Fundamentals of Information Systems, Second Edition 1 Information and Decision Support Systems Chapter 6

Fundamentals of Information Systems, Second Edition 2 Learning Objectives –Define the stages of decision making. –Discuss the importance of implementation and monitoring in problem solving.

Fundamentals of Information Systems, Second Edition 3 Learning Objectives –Define the term MIS and clearly distinguish the difference between a TPS and an MIS. –Discuss information systems in the functional areas of business organizations.

Fundamentals of Information Systems, Second Edition 4 Learning Objectives Decision support systems (DSSs) are used when the problems are more 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.

Fundamentals of Information Systems, Second Edition 5 Learning Objectives Specialized support systems, such as group decision support systems (GDSSs) 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 GDSS 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.

Fundamentals of Information Systems, Second Edition 6 Decision Making and Problem Solving

Fundamentals of Information Systems, Second Edition 7 How Decision Making Relates to Problem Solving

Fundamentals of Information Systems, Second Edition 8 Decision Making Intelligence –Identify problems and opportunities –Investigate resource and environmental constraints Design –Generate alternatives –Evaluate alternatives Choice –Select a course of action

Fundamentals of Information Systems, Second Edition 9 Problem Solving Decision making Implementation –Apply the solution –Inform related parties –Execute solution steps Monitoring –Ensure that the solution is implemented as planned –Monitor for unforeseen situations

Fundamentals of Information Systems, Second Edition 10 Programmed versus Nonprogrammed Decisions Programmed decisions –Rules or procedures –Easy to computerize –Ex: Order new items when the inventory drops below 100 Nonprogrammed decisions –Rules and relationships not defined –Problem is not routine –Not easily quantifiable –Determine a training program for a new employee

Fundamentals of Information Systems, Second Edition 11 Problem Solving Approaches Optimization: find the best solution Satisficing: –Find a good solution –Does not look at all solutions –Easier to find then an optimum solution Heuristics: –Rules of thumb –Commonly accepted guidelines –Ex: Always have 5 units of an item in stock

Fundamentals of Information Systems, Second Edition 12 Optimization, Satisficing, and Heuristic Approaches

Fundamentals of Information Systems, Second Edition 13 An Overview of Management Information Systems

Fundamentals of Information Systems, Second Edition 14 Sources of Managerial Information

Fundamentals of Information Systems, Second Edition 15 Transforming Data to Information Internal Input –TPSs –ERPs External Input –Customers –Suppliers –Competitors Output –Predetermined Reports

Fundamentals of Information Systems, Second Edition 16 Reports (1) Scheduled Reports –Periodically –Ex: Daily report to monitor the production of an item –Key-indicator report: Summarizes the previous day’s critical activities Demand Reports –Give information when needed –FedEx package reports for customers –Competitors

Fundamentals of Information Systems, Second Edition 17 Reports (2) Exception Reports –Generated when something unusual happens –Trigger point: Manager decides on the “unusual event” –Ex: Report on orders that are not delivered in five days Drill Down Reports –Detailed report about a situation –See the situation at different levels

Fundamentals of Information Systems, Second Edition 18 Reports Generated by an MIS

Fundamentals of Information Systems, Second Edition 19 Reports Generated by an MIS

Fundamentals of Information Systems, Second Edition 20 Guidelines for Developing MIS Reports

Fundamentals of Information Systems, Second Edition 21 Functional Aspects of the MIS

Fundamentals of Information Systems, Second Edition 22 Functional Aspects of MIS

Fundamentals of Information Systems, Second Edition 23 Financial MIS Provide financial information to internal parties –Integrate financial and operational information from several sources –Ease analysis by providing fast financial data –Enable financial analysis from different aspects; time, product, customer –Analyze historical and current data –Monitor use of funds Report to external parties Auditing

Fundamentals of Information Systems, Second Edition 24 Overview of a Financial MIS

Fundamentals of Information Systems, Second Edition 25 Manufacturing MIS Material requirements planning (MRP) –Determine when finished products are needed –Determine deadlines accordingly Manufacturing resource planning (MRPII) –Network scheduling –Improve customer service and productivity Just in time (JIT) inventory system –Inventory and materials delivered right before usage

Fundamentals of Information Systems, Second Edition 26 Overview of a Manufacturing MIS

Fundamentals of Information Systems, Second Edition 27 Marketing MIS Supports managerial activities –Product development –Distribution –Pricing decisions –Promotional effectiveness –Sales forecasting Customer relationship software (CRM) –Collect customer data –Inform customers on products Example report: Possible prices for products

Fundamentals of Information Systems, Second Edition 28 Overview of a Marketing MIS

Fundamentals of Information Systems, Second Edition 29 Human Resource MIS Concerned with activities related to employees and potential employees of the organization. Subsystems include: –needs and planning assessments –recruiting –training and skills development –scheduling and assignment –employee benefits

Fundamentals of Information Systems, Second Edition 30 Overview of a Human Resource MIS

Fundamentals of Information Systems, Second Edition 31 Other Management Information Systems Accounting MIS –Provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications. –Sometimes done by other companies Geographic Information Systems –Computer system capable of assembling, storing, manipulating, and displaying geographic information. –Useful when the geographic position of the data is important