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					Information for
Management Decisions




        Chapter 11. Management Decision
          Making Copyright © 1998
           Addison Wesley Longman         1
Management support information
systems
 Management information systems – info to
  managers in the form of reports and query
  response
 Decision support systems – analysis of info
 Executive support systems – info to highest
  management level
 Expert systems – expert advice

              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         2
MIS - structure
         f
             d




             Chapter 11. Management Decision
               Making Copyright © 1998
                Addison Wesley Longman         3
MIS - Structure
 User – Managers of all levels
 Source of data
   – inside (data stored in TPS)
   – outside (periodicals, govt publications and
     research reports)
 Processing – Accept requests, access data,
  processes the data
 Output – Reports and query responses
                 Chapter 11. Management Decision
                   Making Copyright © 1998
                    Addison Wesley Longman         4
MIS - functions
1. Input
     • Little entry is required
     • External data may be transferred
     • Queries or inquiries request
       information from the system
     • Queries may be entered directly by a
       user

              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         5
MIS - Processing
2. Processing
   – Involves simple computation
   – Main computation – accumulating totals

3. Output
   – Query responses
   – Reports
      • Scheduled reports (regular intervals)
      • Demand reports (request more than once)
      • Ad hoc reports (one-time requests)
                  Chapter 11. Management Decision
                    Making Copyright © 1998
                     Addison Wesley Longman         6
MIS - Software
 – May be written using business
   programming languages
 – E.g. SQL (Structured Query Language) is a
   language for retrieving information out of
   relational databases such as Oracle, Informix
   and Access
 – E.g. GUI (Graphic User Interface) to present
   graphic

               Chapter 11. Management Decision
                 Making Copyright © 1998
                  Addison Wesley Longman           7
Decision Support Systems
Structure
Users : Managers of tactical and strategic
  levels to support tactical, strategic
  decisions
How ? : DSS analyzes data and provides
  results of analysis to managers
Form ? Report format &/or graphical
  format
             Chapter 11. Management Decision
               Making Copyright © 1998
                Addison Wesley Longman         8
Decision Support Systems
(cont’d)
 Management decision support
  – Statistical calculations: data is
    manipulated to determine its
    characteristics or draw conclusions
  – Mathematical modeling/simulation:
    models represent reality, and are used to
    predict decision results through
    simulation of various conditions
              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         9
DSS
 Structure
  – Best for semi- or unstructured decisions
  – Different approaches :
     • What-if: trial and error
     • Goal seeking: finding values that produce a
       certain result
     • Sensitivity analysis: checking for effect of
       small changes on results

                Chapter 11. Management Decision
                  Making Copyright © 1998
                   Addison Wesley Longman             10
DSS - Functions
 Input
    • Most DSS data comes from TPSs
    • Some input data as parameters or range
 Output
    • Analysis results on screens and printed reports
    • May be in table or graphical form
    • Reports can be demand or ad hoc
      (Scheduled reports are NOT common)
 Storage
    • Stored in a database file (data can be used to create
      or modify models)
                 Chapter 11. Management Decision
                   Making Copyright © 1998
                    Addison Wesley Longman                    11
DSS - Processing
 – May be very complex
 – Involves statistical analysis
 – May involve one or more models
 – May be time consuming



           Chapter 11. Management Decision
             Making Copyright © 1998
              Addison Wesley Longman         12
Decision Support Systems
(cont’d)
 Software
  – Simple example is spreadsheet
  – May be statistical packages like SAS®
  – May perform limited data management
  – May do data mining: searching for
    patterns in large amounts of data to
    determine business practices

             Chapter 11. Management Decision
               Making Copyright © 1998
                Addison Wesley Longman         13
Executive Support Systems
 Provide information for top-level
  management decision making
 Supports strategic planning by drilling
  down :
  –   Sales by region
  –   Sales by office
  –   Sales by product line
  –   Identify problem
  –   Correct the problem
                  Chapter 11. Management Decision
                    Making Copyright © 1998
                     Addison Wesley Longman         14
Executive Support Systems
(cont’d)
 Executive information needs
  – Top managers need external data
  – Helps them understand the business’s
    operating environment
  – Examples: economic trends, changing
    market demographics, competitor prices


