6 Information Requirements of a Manager Organizational goal:Provide the right information at the right time in the right form.Example: semistructured decision about a marketing plan.Historical sales dataFuture-oriented sales data
7 Dimensions and Characteristics of Information: Time TimelinessCurrencyFrequencyTime period
8 Dimensions and Characteristics of Information: Content AccuracyRelevanceCompletenessScope
9 Dimensions and Characteristics of Information: Form ClarityDetailOrderPresentationMedia
11 Information Technology and Managerial Communication Information technology can:Increase the number of messages transmitted to more peopleEnsure messages go only to those who need the informationEliminate unnecessary time delaysVary the form of the message with multimedia.
12 Communication Concepts Communication is the expression of an idea.Communication is sent through a channel.Communication requires a receiver.Feedback clarifies garbled messages.
14 Office Automation Evolution Mainframes were used for accounting and payroll.Personal computers with office application software became popular.Power struggles often occurred between mainframe and PC supporters.
15 Office Automation Evolution Today companies network PCs, mainframes and thin clients together.Groupware allows sharing calendars, documents and messages among workers.
16 Distributed Computing Today companies may have PCs, mainframes, workstations and thin clients networked together.Workers may access mainframe database using their PC or terminal.Workers may use Web browser to access data on company intranet.May not even know where the data is stored.
17 Paperless OfficeComputers now deliver more mail messages than postal carriers.The volume of on-line publishing is rapidly growing.The amount of paper used is not decreasing as much as once predicted, but we do use paper differently.
18 Information Technology and Decision Making Decision making involves:Understanding the problemIdentifying possible solutionsSelecting the most desirable solutionImplementing the decision.
19 Types of Decision Making Models Mental model: how a person’s beliefs, assumptions, and interpretation of reality are organized.Mathematical/quantitative model: reality represented as numerical relationships among key variables (e.g., budget spreadsheet).
20 Types of Decision Making Models Analog model: pictorial representation of a situation (e.g., organizational chart, stock market graph).Iconic model: physical replica of reality (e.g., CAD developed scale model of a product).
21 Individual Decision Styles Reflect how individuals:Emphasize certain phases of decision makingUse certain types of modelsUse information in unique waysEmphasize certain beliefs and values.
22 Individual Decision Styles RationalSatisficingSystematicIntuitiveBureaucraticPoliticalGarbage can
23 Supporting Decision Makers with Technology Information systems that effectively support decision making will be flexible and adaptable enough to support a variety of individual and organizational styles.
24 Management Information Systems (MIS) Managers use the system to access corporate business process information.
25 Management Information Systems (MIS) Give managers the information needed to make decisions about operational activities.Provide three types of reports: detailed, summary and exception.Typically provided to managers as scheduled reports.
26 Decision Support Systems (DSS) Managers can use the system interactively to analyze data.
27 Decision Support Systems (DSS) Useful for non-routine decisionsManagers manipulate informationThree major components:Data managementModel managementDialog management.
28 Group Decision Support Systems (GDDS) Groups of managers use the system interactively to analyze data.
29 Group Decision Support Systems (GDDS) Physical configuration:Room with appropriate computersDSS database and modeling softwareLocal area network connectionsLarge-screen projections of computer output for group viewingCommunication-oriented software tools for idea generation and sharing.
30 Group Decision Support Systems (GDDS) Prior to the meeting, managers can use the GDDS software to perform sensitivity analysis.During the meeting, managers can:Show their earlier work to othersUse GDDS software tools to brainstorm and organize their ideas.
31 Geographic Information Systems (GIS) Special type of DSS designed to work with map and other spatial information including:Mapping and analytic softwareDatabases of map images, geographic and demographic dataUser interface allowing queries and results shown on a map.
32 Uses of a GIS A GIS can be used to: Identify the best location for a new retail storeAnalyze customer preferences in a given geographical areaPlan delivery and service routesAssist governmental employees such as city planners or law enforcement personnel.
33 Executive Information Systems (EIS) Used to monitor important economic and social trends affecting the company and corporate performance.
34 Executive Information Systems (EIS) An EIS has similar design components to a DSSData management component provides interactive access to data on the company’s critical success factorsModel management component includes analytical models to identify and study trends in critical success factorsDialog management components provides a variety of output formats.
35 Executive Information Systems (EIS) An executive can use the EIS to drill down through the available information to the level of detail needed.Access to up to data internal and external information makes an EIS particularly helpful during the intelligence phase of decision making.
