Management Support Systems

Infsy 390

Dr. Ocker

Management Support Systems

MSS enables senior management to: 1. access common, shared sources

of 2. internal and external information 3. that have been summarized in 4. easy-to-access, graphical displays.

Management Support Systems

function as an integrated approach to sharing information in an easy-to-use, highly visual, and personalized way

system helps promote a shared view of business activities due to integration of tools and distributed data/information

managers can get up-to-date information on industry news, competitor/market trends and internal operations

most successful MSS are developed as 1. one aspect of a distributed,

enterprise information system 2. that enables flexible and integrated

information sharing and communication 3. both inside orgs. and with external

suppliers, customers and other business partners.

1980s to 1990s

1980s - managers had support tools designed to run on PCs (e.g. spreadsheets, statistical packages, graphics packages, word processing, project management, etc.)

1990s - MSS provide integrated environment for these support tools

MSS

MSS usually designed so that individual manager can customize the system as needed

MSS architecture - client/server environment

one component of a distributed information infrastructure

Four levels of functionality in MSS 1. electronic briefing books 2. exception reporting 3. active exploration of info. resources

using 4. focused management support

1. electronic briefing books

graphical information displays that provide pre-formatte d routine info.

displays stored as information categories (e.g. pricing, product)

2. exception reporting

critical info. outside range of pre-defined boundaries is highlighted

manager may be notified by system some orgs. use traffic-light pattern for

exception reporting– green = no problems– yellow = caution, marginal condition– red = trouble, needs immediate attention

3. active exploration of info. resources using MSS can build queries to relational data

bases based on point and click of managers

can move between internal and external DBs

integrate all different analysis tools

4. focused management support

focus support on key management activities or decisions (e.g. promotion planning, pricing)

requires integration of variety of sophisticated support tools customized for specific activity

Implementing an MSS

Four key categories of risk must be managed:

1. need thorough understanding of individual, team, and organizational information requirements

2. involves mega-change to formal and informal policies and practices for information management and communication information is power

Implementing an MSS

Four key categories of risk must be managed:

3. implementation of an MSS should be considered an organizational change initiative need to manage the change

4. must manage the simultaneous evolution of both the organization and the technological infrastructure

Past

Back in 1980s, management support tools consisted of stand-alone (e.g. not integrated!!) systems.

Two major types of support systems were (are) termed (1) DSS and (2) EIS/ESS.

Here’s some info. on these stand-alone systems.

1. Decision support systems

systems that support rather than replace "managers" in their decision-making activities

give decision maker access to data and models, but the intelligence, intuition, and judgment of the decision maker are integral parts of the system

DSS provide decision support - don't automatically make the decision. They help with the decision.

Primarily support planning function

Types of decisions

Organizational problems differ in terms of how structured the problems are the extent to which a solution procedure

can be stated structured - routine, repetitive unstructured - novel, nonroutine semistructured - somewhere in between

DSS

DSS - computer system at management level that combines data, analytical models, and user-friendly software to support semistructured and unstructured decision making

give uses capability to analyze data - provide software tools

a DSS is focused on a specific decision

Can define DSS as

computer-based systems

that help decision makers

confront un-structured and semi-structured problems

through direct interaction

with data and analysis models

Differences between DSS and MIS (note - MIS refers to formal systems

developed by IS professionals; e.g. management reporting systems)

DSS - end-user control of data and tools

aimed at top and middle managers emphasize change, flexibility and quick

response iterative development process

Differences between DSS and MIS MIS - dominated by IS

professionals focuses on structured information flows

to middle managers traditional development process

Core DSS capabilities

representations - heavy use of graphs and charts operations - mathematical manipulations of data

(e.g. assigning risks, generating statistics, simulating alternatives)

memory aids - databases, views of data, work spaces, libraries

control aids - user control activities of the DSS; include software language for user control of representations, operations, and memory

DSS

DSS is a decision-making scratch pad, backed up by databases - used to support decision-making processes

can be applied to problems with quantifiable dimensions that provide criteria for evaluation of alternative solutions

helps DM identify best alternative

3 basic Components of DSS

1. DSS database - collection of current or historical data which has been extracted from corporate databases; DSS manipulates live organizational data to support decision making

2. model base - collection of mathematical and analytical models

model - abstract representation, e.g. statistical functions sensitivity analysis - models that ask “what-if” questions to

determine the impact of changes in one or more factors on outcomes

e.g. what is we increase price by 5%?

3 basic Components of DSS

3. DSS software system - permits easy interaction between users and the DSS database and model base

Building a DSS - requires intense user interaction because customized to specific users and specific type of decision; must be flexible and able to evolve; use an iterative development method like prototyping

DSS Subsystems & The Capabilities They OfferDSS Subsystems & The Capabilities They Offer

DataManagement

Data Management for Retrieval

Data Extractionfrom Internal andExternal Databases

ModelManagement

Creation,Maintenance, and Use of Models

DialogManagement

Menus, Icons,Natural Language,Graphics

DSS on a Computer PlatformDSS on a Computer PlatformHuman Decision MakerHuman Decision Maker

User

models

Model is built by using a variety of assumptions about the relationship between its variables

by comparing alternatives (what if’s), you can vary the premises and compare the outcomes

DSS supports asking 2 types of questions Scenario generation - what-if mode

– user considers alternative scenarios and their results

– e.g. what if advertising expenditures are increased by 5%

goal-seeking– user asks “what would it take in terms of

input factors to achieve a particular outcome

Spreadsheets for decision support

very popular tools for decision support activities: 1) based on familiar way to view data (table)

and relationships between data take form of a report

2) very easy to use allow users to make corrections, additions, and

deletions quickly and easily can perform “what if” analyses by changing

some values and viewing results

Spreadsheets for decision support

thousands of templates for spreadsheet packages to help users - templates are prepared spreadsheet models into which users only enter data - all relationships and calculating formulas are provided and in place

examples for financial planning

loan amortization

depreciation

lease versus buy

break-even analysis

discounted cash flows and net present value

Spreadsheets

about 20-30% of users will become dissatisfied with spreadsheets for decision support and will want more powerful tools, but many users will stay with spreadsheets as primary DSS, especially for smaller problems

Development & Adaptation of DSSDevelopment & Adaptation of DSSProblem Definition by Users and Developers

Development ofInitial Prototype

Prototype/DSSEvaluation

Prototype/DSSModification

Validation andDocumentation of DSS

Are CurrentRequirements

Satisfied?

no

DSS Ready for Use

Develop-mentLoop

AdaptationLoop

yes

2. Executive support systems (ESS) help senior level managers with

unstructured problems dealing with monitoring and control functions monitor organizational performance track activities of competitors spot problems identify opportunities forecast trends

ESS combines computing and communications includes functions for providing summary

performance data data typically covers sales, production, earnings,

budgets, and forecasts uses graphics to display and visualize data in a very

easy to use fashion combine data from internal and external sources

environmental scanning/alerting - for news on government regulations, competition, financial and economic developments, and scientific topics

ESS combines computing and communications support electronic communications

ESS

used by both top level execs. and managers several levels below

Relationship between EIS and DSSRelationship between EIS and DSSUser Task Primary Support

Areas

EISExecutive

Analyst/Middle

Manager

Flow of Problems

DSS

Problem/OpportunityDiscovery and

Assessment

Seeking Problem Solution:

Decision-Making Process

Monitoring and Control,

Strategic Planning

Planning