Decision-making Decision-making SystemsSystems
OverviewOverview
What managers do?
Decision-making
Many views of MIS
Types of MIS
What managers What managers do?do?
59.0%
10.0%6.0%
22.0%
3.0%
Pie 1
Regular meetings
Other meetings
Phone callsDesk work
Travel
Managerial roles and IS supportManagerial roles and IS support
Role IS support
interpersonal e-mail, video/teleconferencing, computer-mediated meetings
informational TPS,MIS,EIS,OIS
decisional DSS,GDSS,EIS, AI/ES
Decision-makingDecision-making
Intelligence
Design
Choice
problem definition
alternatives
resolution
Information Requirements of Decision MakersInformation Requirements of Decision Makers
OperationalManagement
Operating Management & Self-Directed Teams
Tactical Management
Business Unit Management Self-Directed Teams
StrategicManagement
Executives & Directors
Structured
Semi-Structured
Unstructured
Decision Structure Information Characteristics
InformationDecis
ions
Ad HocUnscheduledSummarizedInfrequentForward LookingExternalWide Scope
PrespecifiedScheduledDetailedFrequentHistoricalInternalNarrow Focus
Decision Support in BusinessDecision Support in Business
Time DimensionTime DimensionContent DimensionContent DimensionForm DimensionForm Dimension
Decision Support in BusinessDecision Support in BusinessCharacteristics of Information ProductsCharacteristics of Information Products
Structured DecisionsStructured DecisionsSemistructuredSemistructuredUnstructedUnstructed
Decision Decision StructureStructure
Decision Support in BusinessDecision Support in Business
Operational Control
Management Control
Strategic Planning
Structured Accounts payable
Responsibility accounting
Warehouse and factory
location
Semistructured Production scheduling
Budget preparation
Mergers and acquisitions
Unstructured Cash management
Personnel management
New products, R&D planning
Time horizonTime horizon
NOW
weeks
years
5-7
strategic
tactical
operational
Users' viewUsers' view
USER USES
Clerical personnel Handling transactions, process data and answer inquiries
First-level managers
Obtaining operations data. Assistance with planning, scheduling, identifying out-of-control situations and making decisions
Staff specialistsInformation for analysis. Assistance with analysis, planning and reporting.
Management
Regular reports. Special retrieval requests. Special analysis and reports. Assistance in indentifying problems and opportunities. Assistance in decision-making analysis.
Data base management systemData base management system
DATA BASE
Federative view
MARKETING
PRODUCTION
FINANCE
PERSONNEL
MANAGEMENT
Integrative viewIntegrative view
Functional areas
Decision levels
Data base management system
strategic planning
management control
operational control
transaction processing
DATA BASE
Data base management system
Copyright 1995 Prentice Hall CIS 3
Typical Business System
InventoryManagement
Shipping/Receiving
Rules/Standards
PurchasingMaterials
Accounting
CreditDepartment
Sent forShipping
Order
FinishedGoods
Stockroom
SalesOrders
Order Desk
Invoice
Orders forMaterials
ShippingTraffic Merchandise
Ordered
ManufacturingGroup
Requisition
Types of Information SystemsTypes of Information Systems
TPS transaction processing systems
MIS management reporting EIS executive information
systemsDSS decision support systems
GDSS group decision support systems
AI/ES expert systems
Components of a Marketing Information SystemComponents of a Marketing Information System
Sales Prospects and Rivals’ News
Rivals’ News
Company News
SERVER
CLIENTSINTERNAL
DATABASES
FirewallVia the InternetThe Server Filters
Information Based on Users’ Custom
Requirements
Rivals’ News and Company News
Sales Prospects and Company
News
Sales Prospects
News Wires
CustomerData
SalesData
InventoryData
Management Reporting AlternativesManagement Reporting AlternativesManagement Information SystemsManagement Information Systems
Decision typeDecision type
DSSTPS EIS
STRUCTURED SEMI-STRUCTURED UNSTRUCTURED
Intelligenceknowledge no knowledge no knowledge
Design of all of one or two of any of the
Choice steps steps steps
DSS generatorsDSS generatorsSpecific DSS
DSS tools
managermanagers, users
technical support intermediary
DSS Generator
USERS
DSS Builder
toolsmith
Anatomy of a DSSAnatomy of a DSS
users
data base model base
dialog,user interface
DSS generatorDBMS MBMS
DGMS
Dialog stylesDialog styles
Basic types
Q&A - Question and answer Command language Menu Input Form/Output Form Input-in-Context-of-Output
Pros and cons Mixed dialogs
Using Decision SupportUsing Decision SupportDecision Support SystemsDecision Support Systems
What-if AnalysisWhat-if Analysis Sensitivity AnalysisSensitivity Analysis Goal-Seeking AnalysisGoal-Seeking Analysis Optimization AnalysisOptimization Analysis
DSS plus:DSS plus:– GroupwareGroupware
FacilitiesFacilities
GDSS - Group Decision Support Systems
LAN decision network
WAN decision network
Decision room Teleconferencing
close far
high
low
Decisionfrequency
PLACE TIME
SAME (synch)ANY (asynch)
SAME FACE-TO-FACE CONFERENCE (WEBTYCHO)
ANY VIDEO/TELECONFERENCING
VIRTUAL
place
Executive Information SystemsExecutive Information Systems present information for top managementsupports problem/opportunity discovery and assessment
is used for control andstrategic planning
are multimedia systems provide summary and detailed information, with the ability to "drill down" into the data
provide internal and external information provide different time and space information
Artificial IntelligenceArtificial IntelligenceOverview of AIOverview of AI
Artificial IntelligenceArtificial IntelligenceThe Domains of AIThe Domains of AI
CognitiveScience
ApplicationsRobotics
Applications
NaturalInterface
Applications
ArtificialIntelligence
•Expert Systems•Learning Systems•Fuzzy Logic•Genetic Algorithms•Neural Networks•Intelligent Agents
•Visual Perception•Tactility•Dexterity•Locomotion•Navigation
•Natural Languages•Speech Recognition•Multisensory Interfaces•Virtual Reality
Expert systemsExpert systems
...an intelligent computer program that uses knowledge and inference procedures to solve problems that require significant human expertise for their solution.
