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11.1 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm 11 ENHANCINGMANAGEMENTDECISION-MAKING.

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Presentation on theme: "11.1 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm 11 ENHANCINGMANAGEMENTDECISION-MAKING."— Presentation transcript:

1 11.1 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm 11 ENHANCINGMANAGEMENTDECISION-MAKING FOR THE DIGITAL FIRM Chapter

2 11.2 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm How can information systems help individual managers make better decisions when the problems are non- routine and constantly changing?How can information systems help individual managers make better decisions when the problems are non- routine and constantly changing? How can information systems help people working in a group make decisions more efficiently?How can information systems help people working in a group make decisions more efficiently? OBJECTIVES

3 11.3 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Are there any special systems that can facilitate decision-making among senior managers? Exactly what can these systems do to help high-level management?Are there any special systems that can facilitate decision-making among senior managers? Exactly what can these systems do to help high-level management? What benefits can systems that support management decision-making provide for the organization as a whole?What benefits can systems that support management decision-making provide for the organization as a whole? OBJECTIVES

4 11.4 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Building information systems that can actually fulfill executive information requirementsBuilding information systems that can actually fulfill executive information requirements Create meaningful reporting and management decision-making processesCreate meaningful reporting and management decision-making processes MANAGEMENT CHALLENGES

5 11.5 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Decision-Making Level The four different decision-making constituencies The four different decision-making constituencies in a firm are the following: in a firm are the following: general timely info –Senior management: is concerned with general timely info on changes in the industry and society at large that may affect both long-term and near-term future of the firm. specific, timely info –Middle Management and project teams: is concerned with specific, timely info about firm performance, including revenue and cost reduction targets –Operational Management and project teams: monitors the performance of each subunit of the firm and manages individual employees –Individual employees: try to fulfill the objectives of managers above them, following established rules and procedures for their routine activities

6 11.6 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Decision-Making Level Unstructured Semistructured Structured Information Requirements of key Decision-Making Groups in a firm Senior Management Middle Management Operational Management Individual Employees and Teams

7 11.7 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Unstructured decisions  Are those in which the decision maker must provide judgment, evaluation, and insights into the problem definition Semistructured decisions  Only part of the problem has a clear-cut answer provided by an accepted procedure Structured decisions  Are repetitive and routine, and decision makers can follow a definite procedure for handling them to be efficient DECISION-SUPPORT SYSTEMS (DSS) Types of Decision-Support Systems

8 11.8 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm In general, structured decisions are made at lower organizational levels,In general, structured decisions are made at lower organizational levels, whereas unstructured decision making is more common at higher levels of the firmwhereas unstructured decision making is more common at higher levels of the firm Types of Decision-Support Systems

9 11.9 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Senior executives tend to be exposed to many unstructured decision situations that are open ended and evaluative and that require insight based on many sources of information and personal experience For example, a CEO in today’s music industry might ask, “Whom should we choose as a distribution partner for our online music catalog”? Answering this question would require access to WHAT … ? Answering this question would require access to WHAT … ? news, government reports, and industry views as well as high-level summaries of firm performance DECISION-SUPPORT SYSTEMS (DSS) Types of Decision-Support Systems

10 11.10 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Middle management and operational management tend to face more structured decision scenarios, but their decisions may include unstructured components For example, A typical middle-level management decision might be “Why is the order fulfillement report showing a decline over the last six months at a distribution center in Minnealoplis?” This middle manager could obtain a report from the firm’s enterprise system or distribution management system on order activity and operational efficiency at the Minneapolis distribution center. This is the structured part of the decision. WHERE IS THE UNSTRUCTURED PART OF THE DECISION HERE? This middle manager could obtain a report from the firm’s enterprise system or distribution management system on order activity and operational efficiency at the Minneapolis distribution center. This is the structured part of the decision. WHERE IS THE UNSTRUCTURED PART OF THE DECISION HERE? DECISION-SUPPORT SYSTEMS (DSS) Types of Decision-Support Systems

