2. Management Support Systems
MSS enables senior management to:
1. access common, shared sources of
2. internal and external information
3. that have been summarized in
4. easy-to-access, graphical displays.
3. Management Support Systems
function as an integrated approach to
sharing information in an easy-to-use,
highly visual, and personalized way
system helps promote a shared view of
business activities due to integration of
tools and distributed data/information
managers can get up-to-date
information on industry news,
competitor/market trends and internal
operations
4. most successful MSS are
developed as
1. one aspect of a distributed,
enterprise information system
2. that enables flexible and integrated
information sharing and communication
3. both inside orgs. and with external
suppliers, customers and other
business partners.
5. 1980s to 1990s
1980s - managers had support tools
designed to run on PCs (e.g.
spreadsheets, statistical packages,
graphics packages, word processing,
project management, etc.)
1990s - MSS provide integrated
environment for these support tools
6. MSS
MSS usually designed so that individual
manager can customize the system as
needed
MSS architecture - client/server
environment
one component of a distributed
information infrastructure
7. Four levels of functionality in
MSS
1. electronic briefing books
2. exception reporting
3. active exploration of info. resources
using
4. focused management support
8. 1. electronic briefing books
graphical information displays that
provide pre-formatte d routine info.
displays stored as information
categories (e.g. pricing, product)
9. 2. exception reporting
critical info. outside range of pre-
defined boundaries is highlighted
manager may be notified by system
some orgs. use traffic-light pattern for
exception reporting
– green = no problems
– yellow = caution, marginal condition
– red = trouble, needs immediate attention
10. 3. active exploration of info.
resources using
MSS can build queries to relational data
bases based on point and click of
managers
can move between internal and external
DBs
integrate all different analysis tools
11. 4. focused management support
focus support on key management
activities or decisions (e.g. promotion
planning, pricing)
requires integration of variety of
sophisticated support tools customized
for specific activity
12. Implementing an MSS
Four key categories of risk must be
managed:
1. need thorough understanding of
individual, team, and organizational
information requirements
2. involves mega-change to formal and
informal policies and practices for
information management and
communication information is power
13. Implementing an MSS
Four key categories of risk must be
managed:
3. implementation of an MSS should be
considered an organizational change
initiative need to manage the change
4. must manage the simultaneous
evolution of both the organization and
the technological infrastructure
14. Past
Back in 1980s, management support
tools consisted of stand-alone (e.g. not
integrated!!) systems.
Two major types of support systems
were (are) termed (1) DSS and (2)
EIS/ESS.
Here’s some info. on these stand-alone
systems.
15. 1. Decision support systems
systems that support rather than replace
"managers" in their decision-making activities
give decision maker access to data and
models, but the intelligence, intuition, and
judgment of the decision maker are integral
parts of the system
DSS provide decision support - don't
automatically make the decision. They help
with the decision.
Primarily support planning function
16. Types of decisions
• Organizational problems differ in terms
of how structured the problems are
• the extent to which a solution procedure
can be stated
• structured - routine, repetitive
• unstructured - novel, nonroutine
• semistructured - somewhere in between
17. DSS
DSS - computer system at
management level that combines data,
analytical models, and user-friendly
software to support semistructured and
unstructured decision making
give uses capability to analyze data -
provide software tools
a DSS is focused on a specific decision
18. Can define DSS as
• computer-based systems
• that help decision makers
• confront un-structured and semi-
structured problems
• through direct interaction
• with data and analysis models
19. Differences between DSS and
MIS
(note - MIS refers to formal systems
developed by IS professionals; e.g.
