management support systems

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MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning
MANAGEMENT SUPPORT SYSTEMS
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Chapter 12 Management Support Systems
LO1 Define types of decisions and phases of the decision-making process in a typical organization.
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 uses for a geographic information system.
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LO6 Describe 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.)
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Types of Decisions in an Organization
Structured decisions
Also called programmable tasks
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Types of Decisions in an Organization (cont’d.)
Unstructured decisions
Decision maker’s intuition plays the most important role
Information technology offers little support for these decisions
Management support systems (MSSs)
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Phases of the Decision-Making Process
Herbert Simon
Defines three phases in the decision-making process: intelligence, design, and choice
Fourth phase, implementation, can be added
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The 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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The Intelligence Phase (cont’d.)
Three parts
First: determine what the reality is
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The Design Phase
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
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The Choice Phase
From the practical alternatives
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The Implementation Phase
Organization devises a plan for carrying out the alternative selected in the choice phase
Obtains the resources to implement the plan
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Decision Support Systems
Designed to assist decision makers in an organization
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Decision Support Systems (cont’d.)
Requirements:
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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Components of a Decision Support System
Three major components
Model base
Includes mathematical and statistical models that enable a DSS to analyze information
User interface
DSS engine
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Exhibit 12.2
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DSS Capabilities
What-if analysis
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Roles in the DSS Environment
Roles include:
Users
Most important role because they’re the ones using the DSS
Managerial designer
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Roles in the DSS Environment (cont’d.)
Technical designer
Model builder
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Costs and Benefits of Decision Support Systems
Benefits of a DSS:
Fast response to unexpected situations
Ability to make one-of-a-kind decisions
New insights and learning
Improved control over operations
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Costs and Benefits of Decision Support Systems (cont’d.)
Better decisions
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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
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Executive Information Systems (cont’d.)
Require access to both internal and external data
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Executive Information Systems (cont’d.)
Digital dashboard
Integrates information from multiple sources and presents it in a unified, understandable format
Often charts and graphs
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Reasons for Using EISs
EIS increases managers’ productivity
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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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Avoiding Failure in Design and Use of EISs (cont’d.)
Developing applications takes too much time
System is too complicated
Executives themselves
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EIS Packages and Tools
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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EIS Packages and Tools (cont’d.)
Tasks that managers perform for which an EIS is useful:
Tracking performance
Flagging exceptions
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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
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Group Support Systems (cont’d.)
Useful for:
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Groupware
Intended more for teamwork than for decision support
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Groupware (cont’d.)
Audio and video conferencing
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Groupware (cont’d.)
Microsoft Office SharePoint Server and IBM Lotus Domino
Other software used for e-collaboration:
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Groupware and Health IT
The overall goal of Clinical Groupware is to provide a unified view of the patient by collecting and analyzing data and information from a variety of sources. It has the following benefits:
Inexpensive to acquire and use
Offers evidence-based guidance
Provides a collaborative workflow platform
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Electronic Meeting Systems
Enable decision makers in different locations to participate in a group decision-making process
Include:
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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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Advantages and Disadvantages of GSSs (cont’d.)
Disadvantages:
Unnecessary meetings
Security problems
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Geographic Information System
Uses spatial and nonspatial data
Uses three geographic objects:
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Geographic Information System (cont’d.)
Common example of a GIS:
Getting driving directions from Google Maps
User-friendly interface that helps you visualize the route
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GIS Applications
Education planning
Urban planning
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Guidelines for Designing a Management Support System
Get support from the top
Define objectives and benefits clearly
Identify executives’ information needs
Hide the system’s complexity and keep the interface simple
Keep the “look and feel” consistent
Design a flexible system
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Summary
DSS:
Executive information systems
Group support systems
Geographic information systems

management support systems

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