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MANAGEMENT SUPPORT SYSTEMS CHAPTER 12 Hossein BIDGOLI MIS Fire your Customer Google FIRE.

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Presentation on theme: "MANAGEMENT SUPPORT SYSTEMS CHAPTER 12 Hossein BIDGOLI MIS Fire your Customer Google FIRE."— Presentation transcript:

1 MANAGEMENT SUPPORT SYSTEMS CHAPTER 12 Hossein BIDGOLI MIS Fire your Customer Google FIRE

2 Chapter 12 Management Support Systems LO1 Define types of decisions and phases of the decision-making process in a typical organization. LO2 Describe a decision support system. LO3 Explain an executive information systems importance in decision making. LO4 Describe group support systems, including groupware and electronic meeting systems. LO5 Summarize uses for a geographic information system. l e a r n i n g o u t c o m e s

3 LO6 Describe guidelines for designing a management support system. l e a r n i n g o u t c o m e s (contd.) Chapter 12 Management Support Systems

4 4 They make ___________________ Better ______________ = better managers The amount of information people must understand to make ______________, solve problems, and find opportunities is growing exponentially Fire your Customer

5 Structured decisions Well-defined standard operating procedure exists Also called programmable tasks Can be automated ________________ decisions Not as well-defined by standard operating procedures Include a structured aspect that benefits from information retrieval, analytical models, and information systems technology

6 _________________________ decisions Unique; typically one-time decisions Does not rely on standard operating procedure Decision makers intuition plays the most important role Information technology offers little support for these decisions Management support systems (MSSs) Different types of information systems have been developed to support certain aspects and types of decisions

7 7 Structured –How many workers to staff line A –What is the EOQ for raw material Z –How many turbines to power Lethbridge? Unstructured –What are the benefits of merging with XYZ –How will consumer react if we lower the price by 10% –What are the benefits of MacDonald's opening up Hotels

8 Herbert Simon Winner of the 1978 Nobel Prize in economics Defines three phases in the decision-making process: intelligence, design, and choice Fourth phase, implementation, can be added

9 Decision maker examines the organizations environment for conditions that need decisions Data is collected from a variety of sources and processed Decision maker can discover ways to approach the problem

10 Objective Define criteria for the decision Generate alternatives for meeting the criteria Define associations between the criteria and the alternatives Defining associations between alternatives and criteria involves understanding how each alternative affects the criteria Information technology doesnt support this phase of decision making much

11 Best and most effective course of action is chosen Analyze each alternative and its relationship Decision support system (DSS) can be particularly useful in this phase

12 Decision support system (DSS) Interactive information system Consisting of hardware, software, data, and models (mathematical and statistical) Designed to assist decision makers in an organization

13 Requirements: Be interactive Incorporate the human element as well as hardware and software Use both internal and external data Include mathematical and statistical models Support decision makers at all organizational levels Emphasize semistructured and unstructured tasks

14 Exhibit 12.2 Components of a DSS

15 What-if analysis Goal-seeking Sensitivity analysis Exception reporting analysis More capabilities, such as: Graphical analysis, forecasting, simulation, statistical analysis, and modeling analysis

16 Benefits of a DSS: Increase in the number of _________________ examined Fast response to _______________ situations Ability to make one-of-a-kind decisions Cost savings Better decisions More effective teamwork Time savings Making better use of data resources

17 Interactive information systems that give executives easy access to internal and external data Typically include: Drill-down features Digital dashboard Ease of use EIS designers should focus on simplicity when developing a user interface

18 Require access to both internal and external data So that executives can spot trends, make forecasts, and conduct different types of analyses Should also collect data related to an organizations critical success factors

19 Exhibit 12.3 A Digital Dashboard

20 EIS increases managers ________________ EIS can convert information into other formats EIS can spot trends and report exceptions

21 Assist groups in: Communicating, collaborating, and coordinating their activities Intended more for teamwork than for decision support Use computer and communication technologies to formulate, process, and implement a decision-making task Useful for: Committees Review panels Board meetings _____________________ Decision-making sessions that require input from several decision makers

22 Some capabilities of groupware include: Audio and video conferencing Automated appointment books Brainstorming Database access Online chat __________________________ To-do lists Workflow automation

23 Advantages: Costs as well as stress are reduced due to decreased travel More time to talk with each other and solve problems _________________ isnt as much of an issue in GSS sessions Increasing collaboration improves the effectiveness of decision makers

24 Disadvantages: Lack of the human touch Unnecessary meetings Security problems Costs of GSS implementation are high

25 Captures, stores, processes, and ______________ geographic information Uses spatial and nonspatial data Common example of a GIS: Getting driving directions from Google Maps User-friendly interface that helps you visualize the route After you make a decision, you can print driving directions and a map Google FIRE

26 Different types of decisions Phases of decision making in a typical organization DSS: Components, capabilities, key players, and costs and benefits Executive information systems Group support systems Geographic information systems


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