11.1 © 2003 by prentice hall 11 enhancingmanagementdecision-making for the digital firm chapter
Post on 15-Jan-2016
212 views
TRANSCRIPT
11.1 © 2003 by Prentice Hall
1111
ENHANCINGENHANCING
MANAGEMENTMANAGEMENT
DECISION-MAKINGDECISION-MAKING
FOR THE DIGITALFOR THE DIGITAL
FIRMFIRM
Chapter
11.2 © 2003 by Prentice Hall
• How can information systems help How can information systems help individual managers make better individual managers make better decisions when the problems are non-decisions when the problems are non-routine and constantly changing?routine and constantly changing?
• How can information systems help people How can information systems help people working in a group make decisions more working in a group make decisions more efficiently?efficiently?
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
OBJECTIVES
11.3 © 2003 by Prentice Hall
• Are there any special systems that can facilitate Are there any special systems that can facilitate decision-making among senior managers? decision-making among senior managers? Exactly what can these systems do to help high-Exactly what can these systems do to help high-level management?level management?
• What benefits can systems that support What benefits can systems that support management decision-making provide for the management decision-making provide for the organization as a whole?organization as a whole?
OBJECTIVES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.4 © 2003 by Prentice Hall
• Building information systems that can Building information systems that can actually fulfill executive information actually fulfill executive information requirementsrequirements
• Create meaningful reporting and management Create meaningful reporting and management decision-making processesdecision-making processes
MANAGEMENT CHALLENGES
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.5 © 2003 by Prentice Hall
• Computer system at the management level of Computer system at the management level of an organizationan organization
• Combines data, analytical tools, and models Combines data, analytical tools, and models
• Supports semi-structured and unstructured Supports semi-structured and unstructured decision-makingdecision-making
DECISION-SUPPORT SYSTEMS (DSS)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.6 © 2003 by Prentice Hall
MISMIS
• Provides reports based on routine flow of Provides reports based on routine flow of datadata
• Assists in general control of the Assists in general control of the organizationorganization
DECISION-SUPPORT SYSTEMS (DSS)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
MIS and DSS
11.7 © 2003 by Prentice Hall
DSSDSS
• Emphasizes change, flexibility, rapid Emphasizes change, flexibility, rapid response, models, assumptions, ad hoc response, models, assumptions, ad hoc queries, and display graphicsqueries, and display graphics
DECISION-SUPPORT SYSTEMS (DSS)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
MIS and DSS
11.8 © 2003 by Prentice Hall
Model-driven DSSModel-driven DSS
• Primarily stand-alone Primarily stand-alone
• Uses model to perform “what-if” and other Uses model to perform “what-if” and other kinds of analysiskinds of analysis
DECISION-SUPPORT SYSTEMS (DSS)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
Types of Decision-Support Systems
11.9 © 2003 by Prentice Hall
Data-driven DSSData-driven DSS
• Allows users to extract and analyze useful Allows users to extract and analyze useful information from previous databasesinformation from previous databases
DataminingDatamining
• Finds hidden patterns and relationships in Finds hidden patterns and relationships in large databases to infer ruleslarge databases to infer rules
DECISION-SUPPORT SYSTEMS (DSS)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
Types of Decision-Support Systems
11.10 © 2003 by Prentice Hall
DECISION-SUPPORT SYSTEMS (DSS)
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
Overview of a Decision-Support System (DSS)
Figure 11-1
11.11 © 2003 by Prentice Hall
DSS database DSS database
• Collection of current or historical dataCollection of current or historical data
DSS software systemDSS software system
• Collection of software tools/mathematical Collection of software tools/mathematical and analytical models and analytical models
DECISION-SUPPORT SYSTEMS (DSS)
Components of Decision-Support Systems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.12 © 2003 by Prentice Hall
ModelModel
• Abstract representation illustrating Abstract representation illustrating components or relationships components or relationships
