Information And Decision Support System

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Information And Decision Support System

  1. 1. Knowledge Management by: Megat Zainurul Anuar bin Megat Johari DREAMSOFT (M)SDN BHD http://www.thedreamsoft.com http://megatportfolio.blogspot.com
  2. 2. Decision Making as a Component of Problem Solving <ul><li>Decision-making phase: first part of problem-solving process </li></ul><ul><ul><li>Intelligence stage: potential problems or opportunities are identified and defined </li></ul></ul><ul><ul><li>Design stage: alternative solutions to the problem are developed </li></ul></ul><ul><ul><li>Choice stage: requires selecting a course of action </li></ul></ul>
  3. 3. How Decision Making Relates to Problem Solving
  4. 4. Decision Making as a Component of Problem Solving (continued) <ul><li>Problem solving: a process that goes beyond decision making to include the implementation stage </li></ul><ul><li>Implementation stage: a solution is put into effect </li></ul><ul><li>Monitoring stage: decision makers evaluate the implementation </li></ul>
  5. 5. Programmed Versus Nonprogrammed Decisions <ul><li>Programmed decisions </li></ul><ul><ul><li>Decision made using a rule, procedure, or quantitative method </li></ul></ul><ul><ul><li>Easy to computerize using traditional information systems </li></ul></ul>
  6. 6. Programmed Versus Nonprogrammed Decisions (continued) <ul><li>Nonprogrammed decisions </li></ul><ul><ul><li>Decision that deals with unusual or exceptional situations </li></ul></ul><ul><ul><li>Not easily quantifiable </li></ul></ul>
  7. 7. Optimization, Satisficing, and Heuristic Approaches <ul><li>Optimization model: a process to find the best solution, usually the one that will best help the organization meet its goals </li></ul><ul><li>Satisficing model: find a good—but not necessarily the best—problem solution </li></ul><ul><li>Heuristics: commonly accepted guidelines or procedures that usually find a good solution </li></ul>
  8. 8. An Overview of Management Information Systems: Perspective <ul><li>A management information system (MIS) provides managers with information that supports effective decision making and provides feedback on daily operations </li></ul><ul><li>The use of MISs spans all levels of management </li></ul>
  9. 9. Sources of Managerial Information
  10. 10. Inputs to a Management Information System <ul><li>Internal data sources (TPSs and ERP systems and related databases; data warehouses and data marts; specific functional areas throughout the firm) </li></ul><ul><li>External data sources (Customers, suppliers, competitors, and stockholders whose data is not already captured by the TPS; the Internet; extranets) </li></ul>
  11. 11. Outputs of a Management Information System <ul><li>Scheduled report: produced periodically, or on a schedule </li></ul><ul><li>Key-indicator report: summary of the previous day’s critical activities </li></ul><ul><li>Demand report: developed to give certain information at someone’s request </li></ul><ul><li>Exception report: automatically produced when a situation is unusual or requires management action </li></ul><ul><li>Drill-down reports: provide increasingly detailed data about a situation </li></ul>
  12. 12. Characteristics of a Management Information System <ul><li>Fixed format, standard reports </li></ul><ul><li>Hard-copy and soft-copy reports </li></ul><ul><li>Uses internal data </li></ul><ul><li>User-developed reports </li></ul><ul><li>Users must request formal reports from IS department </li></ul>
  13. 13. An Overview Of Decision Support Systems <ul><li>A DSS is an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making and problem solving </li></ul><ul><li>The focus of a DSS is on decision-making effectiveness when faced with unstructured or semistructured business problems </li></ul>
  14. 14. Characteristics of Decision Support Systems <ul><li>Handle large amounts of data from different sources </li></ul><ul><li>Provide report and presentation flexibility </li></ul><ul><li>Offer both textual and graphical orientation </li></ul><ul><li>Support drill-down analysis </li></ul>