              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         15
Executive Support Systems
(cont’d)
 Capabilities
  – Online access to reports
  – Ability to query the database for
    information not usually in reports
  – Ability to access external databases
  – Ability to analyze and summarize data
    from reports and queries

                 Chapter 11. Management Decision
                   Making Copyright © 1998
                    Addison Wesley Longman         16
Executive Support Systems
(cont’d)
 Capabilities (cont’d)
  – View analysis results graphically
  – Drill downs
  – Electronic mail
  – Electronic appointment calendar
  – Basic word processing capabilities for
    memos and other simple communications

               Chapter 11. Management Decision
                 Making Copyright © 1998
                  Addison Wesley Longman         17
Executive Support Systems
(cont’d)
 Structure




              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         18
Executive Support Systems
(cont’d)
 Functions
  – Inputs
     • Not often to enter data into an ESS
     • Data analysis and report requests with very
       flexible formats & combinations
     • Electronic mail, memos, letters
  – Outputs
     • Queries, reports
     • May be graphical

                 Chapter 11. Management Decision
                   Making Copyright © 1998
                    Addison Wesley Longman           19
Executive Support Systems
(cont’d)
 Functions (cont’d)
  – Storage
     • Allow access to various databases
     • Drill down capabilities
  – Processing
     • Supports all MIS and DSS functions
     • Simple math to complex modeling
               Chapter 11. Management Decision
                 Making Copyright © 1998
                  Addison Wesley Longman         20
Executive Support Systems
(cont’d)
 Software
  – Determines the processing capabilities
    and how data is handled
  – Examples: Comshare’s Commander
    Decision, Pilot’s Command Center




              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         21
Expert Systems
 An information system that gives expert advice to
  the decision maker
 Mimic the way a human expert would analyze a
  situation, then recommend a course of action
 Use techniques from the field of artificial
  intelligence
 Early example: Mycin, Stanford, 1970s – help
  doctors to diagnose certain diseases and
  recommend treatment.
 AE – also use expert system to decide whether to
  issue a credit card / not.
                 Chapter 11. Management Decision
                   Making Copyright © 1998
                    Addison Wesley Longman            22
Expert Systems (cont’d)
 Expert advice
  – Experts may have experience or formal
    education in their field
  – All level can be used.
  – Commonly used for structured problems
    at the operational and tactical levels.


              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         23
Expert Systems (cont’d)
 Structure (cont’d)
   – A user interactive with the system by answering
     questions asked by the system.
   – Knowledgebase is like a database of expert
     advice
   – One storage technique is to use rules or If-Then
     structures
   – After answering, the inference engine uses rules
     to analyze data and recommend action

                 Chapter 11. Management Decision
                   Making Copyright © 1998
                    Addison Wesley Longman              24
Expert Systems (cont’d)
 Structure (cont’d)




               Chapter 11. Management Decision
                 Making Copyright © 1998
                  Addison Wesley Longman         25
Expert Systems (cont’d)
 Functions
  – Input – info required by the system usually in
    small amt.
  – Output
     • Advice from system
     • Several options may be given
     • Each option would have a success
       probability percent
     • May provide risks for each option

                Chapter 11. Management Decision
                  Making Copyright © 1998
                   Addison Wesley Longman            26
Expert Systems (cont’d)
 Functions
  – Storage
     • Maintain lots of rules
  – Processing
     • Determine which rules to apply and
       how the rules relate to each other.
     • Many rules make inferences complex
     • Analysis may take a long time
              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         27
Expert Systems (cont’d)
 Software
  – Developed by knowledge engineers (KE)
  – KEs use languages like LISP, PROLOG
  – Construct knowledgebases with rules
  – Expert system shells are a starting point
  – Examples: ReSolver, VP-Expert, Guru


              Chapter 11. Management Decision
                Making Copyright © 1998
                 Addison Wesley Longman         28
End of Lecture




         Chapter 11. Management Decision
           Making Copyright © 1998
            Addison Wesley Longman         29

				
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