principles of information systems - chapter 10
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Principles of Information Systems Sixth Edition, Written by Ralph Star, George ReynoldsTRANSCRIPT
Principles of Information Systems, Sixth Edition
Information and Decision Support Systems
Chapter 10
Principles of Information Systems, Sixth 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.
Principles of Information Systems, Sixth 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.
Principles of Information Systems, Sixth 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.
Principles of Information Systems, Sixth 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.
Principles of Information Systems, Sixth Edition
Decision Making and Problem Solving
Principles of Information Systems, Sixth Edition
Decision Making as a Component of Problem Solving
Principles of Information Systems, Sixth Edition
Programmed versus Nonprogrammed Decisions
• Programmed decisions– Structured situations with well defined relationships– Quantifiable– Management information system– Easy to computerize
• Nonprogrammed decisions– Rules and relationships not defined– Problem is not routine– Not easily quantifiable
Principles of Information Systems, Sixth Edition
Problem Solving Approaches
• Optimization: find the best solution• Satisficing: find a good solution• Heuristics: rules of thumb
Principles of Information Systems, Sixth Edition
Optimization, Satisficing, and Heuristic Approaches
Principles of Information Systems, Sixth Edition
An Overview of Management Information Systems
Principles of Information Systems, Sixth Edition
Inputs to an MIS
Principles of Information Systems, Sixth Edition
Outputs of an MIS
Principles of Information Systems, Sixth Edition
Outputs of an MIS
Principles of Information Systems, Sixth Edition
Developing Effective Reports
Principles of Information Systems, Sixth Edition
Characteristics of an MIS
• Fixed format, standard reports• Hard-copy or soft-copy reports• Uses internal data• User-developed reports• Users must request formal reports from IS
department
Principles of Information Systems, Sixth Edition
Functional Aspects of the MIS
Principles of Information Systems, Sixth Edition
Functional Aspects of an MIS
Principles of Information Systems, Sixth Edition
Financial MIS
Principles of Information Systems, Sixth Edition
Manufacturing MIS
• Design engineering
• Process control– Computer-assisted manufacturing (CAM)– Computer-integrated manufacturing (CIM)– Flexible manufacturing system
• Quality control and testing
Principles of Information Systems, Sixth Edition
Overview of a Manufacturing MIS
Principles of Information Systems, Sixth Edition
Master Production Scheduling and Inventory Control
Principles of Information Systems, Sixth Edition
Quality Control and Testing
Principles of Information Systems, Sixth Edition
Marketing MIS
Principles of Information Systems, Sixth Edition
Product Pricing
Principles of Information Systems, Sixth Edition
Product Pricing
Principles of Information Systems, Sixth Edition
Human Resource MIS
Principles of Information Systems, Sixth Edition
Other MIS
• Accounting management information systems• Geographic information systems (GIS)
Principles of Information Systems, Sixth Edition
Characteristics of Decision Support Systems
• Handle large amounts of data from various sources
• Provide report and presentation flexibility• Offer both textual and graphical orientation• Support drill down analysis
Principles of Information Systems, Sixth Edition
An Overview of Decision Support Systems
Principles of Information Systems, Sixth Edition
Characteristics of a DSS
• Perform complex, sophisticated analysis
• Optimization, satisficing, heuristics– Simulation– What-if analysis– Goal-seeking analysis
Principles of Information Systems, Sixth Edition
Characteristics of a DSS
Principles of Information Systems, Sixth Edition
Capabilities of a DSS
• Support all problem-solving phases• Support different decision frequencies• Support different problem structures
• Support various decision-making levels
Principles of Information Systems, Sixth Edition
Selected DSS Applications
Principles of Information Systems, Sixth Edition
Support for Various Decision-Making Levels
Principles of Information Systems, Sixth Edition
Comparison of DSSs and MISs
Principles of Information Systems, Sixth Edition
Comparison of DSSs and MISs
Principles of Information Systems, Sixth Edition
Components of a DSS
Principles of Information Systems, Sixth Edition
Components of a DSS
Principles of Information Systems, Sixth Edition
The Model Base
• Financial models– Cash flow– Internal rate of return
• Statistical analysis models– Summary statistics– Trend projections– Hypothesis testing
• Graphical models• Project management models
Principles of Information Systems, Sixth Edition
The Model Base
Principles of Information Systems, Sixth Edition
Data-driven versus Model-driven DSS
• Data-driven DSS - primarily performs qualitative analysis based on the company’s databases
• Model-driven DSS - primarily performs mathematical or quantitative analysis
Principles of Information Systems, Sixth Edition
Group Decision Support Systems
Principles of Information Systems, Sixth Edition
Group Decision Support System
Principles of Information Systems, Sixth Edition
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
Principles of Information Systems, Sixth Edition
GDSS Alternatives
Principles of Information Systems, Sixth Edition
The Decision Room
Principles of Information Systems, Sixth Edition
Executive Support Systems
Principles of Information Systems, Sixth Edition
Executive Support Systems
Principles of Information Systems, Sixth Edition
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
Principles of Information Systems, Sixth Edition
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
Principles of Information Systems, Sixth Edition
Summary
• 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
• Decision-making phase: includes intelligence, design, and choice
• Problem solving: also includes implementation and monitoring
• Decision approaches: optimization, satisficing, and heuristic
Principles of Information Systems, Sixth Edition
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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