1、13.1 2006 by Prentice Hall13Chapter 13.2 2006 by Prentice Hall Describe different types of decisions and the decision-making process Evaluate the role of information systems in helping people working individually and in a group make decisions more efficiently Demonstrate how executive support system
2、s can help senior managers make better decisionsOBJECTIVES 13.3 2006 by Prentice Hall Assess how systems that support decision making can provide value for the firm Identify the challenges posed by decision-support systems, group decision-support systems, and executive support systems and management
3、 solutionsOBJECTIVES (Continued)13.4 2006 by Prentice Hall Challenge: Coordinate the daily arrival of 70 rail cars and 500 trucks to ensure just-in-time delivery of car parts Solutions: Adopt Transportation Efficiency Support System (TESYS) to synchronize the deliveries with available loading docks
4、and production schedules Develop new business processes for coordinating logistics with production needs Illustrates the how IT enhances decision making and increases business process efficiency in a manufacturing environment13.5 2006 by Prentice HallDECISION MAKING AND DECISION-SUPPORT SYSTEMSBusin
5、ess intelligence enables firms to:Amass information Develop knowledge about operationsChange decision-making behavior to achieve profitability and other business goals 13.6 2006 by Prentice HallSystems and Technologies for Business Intelligence DECISION MAKING AND DECISION-SUPPORT SYSTEMSFigure 13-1
6、13.7 2006 by Prentice Hall Senior management Middle management and project teams Operational management and project teams Individual employees Decision-Making Levels: DECISION MAKING AND DECISION-SUPPORT SYSTEMS13.8 2006 by Prentice HallDECISION MAKING AND DECISION-SUPPORT SYSTEMSInformation Require
7、ments of Key Decision-Making Groups in a Firm Figure 13-213.9 2006 by Prentice HallUnstructured decisions:Types of Decisions DECISION MAKING AND DECISION-SUPPORT SYSTEMS Novel, non-routine decisions requiring judgment and insights Examples: Approve capital budget; decide corporate objectives 13.10 2
8、006 by Prentice HallStructured decisions: DECISION MAKING AND DECISION-SUPPORT SYSTEMS Routine decisions with definite procedures Examples: Restock inventory; determine special offers to customers Semistructured decisions: Only part of decision has clear-cut answers provided by accepted procedures E
9、xamples: Allocate resources to managers; develop a marketing plan Types of Decisions (Continued)13.11 2006 by Prentice Hall Management Information Systems (MIS) Decision-Support Systems (DSS) Executive Support Systems (ESS) Group Decision-Support Systems (GDSS) There are four kinds of systems that s
10、upport the different levels and types of decisions: DECISION MAKING AND DECISION-SUPPORT SYSTEMS13.12 2006 by Prentice HallStages in Decision MakingFigure 13-3DECISION MAKING AND DECISION-SUPPORT SYSTEMS13.13 2006 by Prentice Hall Information quality: Accuracy, integrity, consistency, completeness,
11、validity, timeliness, accessibility In the real world, investments in decision-support systems do not always work because of DECISION MAKING AND DECISION-SUPPORT SYSTEMS13.14 2006 by Prentice Hall Management filters: Biases and bad decisions of managers Organizational inertia: Strong forces within o
12、rganization that resist change DECISION MAKING AND DECISION-SUPPORT SYSTEMSDecision Making in the Real World (Continued)13.15 2006 by Prentice HallSix Major Trends: Detailed enterprise-wide data Broadening decision rights and responsibilities The rise of client/server computing, the Internet, and We
13、b technologies made a major impact on systems that support decision making.DECISION MAKING AND DECISION-SUPPORT SYSTEMS13.16 2006 by Prentice Hall Intranets and portals Personalization and customization of information Extranets and collaborative commerce Team support tools DECISION MAKING AND DECISI
14、ON-SUPPORT SYSTEMSTrends in Decision Support and Business Intelligence (Continued)13.17 2006 by Prentice Hall Primarily address structured problems Provides typically fixed, scheduled reports based on routine flows of data and assists in the general control of the business SYSTEMS FOR DECISION SUPPO
