1 mis, chapter 12 ©2014 cengage learning management support systems chapter 12 hossein bidgoli mis
TRANSCRIPT
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1MIS, Chapter 12
©2014 Cengage Learning
MANAGEMENT SUPPORT SYSTEMS
CHAPTER 12
Hossein BIDGOLI
MIS
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2MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
LO1 Describe the phases of the decision-making process in a typical organization and the types of decisions that are made.
LO2 Describe a decision support system.
LO3 Explain an executive information system’s importance in decision making.
LO4 Describe group support systems, including groupware and electronic meeting systems.
LO5 Summarize the uses for a geographic information system.
l e a r n i n g o u t c o m e s
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3MIS, Chapter 12
©2014 Cengage Learning
LO6 Describe the guidelines for designing a management support system.
l e a r n i n g o u t c o m e s (cont’d.)
Chapter 12 Management Support Systems
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4MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Types of Decisions in an Organization
• Structured decisions– Well-defined standard operating procedure
exists– Also called programmable tasks– Can be automated
• Semistructured decisions– Not as well-defined by standard operating
procedures– Include a structured aspect that benefits from
information retrieval, analytical models, and information systems technology
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5MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Types of Decisions in an Organization (cont’d.)
• Unstructured decisions– Typically one-time decisions– Does not rely on standard operating procedure – Decision maker’s intuition plays the most
important role– Information technology offers little support for
these decisions
• Management support systems (MSSs)– Different types of information systems have
been developed to support certain aspects and types of decisions
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6MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Phases of the Decision-Making Process
• Herbert Simon– Winner of the 1978 Nobel Prize in economics– Defines three phases in the decision-making
process: intelligence, design, and choice– Fourth phase, implementation, can be added
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7MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Intelligence Phase
• Decision maker examines the organization’s environment for conditions that need decisions
• Data is collected from a variety of sources and processed
• Decision maker can discover ways to approach the problem
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8MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
The Intelligence Phase (cont’d.)
• Three parts – First: determine what the reality is– Second: get a better understanding of the
problem by collecting data and information about it
– Third: gather data and information needed to define alternatives for solving the problem
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9MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Design Phase
• Objective – Define criteria for the decision– Generate alternatives for meeting the criteria– Define associations between the criteria and
the alternatives
• Defining associations between alternatives and criteria involves understanding how each alternative affects the criteria
• Information technology does not support this phase of decision making much
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10MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Choice Phase
• Best and most effective course of action is chosen– From the practical alternatives
• Analyze each alternative and its relationship – To the criteria to determine whether it’s
feasible
• Decision support system (DSS) can be particularly useful in this phase
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11MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Implementation Phase
• Organization devises a plan for carrying out the alternative selected in the choice phase
• Obtains the resources to implement the plan
• DSS can do a follow-up assessment on how well a solution is performing
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12MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Decision Support Systems
• Decision support system (DSS) – Interactive information system– Consisting of hardware, software, data, and
models (mathematical and statistical) – Designed to assist decision makers in an
organization
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13MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Decision Support Systems (cont’d.)
• Requirements:– Be interactive– Incorporate the human element as well as
hardware and software– Use both internal and external data– Include mathematical and statistical models– Support decision makers at all organizational
levels– Emphasize semistructured and unstructured
tasks
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14MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Components of a Decision Support System
• Three major components:– Database– Model base
• Includes mathematical and statistical models that enable a DSS to analyze information
– User interface• How users access the DSS
• DSS engine– Manages and coordinates these major
components
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15MIS, Chapter 12
©2014 Cengage Learning
Exhibit 12.2 Components of a DSS
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16MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
DSS Capabilities
• What-if analysis• Goal-seeking• Sensitivity analysis• Exception reporting analysis• More capabilities, such as:
– Graphical analysis, forecasting, simulation, statistical analysis, and modeling analysis
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17MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Roles in the DSS Environment
• Roles include: – User, managerial designer, technical designer,
and model builder
• Users – Most important role because they’re the ones
using the DSS
• Managerial designer – Defines the management issues in designing
and using a DSS
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18MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Roles in the DSS Environment (cont’d.)
• Technical designer – Focuses on how the DSS is implemented
• Model builder – Liaison between users and designers
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19MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Costs and Benefits of Decision Support Systems
• Benefits of a DSS:– Increase in the number of alternatives examined– Fast response to unexpected situations– Ability to make one-of-a-kind decisions– New insights and learning– Improved communication– Improved control over operations– Cost savings from being able to make better
decisions and analyze several scenarios (what-ifs) in a short period
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20MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Costs and Benefits of Decision Support Systems (cont’d.)