management reporting systems)
DSS - end-user control of data and
tools
aimed at top and middle managers
emphasize change, flexibility and quick
response iterative development process
20. Differences between DSS and
MIS
MIS - dominated by IS professionals
focuses on structured information flows
to
middle managers
traditional development process
21. Core DSS capabilities
representations - heavy use of graphs and
charts
operations - mathematical manipulations of
data (e.g. assigning risks, generating
statistics, simulating alternatives)
memory aids - databases, views of data, work
spaces, libraries
control aids - user control activities of the
DSS; include software language for user
control of representations, operations, and
memory
22. DSS
DSS is a decision-making scratch pad,
backed up by databases - used to
support decision-making processes
can be applied to problems with
quantifiable dimensions that provide
criteria for evaluation of alternative
solutions
helps DM identify best alternative
23. 3 basic Components of DSS
1. DSS database - collection of current or historical
data which has been extracted from corporate
databases; DSS manipulates live organizational data
to support decision making
2. model base - collection of mathematical and
analytical models
model - abstract representation, e.g. statistical
functions
sensitivity analysis - models that ask “what-if”
questions to determine the impact of changes in one
or more factors on outcomes
e.g. what is we increase price by 5%?
24. 3 basic Components of DSS
3. DSS software system - permits easy
interaction between users and the DSS
database and model base
Building a DSS - requires intense user
interaction because customized to
specific users and specific type of
decision; must be flexible and able to
evolve; use an iterative development
method like prototyping
25. DSS Subsystems & The
Capabilities They Offer
DSS Subsystems & The
Capabilities They Offer
Data
Management
Data Management
for Retrieval
Data Extraction
from Internal and
External Databases
Model
Management
Creation,
Maintenance,
and Use of
Models
Dialog
Management
Menus, Icons,
Natural Language,
Graphics
DSS on a Computer PlatformDSS on a Computer Platform
Human Decision MakerHuman Decision Maker
User
26. models
Model is built by using a variety of
assumptions about the relationship
between its variables
by comparing alternatives (what if’s),
you can vary the premises and
compare the outcomes
27. DSS supports asking 2 types of
questions
Scenario generation - what-if mode
– user considers alternative scenarios and
their results
– e.g. what if advertising expenditures are
increased by 5%
goal-seeking
– user asks “what would it take in terms of
input factors to achieve a particular
outcome
28. Spreadsheets for decision support
very popular tools for decision support
activities:
1) based on familiar way to view data (table)
and relationships between data take
form of a report
2) very easy to use
allow users to make corrections, additions,
and deletions quickly and easily
can perform “what if” analyses by changing
some values and viewing results
29. Spreadsheets for decision support
thousands of templates for spreadsheet
packages to help users - templates are
prepared spreadsheet models into
which users only enter data - all
relationships and calculating formulas
are provided and in place
30. examples for financial planning
• loan amortization
• depreciation
• lease versus buy
• break-even analysis
• discounted cash flows and net present
value
31. Spreadsheets
about 20-30% of users will become
dissatisfied with spreadsheets for
decision support and will want more
powerful tools, but many users will stay
with spreadsheets as primary DSS,
especially for smaller problems
32. Development & Adaptation of DSSDevelopment & Adaptation of DSS
Problem Definition by
Users and Developers
Development of
Initial Prototype
Prototype/DSS
Evaluation
Prototype/DSS
Modification
Validation and
Documentation of DSS
Are Current
Requirements
Satisfied?
no
DSS Ready for Use
Develop-
ment
Loop
Adaptation
Loop
yes
33. 2. Executive support systems
(ESS)
help senior level managers with
unstructured problems dealing with
monitoring and control functions
• monitor organizational performance
• track activities of competitors
• spot problems
• identify opportunities
• forecast trends
34. ESS combines computing and
communications
includes functions for providing summary
performance data
data typically covers sales, production, earnings,
budgets, and forecasts
uses graphics to display and visualize data in a very
easy to use fashion
combine data from internal and external sources
environmental scanning/alerting - for news on
government regulations, competition, financial and
economic developments, and scientific topics
36. ESS
used by both top level execs. and
managers several levels below
37. Relationship between EIS and DSSRelationship between EIS and DSS
User Task Primary Support
Areas
EISExecutive
Analyst/
Middle
Manager
Flow of Problems
DSS
Problem/Opportunity
Discovery and
Assessment
Seeking Problem
Solution:
Decision-Making
Process
Monitoring and
Control,
Strategic Planning
Planning