15、RT Management Information Systems: 13.18 2006 by Prentice Hall Support semistructured and unstructured problems Greater emphasis on models, assumptions, ad-hoc queries, display graphics Emphasizes change, flexibility, and a rapid response SYSTEMS FOR DECISION SUPPORT Decision Support Systems: 13.19
16、2006 by Prentice HallModel-driven DSS: SYSTEMS FOR DECISION SUPPORT Primarily stand-alone systems Use a strong theory or model to perform “what-if” and similar analyses 13.20 2006 by Prentice HallData-driven DSS: SYSTEMS FOR DECISION SUPPORT Integrated with large pools of data in major enterprise sy
17、stems and Web sites Support decision making by enabling user to extract useful information Data mining: Can obtain types of information such as associations, sequences, classifications, clusters, and forecasts 13.21 2006 by Prentice Hall DSS database: A collection of current or historical data from
18、a number of applications or groups DSS software system: Contains the software tools for data analysis, with models, data mining, and other analytical tools DSS user interface: Graphical, flexible interaction between users of the system and the DSS software tools SYSTEMS FOR DECISION SUPPORT 13.22 20
19、06 by Prentice HallSYSTEMS FOR DECISION SUPPORT Statistical models Optimization models Forecasting models Sensitivity analysis (“what-if” models) Model: An abstract representation that illustrates the components or relationships of a phenomenon 13.23 2006 by Prentice HallOverview of a Decision-Suppo
20、rt System Figure 13-4SYSTEMS FOR DECISION SUPPORT 13.24 2006 by Prentice HallSensitivity Analysis SYSTEMS FOR DECISION SUPPORT Figure 13-513.25 2006 by Prentice Hall Providing fine-grained information for decisions that enable the firm to coordinate both internal and external business processes much
21、 more precisely Helping with decisions in SYSTEMS FOR DECISION SUPPORT Supply chain management Customer relationship management13.26 2006 by Prentice Hall Pricing Decisions Asset Utilization Data Visualization: Presentation of data in graphical forms, to help users see patterns and relationships Geo
22、graphic Information Systems (GIS): Special category of DSS that display geographically referenced data in digitized maps SYSTEMS FOR DECISION SUPPORT Business Value of DSS (Continued)13.27 2006 by Prentice HallA DSS for Customer Analysis and Segmentation SYSTEMS FOR DECISION SUPPORT Figure 13-613.28
23、 2006 by Prentice Hall DSS based on the Web and the Internet can support decision making by providing online access to various databases and information pools along with software for data analysis Some of these DSS are targeted toward management, but many have been developed to attract customers. SY
24、STEMS FOR DECISION SUPPORT 13.29 2006 by Prentice Hall Customer decision making has become increasingly information intensive, with Internet search engines, intelligent agents, online catalogs, Web directories, e-mail, and other tools used to help make purchasing decisions. Customer decision-support
25、 systems (CDSS) support the decision-making process of an existing or potential customer.SYSTEMS FOR DECISION SUPPORT Web-based Customer Decision-Support Systems (Continued)13.30 2006 by Prentice Hall Group Decision-Support System (GDSS) is an interactive computer-based system used to facilitate the
26、 solution of unstructured problems by a set of decision makers working together as a group. GROUP DECISION-SUPPORT SYSTEMS 13.31 2006 by Prentice Hall Hardware (conference facility, audiovisual equipment, etc.) Software tools (Electronic questionnaires, brainstorming tools, voting tools, etc.) Peopl
27、e (Participants, trained facilitator, support staff) GROUP DECISION-SUPPORT SYSTEMS 13.32 2006 by Prentice Hall In a GDSS electronic meeting, each attendee has a workstation. The workstations are networked and are connected to the facilitators console, which serves as the facilitators workstation an
28、d control panel, and to the meetings file server. All data that the attendees forward from their workstations to the group are collected and saved on the file server.Overview of a GDSS Meeting GROUP DECISION-SUPPORT SYSTEMS 13.33 2006 by Prentice Hall The facilitator is able to project computer imag
