ENHANCING MANAGEMENT DECISION MAKING 13 ENHANCING MANAGEMENT DECISION MAKING

LEARNING OBJECTIVES DIFFERENTIATE DECISION-SUPPORT SYSTEMS (DSS) FROM GROUP DECISION-SUPPORT SYSTEMS (GDSS) DESCRIBE COMPONENTS OF DSS & GDSS *

LEARNING OBJECTIVES DEMONSTRATE HOW DSS & GDSS ENHANCE DECISION-MAKING DESCRIBE CAPABILITIES OF EXECUTIVE SUPPORT SYSTEMS (ESS) ASSESS BENEFITS OF ESS *

MANAGEMENT CHALLENGES DECISION-SUPPORT SYSTEMS GROUP DECISION-SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS *

DECISION SUPPORT SYSTEMS (DSS) MANAGEMENT LEVEL COMPUTER SYSTEM COMBINES DATA, MODELS, USER - FRIENDLY SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION MAKING *

DECISION SUPPORT SYSTEM MODEL DRIVEN DSS: Uses models for what-if and other analysis DATA-DRIVEN DSS: Allows extraction, analysis of information from databases *

DECISION SUPPORT SYSTEM TPS EXTERNAL DATA DSS DATA BASE DSS SOFTWARE SYSTEM MODELS OLAP TOOLS DATAMINING USER INTERFACE

DECISION SUPPORT SYSTEM TPS: Transaction processing system MODEL: Representation of a problem OLAP: On-line analytical processing USER INTERFACE: How user enters problem & receives answers DSS DATABASE: Current data from applications or groups *

DECISION SUPPORT SYSTEM DATA MINING: Technology for finding relationships in large data bases for prediction DSS SOFTWARE SYSTEM: Tools for data analysis SENSITIVITY ANALYSIS: “What-if” questions about changes in model factors *

DECISION SUPPORT SYSTEM APPLICATIONS: SUPPLY CHAIN MANAGEMENT CUSTOMER RELATIONSHIP MANAGEMENT SIMULATING BUSINESS SCENARIOS *

DECISION SUPPORT SYSTEM GEOGRAPHIC INFORMATION SYSTEM (GIS): Software to display digital maps WEB-BASED DSS: Available on Internet for decisions, information, software CUSTOMER DSS (CDSS): System supports buying decisions of customers *

DECISION SUPPORT SYSTEM EXAMPLES: GENERAL ACCIDENT INSURANCE: Customer buying patterns, fraud detection BANK OF AMERICA: Customer profiles FRITO-LAY: Price, advertising, promotion selection *

DECISION SUPPORT SYSTEM BURLINGTON COAT FACTORY: Store location, inventory mix KEYCORP: Targeting direct mail marketing customers NATIONAL GYPSUM: Corporate planning & forecasting *

DECISION SUPPORT SYSTEM SOUTHERN RAILWAY: Train dispatching and routing TEXAS OIL & GAS: Evaluating drilling sites UNITED AIRLINES: Flight scheduling, passenger demand forecasting *

GROUP DECISION-SUPPORT SYSTEM (GDSS) INTERACTIVE COMPUTER-BASED SYSTEM FACILITATES SOLUTION OF UNSTRUCTURED PROBLEMS BY DECISION MAKERS WORKING AS GROUP *

GDSS ENHANCED DECISION MAKING ALLOWS: Improved pre-planning Increased participation Open, collaborative atmosphere Idea generation free of criticism Evaluation objectivity Idea organization & evaluation *

GDSS ENHANCED DECISION MAKING ALLOWS: Setting priorities & decision making Documentation of meetings Access to external information Preservation of organizational memory *

TOOLS OF GDSS ELECTRONIC QUESTIONNAIRES ELECTRONIC BRAINSTORMING IDEA ORGANIZERS QUESTIONNAIRE TOOLS TOOLS FOR VOTING, SETTING PRIORITIES *

TOOLS OF GDSS STAKEHOLDER IDENTIFICATION & ANALYSIS TOOLS POLICY FORMATION TOOLS GROUP DICTIONARIES *

ELECTRONIC MEETING SYSTEM (EMS) COLLABORATIVE GDSS: Uses information technology to make group meetings more productive facilitates communication decision making *

EXECUTIVE SUPPORT SYSTEMS (ESS) STRATEGIC INFORMATION SYSTEM DESIGNED FOR UNSTRUCTURED DECISION MAKING THROUGH ADVANCED GRAPHICS AND COMMUNICATIONS *

EXECUTIVE SUPPORT SYSTEMS DRILL DOWN: ability to move from summary to lower levels of detail Designed for specific needs of CEO Extensive support staff Executive has 24 hour per day ability to examine, control progress throughout organization *

EXECUTIVE SUPPORT SYSTEMS BENEFITS: FLEXIBILITY ABILITY TO ANALYZE, COMPARE, HIGHLIGHT TRENDS GRAPHICS HELP EXPLORE SITUATION MONITOR PERFORMANCE TIMELINESS, AVAILABILITY OF DATA ALLOWS PROMPT ACTION *

EXECUTIVE SUPPORT SYSTEMS USES IN A DIGITAL FIRM: BUSINESS INTELLIGENCE: Info on salespeople, distributors, retailers MONITORING BUSINESS PERFORMANCE: Balanced scorecard shows perspectives of customers, internal processes, learning, growth ENTERPRISE WIDE REPORTING & ANALYSIS *

ENHANCING MANAGEMENT DECISION MAKING 13 ENHANCING MANAGEMENT DECISION MAKING