11 11.11 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Model-driven DSS Primarily stand-alonePrimarily stand-alone Uses model to perform “what-if” and other kinds of analysisUses model to perform “what-if” and other kinds of analysis Ex: voyage-estimating system calculates financial (ship/time costs) and technical (ship cargo capacity, speed, port distances, etc…) voyage details Data-driven DSS Allows users to extract and analyze useful information from large databases Ex: How many units of product number 403 were shipped in November 2004? DECISION-SUPPORT SYSTEMS (DSS) Types of Decision-Support Systems

12 11.12 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Computer system at the management level of an organizationComputer system at the management level of an organization Combines data, analytical tools, and modelsCombines data, analytical tools, and models Supports semi-structured and unstructured decision-makingSupports semi-structured and unstructured decision-making DECISION-SUPPORT SYSTEMS (DSS)

13 11.13 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm MIS Provide info on the firm’s performance to help managers monitor and control the businessProvide info on the firm’s performance to help managers monitor and control the business Provides reports based on routine flow of dataProvides reports based on routine flow of data Assists in general control of the organizationAssists in general control of the organization Ex: A typical MIS report might show a summary of monthly salesEx: A typical MIS report might show a summary of monthly sales DECISION-SUPPORT SYSTEMS (DSS) MIS and DSS

14 11.14 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm DSS DSS support decisions in a different way. Whereas MIS primarily address structured problems, DSS support semistructured and unstructured problem analysis Emphasizes change, flexibility, rapid response, models, assumptions, ad hoc queries, and display graphicsEmphasizes change, flexibility, rapid response, models, assumptions, ad hoc queries, and display graphics DECISION-SUPPORT SYSTEMS (DSS) MIS and DSS

15 11.15 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Datamining Uses statistical analysis toolsUses statistical analysis tools Finds hidden patterns and relationships in large databases to infer rulesFinds hidden patterns and relationships in large databases to infer rules Knowledge discoveryKnowledge discovery events that are linked over time are referred to as sequencesevents that are linked over time are referred to as sequences Data mining can allow a firm to develop specific marketing campaigns for different customer segments DECISION-SUPPORT SYSTEMS (DSS) Types of Decision-Support Systems

16 11.16 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm DECISION-SUPPORT SYSTEMS (DSS) Figure 11-1

17 11.17 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm DECISION-SUPPORT SYSTEMS (DSS) Overview of a Decision-Support System (DSS) Figure 11-2

18 11.18 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm DSS database: c ollection of current or historical data DSS software system: c ollection of software tools/mathematical and analytical models User interface: easy interaction DECISION-SUPPORT SYSTEMS (DSS) Components of Decision-Support Systems

19 11.19 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Model Abstract representation illustrating components or relationships of a phenomenonAbstract representation illustrating components or relationships of a phenomenon A model can be a physical model (airplane model), a mathematical model (equation), or a verbal model (description of a procedure for writing an order)A model can be a physical model (airplane model), a mathematical model (equation), or a verbal model (description of a procedure for writing an order) Optimization models, often using linear programming, determine optimal resource allocation to maximize or minimize specified variables such as cost or timeOptimization models, often using linear programming, determine optimal resource allocation to maximize or minimize specified variables such as cost or time DECISION-SUPPORT SYSTEMS (DSS) Components of Decision-Support Systems

20 11.20 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm DECISION-SUPPORT SYSTEMS (DSS) Sensitivity Analysis Figure 11-3 Sensitivity analysis Asks “what-if” questions repeatedly to determine the impact of change Ex: What happens if we raise the price by 5% or increase the advertising budget by $100,000?

