1. ENHANCING MANAGEMENT DECISION MAKING13
ENHANCING MANAGEMENT DECISION MAKING

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

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

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

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

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

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

8. 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 *

9. 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 *

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

11. 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 *

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

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

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

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

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

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

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

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

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

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

22. 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 *

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

24. 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 *

25. ENHANCING MANAGEMENT DECISION MAKING13
ENHANCING MANAGEMENT DECISION MAKING