Principles of Information Systems, Sixth Edition Information and Decision Support Systems Chapter 10

Principles of Information Systems, Sixth Edition Decision Making and Problem Solving

Principles of Information Systems, Sixth Edition Decision Making as a Component of Problem Solving

Principles of Information Systems, Sixth Edition Programmed versus Nonprogrammed Decisions Programmed decisions –Structured situations with well defined relationships –Quantifiable –Management information system –Easy to computerize Nonprogrammed decisions –Rules and relationships not defined –Problem is not routine –Not easily quantifiable

Principles of Information Systems, Sixth Edition Problem Solving Approaches Optimization: find the best solution Satisficing: find a good solution Heuristics: rules of thumb

Principles of Information Systems, Sixth Edition Optimization, Satisficing, and Heuristic Approaches

Principles of Information Systems, Sixth Edition An Overview of Management Information Systems

Principles of Information Systems, Sixth Edition Inputs to an MIS

Principles of Information Systems, Sixth Edition Outputs of an MIS

Principles of Information Systems, Sixth Edition Outputs of an MIS

Principles of Information Systems, Sixth Edition Developing Effective Reports

Principles of Information Systems, Sixth Edition Characteristics of an MIS Fixed format, standard reports Hard-copy or soft-copy reports Uses internal data User-developed reports Users must request formal reports from IS department

Principles of Information Systems, Sixth Edition Functional Aspects of the MIS

Principles of Information Systems, Sixth Edition Functional Aspects of an MIS

Principles of Information Systems, Sixth Edition Financial MIS

Principles of Information Systems, Sixth Edition Manufacturing MIS Design engineering Process control –Computer-assisted manufacturing (CAM) –Computer-integrated manufacturing (CIM) –Flexible manufacturing system Quality control and testing

Principles of Information Systems, Sixth Edition Overview of a Manufacturing MIS

Principles of Information Systems, Sixth Edition Master Production Scheduling and Inventory Control

Principles of Information Systems, Sixth Edition Quality Control and Testing

Principles of Information Systems, Sixth Edition Marketing MIS

Principles of Information Systems, Sixth Edition Product Pricing

Principles of Information Systems, Sixth Edition Product Pricing

Principles of Information Systems, Sixth Edition Human Resource MIS

Principles of Information Systems, Sixth Edition Other MIS Accounting management information systems Geographic information systems (GIS)

Principles of Information Systems, Sixth Edition Characteristics of Decision Support Systems Handle large amounts of data from various sources Provide report and presentation flexibility Offer both textual and graphical orientation Support drill down analysis

Principles of Information Systems, Sixth Edition An Overview of Decision Support Systems

Principles of Information Systems, Sixth Edition Characteristics of a DSS Perform complex, sophisticated analysis Optimization, satisficing, heuristics –Simulation –What-if analysis –Goal-seeking analysis

Principles of Information Systems, Sixth Edition Characteristics of a DSS

Principles of Information Systems, Sixth Edition Capabilities of a DSS Support all problem-solving phases Support different decision frequencies Support different problem structures Support various decision-making levels

Principles of Information Systems, Sixth Edition Selected DSS Applications

Principles of Information Systems, Sixth Edition Support for Various Decision-Making Levels

Principles of Information Systems, Sixth Edition Comparison of DSSs and MISs

Principles of Information Systems, Sixth Edition Comparison of DSSs and MISs

Principles of Information Systems, Sixth Edition Components of a DSS

Principles of Information Systems, Sixth Edition Components of a DSS

Principles of Information Systems, Sixth Edition The Model Base Financial models –Cash flow –Internal rate of return Statistical analysis models –Summary statistics –Trend projections –Hypothesis testing Graphical models Project management models

Principles of Information Systems, Sixth Edition The Model Base

Principles of Information Systems, Sixth Edition Data-driven versus Model-driven DSS Data-driven DSS - primarily performs qualitative analysis based on the company’s databases Model-driven DSS - primarily performs mathematical or quantitative analysis

Principles of Information Systems, Sixth Edition Group Decision Support Systems

Principles of Information Systems, Sixth Edition Group Decision Support System

Principles of Information Systems, Sixth Edition Characteristics of a GDSS Special design Ease of use Flexibility Decision-making support Anonymous input Reduction of negative group behavior Parallel communication Automated record keeping

Principles of Information Systems, Sixth Edition GDSS Alternatives

Principles of Information Systems, Sixth Edition The Decision Room

Principles of Information Systems, Sixth Edition Executive Support Systems

Principles of Information Systems, Sixth Edition Executive Support Systems

Principles of Information Systems, Sixth Edition Executive Support Systems (ESS) in Perspective Tailored to individual executives Easy to use Drill down capabilities Support need for external data Can help when uncertainty is high Future-oriented Linked to value-added processes

Principles of Information Systems, Sixth Edition Capabilities of an ESS Support for defining an overall vision Support for strategic planning Support for strategic organizing & staffing Support for strategic control Support for crisis management

Principles of Information Systems, Sixth Edition Summary Management information system - an integrated collection of people, procedures, databases, and devices that provide managers and decision-makers with information to help achieve organizational goals Decision-making phase: includes intelligence, design, and choice Problem solving: also includes implementation and monitoring Decision approaches: optimization, satisficing, and heuristic

Principles of Information Systems, Sixth Edition Summary Decision support system (DSS) - an organized collection of people, procedures, software, databases, and devices working to support managerial decision making Group decision support system (GDSS) - also called a computerized collaborative work system, consists of most of the elements in a DSS, plus software needed to provide effective support in group decision-making settings Executive support systems (ESSs) - specialized decision support systems designed to meet the needs of senior management