enhancing management decision making
DESCRIPTION
13. ENHANCING MANAGEMENT DECISION MAKING. LEARNING OBJECTIVES. DIFFERENTIATE DECISION-SUPPORT SYSTEMS (DSS) FROM GROUP DECISION-SUPPORT SYSTEMS (GDSS) DESCRIBE COMPONENTS OF DSS & GDSS *. LEARNING OBJECTIVES. DEMONSTRATE HOW DSS & GDSS ENHANCE DECISION-MAKING - PowerPoint PPT PresentationTRANSCRIPT
13.13.11 Prof Jess Role @ UEAB 2010
1313 ENHANCING ENHANCING
MANAGEMENT MANAGEMENT DECISION DECISION MAKINGMAKING
13.13.22 Prof Jess Role @ UEAB 2010
LEARNING OBJECTIVESLEARNING OBJECTIVES
• DIFFERENTIATE DECISION-DIFFERENTIATE DECISION-SUPPORT SYSTEMS (DSS) FROM SUPPORT SYSTEMS (DSS) FROM GROUP DECISION-SUPPORT GROUP DECISION-SUPPORT SYSTEMS (GDSS)SYSTEMS (GDSS)
• DESCRIBE COMPONENTS OF DSS & DESCRIBE COMPONENTS OF DSS & GDSSGDSS
**
13.13.33 Prof Jess Role @ UEAB 2010
LEARNING OBJECTIVESLEARNING OBJECTIVES
• DEMONSTRATE HOW DSS & GDSS DEMONSTRATE HOW DSS & GDSS ENHANCE DECISION-MAKINGENHANCE DECISION-MAKING
• DESCRIBE CAPABILITIES OF DESCRIBE CAPABILITIES OF EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS)
• ASSESS BENEFITS OF ESSASSESS BENEFITS OF ESS
**
13.13.44 Prof Jess Role @ UEAB 2010
MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES
• DECISION-SUPPORT SYSTEMSDECISION-SUPPORT SYSTEMS
• GROUP DECISION-SUPPORT GROUP DECISION-SUPPORT SYSTEMSSYSTEMS
• EXECUTIVE SUPPORT SYSTEMSEXECUTIVE SUPPORT SYSTEMS
**
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DECISION SUPPORT DECISION SUPPORT SYSTEMS (DSS)SYSTEMS (DSS)
MANAGEMENT LEVEL COMPUTER MANAGEMENT LEVEL COMPUTER SYSTEM SYSTEM COMBINES DATA, COMBINES DATA, MODELS, USER - FRIENDLY MODELS, USER - FRIENDLY
SOFTWARE FOR SEMISTRUCTURED SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION & UNSTRUCTURED DECISION
MAKINGMAKING**
13.13.66 Prof Jess Role @ UEAB 2010
• MODEL DRIVEN DSS: Uses models MODEL DRIVEN DSS: Uses models for what-if and other analysisfor what-if and other analysis
• DATA-DRIVEN DSS: Allows DATA-DRIVEN DSS: Allows extraction, analysis of information extraction, analysis of information from databasesfrom databases
**
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
13.13.77 Prof Jess Role @ UEAB 2010
TPSEXTERNAL
DATADSS DATA
BASE
DSS SOFTWARE SYSTEMMODELS
OLAP TOOLS
DATAMINING TOOLS
USERINTERFACE
USER
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
13.13.88 Prof Jess Role @ UEAB 2010
• TPS: Transaction processing systemTPS: Transaction processing system• MODEL: Representation of a problemMODEL: Representation of a problem• OLAP: On-line analytical processingOLAP: On-line analytical processing• USER INTERFACE: How user enters USER INTERFACE: How user enters
problem & receives answersproblem & receives answers• DSS DATABASE: Current data from DSS DATABASE: Current data from
applications or groupsapplications or groups**
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
13.13.99 Prof Jess Role @ UEAB 2010
• DATA MINING: Technology for finding DATA MINING: Technology for finding relationships in large data bases for relationships in large data bases for predictionprediction
• DSS SOFTWARE SYSTEM: Tools for data DSS SOFTWARE SYSTEM: Tools for data analysisanalysis
