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Customer Satisfaction
Selection and Value Performance and Service Look and Feel Advertising and incentives Personal attraction Community Relations Security and Reliability
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Survey Assignment Groups of 2 Ask 3-5 Questions – 1 question of substance Minimum 50 respondents Enter Data into Excel – create at least 3 graphs “Import” graphs into Word Write at least a page about the results (not including graphs) Deliver Excel file and word file on CD-ROM
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Decision Support Systems
9 Decision Support Systems © 2002 McGraw-Hill Companies
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Chapter Objectives Identify the changes taking place in the form and use of decision support in e-business enterprises. Identify the role and reporting alternatives of management information systems. Explain how the following information systems can support the information needs of executives, managers, and business professionals: A) Executive Information Systems B) Enterprise Information Portals C) Enterprise Knowledge Portals © 2002 McGraw-Hill Companies
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e-Business Decision Support Applications
Customer Relationship Management Situation: What-if Scenario Analysis Supply Chain Knowledge/Innovation Enterprise Performance Monitoring Employee- Manager/ Customer/Partner Using information systems to support business decision making has been one of the primary thrusts of the business use of information technology. However, the e-commerce revolution spawned by the Internet and the World Wide Web is expanding the information and decision support uses and expectations of a company’s employees, managers, customers, suppliers, and other business partners. The figure highlights several of the major e-business decision support applications that are being customized, personalized, and Web-enabled for use in e-business and e-commerce. These e-business decision support applications are being rapidly made available to employees, managers, customers, suppliers, and other business partners of an internetworked e-business enterprise. Teaching Tips This slide corresponds to Figure 9.3 on pp. 295 and relates to the material on pp. 294. © 2002 McGraw-Hill Companies
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Decisions in the e-Business
Strategic Management Tactical Operational Decisions Information Decision Characteristics Unstructured Semi-structured Structured To succeed in e-business and e-commerce, companies need information systems that can support the diverse information and decision making needs of business professionals. The type of information required by decision makers in a company is directly related to the level of management and the amount of structure in the decision situation. Strategic Planning and Control. Top executives develop overall organizational goals, strategies, policies, and objectives through long-range strategic planning. They also monitor the strategic performance of the organization and its overall direction. As a result, they are typically involved in making unstructured decisions; that is decisions where decision procedures to be followed cannot be specified in advance. Tactical Planning and Control. Middle managers develop short- and medium-range plans and budgets and specify the policies, procedures, and objectives for subunits of the organization. They also acquire and allocate resources and monitor performance of organizational subunits at the department, division, and other workgroup levels. Hence, these managers make more semi-structured decisions in which only some of the decision procedures can be specified in advance. Operational Planning and Control. Supervisory managers develop short-term planning devices such as production schedules. Supervisors are front-line managers who direct the actions of non-management employees. Their IS needs are often linked to the processing, monitoring, and evaluating of physical products. Thus, their decisions are more structured; that is to say, they can be specified in advance. Teaching Tips This slide corresponds to Figure 9.4 on pp. 296 and relates to the material on pp © 2002 McGraw-Hill Companies
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Management Information System Reports
Periodic Scheduled Reports Exception Reports Demand Reports and Responses Push Reports Major Management Information Systems Reports The Management Information System concept, also called information reporting systems, was the original type of management support system. MIS produce information products that support many of the day-to-day decision-making needs of the organization. Three major reporting alternatives include: Periodic Scheduled Reports. This traditional form of providing information to managers uses a prespecified format designed to provide managers with information on a regular basis. Typical examples include weekly sales analysis reports and monthly financial statements. Exception Reports. These are generated when a specific set of conditions occur. The IS can be designed to produce exception reports when some process exceeds given parameters and requires management action. Exception reports reduce information overload. They also promote management by exception -- intervening only when decisions need to be made. Demand Reports and Responses. These provide information whenever a manager demands it. For example, DBMS query languages and report generators allow managers at online workstations to get immediate responses or reports to their requests for information. Push Reporting. Many companies are using webcasting software to selectively broadcast reports and other information to the networked PCs of managers and specialists over their corporate intranets. In this manner, information is pushed to a manager’s networked workstation. Teaching Tips This slide corresponds to the material on pp © 2002 McGraw-Hill Companies
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Decision Support Systems
