Transcript
Page 1: Supporting Managers and (other) Decision Makers. MIS 300, Chapter 62 Basic Concepts Decision Making   Conclusion Drawing   Supporting Managers

Supporting Managers and (other) Decision Makers

Page 2: Supporting Managers and (other) Decision Makers. MIS 300, Chapter 62 Basic Concepts Decision Making   Conclusion Drawing   Supporting Managers

MIS 300, Chapter 6 2

Basic Concepts

• Decision Making • Conclusion Drawing • Supporting Managers • Specialized Management Support Systems

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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.

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Principles and Learning Objectives (continued)

• The management information system (MIS) must provide the right information to the right person in the right fashion at the right time.– Explain the uses of MISs and describe their inputs

and outputs. – Discuss information systems in the functional areas of

business organizations.

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Principles and Learning Objectives (continued)

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

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Principles and Learning Objectives (continued)

• 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.– State the goals of a GSS 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.

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Decision Making and Problem Solving: Decision Making as a Component of

Problem Solving

• Decision-making phase: first part of problem-solving process– Intelligence stage: potential problems or

opportunities are identified and defined SEE– Design stage: alternative solutions to the problem

are developed THINK– Choice stage: a course of action is selected SAY

Page 8: Supporting Managers and (other) Decision Makers. MIS 300, Chapter 62 Basic Concepts Decision Making   Conclusion Drawing   Supporting Managers

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Decision Making as a Component of Problem Solving (continued)

Figure 6.1: How Decision Making Relates to Problem Solving

SEE THINK SAY DO LEARN

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Decision Making as a Component of Problem Solving (continued)

• Problem solving: a process that goes beyond decision making to include the implementation stage

• Implementation stage: a solution is put into effect

• Monitoring stage: decision makers evaluate the implementation

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Programmed Versus Nonprogrammed Decisions

• Programmed decisions– Decisions made using a rule, procedure, or

quantitative method– Easy to computerize using traditional information

systems

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Programmed Versus Nonprogrammed Decisions (continued)

• Nonprogrammed decisions– Decision that deals with unusual or exceptional

situations– Not easily quantifiable

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Optimization, Satisficing, and Heuristic Approaches

• Optimization model: a process that finds the best solution, usually the one that will best help the organization meet its goals

• Satisficing 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

DECISION MAKING EXERCISE

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An Overview of Management Information Systems: 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

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Management Information Systems in Perspective (continued)

Figure 6.3: Sources of Managerial Information

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Inputs to a Management Information System

• Internal data sources– TPSs and ERP systems and related databases; data

warehouses and data marts; specific functional areas throughout the firm

• External data sources– Customers, suppliers, competitors, and stockholders,

whose data is not already captured by the TPS; the Internet; extranets

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Outputs of a Management Information System

• Scheduled 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

• Exception report: automatically produced when a situation is unusual or requires management action

• Drill-down report: provides increasingly detailed data about a situation

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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

• This tends to lead to fragmentation, the sort of effect that ERP is designed to counter!

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Functional Aspects of the MIS (contd)

Figure 6.5

The MIS is an integrated collection of

functional information

systems, each supporting

particular functional areas.

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1. Financial MIS

• Financial MIS: provides financial information to all financial managers within an organization

• Profit/loss and cost systems

• Auditing

• Uses and management of funds

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Financial MIS (contd)

Figure 6.6: Overview of a Financial MIS

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2. Manufacturing MIS

• The manufacturing MIS subsystems and outputs monitor and control the flow of materials, products, and services through the organization

• Design and engineering

• Production scheduling

• Inventory control

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Manufacturing MIS (contd)

• MRP and MRPII

• Just in time

• Process control

• Quality control

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Manufacturing MIS (contd)

Figure 6.7: Overview of a Manufacturing MIS

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3. Marketing MIS

• Marketing MIS: supports managerial activities in product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting

• Marketing research

• Product development

• Promotion and advertising

• Product pricing

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Marketing MIS (continued)

Figure 6.8: Overview of a Marketing MIS

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4. Human Resource MIS

• Human resource MIS: concerned with activities related to employees and potential employees of an organization

• Needs and planning assessments

• Recruiting

• Training and skills development

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Human Resource MIS (contd)

• Scheduling and assignment

• Employee benefits

• Outplacement

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Human Resource MIS (continued)

Figure 6.9: Overview of a Human Resource MIS

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5. Other MIS

• Accounting MIS: provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications

• Geographic information system (GIS): capable of assembling, storing, manipulating, and displaying geographic information

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An Overview of Decision Support Systems

• A DSS is an organized 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 effectiveness when faced with unstructured or semistructured business problems

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Capabilities of a Decision Support System

• Support all problem-solving phases

• Support different decision frequencies

• Support different problem structures

• Support various decision-making levels

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Capabilities of a Decision Support System (continued)

Figure 6.10: Decision-Making Level

What else goes along with level? Why?

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A Comparison of DSS and MIS

Table 6.3: Comparison of DSSs and MISs

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A Comparison of DSS and MIS (continued)

Table 6.3: Comparison of DSSs and MISs (continued)

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Components of a DSS

• Model base: provides decision makers access to a variety of models and assists them in decision making

• Database

• External database access

• Access to the Internet and corporate intranet, networks, and other computer systems

• Dialogue manager: allows decision makers to easily access and manipulate the DSS and to use common business terms and phrases

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Components of a DSS (continued)

Figure 6.11: Conceptual Model of a DSS

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Group Support Systems

• Group support system (GSS)– Consists of most elements in a DSS, plus software to

provide effective support in group decision making– Also called group decision support system or

computerized collaborative work system

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Group Support Systems (continued)

Figure 6.12: Configuration of a GSS (Cf. Figure 6.11)

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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

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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

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GSS Alternatives

Figure 6.13: GSS Alternatives

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GSS Alternatives (continued)

Figure 6.14: The GSS Decision Room

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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

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Executive Support Systems in Perspective

• Tailored to individual executives

• Easy to use

• Drill-down capable

• Support the need for external data

• Can help when uncertainty is high

• Future-oriented

• Linked to value-added processes

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Capabilities of Executive Support Systems

• Support for defining an overall vision

• Support for strategic planning

• Support for strategic organizing and staffing

• Support for strategic control

• Support for crisis management

Page 46: Supporting Managers and (other) Decision Makers. MIS 300, Chapter 62 Basic Concepts Decision Making   Conclusion Drawing   Supporting Managers

MIS 300, Chapter 6 46

Summary

• The decision-making phase of the problem-solving process includes three stages: intelligence, design, and choice

• A management information system (MIS) provides managers with information that supports effective decision making and provides feedback on daily operations

• A financial MIS provides financial information to all financial managers within an organization

Page 47: Supporting Managers and (other) Decision Makers. MIS 300, Chapter 62 Basic Concepts Decision Making   Conclusion Drawing   Supporting Managers

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Summary (continued)

• The manufacturing MIS subsystems and outputs monitor and control the flow of materials, products, and services through the organization

• A marketing MIS supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness

• A human resource MIS is concerned with activities related to employees and potential employees of an organization

Page 48: Supporting Managers and (other) Decision Makers. MIS 300, Chapter 62 Basic Concepts Decision Making   Conclusion Drawing   Supporting Managers

MIS 300, Chapter 6 48

Summary (continued)

• A DSS is an organized collection of people, procedures, software, databases, and devices used to support decision making and problem solving

• A group support system (GSS) consists of most elements in a DSS, plus software to provide effective support in group decision making

• An executive support system (ESS) is a specialized DSS that includes all hardware, software, data, procedures, and people used to assist senior-level executives within the organization


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