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Information and Decision Support Systems

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  1. Information and Decision Support Systems Chapter 10 Principles of Information Systems, Sixth Edition

  2. 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

  3. 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

  4. 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

  5. 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

  6. Decision Making and ProblemSolving Principles of Information Systems, Sixth Edition

  7. Decision Making as a Component of Problem Solving Principles of Information Systems, Sixth Edition

  8. 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

  9. Problem Solving Approaches • Optimization: find the best solution • Satisficing: find a good solution • Heuristics: rules of thumb Principles of Information Systems, Sixth Edition

  10. Optimization, Satisficing, and Heuristic Approaches Principles of Information Systems, Sixth Edition

  11. An Overview of Management Information Systems Principles of Information Systems, Sixth Edition

  12. Inputs to an MIS Principles of Information Systems, Sixth Edition

  13. Outputs of an MIS Principles of Information Systems, Sixth Edition

  14. Outputs of an MIS Principles of Information Systems, Sixth Edition

  15. Developing Effective Reports Principles of Information Systems, Sixth Edition

  16. 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

  17. Functional Aspects of the MIS Principles of Information Systems, Sixth Edition

  18. Functional Aspects of an MIS Principles of Information Systems, Sixth Edition

  19. Financial MIS Principles of Information Systems, Sixth Edition

  20. 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

  21. Overview of a Manufacturing MIS Principles of Information Systems, Sixth Edition

  22. Master Production Scheduling and Inventory Control Principles of Information Systems, Sixth Edition

  23. Quality Control and Testing Principles of Information Systems, Sixth Edition

  24. Marketing MIS Principles of Information Systems, Sixth Edition

  25. Product Pricing Principles of Information Systems, Sixth Edition

  26. Product Pricing Principles of Information Systems, Sixth Edition

  27. Human Resource MIS Principles of Information Systems, Sixth Edition

  28. Other MIS • Accounting management information systems • Geographic information systems (GIS) Principles of Information Systems, Sixth Edition

  29. 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

  30. An Overview of Decision Support Systems Principles of Information Systems, Sixth Edition

  31. Characteristics of a DSS • Perform complex, sophisticated analysis • Optimization, satisficing, heuristics • Simulation • What-if analysis • Goal-seeking analysis Principles of Information Systems, Sixth Edition

  32. Characteristics of a DSS Principles of Information Systems, Sixth Edition

  33. 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

  34. Selected DSS Applications Principles of Information Systems, Sixth Edition

  35. Support for Various Decision-Making Levels Principles of Information Systems, Sixth Edition

  36. Comparison of DSSs and MISs Principles of Information Systems, Sixth Edition

  37. Comparison of DSSs and MISs Principles of Information Systems, Sixth Edition

  38. Components of a DSS Principles of Information Systems, Sixth Edition

  39. Components of a DSS Principles of Information Systems, Sixth Edition

  40. 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

  41. The Model Base Principles of Information Systems, Sixth Edition

  42. 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

  43. Group Decision Support Systems Principles of Information Systems, Sixth Edition

  44. Group Decision Support System Principles of Information Systems, Sixth Edition

  45. 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

  46. GDSS Alternatives Principles of Information Systems, Sixth Edition

  47. The Decision Room Principles of Information Systems, Sixth Edition

  48. Executive Support Systems Principles of Information Systems, Sixth Edition

  49. Executive Support Systems Principles of Information Systems, Sixth Edition

  50. 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