• SENSITIVITY ANALYSIS: SENSITIVITY ANALYSIS: ““What-ifWhat-if”” questions about changes in model factorsquestions about changes in model factors
**
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
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• SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT
• CUSTOMER RELATIONSHIP CUSTOMER RELATIONSHIP MANAGEMENTMANAGEMENT
• SIMULATING BUSINESS SIMULATING BUSINESS SCENARIOSSCENARIOS
**
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
APPLICATIONS:APPLICATIONS:
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• GEOGRAPHIC INFORMATION SYSTEM GEOGRAPHIC INFORMATION SYSTEM (GIS): Software to display digital maps(GIS): Software to display digital maps
• WEB-BASED DSS: Available on Internet WEB-BASED DSS: Available on Internet for decisions, information, softwarefor decisions, information, software
• CUSTOMER DSS (CDSS): System CUSTOMER DSS (CDSS): System supports buying decisions of customerssupports buying decisions of customers
**
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
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• GENERAL ACCIDENT INSURANCE: GENERAL ACCIDENT INSURANCE: Customer buying patterns, fraud Customer buying patterns, fraud detectiondetection
• BANK OF AMERICA: Customer BANK OF AMERICA: Customer profilesprofiles
• FRITO-LAY: Price, advertising, FRITO-LAY: Price, advertising, promotion selectionpromotion selection
**
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
EXAMPLES:EXAMPLES:
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• BURLINGTON COAT FACTORY: BURLINGTON COAT FACTORY: Store location, inventory mixStore location, inventory mix
• KEYCORP: Targeting direct mail KEYCORP: Targeting direct mail marketing customersmarketing customers
• NATIONAL GYPSUM: Corporate NATIONAL GYPSUM: Corporate planning & forecastingplanning & forecasting
**
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
13.13.1414 Prof Jess Role @ UEAB 2010
• SOUTHERN RAILWAY: Train SOUTHERN RAILWAY: Train dispatching and routingdispatching and routing
• TEXAS OIL & GAS: Evaluating drilling TEXAS OIL & GAS: Evaluating drilling sitessites
• UNITED AIRLINES: Flight scheduling, UNITED AIRLINES: Flight scheduling, passenger demand forecastingpassenger demand forecasting
**
DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM
13.13.1515 Prof Jess Role @ UEAB 2010
GROUP DECISION-SUPPORT SYSTEM GROUP DECISION-SUPPORT SYSTEM (GDSS)(GDSS)
INTERACTIVE COMPUTER-BASED INTERACTIVE COMPUTER-BASED SYSTEM FACILITATES SOLUTION SYSTEM FACILITATES SOLUTION OF UNSTRUCTURED PROBLEMS OF UNSTRUCTURED PROBLEMS BY DECISION MAKERS WORKING BY DECISION MAKERS WORKING
AS GROUPAS GROUP
**
13.13.1616 Prof Jess Role @ UEAB 2010
ALLOWS: Improved pre-planningALLOWS: Improved pre-planning• Increased participationIncreased participation• Open, collaborative atmosphereOpen, collaborative atmosphere• Idea generation free of criticismIdea generation free of criticism• Evaluation objectivityEvaluation objectivity• Idea organization & evaluationIdea organization & evaluation
**
GDSS ENHANCED DECISION GDSS ENHANCED DECISION MAKINGMAKING
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ALLOWS: Setting priorities & decision ALLOWS: Setting priorities & decision makingmaking