21 11.21 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm General Accident Insurance: Customer buying patterns and fraud detectionGeneral Accident Insurance: Customer buying patterns and fraud detection Bank of America: Customer profilesBank of America: Customer profiles Frito-Lay, Inc.: Price, advertising, and promotion selectionFrito-Lay, Inc.: Price, advertising, and promotion selection DECISION-SUPPORT SYSTEMS (DSS) DSS Applications and the Digital Firm

22 11.22 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Burlington Coat Factory: Store location and inventory mixBurlington Coat Factory: Store location and inventory mix Keycorp: Targeting direct mail marketing customersKeycorp: Targeting direct mail marketing customers National Gypsum: Corporate planning and forecastingNational Gypsum: Corporate planning and forecasting DECISION-SUPPORT SYSTEMS (DSS) DSS Applications and the Digital Firm

23 11.23 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Southern Railway: Train dispatching and routingSouthern Railway: Train dispatching and routing Texas Oil and Gas Corporation: Evaluation of potential drilling sitesTexas Oil and Gas Corporation: Evaluation of potential drilling sites United Airlines: Flight scheduling, passenger demand forecastingUnited Airlines: Flight scheduling, passenger demand forecasting DECISION-SUPPORT SYSTEMS (DSS) DSS Applications and the Digital Firm

24 11.24 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm U.S. Department of Defense: Defense contract analysisU.S. Department of Defense: Defense contract analysis DECISION-SUPPORT SYSTEMS (DSS) DSS Applications and the Digital Firm

25 11.25 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Comprehensive examination of supply management chainComprehensive examination of supply management chain Searches for most efficient and cost- effective combinationSearches for most efficient and cost- effective combination Reduces overall costsReduces overall costs Increases speed and accuracy of filling customer ordersIncreases speed and accuracy of filling customer orders DECISION-SUPPORT SYSTEMS (DSS) DSS for Supply Chain Management

26 11.26 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Uses data mining to guide decisionsUses data mining to guide decisions Consolidates customer information into massive data warehousesConsolidates customer information into massive data warehouses Uses various analytical tools to slice information into small segmentsUses various analytical tools to slice information into small segments DECISION-SUPPORT SYSTEMS (DSS) DSS for Customer Relationship Management

27 11.27 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm DECISION-SUPPORT SYSTEMS (DSS) DSS for Customer Analysis and Segmentation Figure 11-4

28 11.28 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Geographic Information Systems (GIS) Software for analyzing and displaying data using digitized mapsSoftware for analyzing and displaying data using digitized maps Enhances planning and decision-makingEnhances planning and decision-making Use data visualization technologyUse data visualization technology DECISION-SUPPORT SYSTEMS (DSS) DSS for Simulating Business Scenarios

29 11.29 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Data Visualization Helps users see patterns and relationships in large amounts of data that would be difficult to discern if the data were presented as traditional lists of textHelps users see patterns and relationships in large amounts of data that would be difficult to discern if the data were presented as traditional lists of text DSS for Simulating Business Scenarios DECISION-SUPPORT SYSTEMS (DSS)

30 11.30 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Customer Decision-Support Systems (CDSS) Support decision-making process of an existing or potential customerSupport decision-making process of an existing or potential customer DECISION-SUPPORT SYSTEMS (DSS) Web-Based Customer Decision-Support Systems

31 11.31 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Interactive computer-based systemInteractive computer-based system Facilitates solution to unstructured problemsFacilitates solution to unstructured problems Set of decision makers working together as a groupSet of decision makers working together as a group One problem with understanding the value of GDSS is their complexity. GROUP DECISION-SUPPORT SYSTEMS (GDSS) What Is a GDSS?

