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Slide for DSS Class

Slide for DSS Class

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  • 1. STID 3053 DECISION SUPPORT SYSTEM Azizah Ahmad Room 2022, UUM College of Arts & Sciences, IT Building E-mail: [email_address] ; Phone: 9284762
  • 2. Objective
    • Identify the relationship of Managerial Decision Making and Information System
    • Define the managers roles and tasks
    • Discuss the benefits of having a computerized support systems
    • Differentiate the framework of decision support
    • Explain the management support system technologies
    10/09/11 At the end of this lecture, student should be able to :
  • 3. Opening Vignette
    • Case of Toyota Motor Sales USA
    10/09/11
  • 4. Why need computerized support? 10/09/11 Source: Turban et. al (2007)
  • 5. Pressure Factors 10/09/11 Organization Markets (strong competition, blooming e-markets etc) Consumer demand (desire for quality, diversify of products, speed of delivery) Technology (more innovations, increasing info o/load etc) Societal (new regulations, diversified work force, decrease in departmental budget etc)
  • 6. Managerial Decision Making
    • Mintzberg (1980):
    • 1. Interpersonal
      • •    Figurehead (symbolic head)
      • •    Leader (always motivate subordinates/staff to work and be active)
      • •    Liaison (create strong networking with outside contacts/ informers)
    • 2.     Informational
      • •    Monitor (always seeks new information and latest development on business/ organizational activities)
      • •    Disseminator (transmits information from outsiders or staff to those who should get it)
      • •    Spokesperson (transmits organizational information to outsiders)
    • 3.     Decisional
      • •    Entrepreneur (explore business/ project opportunities within the organization and environment)
      • •    Disturbance Handler (employ preventive and corrective actions against disturbance)
      • •    Resource Allocator (allocates organizational resources to departments/ units)
      • •    Negotiator (represents the organization in major negotiations)
    10/09/11
  • 7. Managerial decision making
    • Management function  planning,organizing, directing, controlling and staffing
    • Management roles  Interpersonal, informational and decisional
    • Management is a process by which organizational goals are achieved through the use of resources
    •         
    •  
    • Measuring Success: Productivity = Outputs / Inputs
    • Management is  decision making The manager is  a decision maker
    10/09/11 Goal Attainment: Output    Resources: Inputs
  • 8. Managerial Decision Making
    • 4 steps:
      • Defining the problem (a decision situation that may deal with some difficulty or with an opportunity)
      • Constructing a model that describes the real-world problem
      • Identifying possible solutions to the modeled problem and evaluating the solutions
      • Comparing, choosing, and recommending a potential solution to the problem
    10/09/11
  • 9. How computerized system support decision making?
    • Speedy computations at a low cost
      • Organizations need timely decisions
    • Improved communication and collaboration
      • Collaborate decision makers at different locations
    • Increased productivity of group members
    • Improved data management
      • Support storing, searching, transmitting the needed data quickly, economically, securely, transparently
    • Managing giant data warehouses
    10/09/11
  • 10. How computerized system support decision making?
    • Quality support
      • Decisions are based on larger volume of data
    • Agility support
      • In response to the changing business environment
    • Overcoming cognitive limits in processing and storing information
    • Using the Web
    • Anywhere, anytime support
    10/09/11
  • 11. Framework for Computerized Decision Support 10/09/11 Source: Turban et. al (2007)
  • 12. Type of Decision 10/09/11 Simon’s (1977) idea  decision-making processes fall along a continuum that ranges from highly structured to highly unstructured decisions. Decision support system is for semistructured & unstructured decisions
    • Structured processes :
    • routine tasks
    • repetitive problems (structured problems)
    • standard solution methods already exists
    • Unstructured processes :
    • fuzzy
    • complex problems (unstructured problems)
    • no cut-and-dried solution method
    • human intuition is the basis for decision making
    • SemiStructured processes :
    • Between structured & unstructured processes
    • Semistructured problems
    • Combination of std solution procedures & human judgment
  • 13. Phases of decision making process 10/09/11
    • Simon also describes the 3 phases of DM process :
    • Intelligence - searching for conditions that call for decisions (problem identification)
    • Design - finding, developing and analyzing possible alternative courses of action
    • Choice - selecting an alternative from those available and recommending solution.
