11.1 © 2004 by prentice hall information management and decision making for the digital firm...

11.1 © 2004 by Prentice Hall

INFORMATIONINFORMATION

MANAGEMENT ANDMANAGEMENT AND

DECISION MAKINGDECISION MAKING

FOR THE DIGITAL FIRMFOR THE DIGITAL FIRM

MODULE-2 : UNIT-8


• How can information systems help How can information systems help individual managers make better individual managers make better decisions when the decisions when the problems are problems are non-routine and constantly non-routine and constantly changing?changing?

• How can information systems help How can information systems help people working in a group make people working in a group make decisions more efficiently?decisions more efficiently?

OBJECTIVES


• Are there any special systems that Are there any special systems that can facilitate decision-making among can facilitate decision-making among senior managers? Exactly what can senior managers? Exactly what can these systems do to help these systems do to help high-level high-level management?management?

• What benefits can systems that What benefits can systems that support management decision-support management decision-making provide for the organization making provide for the organization as a whole?as a whole?

OBJECTIVES


OBJECTIVESOBJECTIVES

• Data and information analysis using Data and information analysis using OPLAP and data mining?OPLAP and data mining?

• Methods of data visualization?Methods of data visualization?

• What is ‘Knowledge management’?What is ‘Knowledge management’?

• What are the emerging trends in What are the emerging trends in information management? information management?


• Building information systems that Building information systems that can actually fulfill executive can actually fulfill executive information requirements.information requirements.

• Create meaningful reporting and Create meaningful reporting and management decision-making management decision-making processes.processes.

MANAGEMENT CHALLENGES


• Computer system at the management Computer system at the management level of an organization.level of an organization.

• Combines data, analytical tools, and Combines data, analytical tools, and models. models.

• Supports semi-structured and Supports semi-structured and unstructured decision-makingunstructured decision-making

DECISION-SUPPORT SYSTEMS (DSS)


MISMIS • Provides reports based on routine flow Provides reports based on routine flow

of data.of data.• Assists in general control of the Assists in general control of the

organization.organization.

DSSDSS

• Emphasizes change, flexibility, rapid Emphasizes change, flexibility, rapid response, models, assumptions, ad hoc response, models, assumptions, ad hoc queries, and display graphics.queries, and display graphics.


Difference Between MIS and DSS


Model-driven DSSModel-driven DSS

• Primarily stand-alone. Primarily stand-alone.

• Uses model to perform “what-if” and Uses model to perform “what-if” and other kinds of analysis.other kinds of analysis.

TYPES OF DECISION-SUPPORT SYSTEMS (DSS)


Data-driven DSSData-driven DSS• Allows users to extract and analyze useful Allows users to extract and analyze useful

information from large databases.information from large databases.

Uses DataminingUses Datamining• Finds hidden trends, patterns and Finds hidden trends, patterns and

relationships in large databases in data relationships in large databases in data warehouses.warehouses.

• Knowledge discovery.Knowledge discovery.

TYPES DECISION-SUPPORT SYSTEMS (DSS)



Overview of a Decision-Support System (DSS)

Figure 11-2


1. DSS Database: 1. DSS Database: CCollection of current or ollection of current or historical datahistorical data

2. DSS Software System: 2. DSS Software System: CCollection of ollection of software tools/mathematical and analytical software tools/mathematical and analytical models. models.

3. 3. User Interface:User Interface: Easy interaction. Easy interaction.


Components of Decision-Support Systems


4. Model4. Model

• Abstract representation illustrating Abstract representation illustrating components or relationships components or relationships

5. Sensitivity Analysis5. Sensitivity Analysis

• Asks “what-if” questions repeatedly to Asks “what-if” questions repeatedly to determine the impact of change.determine the impact of change.


Components of Decision-Support Systems (contd.)


• Railway:Railway: Train dispatching and routing.Train dispatching and 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

• U.S. Department of Defense:U.S. Department of Defense: Defense Defense contract analysis.contract analysis.


