Information Technology Foundations-BIT 112 CHAPTER 9 Managerial Support Systems

Information Technology Foundations-BIT Chapter Outline 9.1 Managers and Decision Making 9.2 Business Intelligence, Multidimensional Data Analysis, Data Mining, and Decision Support Systems 9.3 Digital Dashboards 9.4 Data Visualization Technologies 9.5 Intelligent Systems

Information Technology Foundations-BIT Learning Objectives Describe the concepts of management, decision making and computerized support for decision making. Describe multidimensional data analysis and data mining Describe dashboards Describe data visualization, and explain geographical information systems and virtual reality. Describe artificial intelligence (AI). Define an expert system and identify its components. Describe natural language processing and natural language generation, and neural networks.

Information Technology Foundations-BIT Chapter Opening Case P. 262

Information Technology Foundations-BIT Managers and Decision Making Management –A process by which organizational goals are achieved through the use of resources (people, money, energy, materials, space, time). Managers have three basic roles (Mintzberg 1973) a)Interpersonal roles: figurehead, leader, liaison b)Informational roles: monitor, disseminator, spokesperson c)Decisional roles: entrepreneur, disturbance handler, resource allocator, negotiator.

Information Technology Foundations-BIT The Manager’s Job & Decision Making (continued) Decision refers to a choice that individuals and group make among two or more alternatives. Decision making is a systematic process composed of three major phases: (Simon 1977) –Intelligence Phase-the starting point where reality is examined and the problem is defined. –Design Phase-design and construct a model, or simplified representation of reality –Choice Phase-selecting a solution to test “on paper.” Example, Making A Decision About A New Automobile: –Intelligence—review automobile maintenance records showing chronic transmission problems. Seek information from dealers, consumer reports and friends about new automobiles. –Design—Establish objectives and criteria for evaluating automobiles. Establish weights illustrating the relative importance of these criteria. Analyze alternative possibilities. –Choice— generate summary statistics on the evaluation of each automobile.

Information Technology Foundations-BIT Decision Making Process

Information Technology Foundations-BIT Why Managers Need IT Support The number of alternatives to be considered constantly increases. Decisions must be made under time pressure. Decisions are more complex. Decision makers can be in different locations and so is the information.

Information Technology Foundations-BIT Decisions Are Classified Along Two Dimensions - Problem Structure & Nature Of The Decision A Framework for Computerized Decision Analysis Lower-level managers usually perform the structured and operational-control oriented tasks in cells 1, 2, and 4. (Blue color). Middle managers and staff usually perform the tasks in cells 3, 5, and 7. (Orange color). Senior executives usually perform the tasks in cells 6, 8, and 9. (Yellow color.) Figure 9.2

Information Technology Foundations-BIT Problem Structure The first dimension deals with the problem structure, where does the decision making processes fall along the continuum ranging from highly structured to highly unstructured decisions. –Structured problems are routine and repetitive problems for which standard solutions exist. –Unstructured problems are fuzzy, complex problems for which there are no cut-and-dried solutions. –Semistructured problems are problems in which only some of the decision process phases are structured.

Information Technology Foundations-BIT The Nature of Decisions The second dimension of decision support deals with the nature of decisions –Operational control involves executing specific tasks efficiently and effectively. –Management control involves decisions concerning acquiring and using resources efficiently in accomplishing organizational goals. –Strategic planning involves decisions concerning the long range goals and policies for growth and resource allocation.

Information Technology Foundations-BIT BI, Multidimensional Data Analysis, Data Mining, and DSSs Business Intelligence (BI) refers to applications and technologies for consolidating, analyzing, and providing access to vast amounts of data to help users make better business and strategic decisions. Two types of BI Systems: –Those that provide data analysis tools Multidimensional data analysis (or online analytical processing) Data mining Decision support systems –Those that provide information in structured format Dashboards

Information Technology Foundations-BIT How Business Intelligence Works (Figure 9.3)

Information Technology Foundations-BIT Multidimensional Data Analysis (or online analytical processing) Provides users with a look at what is happening or what has happened. Allows users to analyze data in such a way that they can quickly answer business questions. Figure 4.11

Information Technology Foundations-BIT Data Mining Searching for valuable business information in a large database, data warehouse, or data mart. Data mining performs two basic operations: –Predicting trends and behaviors –Identifying previously unknown patterns and relationships Credit card companies often use Data Mining to check for fraudulent credit card use.

Information Technology Foundations-BIT Decision Support Systems (DSS) Decision support systems –combine models and data in an attempt to solve semi- structured and some unstructured problems with extensive user involvement. –A DSS is not a standalone system, usually a collection of computer information systems. DSS Analysis capabilities –Sensitivity analysis is the study of the impact that changes in one (or more) parts of a model have on other parts. –What-if analysis is the study of the impact of a change in the assumptions (input data) on the proposed solution. –Goal-seeking analysis is the study that attempts to find the value of the inputs necessary to achieve a desired level of output.

Information Technology Foundations-BIT Two Types of Group-based Decision Support Solutions Group decision support system (GDSS) –an interactive computer-based system that supports the process of finding solutions by a group of decision makers. –Decision Room (War Room) is a face-to-face setting for a group DSS, in which terminals are available to the participants. Organizational Decision Support System (ODSS) –a DSS that focuses on an organizational task or activity involving a sequence of operations and decision makers. –ODSS Characteristics: It affects several organizational units or corporate problems. It cuts across organizational functions or hierarchical layers. It involves computer-based and (usually) communications technologies.

Information Technology Foundations-BIT Digital Dashboards Dashboards: –Provide rapid access to timely information. –Provide direct access to management reports. –Are very user friendly and supported by graphics.