32 11.32 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Hardware: Conference facility, electronic hardwareHardware: Conference facility, electronic hardware Software tools: Tools for organizing ideas, gathering information, and ranking and seeking prioritiesSoftware tools: Tools for organizing ideas, gathering information, and ranking and seeking priorities People: Participants, trained facilitator, staff supporting hardware and softwarePeople: Participants, trained facilitator, staff supporting hardware and software GROUP DECISION-SUPPORT SYSTEMS (GDSS) Characteristics of GDSS

33 11.33 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Electronic questionnairesElectronic questionnaires Electronic brainstorming toolsElectronic brainstorming tools Idea organizersIdea organizers Questionnaire toolsQuestionnaire tools GROUP DECISION-SUPPORT SYSTEMS (GDSS) GDSS Software Tools

34 11.34 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Tools for voting or setting prioritiesTools for voting or setting priorities Stakeholder identification and analysis toolsStakeholder identification and analysis tools GROUP DECISION-SUPPORT SYSTEMS (GDSS) GDSS Software Tools

35 11.35 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm DECISION-SUPPORT SYSTEMS (DSS) Figure 11-5 Group Interaction Session Manager Session Planning Idea Generation Idea Organization Prioritizing Policy Development Brainstorming Topic Commenter Group Outliner Idea Organizer Issue Analyzer Group Writer Vote Selection Alternative Eval. Questionnaire Group Matrix Policy Formation Stakeholder ID. Organizational Memory Enterprise Analyzer Graphical Browser Group Dictionary Brief Case Access to information Personal productivity

36 11.36 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Improved preplanningImproved preplanning Increased participationIncreased participation Open, collaborative meeting atmosphereOpen, collaborative meeting atmosphere Criticism-free idea generationCriticism-free idea generation Evaluation objectivityEvaluation objectivity GROUP DECISION-SUPPORT SYSTEMS (GDSS) How GDSS can Enhance Group Decision-Making

37 11.37 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Executive Support Systems (ESS): Information system at strategic level of an organizationInformation system at strategic level of an organization Addresses unstructured decision-making through advanced graphics and communicationsAddresses unstructured decision-making through advanced graphics and communications EXECUTIVE SUPPORT IN THE ENTERPRISE

38 11.38 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Brings together data from the entire organizationBrings together data from the entire organization Allows managers to select, access, and tailor dataAllows managers to select, access, and tailor data Enables executive and any subordinates to look at the same data in the same wayEnables executive and any subordinates to look at the same data in the same way GROUP DECISION-SUPPORT SYSTEMS (GDSS) The Role of Executive Support Systems in the Organization

39 11.39 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Developing ESS: Ease of useEase of use Facility for environmental scanningFacility for environmental scanning External and internal sources of information to be used for environmental scanningExternal and internal sources of information to be used for environmental scanning GROUP DECISION-SUPPORT SYSTEMS (GDSS) The Role of Executive Support Systems in the Organization

40 11.40 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Analyzes, compares, and highlights trendsAnalyzes, compares, and highlights trends Provides greater clarity and insight into dataProvides greater clarity and insight into data Speeds up decision-makingSpeeds up decision-making GROUP DECISION-SUPPORT SYSTEMS (GDSS) Benefits of Executive Support Systems

41 11.41 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Improves management performanceImproves management performance Increases management’s span of controlIncreases management’s span of control Better monitoring of activitiesBetter monitoring of activities GROUP DECISION-SUPPORT SYSTEMS (GDSS) Benefits of Executive Support Systems

42 11.42 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm ESS for business intelligence: Identifies changing market conditionsIdentifies changing market conditions Formulates responsesFormulates responses Tracks implementation effortsTracks implementation efforts Learns from feedbackLearns from feedback GROUP DECISION-SUPPORT SYSTEMS (GDSS) Executive Support Systems and the Digital Firm

43 11.43 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Monitoring corporate performance: balanced scorecard systems Model for analyzing firm performanceModel for analyzing firm performance Supplements traditional financial measures with measurements from additional business perspectivesSupplements traditional financial measures with measurements from additional business perspectives GROUP DECISION-SUPPORT SYSTEMS (GDSS) Executive Support Systems and the Digital Firm

44 11.44 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Strategic performance management tools for enterprise systems SAP: Web-enabled mySAP.com™, Management CockpitSAP: Web-enabled mySAP.com™, Management Cockpit PeopleSoft: Web-enabled Enterprise Performance Management (EPM)PeopleSoft: Web-enabled Enterprise Performance Management (EPM) Oracle: Strategic Enterprise ManagementOracle: Strategic Enterprise Management GROUP DECISION-SUPPORT SYSTEMS (GDSS) Enterprise Wide Reporting and Analysis

