1. 1 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning MANAGEMENT SUPPORT SYSTEMS CHAPTER 12 Hossein BIDGOLI MIS

2. 2 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems LO1 Define types of decisions and phases of the decision-making process in a typical organization. LO2 Describe a decision support system. LO3 Explain an executive information system’s importance in decision making. LO4 Describe group support systems, including groupware and electronic meeting systems. LO5 Summarize uses for a geographic information system. l e a r n i n g o u t c o m e s

3. 3 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning LO6 Describe guidelines for designing a management support system. l e a r n i n g o u t c o m e s (cont’d.) Chapter 12 Management Support Systems

4. 4 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

5. 5 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Types of Decisions in an Organization (cont’d.) Unstructured decisions –Unique; typically one-time decisions –Do 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

6. 6 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

7. 7 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

8. 8 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

9. 9 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

10. 10 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

11. 11 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

12. 12 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

13. 13 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

14. 14 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

15. 15 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Exhibit 12.2 Components of a DSS

16. 16 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

17. 17 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

18. 18 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Roles in the DSS Environment (cont’d.) Technical designer –Focuses on how the DSS is implemented Model builder –Liaison between users and designers

19. 19 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

20. 20 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Costs and Benefits of Decision Support Systems (cont’d.) –Better decisions –More effective teamwork –Time savings –Making better use of data resources

21. 21 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

22. 22 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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”

23. 23 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

24. 24 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Reasons for Using EISs EIS increases managers’ productivity EIS can convert information into other formats EIS can spot trends and report exceptions

25. 25 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

26. 26 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

27. 27 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

28. 28 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems EIS Packages and Tools (cont’d.) Tasks that managers perform for which an EIS is useful: –Tracking performance –Flagging exceptions –Ranking, comparing, spotting trends –Investigating/exploring

29. 29 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

30. 30 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Group Support Systems (cont’d.) Useful for: –Committees –Review panels –Board meetings –Task forces –Decision-making sessions that require input from several decision makers

31. 31 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Groupware Assist groups in: –Communicating, collaborating, and coordinating their activities Intended more for teamwork than for decision support

32. 32 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Groupware (cont’d.) Some capabilities of groupware include: –Audio and video conferencing –Automated appointment books –Brainstorming –Database access –E-mail –Online chat –Scheduling –To-do lists –Workflow automation

33. 33 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

34. 34 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Groupware and Health IT The overall goal of Clinical Groupware is to provide a unified view of the patient by collecting and analyzing data and information from a variety of sources. It has the following benefits: Inexpensive to acquire and use Offers evidence-based guidance Routinely collects quality and performance measures Provides a collaborative workflow platform

35. 35 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

36. 36 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Advantages and Disadvantages of GSSs Advantages: –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

37. 37 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Advantages and Disadvantages of GSSs (cont’d.) Disadvantages: –Lack of the human touch –Unnecessary meetings –Security problems –Costs of GSS implementation are high

38. 38 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Geographic Information System Captures, stores, processes, and displays geographic information Uses spatial and nonspatial data Uses three geographic objects: –Points –Lines –Areas

39. 39 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Geographic Information System (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

40. 40 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems GIS Applications Education planning Urban planning Government Insurance Marketing Real estate Transportation and logistics

41. 41 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems 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

42. 42 MIS, Chapter 12 ©2011 Course Technology, a part of Cengage Learning Chapter 12 Management Support Systems Summary Different types of decisions Phases of decision making in a typical organization DSS: –Components, capabilities, key players, and costs and benefits Executive information systems Group support systems Geographic information systems