Examples of DSS Applications and the Digital Firm


• Comprehensive examination of supply Comprehensive examination of supply chain management.chain management.

• Searches among large number of Searches among large number of alternatives for most efficient and cost-alternatives for most efficient and cost-effective combinationeffective combination..

• Reduces overall costs.Reduces overall costs.

• Increases speed and accuracy of filling Increases speed and accuracy of filling customer orders.customer orders.


DSS for Supply Chain Management


• Uses data mining to guide decisions on Uses data mining to guide decisions on pricing, customer retention, market share. pricing, customer retention, market share.

• Consolidates customer information from Consolidates customer information from massive data warehouses.massive data warehouses.

• Uses various analytical tools to slice Uses various analytical tools to slice information into small segments for one-information into small segments for one-to-one marketing. to-one marketing.


DSS for Customer Relationship Management


• Interactive computer-based system. Interactive computer-based system.

• Facilitates solution to unstructured Facilitates solution to unstructured problems. problems.

• For a set of decision makers working For a set of decision makers working together as a group.together as a group.

GROUP DECISION-SUPPORT SYSTEMS (GDSS)

What Is a GDSS?


• Hardware: Hardware: Conference facility, electronic Conference facility, electronic hardware.hardware.

• Software tools: Software tools: Tools for organizing ideas, Tools for organizing ideas, gathering information, and ranking and gathering information, and ranking and seeking priorities.seeking priorities.

• People: People: Participants, trained facilitator, Participants, trained facilitator, staff to support hardware and software.staff to support hardware and software.


Components of GDSS


• Electronic questionnairesElectronic questionnaires

• Electronic brainstorming toolsElectronic brainstorming tools

• Idea organizersIdea organizers

• Questionnaire toolsQuestionnaire tools

• Tools for voting or setting Tools for voting or setting prioritiespriorities


GDSS Software Tools


• Improved preplanningImproved preplanning

• Increased participation Increased participation

• Open, collaborative meeting atmosphereOpen, collaborative meeting atmosphere

• Criticism-free idea generationCriticism-free idea generation

• Evaluation objectivityEvaluation objectivity


How GDSS can Enhance Group Decision-Making


Executive Support Systems (ESS)Executive Support Systems (ESS)

• Information system at Information system at strategic levelstrategic level of an of an organizationorganization

• Addresses Addresses unstructured decision-makingunstructured decision-making through advanced graphics and through advanced graphics and communicationscommunications

• Brings together data from the entire Brings together data from the entire organization and external sources.organization and external sources.

• Allows managers to select, access, and tailor Allows managers to select, access, and tailor data. data.

EXECUTIVE SUPPORT IN THE ENTERPRISE


• Analyzes, compares, and highlights Analyzes, compares, and highlights trendstrends

• Provides greater clarity and insight Provides greater clarity and insight into datainto data

• Speeds up decision-makingSpeeds up decision-making

• Improves management performanceImproves management performance

• Increases management’s span of Increases management’s span of controlcontrol

• Better monitoring of activitiesBetter monitoring of activities

Benefits of Executive Support SystemsBenefits of Executive Support Systems


DATA AND INFORMATION ANALYSISDATA AND INFORMATION ANALYSIS

METHODS FOR ANALYSISMETHODS FOR ANALYSIS

1.1.Data, Text & Web Mining: Data, Text & Web Mining: Process of Process of searching for unknown or non-searching for unknown or non-obvious relationships or information obvious relationships or information in large databases using intelligent in large databases using intelligent tools such as tools such as neural computingneural computing..

2.2.Online Analytical Processing Online Analytical Processing (OLAP) : (OLAP) : Software tool for users to Software tool for users to create on demand reports and create on demand reports and queries and analyze data.queries and analyze data.


DATA VISUALIZATIONDATA VISUALIZATION

• It refers to the technologies that It refers to the technologies that support visualizing and interpreting support visualizing and interpreting data.data.