45 11.45 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm 11 ENHANCINGMANAGEMENTDECISION-MAKING FOR THE DIGITAL FIRM Chapter

46 11.46 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Changes in the industry and society at large that may affect the long-term and near-term future of the firm is mainly concentrated at this management level:Changes in the industry and society at large that may affect the long-term and near-term future of the firm is mainly concentrated at this management level: –Senior –Middle –Operational –Knowledge Multiple Choice Questions ( 12 Questions)

47 11.47 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Information density refers to theInformation density refers to the A) richnesscomplexity and contentof a message.A) richnesscomplexity and contentof a message. B) total amount and quantity of information delivered to consumers by merchants.B) total amount and quantity of information delivered to consumers by merchants. C) total amount and quantity of information available to all market participants.C) total amount and quantity of information available to all market participants. D) amount of information available to reduce price transparency.D) amount of information available to reduce price transparency. Answer: C Multiple Choice Questions

48 11.48 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Once knowledge taxonomy is developed, documents are all ________ with the proper classification.Once knowledge taxonomy is developed, documents are all ________ with the proper classification. A) taggedA) tagged B) linkedB) linked C) tupledC) tupled D) referencedD) referenced Answer: A Multiple Choice Questions

49 11.49 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Backward chaining is Backward chaining is A) a strategy for searching the rule base in an expert system that begins with information entered by the user.A) a strategy for searching the rule base in an expert system that begins with information entered by the user. B) the programming environment of an expert system.B) the programming environment of an expert system. C) a method of organizing expert system knowledge into chunks.C) a method of organizing expert system knowledge into chunks. D) a strategy for searching the rule base in an expert system that begins with a hypothesis.D) a strategy for searching the rule base in an expert system that begins with a hypothesis. Answer: D Multiple Choice Questions

50 11.50 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Which of the following systems is NOT used to capture tacit knowledge?Which of the following systems is NOT used to capture tacit knowledge? A) expert systemA) expert system B) case-based reasoningB) case-based reasoning C) fuzzy logicC) fuzzy logic D) neural network Answer: D Multiple Choice Questions

51 11.51 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Decisions in which the decision maker must provide judgment, evaluation, and insights into the problem definition would be characterized as:Decisions in which the decision maker must provide judgment, evaluation, and insights into the problem definition would be characterized as: –structured. –semistructured. –unstructured. –overt. Multiple Choice Questions

52 11.52 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm In data mining, events that are linked over time are referred to as:In data mining, events that are linked over time are referred to as: –associations. –sequences. –classifications. –clusters. Multiple Choice Questions

53 11.53 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Data mining can allow a firm to develop:Data mining can allow a firm to develop: – specific marketing campaigns for different customer segments. –intuitive user interfaces. –DSS based on the Web. –multiple distributed systems. Multiple Choice Questions

54 11.54 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm To make sure the system provides the information managers need, building successful DSSs requires:To make sure the system provides the information managers need, building successful DSSs requires: –data mining. –abstract decision processing. –data co-integration –a high-level of user participation. Multiple Choice Questions

55 11.55 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Using a DSS involves several basic types of analytical models. If you wanted to cut advertising by $100 repeatedly so that you could see its relationship on sales, you would be using this model:Using a DSS involves several basic types of analytical models. If you wanted to cut advertising by $100 repeatedly so that you could see its relationship on sales, you would be using this model: –Sensitivity –Optimization –data visualization –"what-if" Multiple Choice Questions

56 11.56 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm GDSS consist of three basic elements:GDSS consist of three basic elements: –software, conference rooms, and facilitators. –hardware, telecommunications, and facilitators. –hardware, software tools, and people. –software, telecommunications, and people. Multiple Choice Questions