29、es onto the projection screen at the front of the room. Many electronic meeting rooms have seating arrangements in semicircles and are tiered in legislative style to accommodate a large number of attendees. The facilitator controls the use of tools during the meeting.GROUP DECISION-SUPPORT SYSTEMS 1
30、3.34 2006 by Prentice HallGroup System Tools Figure 13-7GROUP DECISION-SUPPORT SYSTEMS Source: From Nunamaker et al., “Electronic Meeting Systems to Support Group Work,” Communication of the ACM, July 1991. Reprinted with permission.13.35 2006 by Prentice Hall Traditional decision-making meetings su
31、pport an optimal size of three to five attendees. GDSS allows a greater number of attendees. Enable collaborative atmosphere by guaranteeing contributors anonymity. Enable nonattendees to locate organized information after the meeting. Business Value of GDSS GROUP DECISION-SUPPORT SYSTEMS 13.36 2006
32、 by Prentice Hall Can increase the number of ideas generated and the quality of decisions while producing the desired results in fewer meetings Can lead to more participative and democratic decision making GROUP DECISION-SUPPORT SYSTEMS 13.37 2006 by Prentice Hall ESS can bring together data from al
33、l parts of the firm and enable managers to select, access, and tailor them as needed. It tries to avoid the problem of data overload so common in paper reports. The Role of Executive Support Systems in the Firm EXECUTIVE SUPPORT IN THE ENTERPRISE 13.38 2006 by Prentice Hall The ability to drill down
34、 is useful not only to senior executives but also to employees at lower levels of the firm who need to analyze data. Can integrate comprehensive firmwide information and external data in timely manner Inclusion of modeling and analysis tools usable with a minimum of training EXECUTIVE SUPPORT IN THE
35、 ENTERPRISE The Role of Executive Support Systems in the Firm (Continued)13.39 2006 by Prentice Hall Ability to analyze, compare, and highlight trends Graphical interface enables users to review data more quickly and with more insight, speeding decision making. Timeliness and availability of data en
36、ables more timely decision making, helping businesses move toward a “sense-and-respond” strategy. Business Value of Executive Support Systems EXECUTIVE SUPPORT IN THE ENTERPRISE 13.40 2006 by Prentice Hall Increases upper management span of control, better monitoring ESS based on enterprise-wide dat
37、a can be used for decentralization of decision making or increase management centralization. EXECUTIVE SUPPORT IN THE ENTERPRISE 13.41 2006 by Prentice Hall Four Star Distribution: Uses ESS for competitive intelligence; global buying trends can be shared with manufacturers, distributors, sales repre
38、sentatives to get latest products to customer before selling season beginsEXECUTIVE SUPPORT IN THE ENTERPRISE 13.42 2006 by Prentice HallEXECUTIVE SUPPORT IN THE ENTERPRISE Verizon Communications and Pharmacia Corporation: Monitoring corporate performance with Digital Dashboards and Balanced Scoreca
39、rd Systems Roadway Express: Enterprise-Wide Reporting and Analysis Executive Support Systems and the Digital Firm (Continued)13.43 2006 by Prentice Hall Decision-support systems provide opportunities for increasing precision, accuracy, and rapidity of decisions and thereby contributing directly to p
40、rofitability Management Opportunities: MANAGEMENT OPPORTUNITIES, CHALLENGES AND DECISIONS 13.44 2006 by Prentice Hall Building systems that can actually fulfill Executive Information Requirements Changing management thinking to make better use of systems for decision support Organizational resistanc
41、e MANAGEMENT OPPORTUNITIES, CHALLENGES AND DECISIONS 13.45 2006 by Prentice Hall Users must work with IS specialists to identify a problem and a specific set of capabilities that will help them arrive at decisions about the problem. The system must be flexible, easy to use, and capable of supporting
42、 alternative decision options. MANAGEMENT OPPORTUNITIES, CHALLENGES AND DECISIONS Flexible Design and Development: 13.46 2006 by Prentice Hall User training, involvement, and experience; top management support; and length of use are the most important factors in the success of management support systems. MANAGEMENT OPPORTUNITIES, CHALLENGES AND DECISIONS Training and Management Support:
