Transcript Slide 1
Decision Making as a Component of Problem Solving Programmed versus Nonprogrammed Decisions • Programmed decisions – – – – Structured situations with well defined relationships Quantifiable Management information system Easy to computerize • Nonprogrammed decisions – Rules and relationships not defined – Problem is not routine – Not easily quantifiable Problem Solving Approaches • Optimization: find the best solution • Satisficing: find a good solution • Heuristics: rules of thumb Inputs to an MIS Characteristics of an MIS • • • • • Fixed format, standard reports Hard-copy or soft-copy reports Uses internal data User-developed reports Users must request formal reports from IS department Functional Aspects of an MIS Financial MIS Manufacturing MIS • Design engineering • Process control – Computer-assisted manufacturing (CAM) – Computer-integrated manufacturing (CIM) – Flexible manufacturing system • Quality control and testing Overview of a Manufacturing MIS Marketing MIS Human Resource MIS Other MIS • Accounting management information systems • Geographic information systems (GIS) Characteristics of Decision Support Systems • Handle large amounts of data from various sources • Provide report and presentation flexibility • Offer both textual and graphical orientation • Support drill down analysis Characteristics of a DSS • Perform complex, sophisticated analysis • Optimization, satisficing, heuristics – Simulation – What-if analysis – Goal-seeking analysis Capabilities of a DSS • Support all problem-solving phases • Support different decision frequencies • Support different problem structures • Support various decision-making levels Selected DSS Applications Support for Various Decision-Making Levels Factor DSS Problem Type New, Unstructured Problems Users In the short term, users have more control Support Not intended to replace the human decision maker Emphasis Decisions and decision making style Approach Direct support through System Speed Output Development MIS Routine, Structured Problems In the short term, user have less control Some automatic decisions can be made Data to Information Automation of regular business interactive, drill-down interface reporting On-line, real-time, on-screen, Generate hard-copy reports, interactive scheduled reporting, up-to-date but not necessarily real-time Response time should be faster Response time usually slower Screen, interactive interface Oriented towards static, printed reports and documents Developed in close Off-the-shelf solutions collaboration with users and developed for general users decision makers Components of a DSS The Model Base • Financial models – Cash flow – Internal rate of return • Statistical analysis models – Summary statistics – Trend projections – Hypothesis testing • Graphical models • Project management models Executive Support Systems Executive Support Systems (ESS) in Perspective • • • • • • • Tailored to individual executives Easy to use Drill down capabilities Support need for external data Can help when uncertainty is high Future-oriented Linked to value-added processes Capabilities of an ESS • • • • • Support for defining an overall vision Support for strategic planning Support for strategic organizing & staffing Support for strategic control Support for crisis management Summary • Decision-making phase: includes intelligence, design, and choice • Problem solving: also includes implementation and monitoring • Decision approaches: optimization, satisficing, and heuristic Summary • Management information system (MIS) - an integrated collection of people, procedures, databases, and devices that provide managers and decision-makers with information to help achieve organizational goals • Decision support system (DSS) - an organized collection of people, procedures, software, databases, and devices working to support managerial decision making • Executive support systems (ESSs) - specialized decision support systems designed to meet the needs of senior management