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Fundamentals of Informati on Systems, Second Editio n 1 Information and Decision Support Systems
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Information and Decision Support Systems
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Principles and Learning Objectives
• Good decision-making and problem-solving skills are the key to developing effective information and decision support systems.
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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.
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Principles and Learning Objectives
• Decision support systems (DSSs) are used when the problems are more unstructured.
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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.
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Decision Making and Problem Solving
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How Decision Making Relates to Problem Solving
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Programmed versus Nonprogrammed Decisions
• Programmed decisions– Easy to computerize
• Nonprogrammed decisions– Rules and relationships not defined– Problem is not routine– Not easily quantifiable
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Problem Solving Approaches
• Optimization: find the best solution• Satisficing: find a good solution• Heuristics: rules of thumb
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An Overview of Management Information Systems
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Sources of Managerial Information
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Reports Generated by an MIS
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Reports Generated by an MIS
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Guidelines for Developing MIS Reports
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Functional Aspects of the MIS
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Functional Aspects of MIS
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Overview of a Financial MIS
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Manufacturing MIS
• Material requirements planning (MRP)• Manufacturing resource planning (MRPII)• Just in time (JIT) inventory system
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Overview of a Manufacturing MIS
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Overview of a Marketing MIS
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Human Resource MIS
Concerned with activities related to employees and potential employees of the organization.
• Subsystems include:– needs and planning assessments– recruiting– training and skills development– scheduling and assignment– employee benefits
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Overview of a Human Resource MIS
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Other Management Information Systems
• Accounting MIS - provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications.
• Geographic Information Systems - computer system capable of assembling, storing, manipulating, and displaying geographic information.
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An Overview of Decision Support Systems
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Capabilities of a Decision Support System
• Support for problem-solving phases• Support for different decision frequencies• Support for different problem structures
• Support for various decision-making levels
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Selected DSS Applications
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Support for Various Decision-Making Levels
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Comparison of DSSs and MISs
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Components of a DSS
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Conceptual Model of a DSS
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The Model Base
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Group Decision Support Systems
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Configuration of a DSS
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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
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GDSS Alternatives
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The GDSS Decision Room
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Executive Support Systems
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The Layers of Executive Decision Making
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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
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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
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Summary
• Decision-making phase - includes intelligence, design, and choice
• Problem solving - also includes implementation and monitoring
• Decision approaches - optimization, satisficing, and heuristic
• 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
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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
