11.1 © 2004 by Prentice Hall INFORMATION MANAGEMENT AND DECISION MAKING FOR THE DIGITAL FIRM MODULE-2 : UNIT-8

11.2 © 2004 by Prentice Hall How can information systems help individual managers make better decisions when the problems are non-routine and constantly changing?How can information systems help individual managers make better decisions when the problems are non-routine and constantly changing? How can information systems help people working in a group make decisions more efficiently?How can information systems help people working in a group make decisions more efficiently? OBJECTIVES

11.3 © 2004 by Prentice Hall Are there any special systems that can facilitate decision-making among senior managers? Exactly what can these systems do to help high-level management?Are there any special systems that can facilitate decision-making among senior managers? Exactly what can these systems do to help high-level management? What benefits can systems that support management decision- making provide for the organization as a whole?What benefits can systems that support management decision- making provide for the organization as a whole? OBJECTIVES

11.4 © 2004 by Prentice HallOBJECTIVES Data and information analysis using OPLAP and data mining?Data and information analysis using OPLAP and data mining? Methods of data visualization?Methods of data visualization? What is ‘Knowledge management’?What is ‘Knowledge management’? What are the emerging trends in information management?What are the emerging trends in information management?

11.5 © 2004 by Prentice Hall Building information systems that can actually fulfill executive information requirements.Building information systems that can actually fulfill executive information requirements. Create meaningful reporting and management decision-making processes.Create meaningful reporting and management decision-making processes. MANAGEMENT CHALLENGES

11.6 © 2004 by Prentice Hall Computer system at the management level of an organization.Computer system at the management level of an organization. Combines data, analytical tools, and models.Combines data, analytical tools, and models. Supports semi-structured and unstructured decision-makingSupports semi-structured and unstructured decision-making DECISION-SUPPORT SYSTEMS (DSS)

11.7 © 2004 by Prentice Hall MIS Provides reports based on routine flow of data.Provides reports based on routine flow of data. Assists in general control of the organization.Assists in general control of the organization.DSS Emphasizes change, flexibility, rapid response, models, assumptions, ad hoc queries, and display graphics. Emphasizes change, flexibility, rapid response, models, assumptions, ad hoc queries, and display graphics. DECISION-SUPPORT SYSTEMS (DSS ) Difference Between MIS and DSS

11.8 © 2004 by Prentice Hall Model-driven DSS Primarily stand-alone.Primarily stand-alone. Uses model to perform “what-if” and other kinds of analysis.Uses model to perform “what-if” and other kinds of analysis. TYPES OF DECISION-SUPPORT SYSTEMS (DSS)

11.9 © 2004 by Prentice Hall Data-driven DSS Allows users to extract and analyze useful information from large databases.Allows users to extract and analyze useful information from large databases. Uses Datamining Finds hidden trends, patterns and relationships in large databases in data warehouses.Finds hidden trends, patterns and relationships in large databases in data warehouses. Knowledge discovery.Knowledge discovery. TYPES DECISION-SUPPORT SYSTEMS (DSS)

11.10 © 2004 by Prentice Hall DECISION-SUPPORT SYSTEMS (DSS) Overview of a Decision-Support System (DSS) Figure 11-2

11.11 © 2004 by Prentice Hall 1. DSS Database: C ollection of current or historical data 2. DSS Software System: C ollection of software tools/mathematical and analytical models. 3. User Interface: Easy interaction. DECISION-SUPPORT SYSTEMS (DSS) Components of Decision-Support Systems

11.12 © 2004 by Prentice Hall 4. Model Abstract representation illustrating components or relationshipsAbstract representation illustrating components or relationships 5. Sensitivity Analysis Asks “what-if” questions repeatedly to determine the impact of change.Asks “what-if” questions repeatedly to determine the impact of change. DECISION-SUPPORT SYSTEMS (DSS) Components of Decision-Support Systems (contd.)

