics of EIS

9-13

EIS Drivers

• External factors

• Internal factors

9-14

EIS DriversExternal Factors

• Increased competition

• Rapidly changing environment

• Need to be proactive

• Need to access external databases

• Increased government regulations

9-15

EIS DriversInternal Factors

• Need for timely information

• Need for improved communications

• Need for access to operational data

• Need for rapid status updates

9-16

EIS DriversInternal Factors

• Need for increased effectiveness

• Need to identify historical trends

• Need for access to corporate databases

• Need for accurate information

9-17

Capabilities and Characteristics of EIS

• Drill down

• Critical success factors

• Status access

• Trend analysis

• Ad hoc analysis

9-18

Capabilities and Characteristics of EIS

• Exception reporting

• Types and Issues

• Intelligent EIS

• Integration with DSS

9-19

Advanced Decision Support Topics

• Online Analytical Processing (OLAP)

• Simulation

• Visual interactive models and DSS

• DSS, EIS and Internet connection

• Supporting idea generation and creativity

9-20

Simulation

To simulate means to assume the appearance of characteristics of reality. Simulation generally refers to a technique for conducting experiments (“what if”) with a digital computer on a model management system (MMS)

9-21

Simulation Advantages

• Show the effect of compressing time

• Descriptive

• Can handle an extremely wide variation in problem types

• Help select the appropriate variables and alternatives

• Inclusion of real-life complexities of problems

9-22

Visual Interactive Modeling (VIM) and DSS

VIM uses computer graphic displays to represent the impact of different management or operational decisions on goals. The most active area of VIM is visual interactive simulation (VIS).

9-23

Supporting Idea Generation and Creativity

• Manual methods

• Computer-based methods

• Idea-generation software

9-24

9-25

Managerial Issues

• Intangible benefits

• Documenting personal DSS

• Security

• Ready-made commercial DSS

• Intelligent DSS

• Organizational culture

• Ethical issues

9-26

Copyright 1999 John Wiley & Sons, Incorporated. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner in unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Son, Inc. Adopters of the textbook are granted permission to make back-up copies for his/her own use only, to make copies for distribution to student of the course the textbook is used in, and to modify this material to best suit their instructional needs. Under no circumstances can copies be made for resale. The publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.