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

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

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

4. 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

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

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

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

8. Principles of Information Systems, Sixth Edition Inputs to an MIS

9. Principles of Information Systems, Sixth Edition Outputs of an MIS

10. Principles of Information Systems, Sixth Edition Outputs of an MIS

11. Principles of Information Systems, Sixth Edition Developing Effective Reports

12. 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

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

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

15. Principles of Information Systems, Sixth Edition Financial MIS

16. 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

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

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

19. Principles of Information Systems, Sixth Edition Quality Control and Testing

20. Principles of Information Systems, Sixth Edition Marketing MIS

21. Principles of Information Systems, Sixth Edition Product Pricing

22. Principles of Information Systems, Sixth Edition Product Pricing

23. Principles of Information Systems, Sixth Edition Human Resource MIS

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

25. 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

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

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

28. Principles of Information Systems, Sixth Edition Characteristics of a DSS

29. 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

30. Principles of Information Systems, Sixth Edition Selected DSS Applications

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

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

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

34. Principles of Information Systems, Sixth Edition Components of a DSS

35. Principles of Information Systems, Sixth Edition Components of a DSS

36. 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

37. Principles of Information Systems, Sixth Edition The Model Base

38. 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

39. Principles of Information Systems, Sixth Edition Group Decision Support Systems

40. Principles of Information Systems, Sixth Edition Group Decision Support System

41. 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

42. Principles of Information Systems, Sixth Edition GDSS Alternatives

43. Principles of Information Systems, Sixth Edition The Decision Room

44. Principles of Information Systems, Sixth Edition Executive Support Systems

45. Principles of Information Systems, Sixth Edition Executive Support Systems

46. 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

47. 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

48. 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

49. 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