Information and Decision Support Systems

Chapter 6

Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives

Good decision-making and problem-solving skills are the key to developing effective information and decision support systems.
Define the stages of decision making. Discuss the importance of implementation and monitoring in problem solving.

Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives

The management information system (MIS) must provide the right information to the right person in the right fashion at the right time.
Define the term MIS and clearly distinguish the difference between a TPS and an MIS. Discuss information systems in the functional areas of business organizations.

Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives

Decision support systems (DSSs) are used when the problems are more unstructured.
List and discuss important characteristics of DSSs that give them the potential to be effective management support tools. Identify and describe the basic components of a DSS.

Fundamentals of Information Systems, Second Edition

Principles and Learning Objectives

Specialized support systems, such as group decision support systems (GDSSs) and executive support systems (ESSs), use the overall approach of a DSS in situations such as group and executive decision making.
State the goals of a GDSS and identify the characteristics that distinguish it from a DSS. Identify the fundamental uses of an ESS and list the characteristics of such a system.
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Decision Making and Problem Solving

Fundamentals of Information Systems, Second Edition

How Decision Making Relates to Problem Solving

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Programmed versus Nonprogrammed Decisions

Programmed decisions
Easy to computerize

Nonprogrammed decisions
Rules and relationships not defined Problem is not routine Not easily quantifiable

Fundamentals of Information Systems, Second Edition

Problem Solving Approaches

Optimization: find the best solution Satisficing: find a good solution Heuristics: rules of thumb

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Optimization, Satisficing, and Heuristic Approaches

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An Overview of Management Information Systems

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Sources of Managerial Information

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Reports Generated by an MIS

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Reports Generated by an MIS

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Guidelines for Developing MIS Reports

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Functional Aspects of the MIS

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Functional Aspects of MIS

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Overview of a Financial MIS

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Manufacturing MIS
Material requirements planning (MRP) Manufacturing resource planning (MRPII) Just in time (JIT) inventory system

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Overview of a Manufacturing MIS

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Overview of a Marketing MIS

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Human Resource MIS

Concerned with activities related to employees and potential employees of the organization. Subsystems include:
needs and planning assessments recruiting training and skills development scheduling and assignment employee benefits
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Overview of a Human Resource MIS

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Other Management Information Systems

Accounting MIS - provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications.

Geographic Information Systems - computer system capable of assembling, storing, manipulating, and displaying geographic information.

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An Overview of Decision Support Systems

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Capabilities of a Decision Support System

Support for problem-solving phases Support for different decision frequencies Support for different problem structures Support for various decision-making levels

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Selected DSS Applications

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Support for Various Decision-Making Levels

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Comparison of DSSs and MISs

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Components of a DSS

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Conceptual Model of a DSS

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The Model Base

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Group Decision Support Systems

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Configuration of a DSS

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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
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GDSS Alternatives

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The GDSS Decision Room

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Executive Support Systems

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The Layers of Executive Decision Making

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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

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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

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Summary
Decision-making phase - includes intelligence, design, and choice Problem solving - also includes implementation and monitoring

Decision approaches - optimization, satisficing, and heuristic

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
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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
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