CHAPTER 1 MANAGEMENT SUPPORT SYSTEMS: AN OVERVIEW Decision Support Systems and Intelligent Systems, 7th 1-1

Decision Support System © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 1-2  Reference Decision Support and Business Intelligence Systems. Efraim Turban, Ramesh Sharda, and DursunDelen. (9th edition)- Prentice -Hall -( ).

Assessment methods and the division of grades Percentage from overall grade Grade Assessment Week Write an essay - test Assessment method- a collective project - a final test...) 15% 157First mid-term 15% 1512second mid-term 30% 2*55homework Tutorial 2*54+9Test 2*53+8Assignment 40% 4015Final 100% Total 3

Learning Objectives 1-4  Understand how management uses computer technologies.  Learn basic concepts of decision-making.  Understands decision support systems.  Recognize different types of decision support systems used in the workplace.  Determine which type of decision support system is applicable in specific situations.

Managers and Decision Making 5  The MANAGERS are always responsible for decision making

Managers and Decision Making (Con.) 1-6 The Nature of Managers’ Work Managers perform 10 major roles can be classified into three major categories: 1.Interpersonal: figurehead, leader, liaison(communication). 2.Informational: monitor, disseminator(publisher), spokesperson. 3.Decisional: entrepreneur, disturbance handler, resource allocator, negotiator. To perform these rolles, managers need information and computerized support

Mintzberg’s 10 Management Roles  Interpersonal  Figurehead : symbolic head  Leader : Responsible for the motivation and activation of subordinates; responsible for staffing, training, and associated duties.  Liaison: Maintains self-developed network of outside contact and informers who provide favors and information.  Informational  Monitor :Seeks and receives a wide variety of special information (much of it current) to develop a thorough understanding of the organization and environment.  Disseminator: Transmits information received from outsiders or from subordinates to members of the organization.  Spokesperson: Transmits information to outsiders on the organization’s plans, policies, actions, results and so forth; serves as an expert on the organization’s industry 1-7

Mintzberg’s 10 Management Roles 1-8  Decisional –Entrepreneur(متعهد) Searches the organization and its environment for opportunities and initiates improvement projects to bring about change; supervises deign of certain projects –Disturbance Handler: Responsible for corrective action when the organization faces important, unexpected disturbances –Resource Allocation: Responsible for the allocation of organization resources of all kinds –Negotiator: Responsible for representing the organization at major negotiations

Managerial Decision Making and Information Systems 9  Management is a process by which organizational goals are achieved through the use of resources (people, money, energy, materials, space, time).  These resources are considered to be inputs, and the attainment of the goals is viewed as the output of the process. Measuring success: Productivity = output/input Orgnizational and managerial performance

Productivity 1-10  The ratio of outputs to inputs that measures the degree of success of an organization and its individual parts

Managerial Decision Making (cont.) 11  Factors Affecting Decision-Making:  Environmental factors make the evaluation process difficult for the following reasons: 1. New technologies and better information distribution have resulted in more alternatives for management. 2. Increasing governmental regulation coupled with political destabilization have caused great uncertainty. 3. These environments are growing more complex, making decision today is indeed a complex task. 4. Other factors are the need to make rapid decisions, the frequent and unpredictable changes, and the potential costs of making mistakes.

Computerized Support For Decision Making (cont.) 12  Why We Use Computerized Decision Support Systems? Speedy computations Improved communication and collaboration Increased productivity of group members Improved data management Managing data warehouses Quality support Overcoming cognitive limits in processing and storing information (Example) Using the Web Anywhere, anytime support

Management Support Systems (MSS) 1-13  The support of management tasks by the application of technologies  Sometimes called Decision Support Systems or Business Intelligence

Management Support Systems Tools  Decision Support System (DSS)  Management Science (MS/ operations research (OR)  Business Analytics  Data Mining  Data Warehouse  Business Intelligence  Online Analytical Processing (OLAP)  Computer-Assisted Systems Engineering (CASE) tools  Group Support Systems (GSS)  Enterprise Information systems (EIS)  Enterprise Information Portals (EIP)  Enterprise Resource Management (ERM)  Enterprise Resource Planning (ERP)  Customer Resource Management (CRM)  Supply-Chain Management (SCM)  Knowledge Management Systems (KMS)  Knowledge Management Portals (KMP)  Expert systems (ES)  Artificial Neural Network (ANN)  Intelligent Agents  E-commerce DSS 1-14