What If-Analysis Sensitivity Analysis Goal-Seeking Analysis Optimization Analysis Important Decision Support Systems Analytical Models Decision support systems (DSS) are computer-based systems that provide managers and business professionals interactive information support for semi-structured and unstructured decisions. Unlike management information systems, DSS rely on model bases. A model base is a software component that consists of models used in computational and analytical routines that mathematically express relationships between variables. There are various types of DSS analytical model bases. These include: What-If Analysis. An end user makes changes to variables, or relationships among variables, and observes the resulting change in the value of other variables. Sensitivity Analysis. A special type of what-if analysis in which the value of only one variable is changed repeatedly, and the resulting changes on other variables are observed. Goal-Seeking Analysis. Instead of observing how changes in a variable affect other variables, goal-seeking analysis sets a target value for a variable, and then repeatedly changes other variables until the target value is achieved. Optimization analysis. A more complex goal-seeking model. Instead of setting a specific target value for a variable, the goal is to find the optimum value for one or more target variables, given certain constraints. Teaching Tips This slide corresponds to Figure 9.13 on pp. 304 and relates to the material on pp © 2002 McGraw-Hill Companies
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Enterprise Information Portals and DSS
Enterprise Information Portal Gateway Enterprise Information Portal User Interface Search Agents OLAP Data Mining Knowledge Management Database Management Functions Mart Other Business Applications Operational Database Analytical Base DSS What-If Models Sensitivity Models Goal-Seeking Models Optimization Models Internet Intranet Extranet Cross-platform integration is one of the main objectives of today’s e-business. As shown in the figure, newer DSS packages not only are capable of running under different computer platforms, but can be integrated with corporate data resources, including operational databases, data marts, and data warehouses. These packages are no longer limited to numeric input and response, but can use data visualization systems to represent complex data using interactive three dimensional graphical forms. This in turns helps users discover patterns and links between decision variables quicker and easier. As we stated earlier, the objective of today’s e-business is to provide information to anyone that needs it, whenever, and wherever they are. More and more companies are developing Enterprise Information Portals to provide web-enabled access to information. When deployed successfully, this portal provides a universal interface to both corporate knowledge and decision-making tools as well as a wealth of other tools. Teaching Tips This slide corresponds to Figure 9.18 on pp. 310 and relates to the material on pp. 309. © 2002 McGraw-Hill Companies
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Attributes of Intelligent Behavior
Think and reason Use reason to solve problems Learn or understand from experience Acquire and apply knowledge Exhibit creativity and imagination Deal with complex or perplexing situations Respond quickly and successfully to new situations. Recognize the relative importance of elements in a situation Handle ambiguous, incomplete,or erroneous information Artificial intelligence (AI) is a field of science and technology based on disciplines such as computer science, biology, psychology, linguistics, mathematics, and engineering. The goal of AI is to develop computers that can think, as well as see, hear, walk, talk, and feel. A major thrust of AI is the development of computer functions normally associated with human intelligence, such as reasoning, learning, and problem solving. Alan Turing in 1950 proposed a test for determining if machines could think. According to the Turing test, a computer could demonstrate intelligence if a human interviewer, conversing with an unseen human and an unseen computer, could not tell which was which. Critics believe that no computer can truly pass the Turing test. They claim that developing intelligence to impart true humanlike capabilities to computers is simply not possible. But progress continues, and only time will tell if the ambitious goals of AI will be achieved. Teaching Tips This slide corresponds to Figure 9.21 on pp. 315 and relates to the material on pp. 315. © 2002 McGraw-Hill Companies
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Artificial Intelligence Applications
Cognitive Science Applications Artificial Intelligence Robotics Natural Interface Expert Systems Fuzzy Logic Genetic Algorithms Neural Networks Visual Perceptions Locomotion Navigation Tactility Natural Language Speech Recognition Multisensory Interface Virtual Reality Artificial Intelligence (AI) is a science and technology based on disciplines such as computer science, biology, psychology, linguistics, mathematics, and engineering. AI works to develop computer functions normally associated with human intelligence. Its goal is to develop computers that can think, see, hear, walk, talk, and even feel. The major application areas of AI can be grouped into three categories: Cognitive Science. Much of AI development is based upon research in human information processing, which focuses on understanding how the human brain works and how humans think and learn. Major applications in this area include: expert systems, learning systems, fuzzy logic, genetic algorithms, neural networks, and intelligent agents. Robotics. Robotics is concerned with deploying computers in ways that duplicate the actions (and even the appearance) of humans. Areas of development include visual perception, tactility, dexterity, locomotion, and navigation. Natural Interface. AI developers hope to make the human-computer interface as natural as possible. Natural language programming, speech recognition, multisensory interfaces, and virtual reality are all areas of development. Teaching Tips This slide corresponds to Figure 9.22 on pp. 316 and relates to the material on pp © 2002 McGraw-Hill Companies
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Chapter Summary Decision support systems in business are changing. The growth of corporate intranets, extranets, and other web technologies have increased the demand for a variety of personalized, proactive, web-enabled analytical techniques to support DSS. Information systems must support a variety of management decision-making levels and decisions. These include the three levels of management activity: strategic, tactical, and operational. © 2002 McGraw-Hill Companies
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