Succeeding Management

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					     Chapter 09:
Information, Decision
Support, and Special-
   Purpose Systems
Objectives
• Define the stages of decision making and
  problem solving

• Discuss the use of management information
  systems in providing reports to help solve
  structured problems

• Describe how decision support systems are used
  to solve nonprogrammed and unstructured
  problems
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Objectives
• Explain how a group decision support system can
  help people and organizations collaborate on
  team projects

• Discuss the uses of hybrid and special-purpose
  systems




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Chapter Content
•   Decision Making and Problem Solving
•   Management Information Systems
•   Decision Support Systems
•   The Group Decision Support System
•   Hybrid Systems and Special-Purpose Systems




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Decision Making and Problem Solving
• Decision making
  – Process that takes place in three stages
     • Intelligence
     • Design
     • Choice




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Decision Making and Problem Solving
• Intelligence stage
  – Identify and define potential problems or
    opportunities
• Design stage
  – Develop alternative solutions
• Choice stage
  – Select a course of action




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Decision Making and Problem Solving
• Problem solving
  – Includes and goes beyond decision making
  – Implementation stage
     • Action is taken to put the solution into effect
  – Monitoring stage
     • Decision makers evaluate the implementation of the
       solution




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Decision Making and Problem Solving
• Reactive problem-solving approach
  – Wait until problem surfaces before taking action
• Proactive approach
  – Seek out potential problems before they become
    serious




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Decision Making and Problem Solving




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Programmed Versus
Nonprogrammed Decisions
• Programmed decisions
  – Made using a rule, procedure, or quantitative
    method
  – Easily automated
• Nonprogrammed decisions
  – Deal with unusual or exceptional situations
  – Require human knowledge or software containing
    human knowledge



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Programmed Versus
Nonprogrammed Decisions
• Decision support systems
• Expert support systems
  – Used to solve a variety of nonprogrammed decisions
• Unstructured problems
  – Problems are not routine
  – Rules and relationships are not well-defined




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Optimization and Heuristic Approaches
• Optimization model
  – Will find the best solution
  – Utilizes problem constraints
• Heuristics (“rules of thumb”)
  – Commonly accepted guidelines
  – Usually find a good solution, but not the optimal
    solution




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Optimization and Heuristic Approaches




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Management Information System
• Often used to
  – Support programmed decisions made in response to
    structured problems
• Primary purpose
  – To help individuals and organizations achieve their
    goals
     • Provide reports and information used to make better
       decisions




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Inputs to a Management
Information System
• Input data can originate from internal or external
  sources
• TPS
  – Most significant internal source of data for the MIS
  – Major activity is to capture and store data resulting
    from ongoing transactions
• Databases
  – Supply data to MIS


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Inputs to a Management
Information System




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Outputs of a Management
Information System
• Most MIS output is in the form of reports
  – Produced on paper or on an executive dashboard
• Business intelligence (BI)
  – Information produced in MIS reports
• Scheduled reports
  – Produced periodically or on a schedule
• Key-indicator report
  – Special type of scheduled report
  – Summarizes previous day’s critical activities
  – Available at the beginning of each workday

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Outputs of a Management
Information System




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Outputs of a Management
Information System
• Demand reports
  – Give certain information at a person’s request
• Exception reports
  – Automatically produced when a situation is unusual
    or requires action
  – Used to help fight terrorism




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Outputs of a Management
Information System




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Functional Aspects of Management
Information Systems
• Supply chain management systems (SCM)
  – Help streamline production
• Customer relationship management systems
  (CRM)
  – Gauge customer satisfaction
  – Respond to customer issues




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Functional Aspects of Management
Information Systems




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Enterprise Resource Planning
• Enterprise resource planning system (ERP)
• Integrates all data processing into one system
  drawing from one database




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Enterprise Resource Planning




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Decision Support Systems
• Focus is on decision-making effectiveness
• Should assist people and organizations with all
  aspects of decision making
• The approach realizes that people, not machines,
  make decisions




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Decision Support Systems




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Characteristics of a
Decision Support System
•   Handle a Range of Data
•   Obtain and Process Data from Different Sources
•   Provide Report and Presentation Flexibility
•   Perform complex, sophisticated analysis and
    comparisons using advanced software packages




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Characteristics of a
Decision Support System
• Support Optimization and Heuristic Approaches
• Perform What-if and Goal-seeking Analysis
  – What-if analysis
     • Process of making hypothetical changes to problem data
       and observing the impact on the results
     • Goal-seeking analysis
        – Process of determining what problem data is required for a given
          result
• Perform Simulation
  – DSS attempts to mimic an event that could happen in
    the future

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Characteristics of a
Decision Support System




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Characteristics of a
Decision Support System




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Group Decision Support System
• DSS approaches
  – Many not suitable for a group decision-making
    environment
• Group decision support system (GDSS)
  – Also called a computerized collaborative work system
  – Hardware, software, people, databases, and
    procedures needed to provide effective support in
    group decision-making settings



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Group Decision Support System




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Characteristics of a GDSS
•   Flexibility
•   Support for anonymous input
•   Reduction of negative group behavior
•   Support of positive group behavior




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GDSS Software or Groupware
• Helps with joint work group scheduling,
  communication, and management
• Lotus Notes
  – Popular groupware package
  – Can capture, store, manipulate, and distribute
    memos and communications
• Using groupware
  – Gives every employee rapid access to a vast source of
    information

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Hybrid Systems and
Special-Purpose Systems
• Hybrid systems
  – Contains multiple information systems accessed
    through one central interface
• Corporate portal
  – The interface used to access the hybrid system




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Hybrid Systems and
Special-Purpose Systems




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Knowledge Management Systems
• Knowledge management system (KM)
  – Helps organizations to capture, store, distribute
    information for use and reuse by the organization




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Geographic Information Systems
• Geographic information systems (GIS)
  – Stores, manipulates, displays geographic information
  – Maps of locations and regions around the world
• Uses include
  – 911 systems
  – Display sales information for specific regions
  – Military strategy
  – Urban planning, social work, law enforcement


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Geographic Information Systems




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Other Specialized Systems
• Informatics
  – Combines traditional disciplines with computer
    systems
• Bioinformatics
  – Combines biology and computers
  – Helps map the human genome and conduct research
• Medical informatics
  – Combines medical research and computers


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Summary
• Three phases of decision making
  – Intelligence, design, and choice
• Problem solving
  – Takes decision making a step further
  – Implements the choice
  – Monitors the effects of the decision
• MIS
  – Provide managers with insight into operations
  – Output
     • Scheduled reports, demand reports, and exception reports

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Summary
• Decision support systems
  – Can handle large amount of data
  – Can obtain and process data from different sources
  – Can provide report and presentation flexibility
• Group decision support system (GDSS)
  – A computerized collaborative work system




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Summary
• Hybrid systems
  – Contain multiple types of information accessed
    through one central interface called a corporate
    portal
• Special-purpose systems include
  – Geographic information systems (GIS)
  – Informatics




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