Information Technology Foundations-BIT Sample Performance Dashboard (Figure 9.4)

Information Technology Foundations-BIT Another Example of Dashboard

Information Technology Foundations-BIT Executive Dashboard Demo Vis_ExecDash/AdvVis_ExecDash.html Vis_ExecDash/AdvVis_ExecDash.html

Information Technology Foundations-BIT A Bloomberg Terminal (Figure 9.5)

Information Technology Foundations-BIT Management Cockpit (Figure 9.6)

Information Technology Foundations-BIT Management Cockpit A strategic management room that enables top-level decision makers to pilot their businesses better. The environment encourages more efficient management meetings and boosts team performance via effective communication. Key performance indicators and information relating to critical success factors are displayed graphically on the walls of the meeting room. External information can be easily imported to the room to allow competitive analysis.

Information Technology Foundations-BIT D image similar to that produced by CyberWell Halliburton’s CyberWell (IT’s About Business 9.3) P. 276

Information Technology Foundations-BIT Data Visualization Systems Data visualization is the process of presenting data to users in visual formats, thereby making IT applications more attractive and understandable to users. The Power of Visualization –Even though a picture is “worth a thousand words,” we have to be very careful about just what we are seeing. –Remember, on the Internet, it is “user beware!”

Information Technology Foundations-BIT New York City Police Department Command Center Data visualization in action

Information Technology Foundations-BIT Example Of Data Visualization 21-minute video that illustrates data visualization Hans RoslingHans Rosling at the TED Talks

Information Technology Foundations-BIT Two Types Of Data Visualization Systems Geographical Information Systems: a computer-based system for capturing, integrating, manipulating, and displaying data using digitized maps. Virtual Reality: interactive, computer-generated, three-dimensional graphics delivered to the user via a head-mounted display.

Information Technology Foundations-BIT Geographic Information System

Information Technology Foundations-BIT GIS for existing land use

Information Technology Foundations-BIT GISMO GISMO is a geographical information system developed for the city of Corvallis, Oregon.GISMO

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Information Technology Foundations-BIT Virtual Reality

Information Technology Foundations-BIT Technology of Data Glove

Information Technology Foundations-BIT Virtual Reality manipulation with data glove

Information Technology Foundations-BIT Driving Simulator

Information Technology Foundations-BIT Flight Simulator External view Internal view

Information Technology Foundations-BIT Virtual Tour Of A Museum

Information Technology Foundations-BIT The VirtuSphere VirtuSphere provides a mechanical basis for truly immersive virtual reality environments, permitting the user to move about in virtual space by simply walking. The device consists of a large hollow sphere which is mounted on a specially designed platform that allows the sphere to rotate freely as the user walks in any direction. (Note that the open hatch in the picture above is closed during use.) The user wears a head-mounted display, which provides the virtual environment. Sensors under the sphere provide subject speed and direction to the computer running the simulation. Users can even interact with objects in virtual space using a special manipulator.

Information Technology Foundations-BIT Intelligent Systems Intelligent systems is a term that describes the various commercial applications of Artificial intelligence (AI). AI is a subfield of computer science concerned with: –studying the thought processes of humans –recreating those processes via machines, such as computer and robots.

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Information Technology Foundations-BIT Expert Systems Expert Systems (ESs) attempt to mimic human experts by applying expertise in a specific domain. –Can support decision makers or completely replace them. Expertise refers to the extensive, task-specific knowledge acquired from training, reading and experience. Star Trek Voyager’s doctor: a 24 th century expert system

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Information Technology Foundations-BIT Four Activities Involved in the Transfer of Expertise from an Expert to Computer and then to a User Knowledge acquisition: –Knowledge is from experts or from documented sources. Knowledge representation: –Acquired knowledge is organized as rules or frames (objective-oriented) and stored electronically in a knowledge base. Knowledge inferencing: –Given the necessary expertise stored in the knowledge base, the computer is programmed so that it can make inferences. The reasoning function is performed in a component called the inference engine, which is the brain of ES. Knowledge transfer: –The inferenced expertise is transferred to the user in the form of a recommendation.

Information Technology Foundations-BIT The Components of Expert Systems Knowledge base –Contains knowledge necessary for understanding, formulating and solving problems. Inference engine –A computer program that provides a methodology for reasoning and formulating conclusions. User interface –Enables users to communicate with the computer Blackboard –An area of working memory set aside for the description of a current problem. Explanation subsystem –Explains its recommendations.

Information Technology Foundations-BIT Structure and Process of an Expert System

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Information Technology Foundations-BIT Natural Language Processing & Voice Technologies Natural language processing (NLP): –Communicating with a computer in English or whatever language you may speak. Natural language understanding/speech (voice) recognition: –The ability of a computer to comprehend instructions given in ordinary language, via the keyboard or by voice. Natural language generation/voice synthesis: –Technology that enables computers to produce ordinary language, by “voice” or on the screen, so that people can understand computers more easily.

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Information Technology Foundations-BIT Neural Networks Neural network is a system of programs and data structures that approximates the operation of the human brain. Neural networks are particularly good at recognizing subtle, hidden and newly emerging patterns within complex data as well as interpreting incomplete inputs.

Information Technology Foundations-BIT Neural Network Example: Mortgage Application

Information Technology Foundations-BIT Fuzzy Logic Fuzzy logic deals with the uncertainties by simulating the process of human reasoning, allowing the computer to behave less precisely and logically than conventional computers do. –Involves decision in gray areas. –Uses creative decision-making processes.

Information Technology Foundations-BIT Chapter Closing CaseP. 290 GPS sensor