Sensitivity analysisSensitivity analysis
• Asks “what-if” questions repeatedly to Asks “what-if” questions repeatedly to determine the impact of changedetermine the impact of change
DECISION-SUPPORT SYSTEMS (DSS)
Components of Decision-Support Systems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.13 © 2003 by Prentice Hall
DECISION-SUPPORT SYSTEMS (DSS)
Sensitivity Analysis
Figure 11-2
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.14 © 2003 by Prentice Hall
• General Accident Insurance:General Accident Insurance: Customer buying patterns and fraud Customer buying patterns and fraud detectiondetection
• Bank of America:Bank of America: Customer profilesCustomer profiles
• Frito-Lay, Inc.:Frito-Lay, Inc.: Price, advertising, and Price, advertising, and promotion selectionpromotion selection
DECISION-SUPPORT SYSTEMS (DSS)
DSS Applications and the Digital Firm
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.15 © 2003 by Prentice Hall
• Burlington Coat Factory:Burlington Coat Factory: Store Store location and inventory mixlocation and inventory mix
• Keycorp:Keycorp: Targeting direct mail marketing Targeting direct mail marketing customerscustomers
• National Gypsum:National Gypsum: Corporate planning Corporate planning and forecastingand forecasting
DECISION-SUPPORT SYSTEMS (DSS)
DSS Applications and the Digital Firm
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.16 © 2003 by Prentice Hall
• Southern Railway:Southern Railway: Train dispatching Train dispatching and routingand routing
• Texas Oil and Gas Corporation:Texas Oil and Gas Corporation: Evaluation of potential drilling sitesEvaluation of potential drilling sites
• United Airlines:United Airlines: Flight scheduling, Flight scheduling, passenger demand forecastingpassenger demand forecasting
DECISION-SUPPORT SYSTEMS (DSS)
DSS Applications and the Digital Firm
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.17 © 2003 by Prentice Hall
• U.S. Department of Defense:U.S. Department of Defense: Defense Defense contract analysiscontract analysis
DECISION-SUPPORT SYSTEMS (DSS)
DSS Applications and the Digital Firm
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.18 © 2003 by Prentice Hall
• Comprehensive examination of supply Comprehensive examination of supply management chain management chain
• Searches for most efficient and cost-Searches for most efficient and cost-effective combinationeffective combination
• Reduces overall costsReduces overall costs
• Increases speed and accuracy of filling Increases speed and accuracy of filling customer orderscustomer orders
DECISION-SUPPORT SYSTEMS (DSS)
DSS for Supply Chain Management
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.19 © 2003 by Prentice Hall
• Uses data mining to guide decisions Uses data mining to guide decisions
• Consolidates customer information into Consolidates customer information into massive data warehousesmassive data warehouses
• Uses various analytical tools to slice Uses various analytical tools to slice information into small segments information into small segments
DECISION-SUPPORT SYSTEMS (DSS)
DSS for Customer Relationship Management
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.20 © 2003 by Prentice Hall
DECISION-SUPPORT SYSTEMS (DSS)
DSS for Customer Analysis and Segmentation
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
Figure 11-3
11.21 © 2003 by Prentice Hall
Geographic Information Systems (GIS)Geographic Information Systems (GIS)
• Software for analyzing and displaying data Software for analyzing and displaying data using digitized mapsusing digitized maps
• Enhances planning and decision-makingEnhances planning and decision-making
DECISION-SUPPORT SYSTEMS (DSS)
DSS for Simulating Business Scenarios
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.22 © 2003 by Prentice Hall
Customer Decision-Support Systems Customer Decision-Support Systems (CDSS)(CDSS)
• Support decision-making process of an Support decision-making process of an existing or potential customerexisting or potential customer
DECISION-SUPPORT SYSTEMS (DSS)
Web-Based Customer Decision-Support Systems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.23 © 2003 by Prentice Hall
• Interactive computer-based system Interactive computer-based system
• Facilitates solution to unstructured Facilitates solution to unstructured problems problems
• Set of decision makers working together Set of decision makers working together as a groupas a group
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
What Is a GDSS?
