Information and Decision Support Systems

MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 1

Information and Decision Support Systems

Chapter 10


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 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.



• 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.



• 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.


Decision Making and Problem Solving


Decision Making as a Component of Problem Solving


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


Problem Solving Approaches

• Optimization: find the best solution• Satisficing: find a good solution• Heuristics: rules of thumb


Optimization, Satisficing, and Heuristic Approaches


An Overview of Management Information Systems


Inputs to an MIS


Outputs of an MIS


Outputs of an MIS


Developing Effective Reports


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


Functional Aspects of the MIS


Functional Aspects of an MIS


Financial MIS


Manufacturing MIS

• Design engineering

• Process control– Computer-assisted manufacturing (CAM)– Computer-integrated manufacturing (CIM)– Flexible manufacturing system

• Quality control and testing


Overview of a Manufacturing MIS


Master Production Scheduling and Inventory Control


Quality Control and Testing


Marketing MIS


Product Pricing


Product Pricing


Human Resource MIS


Other MIS

• Accounting management information systems• Geographic information systems (GIS)


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


An Overview of Decision Support Systems


Characteristics of a DSS

• Perform complex, sophisticated analysis

• Optimization, satisficing, heuristics– Simulation– What-if analysis– Goal-seeking analysis


Characteristics of a DSS


Capabilities of a DSS

• Support all problem-solving phases• Support different decision frequencies• Support different problem structures• Support various decision-making levels


Selected DSS Applications


Support for Various Decision-Making Levels


Comparison of DSSs and MISs


Comparison of DSSs and MISs


Components of a DSS


Components of a DSS


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


The Model Base


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


Group Decision Support Systems


Group Decision Support System


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


GDSS Alternatives


The Decision Room


Executive Support Systems


Executive Support Systems


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


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


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


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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Information and Decision Support Systems

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