1. Management Information Systems, 4 th Edition 1 Three decision-making phases(p.481) –Intelligence –Design –Choice 1. The Decision-Making Process Chapter 12 Decision Support Systems

2. Management Information Systems, 4 th Edition 2 The Decision-Making Process (Cont.)

3. Management Information Systems, 4 th Edition 3 2. Structured and Unstructured Problems

4. Management Information Systems, 4 th Edition 4 Structured Problems p.482 Proven set of steps for solution –Algorithm –Parameters Most mathematical and physical problems are structured Programmable problems: feasible to write a program to solve them

5. Management Information Systems, 4 th Edition 5 No algorithm to follow to reach optimal solution Multiple potential solutions Unstructuredness is closely related to uncertainty Unstructured Problems p.483

6. Management Information Systems, 4 th Edition 6 Neither fully structured nor totally unstructured Managers and Semistructured Problems –Most common type of problem for managers –Task is to choose one alternative that will bring about the best outcome –Often rely on decision support applications to select the best course of action Semistructured Problems p.483

7. Management Information Systems, 4 th Edition 7 3. Decision Support System (DSS) p.485 Computer-based information systems that help managers select one of many solutions –Automates some of decision-making process –Sophisticated and fast analysis –Used at all management levels

8. Management Information Systems, 4 th Edition 8 Three Major Components –Data management module –Model management module –Dialog management module Decision Support System (DSS) Components

9. Management Information Systems, 4 th Edition 9 Together, DSS modules: –Help enter request conveniently –Search vast amounts of data –Use data in desired models –Present results in readable manner Decision Support System (DSS) Components (Cont.)

10. Management Information Systems, 4 th Edition 10 Gives user access to databases or data warehouses Allows decision maker to conduct intelligence phase of decision making a. The Data Management Module

11. Management Information Systems, 4 th Edition 11 Selects appropriate model to analyze data –Linear regression model –May be built by the organization based on accumulated knowledge Trade secrets b. The Model Management Module

12. Management Information Systems, 4 th Edition 12 Interface between user and other modules –Prompts user to select a model –Allows database access and data selection –Lets user enter/change parameters Displays analysis results Textual, tabular, and graphical displays c. The Dialog Module

13. Management Information Systems, 4 th Edition 13 Personal Decision Support Systems –Individual Knowledge worker uses in daily work –Raw data entered into a program either by user or drawn from other sources –Tax preparation software is an example 4. Two Types of Decision Support Systems p.491

14. Management Information Systems, 4 th Edition 14 Group Decision Support Systems –Promote brainstorming and group decision making –Located in conference room or on networked computers –Weigh votes to overcome impasses Types of Decision Support Systems (Cont.)

15. Management Information Systems, 4 th Edition 15 5. Sensitivity Analysis p.495 Tests degree to which result is affected by change in parameters What-if analysis Can change multiple parameters at once

16. Management Information Systems, 4 th Edition 16 6. Executive Information Systems p.496 Alleviate information overload for executives Select most relevant data for analysis –Drilling down Consolidate and summarize data Display data graphically

17. Management Information Systems, 4 th Edition 17 An easy-to-use and easy-to-learn graphical user interface On-request “drill-down” capability On-demand financial and other ratios, and other indicators Easy-to-use but sophisticated tools to allow navigation in databases and data warehouses Effective EIS features

18. Management Information Systems, 4 th Edition 18 Statistical analysis tools The ability to respond to ad hoc queries and sensitivity analyses Access to external data pools The ability to solve diverse business problems Effective EIS Features (Cont.)