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.24 © 2003 by Prentice Hall
• Hardware: Hardware: Conference facility, electronic Conference facility, electronic hardwarehardware
• Software tools: Software tools: Tools for organizing ideas, Tools for organizing ideas, gathering information, and ranking and gathering information, and ranking and seeking prioritiesseeking priorities
• People: People: Participants, trained facilitator, Participants, trained facilitator, staff supporting hardware and softwarestaff supporting hardware and software
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Characteristics of GDSS
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.25 © 2003 by Prentice Hall
• Electronic questionnairesElectronic questionnaires
• Electronic brainstorming toolsElectronic brainstorming tools
• Idea organizersIdea organizers
• Questionnaire toolsQuestionnaire tools
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
GDSS Software Tools
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.26 © 2003 by Prentice Hall
• Tools for voting or setting prioritiesTools for voting or setting priorities
• Stakeholder identification and analysis Stakeholder identification and analysis toolstools
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
GDSS Software Tools
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.27 © 2003 by Prentice Hall
Electronic Meeting System (EMS):Electronic Meeting System (EMS):
• Collaborative GDSS Collaborative GDSS
• Makes group meetings more productiveMakes group meetings more productive
• Supports meetingsSupports meetings
• Facilitates communication and decision-Facilitates communication and decision-makingmaking
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Overview of a GDSS Meeting
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.28 © 2003 by Prentice Hall
• Improved preplanningImproved preplanning
• Increased participation Increased participation
• Open, collaborative meeting atmosphereOpen, collaborative meeting atmosphere
• Criticism-free idea generationCriticism-free idea generation
• Evaluation objectivityEvaluation objectivity
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
How GDSS can Enhance Group Decision-Making
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.29 © 2003 by Prentice Hall
• Idea organization and evaluationIdea organization and evaluation
• Setting priorities and making decisionsSetting priorities and making decisions
• Documentation of meetingsDocumentation of meetings
• Access to external informationAccess to external information
• Preservation of “organizational memory”Preservation of “organizational memory”
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
How GDSS can Enhance Group Decision-Making
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.30 © 2003 by Prentice Hall
Executive Support Systems (ESS):Executive Support Systems (ESS):
• Information system at strategic level of an Information system at strategic level of an organizationorganization
• Addresses unstructured decision-making Addresses unstructured decision-making through advanced graphics and through advanced graphics and communicationscommunications
EXECUTIVE SUPPORT IN THE ENTERPRISE
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.31 © 2003 by Prentice Hall
• Brings together data from the entire Brings together data from the entire organization organization
• Allows managers to select, access, and Allows managers to select, access, and tailor data tailor data
• Enables executive and any subordinates Enables executive and any subordinates to look at the same data in the same wayto look at the same data in the same way
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
The Role of Executive Support Systems in the Organization
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.32 © 2003 by Prentice Hall
Developing ESS: Developing ESS:
• Ease of useEase of use
• Facility for environmental scanningFacility for environmental scanning
• External and internal sources of External and internal sources of information to be used for environmental information to be used for environmental scanning scanning
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
The Role of Executive Support Systems in the Organization
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.33 © 2003 by Prentice Hall
• Analyzes, compares, and highlights trendsAnalyzes, compares, and highlights trends
• Provides greater clarity and insight into Provides greater clarity and insight into datadata
• Speeds up decision-makingSpeeds up decision-making
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Benefits of Executive Support Systems Benefits of Executive Support Systems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.34 © 2003 by Prentice Hall
• Improves management performance Improves management performance
• Increases management’s span of controlIncreases management’s span of control
• Better monitoring of activitiesBetter monitoring of activities
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Benefits of Executive Support Systems
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.35 © 2003 by Prentice Hall
ESS for business intelligence:ESS for business intelligence:
• Identifies changing market conditionsIdentifies changing market conditions
• Formulates responsesFormulates responses
• Tracks implementation effortsTracks implementation efforts
• Learns from feedbackLearns from feedback
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Executive Support Systems and the Digital Firm
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.36 © 2003 by Prentice Hall
Monitoring corporate performance: Monitoring corporate performance:
balanced scorecard systemsbalanced scorecard systems
• Model for analyzing firm performanceModel for analyzing firm performance
• Supplements traditional financial Supplements traditional financial measures with measurements from measures with measurements from additional business perspectivesadditional business perspectives
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Executive Support Systems and the Digital Firm
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.37 © 2003 by Prentice Hall
Strategic performance management tools Strategic performance management tools
for enterprise systemsfor enterprise systems
• SAP:SAP: Web-enabled mySAP.com™, Web-enabled mySAP.com™, Management CockpitManagement Cockpit
• PeopleSoft:PeopleSoft: Web-enabled Enterprise Web-enabled Enterprise Performance Management (EPM) Performance Management (EPM)
• Oracle:Oracle: Strategic Enterprise Management Strategic Enterprise Management
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
Enterprise Wide Reporting and Analysis
Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 11 Enhancing Management Decision-Making for the Digital FirmChapter 11 Enhancing Management Decision-Making for the Digital Firm
11.38 © 2003 by Prentice Hall
1111
ENHANCINGENHANCING
MANAGEMENTMANAGEMENT
DECISION-MAKINGDECISION-MAKING
FOR THE DIGITALFOR THE DIGITAL
FIRMFIRM
Chapter