13. ENHANCING MANAGEMENT DECISION MAKING 13.1

DECISION SUPPORT SYSTEMS (DSS) MANAGEMENT LEVEL COMPUTER SYSTEM COMBINES DATA, MODELS, USER - FRIENDLY SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION MAKING UNSTRUCTURED DECISION MAKING* 13.2

COMPONENTS OF DSS TPS KWS DBMS MODEL BASE Statistical Forecasti ng Operatio nalPlanning DSS SOFTWARE User Interface MIS USER 13.3

DSS & MIS DIMENSION DSS DSS MIS MISPHILOSOPHY INTEGRATED TOOLS, INTEGRATED TOOLS, STRUCTURED INFORMATION STRUCTURED INFORMATION DATA, LANGUAGE DATA, LANGUAGE TO END USERS TO END USERS SYSTEMS ANALYSIS SYSTEMS ANALYSIS TOOLS FOR DECISION IDENTIFY INFORMATION IDENTIFY INFORMATION PROCESS PROCESS REQUIREMENTS REQUIREMENTS DESIGN DESIGN ITERATIVE PROCESS ITERATIVE PROCESS DELIVER SYSTEM BASED DELIVER SYSTEM BASED ON FROZEN REQUIREMENTS ON FROZEN REQUIREMENTS 13.4

DECISION SUPPORT SYSTEMS (DSS) REPRESENTATIONS: Graphs; Charts; Lists; Reports; SymbolsREPRESENTATIONS: Graphs; Charts; Lists; Reports; Symbols OPERATIONS: Logical, Mathematical Manipulation of DataOPERATIONS: Logical, Mathematical Manipulation of Data MEMORY AIDS: Update, Refresh MemoryMEMORY AIDS: Update, Refresh Memory CONTROL AIDS: User Controls Activities & FunctionsCONTROL AIDS: User Controls Activities & Functions* 13.5

EXAMPLES OF DSS SYSTEMS AMERICAN AIRLINES AMERICAN AIRLINES PRICE & ROUTE SELECTIONS PRICE & ROUTE SELECTIONS CHAMPLIN PETROLEUM CHAMPLIN PETROLEUM CORPORATION PLANNING & FORECASTING CORPORATION PLANNING & FORECASTING EQUICO CAPITAL CORPORATION EQUICO CAPITAL CORPORATION INVESTMENT EVALUATION INVESTMENT EVALUATION FRITO-LAY, INC.. FRITO-LAY, INC.. PRICE, ADVERTISING, PROMOTION PRICE, ADVERTISING, PROMOTION GENERAL DYNAMICS GENERAL DYNAMICS PRICE EVALUATION PRICE EVALUATION JUNIPER LUMBER JUNIPER LUMBER PRODUCTION OPTIMIZATION PRODUCTION OPTIMIZATION Kmart Kmart PRICE EVALUATION PRICE EVALUATION NATIONAL GYPSUM NATIONAL GYPSUM CORPORATE PLANNING, FORECASTING CORPORATE PLANNING, FORECASTING SOUTHERN RAILWAY SOUTHERN RAILWAY TRAIN DISPATCHING & ROUTING TRAIN DISPATCHING & ROUTING TEXAS OIL & GAS CORPORATION TEXAS OIL & GAS CORPORATION EVALUATION OF DRILLING SITES EVALUATION OF DRILLING SITES 13.6

COMPONENTS OF DSS DATABASE: Current & Historical Data from Many Sources, as RequiredDATABASE: Current & Historical Data from Many Sources, as Required MODEL BASE: Collection of Mathematical & Analytical Building BlocksMODEL BASE: Collection of Mathematical & Analytical Building Blocks MODEL: Abstract Representation of a PhenomenonMODEL: Abstract Representation of a Phenomenon SENSITIVITY ANALYSIS: What - If Questions; Impact of Changes in InputsSENSITIVITY ANALYSIS: What - If Questions; Impact of Changes in Inputs* 13.7

BUILDING DSS FOCUSES ON NEEDS OF USERFOCUSES ON NEEDS OF USER WHAT CAPABILITIES DO USERS CONSIDER IMPORTANT?WHAT CAPABILITIES DO USERS CONSIDER IMPORTANT? TEND TO EMPLOY ANALYTICAL MODELSTEND TO EMPLOY ANALYTICAL MODELS CUSTOMIZED TO SPECIFIC USERSCUSTOMIZED TO SPECIFIC USERS* 13.8

GROUP DECISION-SUPPORT SYSTEM (GDSS ) INTERACTIVE COMPUTER-BASED SYSTEM FACILITATES SOLUTION OF UNSTRUCTURED PROBLEMS UNSTRUCTURED PROBLEMS BY DECISION MAKERS WORKING AS GROUP* 13.9