    • Implementation - putting the recommendation to work.
  • 14. Framework for Computerized Decision Support 10/09/11 Source: Turban et. al (2007)
  • 15. Phases of decision making process 10/09/11 Exercise: You are considering to buy a brand new laptop. There are various model available in the market and you are facing difficulties in making decisions. Analyze and explain your activities to make decision using the Simon’s four phase model.
  • 16. Phases of decision making process 10/09/11 Simon’s Model Activities Intelligence Phase Identify whether there is a problem without a laptop computer. Design Phase Determine parameters/criteria that describe the appropriate laptop to buy. Generate and analyze possible causes of action Choice Phase Make the actual decision and choose the laptop which are the most suits the identified parameters/criteria. Implementation Phase Buy the chosen laptop
  • 17. Management Support System Technologies
    • Management support system (MSS)  refer to the application of any technology, either as an independent tool or combination of tools, to support management tasks
    • MSS technologies are :
      • Decision support systems(DSS)
      • Group support systems (GSS)
      • Enterprise(executive) information systems (EIS)
      • Enterprise Resources Planning(ERP) & Supply chain management (SCM)
      • Knowledge management (KM)
      • Expert system (ES)& Intelligent agent
      • Artificial neural networks (ANN)
      • Hybrid support system
    10/09/11
  • 18. Decision support systems(DSS)
    • DSS  are interactive computer-based systems, which help decision makers utilize data and models to solve unstructured problems ( Scott Morton, 1971 ).
    • DSS  is a computer-based support system for management decision makers who deal with semi-structured problems ( Keen and Scott Morton, 1978 ). It couples the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions.
    • Perceived benefits : decision quality, improved communication, cost reduction, increased productivity, time saving, improved customer and employee satisfaction
    10/09/11
  • 19. Group support systems (GSS)
    • Major decisions often made by groups
    • Supports group-work, anytime, anyplace
    • Also called  Groupware , Electronic meeting systems ,Collaborative computing
    10/09/11
  • 20. Enterprise(executive) information systems (EIS)
    • system that provides information on the overall organizational performance to the managers
      • provide an organizational view of operations
      • Information needs of executives / managers
      • Provide an extremely user-friendly interface compatible with individual decision styles
      • Timely and effective tracking and control
      • Drill down facilities
      • Filter, compress, and track critical data / information
      • Identify problems / opportunities
    10/09/11
  • 21. Enterprise Resources Planning(ERP) & Supply chain management (SCM)
    • using IT and decision support methodologies. Companies attempt to integrate as many information support systems as possible
    • 2 major concepts involved  ERP & SCM
    • ERP  try to integrate, within one organization, repetitive TPS (such as ordering, producing, packaging, costing, delivery & billing). It can be facilitated by DSS
    • SCM  to improve tasks within the various segments of the supply chain (such as manufacturing, human resource mgt, etc). It involves many non-routines decisions. Related to E-commerce.
    10/09/11
  • 22. Knowledge management (KM)
    • Capture and reuse knowledge at the organizational level
    • Important to know how to motivate people to contribute their knowledge
    • Knowledge is organized & stored in an organizational knowledge base
    • Organizational impacts can be dramatic
    10/09/11
  • 23. Expert system (ES) & Intelligent agent
    • Experts  have specific knowledge & experience in the problem area. They solve complex problem.
    • Expert system concept  expertise is transferred from the expert to a computer. Knowledge is stored in computer and users access the knowledge for specific advice
    • Expert system  is a decision making or problem solving SW package that can reach a level of performance comparable to or better than experts in a specialized & usually narrow problem area
    • Intelligent Agents  Help automate various tasks, Increase productivity and quality, Learn how you work
    10/09/11
  • 24. Artificial neural networks (ANN)
    • working with incomplete input information
    • learning from historical cases
    • employing a pattern recognition approach to problem solving
    10/09/11
  • 25. Hybrid support system
    • Combines MSS technologies
    • Use strengths of each
    • Goal: successful solution of the managerial problem
    • Tools support each other
    • Tools can add intelligence to traditional MSS
    10/09/11