57 11.57 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm One problem with understanding the value of GDSS is their:One problem with understanding the value of GDSS is their: –availability and cost. –complexity. –need for organizational memory. –need for a facilitator. Multiple Choice Questions

58 11.58 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Operational management monitors the performance of each subunit of the firm and manages individual employees.Operational management monitors the performance of each subunit of the firm and manages individual employees. – True –False True-False Questions (6 Questions)

59 11.59 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Structured decisions require the decision maker to use judgment to analyze the problem.Structured decisions require the decision maker to use judgment to analyze the problem. –True – False True-False Questions

60 11.60 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm The four phases of decision making are linear and once one phase is complete it is never returned to.The four phases of decision making are linear and once one phase is complete it is never returned to. –True – False True-False Questions

61 11.61 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Data mining is more discovery-driven than traditional database queries.Data mining is more discovery-driven than traditional database queries. –True – False True-False Questions

62 11.62 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Sequencing finds patterns in data to help managers estimate future value of continuous variables such as sales figures.Sequencing finds patterns in data to help managers estimate future value of continuous variables such as sales figures. –True –False True-False Questions

63 11.63 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm An online syndicator aggregates content or applications from multiple sources, packaging them for distribution, and reselling them to third- party Web sites.An online syndicator aggregates content or applications from multiple sources, packaging them for distribution, and reselling them to third- party Web sites. Answer: TRUEAnswer: TRUE True-False Questions

64 11.64 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Companies rarely use Web pages to analyze customer information.Companies rarely use Web pages to analyze customer information. Answer: FALSE True-False Questions

65 11.65 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Some Net marketplaces support contractual purchasing based on long-term relationships with designated suppliers.Some Net marketplaces support contractual purchasing based on long-term relationships with designated suppliers. Answer: TRUEAnswer: TRUE True-False Questions

66 11.66 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Knowledge is universally applicable and easily moved.Knowledge is universally applicable and easily moved. Answer: FALSEAnswer: FALSE True-False Questions

67 11.67 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm A collection of current or historical data from a number of applications or groups forms a DSS database.A collection of current or historical data from a number of applications or groups forms a DSS database. – True – False True-False Questions

68 11.68 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm A(n) ________ decision is repetitive and routine, for which known algorithms provide solutions. A(n) ________ decision is repetitive and routine, for which known algorithms provide solutions. Answer: structured Fill-in the blanks Questions

69 11.69 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm ________-driven DSS have analysis capabilities based on strong theories and used to perform "what-if" and similar kinds of analyses. Answer: Model Fill-in the blanks Questions

70 11.70 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm Of the three main DSS components, the ________ system comprises the tools used for data analysis.Of the three main DSS components, the ________ system comprises the tools used for data analysis. Answer: software Fill-in the blanks Questions

71 11.71 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm A(n) ________ is an abstract representation illustrating the components or relationships of a phenomenon.A(n) ________ is an abstract representation illustrating the components or relationships of a phenomenon. Answer: modelAnswer: model Fill-in the blanks Questions

72 11.72 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm A(n) ________ model determines the best resource allocation to maximize or minimize specified variables.A(n) ________ model determines the best resource allocation to maximize or minimize specified variables. Answer: optimizationAnswer: optimization Fill-in the blanks Questions

73 11.73 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm A(n) ________ supports the decision-making processes of an existing or potential customer.A(n) ________ supports the decision-making processes of an existing or potential customer. Answer: customer decision-support system, CDSSAnswer: customer decision-support system, CDSS Fill-in the blanks Questions

74 11.74 © 2004 by Prentice Hall Management Information Systems 8/e Chapter 11 Enhancing Management Decision-Making for the Digital Firm 1.What are the major capabilities of DSS? What is the main problem with DSS? 2.How do the various decision-making systems support decision making within the company structure? 3.How is data visualization used in GIS? 4.What are the advantages and disadvantages of the use of a GDSS for group decision making? Essay Questions


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