• By using these technologies, By using these technologies, managers/ engineers/ professionals managers/ engineers/ professionals can spot problems that are can spot problems that are undetected by using standard undetected by using standard analysis methodsanalysis methods



The technologies for visual analysis The technologies for visual analysis are :are :

- Digital maps,- Digital maps,

- Geographical information systems- Geographical information systems

-- GUIGUI - Videos- Videos

- Graphs- Graphs - Animation- Animation

-- Virtual realityVirtual reality

- Dimensional presentations- Dimensional presentations



GEOGRAPHICAL INFORMATION SYSTEMGEOGRAPHICAL INFORMATION SYSTEMA computer based system for :A computer based system for :

1.1. Capturing,Capturing, !!

2.2. Storing,Storing, !!

3.3. Modeling,Modeling, ! Geographically referenced data! Geographically referenced data

4.4. Retrieving,Retrieving, ! with digitized maps.! with digitized maps.

5.5. Checking,Checking, !!

6.6. Integrating,Integrating, ! See website : mapmyindia.com! See website : mapmyindia.com

7.7. Manipulating,Manipulating, !!

8.8. Analyzing andAnalyzing and !!

9.9. DisplayingDisplaying !!


DATA VISUALIZATIODATA VISUALIZATIONN

VIRTUAL REALITY (VR)VIRTUAL REALITY (VR)

VR is interactive, computer VR is interactive, computer generated, three dimensional generated, three dimensional graphics delivered to the graphics delivered to the user through head-mounted user through head-mounted display.display.


KNOWLEDGE MANAGEMENTKNOWLEDGE MANAGEMENT

It is a process that helps organizations :It is a process that helps organizations :

- Identify,- Identify, !!

- Select,- Select, ! ! important informationimportant information

- Organize,- Organize, ! ! and expertise that areand expertise that are

- Disseminate & - Disseminate & ! ! part of organization’s part of organization’s

- Transfer - Transfer ! ! memory and that memory and that ! ! typically residetypically reside

! ! within the organizationwithin the organization

! ! in unstructured mannerin unstructured manner..


15 TOP EMERGING TRENDS IN 15 TOP EMERGING TRENDS IN INFORMATION MANAGEMENTINFORMATION MANAGEMENT

• More Urgent Calls for Data GovernanceMore Urgent Calls for Data Governance

• Rise of the Well-Managed ‘Intra-Cloud’Rise of the Well-Managed ‘Intra-Cloud’

• Companies will be Challenged With Cloud Companies will be Challenged With Cloud Data Integration,Data Integration,

• Green IT Will Meet the CloudGreen IT Will Meet the Cloud

• Clouds and Grids Will ConvergeClouds and Grids Will Converge

• Greater Push for Business Intelligence Greater Push for Business Intelligence and Performance Managementand Performance Management



• Rise of Master Data Management for Rise of Master Data Management for Enterprise Environment and ApplicationsEnterprise Environment and Applications

• The Economy Injects Uncertainty into The Economy Injects Uncertainty into 2009 Plans2009 Plans

• Economy Will Drive More Open SourceEconomy Will Drive More Open Source

• Virtualization Will Mature to ‘Grade Two’Virtualization Will Mature to ‘Grade Two’

• Virtualization Will Meet Application Virtualization Will Meet Application ManagementManagement



• More Concern About Virtualization More Concern About Virtualization SecuritySecurity

• The Rise of Data ‘Visualization’The Rise of Data ‘Visualization’

• More Service Orienting of Business More Service Orienting of Business Intelligence (BI) ApplicationsIntelligence (BI) Applications

• Developer and DBA World Will Collide Developer and DBA World Will Collide


ENHANCINGENHANCING

MANAGEMENTMANAGEMENT

DECISION-MAKINGDECISION-MAKING

FOR THE DIGITAL FIRMFOR THE DIGITAL FIRM

11.1 © 2004 by prentice hall information management and decision making for the digital firm...

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