1. MIS
CHAPTER 12
MANAGEMENT SUPPORT SYSTEMS
Hossein BIDGOLI

2. Types of Decisions in an Organization
Structured decisions
Well-defined standard operating procedure exists
Also called programmable tasks
Can be automated
Semistructured decisions
Not as well-defined by standard operating procedures
Include a structured aspect that benefits from information retrieval, analytical models, and information systems technology

3. Types of Decisions in an Organization (cont’d.)
Unstructured decisions
Unique; typically one-time decisions
Does not rely on standard operating procedure
Decision maker’s intuition plays the most important role
Information technology offers little support for these decisions
Management support systems (MSSs)
Different types of information systems have been developed to support certain aspects and types of decisions

4. Phases of the Decision-Making Process
Herbert Simon
Winner of the 1978 Nobel Prize in economics
Defines three phases in the decision-making process: intelligence, design, and choice
Fourth phase, implementation, can be added

5. The Intelligence Phase
Decision maker examines the organization’s environment for conditions that need decisions
Data is collected from a variety of sources and processed
Decision maker can discover ways to approach the problem

6. The Intelligence Phase (cont’d.)
Three parts
First: determine what the reality is
Second: get a better understanding of the problem by collecting data and information about it
Third: gather data and information needed to define alternatives for solving the problem

7. The Design Phase Objective
Define criteria for the decision
Generate alternatives for meeting the criteria
Define associations between the criteria and the alternatives
Defining associations between alternatives and criteria involves understanding how each alternative affects the criteria
Information technology doesn’t support this phase of decision making much

8. The Choice Phase Best and most effective course of action is chosen
From the practical alternatives
Analyze each alternative and its relationship
To the criteria to determine whether it’s feasible
Decision support system (DSS) can be particularly useful in this phase

9. The Implementation Phase
Organization devises a plan for carrying out the alternative selected in the choice phase
Obtains the resources to implement the plan
DSS can do a follow-up assessment on how well a solution is performing

10. Decision Support Systems
Decision support system (DSS)
Interactive information system
Consisting of hardware, software, data, and models (mathematical and statistical)
Designed to assist decision makers in an organization

11. Decision Support Systems (cont’d.)
Requirements:
Be interactive
Incorporate the human element as well as hardware and software
Use both internal and external data
Include mathematical and statistical models
Support decision makers at all organizational levels
Emphasize semistructured and unstructured tasks

12. Components of a Decision Support System
Three major components:
Database
Model base
Includes mathematical and statistical models that enable a DSS to analyze information
User interface
What users make use of to access the DSS
DSS engine
Manages and coordinates these major components

13. Exhibit 12.2
Components of a DSS

14. DSS Capabilities What-if analysis Goal-seeking Sensitivity analysis
Exception reporting analysis
More capabilities, such as:
Graphical analysis, forecasting, simulation, statistical analysis, and modeling analysis

15. Roles in the DSS Environment
Roles include:
User, managerial designer, technical designer, and model builder
Users
Most important role because they’re the ones using the DSS
Managerial designer
Defines the management issues in designing and using a DSS

16. Roles in the DSS Environment (cont’d.)
Technical designer
Focuses on how the DSS is implemented
Model builder
Liaison between users and designers

17. Costs and Benefits of Decision Support Systems
Benefits of a DSS:
Increase in the number of alternatives examined
Fast response to unexpected situations
Ability to make one-of-a-kind decisions
New insights and learning
Improved communication
Improved control over operations
Cost savings from being able to make better decisions and analyze several scenarios (what-ifs) in a short period

18. Costs and Benefits of Decision Support Systems (cont’d.)
Better decisions
More effective teamwork
Time savings
Making better use of data resources

19. Executive Information Systems
Branch of DSSs
Interactive information systems that give executives easy access to internal and external data
Typically include:
“Drill-down” features
Digital dashboard
Ease of use
EIS designers should focus on simplicity when developing a user interface

