MIS CHAPTER 12 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 LO 1 Define types of decisions and phases of the decision-making process in a typical organization. LO 2 LO 3 Describe a decision support system. LO 4 Describe group support systems, including groupware and electronic meeting systems. LO 5 Summarize uses for a geographic information system. Explain an executive information system’s importance in decision making. MIS, Chapter 12 © 2011 Course Technology, a part of Cengage Learning 2

Chapter 12 Management Support Systems l e a r n i n g o u t c o m e s (cont’d. ) LO 6 Describe guidelines for designing a management support system. MIS, Chapter 12 © 2011 Course Technology, a part of Cengage Learning 3

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 4

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 5

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 6

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 7

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 8

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 9

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 10

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 11

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 12

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 13

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 14

Exhibit 12. 2 MIS, Chapter 12 © 2011 Course Technology, a part of Cengage Learning Components of a DSS 15

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 16

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 17

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 18

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 19

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 20

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 21

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 22

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 23

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 24

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 25

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 26

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 27

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 28

Chapter 12 Management Support Systems Group Support Systems • Use computer and communication technologies to formulate, process, and implement a decisionmaking 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 © 2011 Course Technology, a part of Cengage Learning 29

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 30

Chapter 12 Management Support Systems Groupware • Assist groups in: – Communicating, collaborating, and coordinating their activities • Intended more for teamwork than for decision support MIS, Chapter 12 © 2011 Course Technology, a part of Cengage Learning 31

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 32

Chapter 12 Management Support Systems Groupware (cont’d. ) • Examples of Web-based GSS tools: – Microsoft Office Share. Point Server and IBM Lotus Domino • Other software used for e-collaboration: – Electronic meeting systems, such as Microsoft Live. Meeting, Metastorm, and IBM File. Net MIS, Chapter 12 © 2011 Course Technology, a part of Cengage Learning 33

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 34

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 35

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 36

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 37

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 38

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 39

Chapter 12 Management Support Systems GIS Applications • • Education planning Urban planning Government Insurance Marketing Real estate Transportation and logistics MIS, Chapter 12 © 2011 Course Technology, a part of Cengage Learning 40

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 41

Chapter 12 Management Support Systems 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 © 2011 Course Technology, a part of Cengage Learning 42