 Intelligence Phase Design Phase Choice Phases  REALITY Implementation of Solution Implementation of Solution SUCCESS FAILURE Verification, Testing of Proposed Solution Verification of the Model Examination Steps of the Decision Making

Framework for Computerized Decision Support 16  Three Types of Decision support framework or Structuredness: 1. Structured problems (programmed): are routine problems for which standard solution method exist. All phases are structured. Procedure for obtaining the best solution are known 2. Unstructured problems (nonprogrammed): are fuzzy, complex problem for which there are no cut-and direct solution methods. None of the four phases is structured Depend on human judgment. 3. Semi-structured problem: is a decision problem in which some but not all phases are structured. In between solve with standard solution procedure and human judgment

Framework for Computerized Decision Support (cont.) 17  Three Types of Decision control : 1. Strategic planning the long-range goals & policies for resource allocation; 2. Management control the acquisition & efficient utilization of resources in the accomplishment of organizational goals 3. Operational control the efficient & effective execution of specific tasks.

Decision Support Frameworks © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 1-18

Framework for Computerized Decision Support (cont.) 19  The Decision Support Matrix:  The initial purpose of previous matrix was to suggest different types of computerized support to different cells in the matrix: For semi-structured decisions and unstructured decisions: conventional MIS and MS tools are insufficient ; Decision support systems (DSS) are used. For structured decisions: Management science (MS) or operations research (OR) are used.

Management Science/Operations Research 1-20  Management science (MS) or operations research (OR):  Adopts systematic approach  The application of a scientific approach and mathematical models to the analysis and solution of managerial decision situations (e.g., problems, opportunities)  It adds new step 2 to the process of decision making, that is classify the problem into standard category. (Define problem (a decision situation that may deal with some difficulty or with an opportunity),Classify into standard category, Construct mathematical model that describes the real-word problem, Evaluate alternative solutions and Select solution)

The Concept of Decision Support Systems (cont.) 21  Decision support systems (DSS) are “interactive computer- based systems, which help decision makers utilize data and models to solve semi-structured and unstructured problems with extensive user involvement through a friendly user interface  DSS as an Umbrella term: Describes any computerized system that supports decision making in an organization  Data warehouse and data mining technologies are combined with a DSS systems to help managers make different decisions

There are four major characteristics of DSS It uses data and models. 2. It is used to assist managers when they solve semi-structured or unstructured problems. 3. It is used to support the manager; it does not replace the manager. 4. Its goal is to support the effectiveness of decisions.

Enterprise Information Systems 23  Evolved from Executive Information Systems combined with Web technologies  EISs view information across entire organizations  Provide rapid access to detailed information through drill-down.  Provide user-friendly interfaces through portals.  Identifies opportunities and threats

Enterprise Information Systems 24  Specialized EIS include ERM/ERP, CRM, and SCM  ERP/ERM (enterprise relationship planning / management): integrates, within one organization, repetitive transaction processing systems such as ordering, packaging, costing …etc.  CRM Customer Relationship (Resource) Management a system: that properly delivers various services to customers, ranging from Web-based call centers to loyalty program, such as rewarding frequent fliers.  SCM Supply Chain Management system: that attempts to improve tasks within various segments of supply chain  Provides timely and effective corporate level tracking and control.  Filter, compress, and track critical data and information.

DSS system Knowledge Management Systems 1-25  Knowledge that is organized and stored in a repository for use by an organization  Can be used to solve similar or identical problems in the future

DSS system Expert Systems 26 Decison makers ask for expert opinions!  ES Attempts to mimic human experts’ problem solving  Uses ttechnologies that apply reasoning methodologies in a specific domain  Examples include:  Artificial Intelligence Systems  Artificial Neural Networks (neural computing)  Genetic Algorithms  Fuzzy Logic  Intelligent Agents  Most ES software is implemented on the web tools (java applets), installed on web servers and use web browsers for interfaces. Ex: Corvid Exsys

DSS system Group Support Systems 27  Getting people at one place is expensive and time consuming  Time limitation to give the decision  Traditional meetings last long  Systems that provide interaction and communication between people with the aid of IT are called collaborative computing systems, groupware systems, electronic systems, or simply GSS  Videoconferencing, audioconferencing, voting, document sharing, etc..

 © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 1-28