11.13 © 2004 by Prentice Hall Railway: Train dispatching and routing.Railway: Train dispatching and routing. Texas Oil and Gas Corporation: Evaluation of potential drilling sitesTexas Oil and Gas Corporation: Evaluation of potential drilling sites United Airlines: Flight scheduling, passenger demand forecastingUnited Airlines: Flight scheduling, passenger demand forecasting U.S. Department of Defense:Defense contract analysis.U.S. Department of Defense: Defense contract analysis. DECISION-SUPPORT SYSTEMS (DSS) Examples of DSS Applications and the Digital Firm

11.14 © 2004 by Prentice Hall Comprehensive examination of supply chain management.Comprehensive examination of supply chain management. Searches among large number of alternatives for most efficient and cost- effective combination.Searches among large number of alternatives for most efficient and cost- effective combination. Reduces overall costs.Reduces overall costs. Increases speed and accuracy of filling customer orders.Increases speed and accuracy of filling customer orders. DECISION-SUPPORT SYSTEMS (DSS) DSS for Supply Chain Management

11.15 © 2004 by Prentice Hall Uses data mining to guide decisions on pricing, customer retention, market share.Uses data mining to guide decisions on pricing, customer retention, market share. Consolidates customer information from massive data warehouses.Consolidates customer information from massive data warehouses. Uses various analytical tools to slice information into small segments for one- to-one marketing.Uses various analytical tools to slice information into small segments for one- to-one marketing. DECISION-SUPPORT SYSTEMS (DSS) DSS for Customer Relationship Management

11.16 © 2004 by Prentice Hall Interactive computer-based system.Interactive computer-based system. Facilitates solution to unstructured problems.Facilitates solution to unstructured problems. For a set of decision makers working together as a group.For a set of decision makers working together as a group. GROUP DECISION-SUPPORT SYSTEMS (GDSS) What Is a GDSS?

11.17 © 2004 by Prentice Hall Hardware: Conference facility, electronic hardware.Hardware: Conference facility, electronic hardware. Software tools: Tools for organizing ideas, gathering information, and ranking and seeking priorities.Software tools: Tools for organizing ideas, gathering information, and ranking and seeking priorities. People: Participants, trained facilitator, staff to support hardware and software.People: Participants, trained facilitator, staff to support hardware and software. GROUP DECISION-SUPPORT SYSTEMS (GDSS) Components of GDSS

11.18 © 2004 by Prentice Hall Electronic questionnairesElectronic questionnaires Electronic brainstorming toolsElectronic brainstorming tools Idea organizersIdea organizers Questionnaire toolsQuestionnaire tools Tools for voting or setting prioritiesTools for voting or setting priorities GROUP DECISION-SUPPORT SYSTEMS (GDSS) GDSS Software Tools

11.19 © 2004 by Prentice Hall Improved preplanningImproved preplanning Increased participationIncreased participation Open, collaborative meeting atmosphereOpen, collaborative meeting atmosphere Criticism-free idea generationCriticism-free idea generation Evaluation objectivityEvaluation objectivity GROUP DECISION-SUPPORT SYSTEMS (GDSS) How GDSS can Enhance Group Decision-Making

11.20 © 2004 by Prentice Hall Executive Support Systems (ESS) Executive Support Systems (ESS) Information system at strategic level of an organizationInformation system at strategic level of an organization Addresses unstructured decision-making through advanced graphics and communicationsAddresses unstructured decision-making through advanced graphics and communications Brings together data from the entire organization and external sources.Brings together data from the entire organization and external sources. Allows managers to select, access, and tailor data.Allows managers to select, access, and tailor data. EXECUTIVE SUPPORT IN THE ENTERPRISE

11.21 © 2004 by Prentice Hall Analyzes, compares, and highlights trendsAnalyzes, compares, and highlights trends Provides greater clarity and insight into dataProvides greater clarity and insight into data Speeds up decision-makingSpeeds up decision-making Improves management performanceImproves management performance Increases management’s span of controlIncreases management’s span of control Better monitoring of activitiesBetter monitoring of activities Benefits of Executive Support Systems

11.22 © 2004 by Prentice Hall DATA AND INFORMATION ANALYSIS METHODS FOR ANALYSIS 1.Data, Text & Web Mining: Process of searching for unknown or non- obvious relationships or information in large databases using intelligent tools such as neural computing. 2.Online Analytical Processing (OLAP) : Software tool for users to create on demand reports and queries and analyze data.