36 Expert Systems (ES)Expert answers are provided to a user’s questions in an interactive process.
37 Expert Systems (ES)An expert system supports decision making by providing managers with access to computerized expert knowledge.Such systems are based on years of artificial intelligence research.
38 Knowledge Bases for Expert Systems Researchers have had little success at developing systems with broad, shallow knowledge such as known by children.Researchers have had success when the knowledge base is restricted to narrow, deep domains.
39 Knowledge Base Information A knowledge base may contain 200 to 10,000 if-then rules, which incorporate uncertainty as “fuzzy” rules.Example from MYCIN, a medical expert system:If (1) the infection is primary-bacteremia, and(2) the site of the culture is one of the sterile sites, and(3) the suspected portal of entry of the organism is the gastrointestinal tract, then there is suggestive evidence (.7) that he identify of the organism is bacteriodes.
40 Expert Systems in Perspective An expert system can:Help train new employeesReduce the number of human errorsTake care of routine tasks so workers can focus on more challenging jobs
41 Expert Systems in Perspective Provide expertise when no experts are availablePreserve the knowledge of experts after those experts leave an organizationCombine the knowledge of several expertsMake knowledge available to more people at different locations.
42 Expert Systems in Perspective Limits of expert systems:Difficult to build, particularly the knowledge base componentPoorer at planning strategies than human expertsLess creative than human expertsPowerless outside their narrow, deep domain of knowledge.
44 Information Systems in Perspective Information systems often do not fit neatly into one of the five information systems discussed (automated office systems, MIS, DSS, EIS, ES).The design features incorporated into an information system should be based on the communication and decision making needs of users.
45 Information Systems in Perspective These tools provide information and advice, with some risks.Poor system design limits decision quality.Managers may feel overwhelmed with information.User training is essential.A system cannot totally replace the human communication and decision-making skills necessary for successful management.
46 After reading this chapter, you should be able to: Describe several aspects of management, the information needs of managers, and the types of decisions managers makeExplain several basic communications concepts
47 After reading this chapter, you should be able to: Discuss several ways that information technology is used to help managers collaborate and communicate more effectivelyExplain several decision-making concepts
48 After reading this chapter, you should be able to: Describe several ways that information technology is used to help managers make decisions more effectivelyDiscuss the issues that should be included in an organization’s information code of ethics
49 TYPES OF INFORMATION SYSTEMS DATA WORKERSKIND OF SYSTEM GROUPS SERVEDSTRATEGIC LEVEL SENIOR MANAGERSMANAGEMENT LEVEL MIDDLE MANAGERSOPERATIONAL OPERATIONAL LEVEL MANAGERSKNOWLEDGE LEVEL KNOWLEDGE &SALES & MANUFACTURING FINANCE ACCOUNTING HUMANRESOURCESMARKETING
50 MAJOR TYPES OF SYSTEMS Executive support systems (ESS) Decision support systems (DSS)Management information systems (MIS)Knowledge work systems (KWS)Office automation systems (OAS)Transaction processing systems (TPS)*
51 TYPES OF INFORMATION SYSTEMS DATA WORKERSKIND OF SYSTEM GROUPS SERVEDSTRATEGIC LEVEL SENIOR MANAGERSMANAGEMENT LEVEL MIDDLE MANAGERSOPERATIONAL OPERATIONAL LEVEL MANAGERSKNOWLEDGE LEVEL KNOWLEDGE &ESSDSSMISKWSOASTPS
52 TPS DATA FOR MIS APPLICATIONS MIS FILESSALES DATAUNIT PRODUCT COSTPRODUCT CHANGE DATAEXPENSE DATAREPORTSMANAGERSTPSOrder ProcessingSystemMaterials ResourcePlanning SystemGeneral LedgerORDER FILEPRODUCTION MASTER FILEACCOUNTING FILES
53 INTERRELATIONSHIPS AMONG SYSTEMS ESSTPSKWSOASDSSMIS
54 SUPPLY-CHAIN MANAGEMENT-AN EXAMPLE OF PROCESS ALIGNED SYSTEM CUSTOMERSPLANNING & FORECASTINGORDER PROCESSINGSUPPLIERSINTRANETPRODUCTIONPROCUREMENTACCOUNTINGLOGISTICS SERVICESSHIPPINGINVENTORYDISTRIBUTORS