ADVANTAGES OF GDSS IMPROVED PRE-PLANNINGIMPROVED PRE-PLANNING INCREASED PARTICIPATIONINCREASED PARTICIPATION OPEN, COLLABORATIVE ATMOSPHEREOPEN, COLLABORATIVE ATMOSPHERE IDEA GENERATION FREE OF CRITICISMIDEA GENERATION FREE OF CRITICISM EVALUATION OBJECTIVITYEVALUATION OBJECTIVITY IDEA ORGANIZATION & EVALUATIONIDEA ORGANIZATION & EVALUATION* 13.10

ADVANTAGES OF GDSS SETTING PRIORITIES & DECISION MAKINGSETTING PRIORITIES & DECISION MAKING DOCUMENTATION OF MEETINGSDOCUMENTATION OF MEETINGS ACCESS TO EXTERNAL INFORMATIONACCESS TO EXTERNAL INFORMATION PRESERVATION OF ORGANIZATIONAL MEMORYPRESERVATION OF ORGANIZATIONAL MEMORY ELECTRONIC QUESTIONNAIRESELECTRONIC QUESTIONNAIRES* 13.11

WHAT IS GDSS? Hardware - facility, computers, network, display boardsHardware - facility, computers, network, display boards Software - organize and gather data, commsSoftware - organize and gather data, comms People - participants, trained facilitatorPeople - participants, trained facilitator

GDSS SOFTWARE TOOLS ELECTRONIC BRAINSTORMINGELECTRONIC BRAINSTORMING IDEA ORGANIZERSIDEA ORGANIZERS QUESTIONNAIRE EVALUATION TOOLSQUESTIONNAIRE EVALUATION TOOLS TOOLS FOR VOTING; SETTING PRIORITIESTOOLS FOR VOTING; SETTING PRIORITIES STAKEHOLDER IDENTIFICATION & ANALYSISSTAKEHOLDER IDENTIFICATION & ANALYSIS POLICY FORMATION TOOLSPOLICY FORMATION TOOLS GROUP DICTIONARIESGROUP DICTIONARIES* 13.13

ELECTRONIC MEETING SYSTEM (EMS) COLLABORATIVE GDSS USES INFORMATION TECHNOLOGY TO MAKE GROUP MEETINGS MORE PRODUCTIVE PRODUCTIVE FACILITATES COMMUNICATION DECISION MAKING * 13.14

HOW GDSS ENHANCED DECISION MAKING IMPROVED PRE-PLANNINGIMPROVED PRE-PLANNING INCREASED PARTICIPATIONINCREASED PARTICIPATION OPEN, COLLABORATIVE ATMOSPHEREOPEN, COLLABORATIVE ATMOSPHERE IDEA GENERATION FREE OF CRITICISMIDEA GENERATION FREE OF CRITICISM EVALUATION OBJECTIVITYEVALUATION OBJECTIVITY IDEA ORGANIZATION & EVALUATIONIDEA ORGANIZATION & EVALUATION* 13.15

HOW GDSS ENHANCED DECISION MAKING SETTING PRIORITIES; MAKING DECISIONSSETTING PRIORITIES; MAKING DECISIONS DOCUMENTATION OF MEETINGSDOCUMENTATION OF MEETINGS ACCESS TO EXTERNAL INFORMATIONACCESS TO EXTERNAL INFORMATION PRESERVATION OF ORGANIZATIONAL MEMORYPRESERVATION OF ORGANIZATIONAL MEMORY* 13.16

EXECUTIVE SUPPORT SYSTEMS (ESS) STRATEGIC INFORMATION SYSTEM DESIGNED FOR UNSTRUCTURED DECISION MAKING DECISION MAKING THROUGH ADVANCED GRAPHICS AND COMMUNICATIONS * 13.17

EXECUTIVE SUPPORT SYSTEMS (ESS) COMMUNITY EXECUTIVE STRATEGY ACTION ESS EMS MANAGERS MISTPSDBMSDATABASE 13.18

EXECUTIVE SUPPORT SYSTEMS (ESS) BRIEFING BOOKS: On-Line Data, Fixed Format Reports for ExecutivesBRIEFING BOOKS: On-Line Data, Fixed Format Reports for Executives DRILL DOWN: Ability to move from Summary to Lower Levels of DetailDRILL DOWN: Ability to move from Summary to Lower Levels of Detail Designed for Specific Needs of CEODesigned for Specific Needs of CEO Extensive Support StaffExtensive Support Staff Executive has 24 Hour per Day Ability to Examine, Control Progress Throughout OrganizationExecutive has 24 Hour per Day Ability to Examine, Control Progress Throughout Organization* 13.19

MANAGEMENT CHALLENGES BUILD SYSTEMS TO FULFILL EXECUTIVE INFORMATION REQUIREMENTSBUILD SYSTEMS TO FULFILL EXECUTIVE INFORMATION REQUIREMENTS INTEGRATE DSS & ESSINTEGRATE DSS & ESS* 13.20