– Better decisions– More effective teamwork– Time savings– Better use of data resources
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21MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Executive Information Systems
• Branch of DSSs• Interactive information systems that give
executives easy access to internal and external data
• Typically include:– “Drill-down” features– Digital dashboard
• Ease of use – EIS designers should focus on simplicity when
developing a user interface
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22MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Executive Information Systems (cont’d.)
• Require access to both internal and external data – So that executives can spot trends, make
forecasts, and conduct different types of analyses
• Should also collect data related to an organization’s “critical success factors”
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23MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Executive Information Systems (cont’d.)
• Digital dashboard– Integrates information from multiple sources
and presents it in a unified, understandable format
– Often charts and graphs
• Many digital dashboards are Web-based
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24MIS, Chapter 12
©2014 Cengage Learning
Exhibit 12.3 Digital Dashboard
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25MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Reasons for Using EISs
• Increase managers’ productivity• Convert information into other formats• Spot trends and report exceptions
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26MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Avoiding Failure in Design and Use of EISs
• Factors that can lead to a failed EIS:– Corporate culture isn’t ready– Organizational resistance to the project– Project is viewed as unimportant– Management loses interest or isn’t committed – Objectives and information requirements can’t
be defined clearly– System doesn’t meet its objectives– System’s objectives aren’t linked to factors
critical to the organization’s success– Project’s costs can’t be justified
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27MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Avoiding Failure in Design and Use of EISs (cont’d.)
– Developing applications takes too much time– System is too complicated– Vendor support has been discontinued– Executives themselves– Nature of executives’ work– Nature of information the EIS provides
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28MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
EIS Packages and Tools
• Generally designed with two or three components:– Administrative module for managing data
access– Builder module for developers to configure
data mapping and screen sequencing– Runtime module for using the system
• Some EIS packages provide a data storage system
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29MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
EIS Packages and Tools (cont’d.)
• Tasks managers perform for which an EIS is useful:– Tracking performance– Flagging exceptions– Ranking– Comparing– Spotting trends– Investigating/exploring
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30MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Group Support Systems
• Use computer and communication technologies to formulate, process, and implement a decision-making task
• Considered a kind of intervention technology that helps overcome the limitations of group interactions
• Reduce communication barriers• Introduce order and efficiency into
situations that are inherently unsystematic and inefficient
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31MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Group Support Systems (cont’d.)
• Useful for:– Committees– Review panels– Board meetings– Task forces– Decision-making sessions that require input
from several decision makers
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32MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Groupware
• Assist groups in:– Communicating, collaborating, and
coordinating their activities
• Intended more for teamwork than for decision support
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33MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Groupware (cont’d.)
• Some capabilities of groupware include:– Audio and video conferencing– Automated appointment books– Brainstorming– Database access– E-mail– Online chat– Scheduling– To-do lists– Workflow automation
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34MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Groupware (cont’d.)
• Examples of Web-based GSS tools:– Microsoft Office SharePoint Server and IBM
Lotus Domino
• Other software used for e-collaboration:– Electronic meeting systems, such as Microsoft
LiveMeeting, Metastorm, and IBM FileNet
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35MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Electronic Meeting Systems
• Enable decision makers in different locations to participate in a group decision-making process
• Various types; all have these features:– Real-time computer conferencing– Video teleconferencing– Desktop conferencing
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36MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Advantages and Disadvantages of GSSs
• Advantages:– Costs as well as stress are reduced due to
decreased travel– More time to talk with each other and solve
problems– Shyness isn’t as much of an issue in GSS
sessions– Increasing collaboration improves the
effectiveness of decision makers
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37MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Advantages and Disadvantages of GSSs (cont’d.)
• Disadvantages:– Lack of the human touch– Unnecessary meetings– Security problems– Costs of GSS implementation are high
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38MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Geographic Information Systems
• Captures, stores, processes, and displays geographic information
• Uses spatial and nonspatial data• Uses three geographic objects:
– Points– Lines– Areas
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39MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Geographic Information Systems (cont’d.)
• Common example of a GIS:– Getting driving directions from Google Maps– User-friendly interface that helps you visualize
the route– After you make a decision, you can print
driving directions and a map
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40MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
GIS Applications
• Education planning• Urban planning• Government• Insurance• Marketing• Real estate• Transportation and logistics
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41MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Guidelines for Designing a Management Support System• Get support from the top• Define objectives and benefits clearly• Identify executives’ information needs• Keep the lines of communication open• Hide the system’s complexity and keep the
interface simple• Keep the “look and feel” consistent• Design a flexible system• Make sure response time is fast
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42MIS, Chapter 12
©2014 Cengage Learning
Chapter 12 Management Support Systems
Summary
• Different types of decisions • Stages of decision making in a typical
organization• DSS:
– Components, capabilities, key players, and costs and benefits
• Executive information systems• Group support systems• Geographic information systems