The knowledge of an expert systems consists of facts and heuristics. Facts constitute the body of informationpublicly available and agreed upon by experts in a field.Heuristics are mostly private rules of good judgementthat characterize expert-level decision making in a field.
E. Feigenbaum, Stanford University
Artificial IntelligenceArtificial IntelligenceExpert SystemsExpert Systems
UserWorkstation
ExpertAdvice
UserInterfacePrograms
InferenceEngine
Program
The Expert System
Expert System Software
Expert System Development
KnowledgeAcquisition
ProgramKnowledgeEngineering
Expert and/orKnowledge Engineer
Workstation
KnowledgeBase
Expert systems productsExpert systems products
Expert systems shellsExpert systems shells
Expert systems playersExpert systems players
knowledge userknowledge user knowledge engineerknowledge engineer domain expertdomain expert
Use and development of ES
Artificial IntelligenceArtificial IntelligenceVirtual Reality (VR)Virtual Reality (VR)• Computer Simulated Reality
• Multisensory Input/Output Devices
• Data Glove• Walker• Creating Telepresence With Sight, Sound, and Touch
Artificial IntelligenceArtificial IntelligenceVirtual Reality (VR)Virtual Reality (VR)
GISGIS
It is important to appreciate that GIS does It is important to appreciate that GIS does not always provide exact answers to not always provide exact answers to problems, but by identifying trends based problems, but by identifying trends based on geography, GIS can reveal patterns that on geography, GIS can reveal patterns that can help us make can help us make informed decisionsinformed decisions. A . A GIS can improve decision-making; it GIS can improve decision-making; it cannot make decisions for us.cannot make decisions for us.
GIS Example: Emergency servicesGIS Example: Emergency services
By using the GIS as a By using the GIS as a computerized map, controllers computerized map, controllers of police vehicles and of police vehicles and ambulances can instantly call ambulances can instantly call up a detailed map of the area up a detailed map of the area around an incident. By tracking around an incident. By tracking the vehicles in real time and the vehicles in real time and using route-finding GIS using route-finding GIS functions, the controller can functions, the controller can identify the best vehicle to identify the best vehicle to attend and give directions for attend and give directions for the fastest way to the incident. the fastest way to the incident. They can even store historical They can even store historical information and look for information and look for incident patterns and black incident patterns and black spots.spots.
Shortcut to GIS_example.lnk
GIS Example: Supermarket GIS Example: Supermarket locationslocations
Supermarket chains use GIS to help Supermarket chains use GIS to help site new stores and to plan their site new stores and to plan their distribution networks. By distribution networks. By comparing how many people live comparing how many people live within 15-minutes drive time of a within 15-minutes drive time of a particular location with the number particular location with the number of supermarkets already trading in of supermarkets already trading in that area, the GIS can identify that area, the GIS can identify suitable locations with an suitable locations with an optimized catchment area. optimized catchment area. Supermarket chains also use socio-Supermarket chains also use socio-economic data to create profiles of economic data to create profiles of the people in their catchment areas the people in their catchment areas to help them understand which to help them understand which other parts of the country are likely other parts of the country are likely to be successful growth areas.to be successful growth areas.
Additional ReadingsAdditional Readings
SDSSSDSS Virtual TeamsVirtual Teams CommericalCommerical GDSS GDSS An Expert systems ApplicationAn Expert systems Application DSS..ApplicationDSS..Application GIS Applications GIS Applications Neural NetworksNeural Networks Negotaiation System Example Negotaiation System Example Knowledge management: big challenges, big rewardsKnowledge management: big challenges, big rewards New Directions in GDSS New Directions in GDSS RMIS system provides Chubb customers with current data and RMIS system provides Chubb customers with current data and
extensive drill-down analysis extensive drill-down analysis
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