1 / 22

SESSION 11 ENHANCING MANAGEMENT DECISION-MAKING FOR THE DIGITAL FIRM

SESSION 11 ENHANCING MANAGEMENT DECISION-MAKING FOR THE DIGITAL FIRM. DECISION-SUPPORT SYSTEMS (DSS). Computer system at the management level of an organization Combines data, analytical tools, and models Supports semi-structured and unstructured decision-making.

josef
Download Presentation

SESSION 11 ENHANCING MANAGEMENT DECISION-MAKING FOR THE DIGITAL FIRM

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SESSION 11 ENHANCING MANAGEMENT DECISION-MAKING FOR THE DIGITAL FIRM

  2. DECISION-SUPPORT SYSTEMS (DSS) • Computer system at the management level of an organization • Combines data, analytical tools, and models • Supports semi-structured and unstructured decision-making

  3. DECISION-SUPPORT SYSTEMS (DSS) MIS and DSS • MIS • Provides reports based on routine flow of data • Assists in general control of the organization • Address structured problems

  4. DECISION-SUPPORT SYSTEMS (DSS) MIS and DSS • DSS • Provides new sets of capabilities for nonroutine decisions and user control • Emphasizes change, flexibility, rapid response, models, assumptions, ad hoc queries, and display graphics • Support semistructured and unstructured problem analysis

  5. DECISION-SUPPORT SYSTEMS (DSS) Types of Decision-Support Systems • Model-driven DSS • Primarily stand-alone • Uses model to perform “what-if” and other kinds of analysis

  6. DECISION-SUPPORT SYSTEMS (DSS) Types of Decision-Support Systems • Data-driven DSS • Allows users to extract and analyze useful information from previous databases • Datamining • Finds hidden patterns and relationships in large databases to infer rules

  7. DECISION-SUPPORT SYSTEMS (DSS) Types of information yielded from datamining • Associations • Sequences • Classification • Clustering • Forecasting

  8. Figure 12-1 DECISION-SUPPORT SYSTEMS (DSS) Overview of a Decision-Support System (DSS)

  9. DECISION-SUPPORT SYSTEMS (DSS) Components of Decision-Support Systems • DSS database • Collection of current or historical data • DSS software system • Collection of software tools/mathematical and analytical models

  10. DECISION-SUPPORT SYSTEMS (DSS) Components of Decision-Support Systems • Model • Abstract representation illustrating components or relationships • Sensitivity analysis • Asks “what-if” questions repeatedly to determine the impact of change

  11. Figure 12-2 DECISION-SUPPORT SYSTEMS (DSS) Sensitivity Analysis

  12. DECISION-SUPPORT SYSTEMS (DSS) DSS for Supply Chain Management • Comprehensive examination of supply management chain • Searches for most efficient and cost-effective combination • Reduces overall costs • Increases speed and accuracy of filling customer orders

  13. DECISION-SUPPORT SYSTEMS (DSS) DSS for Customer Relationship Management • Uses data mining to guide decisions • Consolidates customer information into massive data warehouses • Uses various analytical tools to slice information into small segments

  14. Figure 12-3 DECISION-SUPPORT SYSTEMS (DSS) DSS for Customer Analysis and Segmentation

  15. GROUP DECISION-SUPPORT SYSTEMS (GDSS) What Is a GDSS? • Interactive computer-based system • Facilitates solution to unstructured problems by a set of decision makers working together as a group

  16. GROUP DECISION-SUPPORT SYSTEMS (GDSS) How GDSS can Enhance Group Decision-Making • Improved preplanning • Increased participation • Open, collaborative meeting atmosphere • Criticism-free idea generation • Evaluation objectivity

  17. GROUP DECISION-SUPPORT SYSTEMS (GDSS) How GDSS can Enhance Group Decision-Making • Idea organization and evaluation • Setting priorities and making decisions • Documentation of meetings • Access to external information • Preservation of “organizational memory”

  18. EXECUTIVE SUPPORT IN THE ENTERPRISE • Executive Support Systems (ESS): • Information system at strategic level of an organization • Addresses unstructured decision-making through advanced graphics and communications

  19. EXECUTIVE SUPPORT IN THE ENTERPRISE The Role of Executive Support Systems in the Organization • Brings together data from the entire organization • Allows managers to select, access, and tailor data using analytical tools and online-data displays

  20. EXECUTIVE SUPPORT IN THE ENTERPRISE Benefits of Executive Support Systems • Provides data and tools without addressing specific problems • Provides greater clarity and insight into data • Capabilities for highlighting trends and drilling down speed up decision-making • Improves performance monitoring of the firm • Increases management’s span of control and better monitoring of activities

  21. EXECUTIVE SUPPORT IN THE ENTERPRISE Executive Support Systems and the Digital Firm • ESS for business intelligence: • Identifies changing market conditions, formulate responses, track implementation efforts abd learn from feedback • Ex: BP Sony NV, the Netherlands banch

  22. EXECUTIVE SUPPORT IN THE ENTERPRISE Executive Support Systems and the Digital Firm • Monitoring corporate performance: • balanced scorecard systems • Model for analyzing firm performance • Supplements traditional financial measures with measurements from additional business perspectives • Ex: ING Bank

More Related