20. Executive Information Systems (cont’d.)
Require access to both internal and external data
So that executives can spot trends, make forecasts, and conduct different types of analyses
Should also collect data related to an organization’s “critical success factors”

21. Executive Information Systems (cont’d.)
Digital dashboard
Integrates information from multiple sources and presents it in a unified, understandable format
Often charts and graphs
Many digital dashboards are Web-based

22. Exhibit 12.3
A Digital Dashboard

23. Reasons for Using EISs EIS increases managers’ productivity
EIS can convert information into other formats
EIS can spot trends and report exceptions

24. Avoiding Failure in Design and Use of EISs
Factors that can lead to a failed EIS:
Corporate culture isn’t ready
Organizational resistance to the project
Project is viewed as unimportant
Management loses interest or isn’t committed
Objectives and information requirements can’t be defined clearly
System doesn’t meet its objectives
System’s objectives aren’t linked to factors critical to the organization’s success
Project’s costs can’t be justified

25. Avoiding Failure in Design and Use of EISs (cont’d.)
Developing applications takes too much time
System is too complicated
Vendor support has been discontinued
Executives themselves
Nature of executives’ work
Nature of information the EIS provides

26. EIS Packages and Tools
Generally designed with two or three components:
Administrative module for managing data access
Builder module for developers to configure data mapping and screen sequencing
Runtime module for using the system
Some EIS packages provide a data storage system

27. EIS Packages and Tools (cont’d.)
Tasks managers perform for which an EIS is useful:
Tracking performance
Flagging exceptions
Ranking, comparing, spotting trends
Investigating/exploring

28. Group Support Systems
Use computer and communication technologies to formulate, process, and implement a decision-making task
Considered a kind of intervention technology that helps overcome the limitations of group interactions
Reduce communication barriers
Introduce order and efficiency into situations that are inherently unsystematic and inefficient

29. Group Support Systems (cont’d.)
Useful for:
Committees
Review panels
Board meetings
Task forces
Decision-making sessions that require input from several decision makers

30. Groupware Assist groups in:
Communicating, collaborating, and coordinating their activities
Intended more for teamwork than for decision support

31. Groupware (cont’d.) Some capabilities of groupware include:
Audio and video conferencing
Automated appointment books
Brainstorming
Database access
Online chat
Scheduling
To-do lists
Workflow automation

32. Groupware (cont’d.) Examples of Web-based GSS tools:
Microsoft Office SharePoint Server and IBM Lotus Domino
Other software used for e-collaboration:
Electronic meeting systems, such as Microsoft LiveMeeting, Metastorm, and IBM FileNet

33. Electronic Meeting Systems
Enable decision makers in different locations to participate in a group decision-making process
Include:
Real-time computer conferencing
Video teleconferencing
Desktop conferencing

34. Advantages and Disadvantages of GSSs
Costs as well as stress are reduced due to decreased travel
More time to talk with each other and solve problems
Shyness isn’t as much of an issue in GSS sessions
Increasing collaboration improves the effectiveness of decision makers

35. Advantages and Disadvantages of GSSs (cont’d.)
Lack of the human touch
Unnecessary meetings
Security problems
Costs of GSS implementation are high

36. Geographic Information Systems
Captures, stores, processes, and displays geographic information
Uses spatial and nonspatial data
Uses three geographic objects:
Points
Lines
Areas

37. Geographic Information Systems (cont’d.)
Common example of a GIS:
Getting driving directions from Google Maps
User-friendly interface that helps you visualize the route
After you make a decision, you can print driving directions and a map

38. GIS Applications Education planning Urban planning Government
Insurance
Marketing
Real estate
Transportation and logistics

39. Guidelines for Designing a Management Support System
Get support from the top
Define objectives and benefits clearly
Identify executives’ information needs
Keep the lines of communication open
Hide the system’s complexity and keep the interface simple
Keep the “look and feel” consistent
Design a flexible system
Make sure response time is fast