Management Support Systems: Hossein BIDGOLI

MIS
CHAPTER 12
MANAGEMENT SUPPORT
SYSTEMS
Hossein BIDGOLI
MIS, Chapter 12
©2011 Course Technology, a part of Cengage Learning
1
Chapter 12 Management Support Systems
learning outcomes
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.
MIS, Chapter 12
2
l e a r n i n g o u t c o m e s (cont’d.)
LO6 Describe guidelines for designing a management
support system.
MIS, Chapter 12
3
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
MIS, Chapter 12
4
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
MIS, Chapter 12
5
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
MIS, Chapter 12
6
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
MIS, Chapter 12
7
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
MIS, Chapter 12
8
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
MIS, Chapter 12
9
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
MIS, Chapter 12
10
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
MIS, Chapter 12
11
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
MIS, Chapter 12
12
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
MIS, Chapter 12
13
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
MIS, Chapter 12
14
Exhibit 12.2 Components of a DSS
MIS, Chapter 12
15
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
MIS, Chapter 12
16
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
MIS, Chapter 12
17
Roles in the DSS Environment (cont’d.)

• Technical designer
– Focuses on how the DSS is implemented
• Model builder
– Liaison between users and designers
MIS, Chapter 12
18
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
MIS, Chapter 12
19
Costs and Benefits of Decision Support Systems

(cont’d.)
– Better decisions
– More effective teamwork
– Time savings
– Making better use of data resources
MIS, Chapter 12
20
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
MIS, Chapter 12
21
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”
MIS, Chapter 12
22
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
MIS, Chapter 12
23
Reasons for Using EISs

• EIS increases managers’ productivity
• EIS can convert information into other formats
• EIS can spot trends and report exceptions
MIS, Chapter 12
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
MIS, Chapter 12
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
MIS, Chapter 12
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
MIS, Chapter 12
27
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
MIS, Chapter 12
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
MIS, Chapter 12
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
MIS, Chapter 12
30
Groupware
• Assist groups in:
– Communicating, collaborating, and coordinating their
activities
• Intended more for teamwork than for decision
support
MIS, Chapter 12
31
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
MIS, Chapter 12
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
MIS, Chapter 12
33
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
MIS, Chapter 12
34
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
MIS, Chapter 12
35
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
MIS, Chapter 12
36
Advantages and Disadvantages of GSSs (cont’d.)

• Disadvantages:
– Lack of the human touch
– Unnecessary meetings
– Security problems
– Costs of GSS implementation are high
MIS, Chapter 12
37
Geographic Information System

• Captures, stores, processes, and displays
geographic information
• Uses spatial and nonspatial data
• Uses three geographic objects:
– Points
– Lines
– Areas
MIS, Chapter 12
38
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
MIS, Chapter 12
39
GIS Applications
• Education planning
• Urban planning
• Government
• Insurance
• Marketing
• Real estate
• Transportation and logistics
MIS, Chapter 12
40
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
MIS, Chapter 12
41
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
MIS, Chapter 12
42

Management Support Systems: Hossein BIDGOLI

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Management Support Systems: Hossein BIDGOLI

Uploaded by

Copyright:

Available Formats

MIS

Types of Decisions in an Organization

Types of Decisions in an Organization (cont’d.)

Phases of the Decision-Making Process

The Intelligence Phase

The Intelligence Phase (cont’d.)

The Design Phase

The Choice Phase

The Implementation Phase

Decision Support Systems

Decision Support Systems (cont’d.)

Components of a Decision Support System

Roles in the DSS Environment

Roles in the DSS Environment (cont’d.)

Costs and Benefits of Decision Support Systems

Costs and Benefits of Decision Support Systems

Executive Information Systems

Executive Information Systems (cont’d.)

Executive Information Systems (cont’d.)

Reasons for Using EISs

Avoiding Failure in Design and Use of EISs

Avoiding Failure in Design and Use of EISs (cont’d.)

EIS Packages and Tools

EIS Packages and Tools (cont’d.)

Group Support Systems

Group Support Systems (cont’d.)

Groupware and Health IT

• Inexpensive to acquire and use

Electronic Meeting Systems

Advantages and Disadvantages of GSSs

Advantages and Disadvantages of GSSs (cont’d.)

Geographic Information System

Geographic Information System (cont’d.)

Guidelines for Designing a Management Support

You might also like