  15. 15. Characteristics of Decision Support Systems (continued) <ul><li>Perform complex, sophisticated analysis and comparisons using advanced software packages </li></ul><ul><li>Support optimization, satisficing, and heuristic approaches </li></ul><ul><ul><li>Simulation </li></ul></ul><ul><ul><li>What-if analysis </li></ul></ul><ul><ul><li>Goal-seeking analysis </li></ul></ul>
  16. 16. Comparison of DSSs and MISs
  17. 17. Comparison of DSSs and MISs (continued)
  18. 18. Components of a Decision Support System <ul><li>Model base: provides decision makers access to a variety of models and assists them in decision making </li></ul><ul><li>Database </li></ul><ul><li>External database access </li></ul><ul><li>Access to the Internet and corporate intranet, networks, and other computer systems </li></ul><ul><li>Dialogue manager: allows decision makers to easily access and manipulate the DSS and to use common business terms and phrases </li></ul>
  19. 19. Conceptual Model of a DSS
  20. 20. Group Support Systems <ul><li>Group support system (GSS) </li></ul><ul><ul><li>Consists of most elements in a DSS, plus software to provide effective support in group decision making </li></ul></ul><ul><ul><li>Also called group support system or computerized collaborative work system </li></ul></ul>
  21. 21. Configuration of a GSS
  22. 22. Characteristics of a GSS That Enhance Decision Making <ul><li>Special design </li></ul><ul><li>Ease of use </li></ul><ul><li>Flexibility </li></ul><ul><li>Decision-making support </li></ul>
  23. 23. Characteristics of a GSS That Enhance Decision Making (continued) <ul><li>Anonymous input </li></ul><ul><li>Reduction of negative group behavior </li></ul><ul><li>Parallel communication </li></ul><ul><li>Automated record keeping </li></ul>
  24. 24. GSS Alternatives
  25. 25. Executive Support Systems <ul><li>Executive support system (ESS): specialized DSS that includes all hardware, software, data, procedures, and people used to assist senior-level executives within the organization </li></ul>
  26. 26. Executive Support Systems in Perspective <ul><li>Tailored to individual executives </li></ul><ul><li>Easy to use </li></ul><ul><li>Drill-down capabilities </li></ul><ul><li>Support need for external data </li></ul>
  27. 27. Executive Support Systems in Perspective (continued) <ul><li>Can help when uncertainty is high </li></ul><ul><li>Future-oriented </li></ul><ul><li>Linked to value-added processes </li></ul>
  28. 28. Capabilities of Executive Support Systems <ul><li>Support for defining an overall vision </li></ul><ul><li>Support for strategic planning </li></ul><ul><li>Support for strategic organizing and staffing </li></ul><ul><li>Support for strategic control </li></ul><ul><li>Support for crisis management </li></ul>
  29. 29. Summary <ul><li>The decision-making phase of the problem-solving process includes three stages: intelligence, design, and choice </li></ul><ul><li>A management information system (MIS) provides managers with information that supports effective decision making and provides feedback on daily operations </li></ul><ul><li>A financial MIS provides financial information to all financial managers within an organization </li></ul>
  30. 30. Summary (continued) <ul><li>The manufacturing MIS subsystems and outputs monitor and control the flow of materials, products, and services through the organization </li></ul><ul><li>A marketing MIS supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness </li></ul><ul><li>A human resource MIS is concerned with activities related to employees and potential employees of an organization </li></ul>
  31. 31. Summary <ul><li>A DSS is an organized collection of people, procedures, software, databases, and devices used to support decision making and problem solving </li></ul><ul><li>A group support system (GSS) consists of most elements in a DSS, plus software to provide effective support in group decision making </li></ul><ul><li>An executive support system (ESS) is a specialized DSS that includes all hardware, software, data, procedures, and people used to assist senior-level executives within the organization </li></ul>
  32. 32. Contact: Megat Zainurul Anuar bin Megat Johari DREAMSOFT (M)SDN BHD http://www.thedreamsoft.com http://megatportfolio.blogspot.com [email_address]

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