• Documentation of meetingsDocumentation of meetings• Access to external informationAccess to external information• Preservation of organizational memoryPreservation of organizational memory
**
GDSS ENHANCED GDSS ENHANCED DECISION MAKINGDECISION MAKING
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TOOLS OF GDSSTOOLS OF GDSS
• ELECTRONIC QUESTIONNAIRESELECTRONIC QUESTIONNAIRES
• ELECTRONIC BRAINSTORMINGELECTRONIC BRAINSTORMING
• IDEA ORGANIZERSIDEA ORGANIZERS
• QUESTIONNAIRE TOOLSQUESTIONNAIRE TOOLS
• TOOLS FOR VOTING,TOOLS FOR VOTING, SETTING PRIORITIESSETTING PRIORITIES
**
13.13.1919 Prof Jess Role @ UEAB 2010
TOOLS OF GDSSTOOLS OF GDSS
• STAKEHOLDER IDENTIFICATION & STAKEHOLDER IDENTIFICATION & ANALYSIS TOOLSANALYSIS TOOLS
• POLICY FORMATION TOOLSPOLICY FORMATION TOOLS
• GROUP DICTIONARIESGROUP DICTIONARIES
**
13.13.2020 Prof Jess Role @ UEAB 2010
ELECTRONIC MEETING SYSTEM ELECTRONIC MEETING SYSTEM (EMS)(EMS)
COLLABORATIVE GDSS: Uses COLLABORATIVE GDSS: Uses information technology to make information technology to make group meetings more productive group meetings more productive facilitates communication decision facilitates communication decision makingmaking
**
13.13.2121 Prof Jess Role @ UEAB 2010
STRATEGIC INFORMATION SYSTEM STRATEGIC INFORMATION SYSTEM DESIGNED FOR UNSTRUCTURED DESIGNED FOR UNSTRUCTURED
DECISION MAKING THROUGH DECISION MAKING THROUGH ADVANCED GRAPHICS AND ADVANCED GRAPHICS AND
COMMUNICATIONSCOMMUNICATIONS
**
EXECUTIVE EXECUTIVE SUPPORT SYSTEMS (ESS)SUPPORT SYSTEMS (ESS)
13.13.2222 Prof Jess Role @ UEAB 2010
EXECUTIVE EXECUTIVE SUPPORT SYSTEMSSUPPORT SYSTEMS
• DRILL DOWN: ability to move from DRILL DOWN: ability to move from summary to lower levels of detailsummary to lower levels of detail
• Designed for specific needs of CEODesigned for specific needs of CEO• Extensive support staffExtensive support staff• Executive has 24 hour per day ability to Executive has 24 hour per day ability to
examine, control progress throughout examine, control progress throughout organizationorganization
**
13.13.2323 Prof Jess Role @ UEAB 2010
EXECUTIVE EXECUTIVE SUPPORT SYSTEMSSUPPORT SYSTEMS
BENEFITS:BENEFITS:• FLEXIBILITYFLEXIBILITY• ABILITY TO ANALYZE, COMPARE, ABILITY TO ANALYZE, COMPARE,
HIGHLIGHT TRENDSHIGHLIGHT TRENDS• GRAPHICS HELP EXPLORE SITUATIONGRAPHICS HELP EXPLORE SITUATION• MONITOR PERFORMANCEMONITOR PERFORMANCE• TIMELINESS, AVAILABILITY OF DATA TIMELINESS, AVAILABILITY OF DATA
ALLOWS PROMPT ACTIONALLOWS PROMPT ACTION**
13.13.2424 Prof Jess Role @ UEAB 2010
EXECUTIVE EXECUTIVE SUPPORT SYSTEMSSUPPORT SYSTEMS
USES IN A DIGITAL FIRM:USES IN A DIGITAL FIRM:• BUSINESS INTELLIGENCE: Info on BUSINESS INTELLIGENCE: Info on
salespeople, distributors, retailerssalespeople, distributors, retailers• MONITORING BUSINESS PERFORMANCE: MONITORING BUSINESS PERFORMANCE:
Balanced scorecard shows perspectives Balanced scorecard shows perspectives of customers, internal processes, of customers, internal processes, learning, growthlearning, growth
• ENTERPRISE WIDE REPORTING & ENTERPRISE WIDE REPORTING & ANALYSISANALYSIS
**
13.13.2525 Prof Jess Role @ UEAB 2010
1313 ENHANCING ENHANCING
MANAGEMENT MANAGEMENT DECISION DECISION MAKINGMAKING