13.1 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age DECISION MAKING IN A DIGITAL AGE

13.2 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 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? continued OBJECTIVES

13.3 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 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 (continued)

13.4 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age HBC MAKES DECISIONS THAT AFFECT ITS CUSTOMERS

13.5 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 1.Building information systems that can actually fulfill executive information requirements 2.Create meaningful reporting and management decision-making processes MANAGEMENT CHALLENGES

13.6 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 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 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.7 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Management Information System (MIS) 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 13.1 DECISION-SUPPORT SYSTEMS (DSS) Management Information Systems and Decision Support Systems

13.8 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 13.1 DECISION-SUPPORT SYSTEMS (DSS) Management Information Systems and Decision Support Systems

13.9 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Decision Support System (DSS) 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 Management Information Systems and Decision Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.10 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 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 Types of Decision-Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.11 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Types of Decision-Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.12 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Data-Driven DSS Allows users to extract and analyze useful information from large databasesAllows users to extract and analyze useful information from large databases Knowledge Discovery Identifying novel and valuable patterns in large volumes of data through the selection, preparation, and evaluation of the contents of large databasesIdentifying novel and valuable patterns in large volumes of data through the selection, preparation, and evaluation of the contents of large databases Types of Decision-Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.13 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Components of Decision-Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.14 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age DSS Database collection of current or historical data from a number of applicationscollection of current or historical data from a number of applications DSS Software System collection of software tools, mathematical and analytical modelscollection of software tools, mathematical and analytical models Components of Decision-Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.15 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Model Abstract representation illustrating components or relationshipsAbstract representation illustrating components or relationships Sensitivity Analysis Asks “what-if” questions repeatedly to determine the impact of changeAsks “what-if” questions repeatedly to determine the impact of change 13.1 DECISION-SUPPORT SYSTEMS (DSS) Components of Decision-Support Systems

13.16 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Components of Decision-Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS) Sensitivity Analysis

13.17 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age DSS Applications and the Digital Firm 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.18 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age DSS for Supply Chain Management 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 DSS Applications and the Digital Firm 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.19 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age DSS for Customer Relationship Management 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 13.1 DECISION-SUPPORT SYSTEMS (DSS) DSS Applications and the Digital Firm

13.20 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 13.1 DECISION-SUPPORT SYSTEMS (DSS) DSS Applications and the Digital Firm

13.21 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Data Visualization and Geographic Information System (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 Uses data visualization technologyUses data visualization technology 13.1 DECISION-SUPPORT SYSTEMS (DSS) DSS Applications and the Digital Firm

13.22 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Customer Decision-Support System (CDSS) Supports decision-making process of an existing or potential customerSupports decision-making process of an existing or potential customer Web-Based Customer Decision-Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.23 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Web-Based Customer Decision-Support Systems 13.1 DECISION-SUPPORT SYSTEMS (DSS)

13.24 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Interactive computer-based systemInteractive computer-based system Facilitates solutions to unstructured problemsFacilitates solutions to unstructured problems Set of decision makers working together as a groupSet of decision makers working together as a group 13.2 GROUP DECISION-SUPPORT SYSTEMS (GDSS) What Is a GDSS?

13.25 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Components of a GDSS Hardware:Hardware: –Conference facility, electronic hardware Software Tools:Software Tools: –Tools for organizing ideas, gathering information, and ranking and seeking priorities People:People: –Participants, trained facilitator, staff supporting hardware and software 13.2 GROUP DECISION-SUPPORT SYSTEMS (GDSS) What Is a GDSS?

13.26 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 13.2 GROUP DECISION-SUPPORT SYSTEMS (GDSS) What Is a GDSS?

13.27 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Improved preplanningImproved preplanning Increased participationIncreased participation Open, collaborative meeting atmosphereOpen, collaborative meeting atmosphere Criticism-free idea generationCriticism-free idea generation Evaluation objectivityEvaluation objectivity How GDSS can Enhance Group Decision-Making 13.2 GROUP DECISION-SUPPORT SYSTEMS (GDSS)

13.28 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Executive Support System (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 13.3 EXECUTIVE SUPPORT IN THE ENTERPRISE

13.29 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 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 Permits drill-down: ability to move from summary to lower and lower levels of detailPermits drill-down: ability to move from summary to lower and lower levels of detail 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 The Role of Executive Support Systems in the Organization 13.3 EXECUTIVE SUPPORT IN THE ENTERPRISE

13.30 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 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 Benefits of Executive Support Systems 13.3 EXECUTIVE SUPPORT IN THE ENTERPRISE

13.31 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Improves management performanceImproves management performance Increases management’s span of controlIncreases management’s span of control Better monitoring of activitiesBetter monitoring of activities Benefits of Executive Support Systems 13.3 EXECUTIVE SUPPORT IN THE ENTERPRISE

13.32 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age ESS for Business Intelligence: Identifies changing market conditionsIdentifies changing market conditions Formulates responsesFormulates responses Tracks implementation effortsTracks implementation efforts Learns from feedbackLearns from feedback Executive Support Systems and the Digital Firm 13.3 EXECUTIVE SUPPORT IN THE ENTERPRISE

13.33 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age 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 Executive Support Systems and the Digital Firm 13.3 EXECUTIVE SUPPORT IN THE ENTERPRISE

13.34 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age Executive Support Systems and the Digital Firm 13.3 EXECUTIVE SUPPORT IN THE ENTERPRISE

13.35 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 13: Decision Making in a Digital Age DECISION MAKING IN A DIGITAL AGE