11.23 © 2004 by Prentice Hall DATA VISUALIZATION It refers to the technologies that support visualizing and interpreting data.It refers to the technologies that support visualizing and interpreting data. By using these technologies, managers/ engineers/ professionals can spot problems that are undetected by using standard analysis methodsBy using these technologies, managers/ engineers/ professionals can spot problems that are undetected by using standard analysis methods

11.24 © 2004 by Prentice Hall DATA VISUALIZATION The technologies for visual analysis are : The technologies for visual analysis are : - Digital maps, - Digital maps, - Geographical information systems - Geographical information systems - GUI- Videos - GUI- Videos - Graphs- Animation - Graphs- Animation - Virtual reality - Virtual reality - Dimensional presentations - Dimensional presentations

11.25 © 2004 by Prentice Hall DATA VISUALIZATION GEOGRAPHICAL INFORMATION SYSTEM A computer based system for : 1.Capturing,! 2.Storing,! 3.Modeling,! Geographically referenced data 4.Retrieving,! with digitized maps. 5.Checking,! 6.Integrating,! See website : mapmyindia.com 7.Manipulating,! 8.Analyzing and! 9.Displaying!

11.26 © 2004 by Prentice Hall DATA VISUALIZATION VIRTUAL REALITY (VR) VIRTUAL REALITY (VR) VR is interactive, computer generated, three dimensional graphics delivered to the user through head-mounted display.

11.27 © 2004 by Prentice Hall KNOWLEDGE MANAGEMENT It is a process that helps organizations : It is a process that helps organizations : - Identify,! - Select,! important information - Organize,! and expertise that are - Disseminate & ! part of organization’s - Transfer ! memory and that ! typically reside ! within the organization ! within the organization ! in unstructured manner. ! in unstructured manner.

11.28 © 2004 by Prentice Hall 15 TOP EMERGING TRENDS IN INFORMATION MANAGEMENT More Urgent Calls for Data GovernanceMore Urgent Calls for Data Governance Rise of the Well-Managed ‘Intra-Cloud’Rise of the Well-Managed ‘Intra-Cloud’ Companies will be Challenged With Cloud Data Integration,Companies will be Challenged With Cloud Data Integration, Green IT Will Meet the CloudGreen IT Will Meet the Cloud Clouds and Grids Will ConvergeClouds and Grids Will Converge Greater Push for Business Intelligence and Performance ManagementGreater Push for Business Intelligence and Performance Management

11.29 © 2004 by Prentice Hall 15 TOP EMERGING TRENDS IN INFORMATION MANAGEMENT Rise of Master Data Management for Enterprise Environment and ApplicationsRise of Master Data Management for Enterprise Environment and Applications The Economy Injects Uncertainty into 2009 PlansThe Economy Injects Uncertainty into 2009 Plans Economy Will Drive More Open SourceEconomy Will Drive More Open Source Virtualization Will Mature to ‘Grade Two’Virtualization Will Mature to ‘Grade Two’ Virtualization Will Meet Application ManagementVirtualization Will Meet Application Management

11.30 © 2004 by Prentice Hall 15 TOP EMERGING TRENDS IN INFORMATION MANAGEMENT More Concern About Virtualization SecurityMore Concern About Virtualization Security The Rise of Data ‘Visualization’The Rise of Data ‘Visualization’ More Service Orienting of Business Intelligence (BI) ApplicationsMore Service Orienting of Business Intelligence (BI) Applications Developer and DBA World Will CollideDeveloper and DBA World Will Collide

11.31 © 2004 by Prentice Hall ENHANCINGMANAGEMENTDECISION-MAKING FOR THE DIGITAL FIRM