mis topic no 08

8/3/2019 MIS Topic No 08

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Queries? Email: [email protected]

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Introduction The term Management Support System refers to the application of any

technology either as an independent tool or in combination with other

information technology

MSS is very essential due to its functionality importance as to supportmanagement task in general with Decision Support System

They are collection of computer technologies that support managerial work,essentially decision making

MSS Tools DSS Decision Support System: The process of making decisions is DSS. The

emphasis is on Support rather than on automation of decision.

BI Business Intelligence: Its highlighting area is better understanding ofmarket behavior and views of business operations. It works on the tacticalareas of business.

GSS Group Decision Support System: It is adapted by a group of peoplewho collaborate to support integrated systems thinking for complex decision

making

ES Expert System: A specific area to act as an expert consultant to users EIS Executive Support System: These are MIS, tailored to the strategic

information needs of top management. It emphasis on graphical displays andeasy to use interfaces for better representation of data

ERP Enterprise Resource Planning: The system is designed to co-ordinate althe resources, information and activities needed to complete business


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processes. An ERP solution is characterized by supporting a variety of

business functions.

SCM Supply Chain Management: It is the management of a network ofinter-connected businesses involved in the ultimate provisions of product and

service packages required by the end customers.

Integration of MSS Functional Area Integration: It implies that different application are provided

as a single system. It integrated two or more MIS both internally or externally

within the organization

Physical Area Integration: It refers to packaging the hardware, software andcommunication features required to accomplish functional integration.

Reasons for MSS Integration Increasing the capabilities of the MSS Applications: DSS with ES Enhance the capabilities of Non-MSS Applications: ERP for analysis Enhancement by Intelligent Tools: ES enhance DSS with intelligent agents

Decision Mak ing Decision is an art of choosing an optimum alternative from a set of available

alternative in the influence of the information pool regarding the environment

of the decision

It is the process of selection course of action to accomplish a desired result Decision making is the study of identifying and choosing alternatives based

on the values and preference of the decision maker

Decision making is the process sufficiently reducing uncertainty and doubtabout alternatives to allow a reasonable choice to be made from among them


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Decision making takes place in adopting the objectives and choosing themeans and again when a change in the situation creates a necessity for

adjustments

Types of Decision Programmed Decisions:

They are routine or structured They are repetitive or short term Definite procedure is to be followed There are laid down norms & situations are known They are taken at the lower or operating levels in an organisation Example: Inventory should be ordered when inventory levels drop

to 100 units is to adhere to a rule.

Non-Programmed Decisions: Innovative New or complex situations Important and Critical Strategic and Long term Example: Determining the appropriate training program

Characteristics of DSS DSS should aid the decision maker in decision making particularly in tactical /

strategic issues DSS should be able to create general purpose models, simulations capabilities

and other analytical tools available to a decision maker.

DSS should enable users to use DSS without assistance from MISProfessionals


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DSS should be readily adapted to meet information requirement for anydecision making environment

DSS should provide mechanism to enable rapid response to a decisionmakers request for information

DSS should have capability to interface with corporate database & flexible toaccommodate variety of management styles

DSS should facilitate communications between various levels of decisionmaking

Iterative methods are better advised DSS should be able to address structured and semi structured issues

Programmed & Non P rogrammed Decisions

Elements of Decision Mak ing The decision maker The decision problem or goal Attitudes, values and personal goals of the decision maker Assumptions with regards to future events and things The environment in which decision is to be taken Availability of known alternatives with significance and scope Analytical results in the whole perspective


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The constraints The act of selection or choice Timing of decision Proper communication of decision for its effective execution

Decision Making Environment Ambiguity: Problem is not clear, the goal is not clear and hence output is not

clear

Certainty: Input-Output relation is known and hence the result is known Uncertainty: Unawareness about resources, inputs & outputs so results are

also unpredictable

Risk: Totally unknown results in terms of profit or loss

Factors influencing Decision Mak ing Time pressures: The quality of decision depends on the availability of time

given to the manager for taking decisions.

Managers Value: The quality of decision is also based on the perception andbehavior of the manager while taking a call. Decision should support

objectives and based on priorities. Value judgment reflected in the

alternatives chosen.

Organizational Policy: Any decision taken or implemented should not againstthe policy framed by the organization.

Managers tendency for Risk: It's an integral component of decision makingprocess. It helps evaluating the alternatives with success ratios.


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Decision Making Process


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Decision Mak ing Process: Classical Model of DSS In this model, a manager, when confronted with a decision making situation,

would collect ALL the information that is required for that activity and would

take a decision which would be IN THE BEST INTERESTS OF THE

ORGANISATION.

In this model, a manager, when confronted with a decision making situation,would collect ALL the information that is required for that activity and would

take decision which would be IN THE BEST INTERESTS OF THE

ORGANISATION.

Decision Making Process: Administrative Model ofDSS

In this model, the manager is concerned about himself. As and whenconfronted with a decision making situation, would collect WHATEVER

information that is required for that activity and would take a decision which

may not be in the best interests of the organization but would certainly be IN

THE BEST INTERESTS OF THE MANAGER. This model is based on the

observation of manager.


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Managers rarely have all the information they need or want. They are notaware of all possible alternatives and are not able to predict consequences

Organizations goals constraint decision making process Early alternatives and solutions are quickly adopted because of constraints

and limitations

Decision Making Process: Herbert Simon Model ofDSS

The Herbert Simons Model is related to the Decision Making Process. Thismodel mainly describes the core of decision making process and support on

wide front of the same. This model is consists of following 3 Sub-Inter related

phases:


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Intelligence Phase of HS Model Organizational Objectives, Search and SCANNING environment, Data

Collection, Problem Identification, Problem Classification, Problem Statement

Social Environment: Economic, Legal and Social Environment for Operation Competitive Environment: Understands & Analysis the characteristics, trends

& behavior of market

Organizational Environment: Capabilities, Strengths, Weakness, Constraints &other factors which affects the operations of organization

Design Phase of HS Model Formulate a Model Set Criteria for Choice Search for Alternatives Predict and Measure Outcomes


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Choice Phase of HS Model: Solution to the Model Sensitivity Analysis Selection of best (good) alternative(s) Plan for implementation (action) Design of a control system

DSS ??? It refers to a class of systems, which support the process of making

decisions. The emphasis is on support rather than the automation of decision

making. It allows the decision maker to retrieve data and test alternative

solutions during the process of problem solving

It specialized in problem identification, selecting relevant data, picking theapproach to be used in decision making and evaluating the alternative

courses of action.

DSS as interactive computer based system, which helps decision makersutilize data and model to solve unstructured problems

DSS enables the business executives t take the efficient, effective andeconomic decisions

Goals of DSS Provides rapid access to information

Handle large amounts of data from different sources and locations Provide report and presentation flexibility Offer both textual and graphical orientation Support drill down analysis


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Perform complex, sophisticated analysis and comparisons using advancedsoftware

Functions of DSS What-If? Analysis: Change in variable and their relevant effect in decision Sensitivity Analysis: One variable changes and makes impact on overall effect

of decision

Goal Seeking Analysis: It sets a target value for a variable and thenrepeatedly changes the value of variable to meet the target value

Optimization Analysis: The goal is to find the optimum value for one or moretarget variables at given certain constraints

Components of DSS A Decision Support System (DSS) is an interactive computer based

information system with an organized collection of models, people,

procedures, software, databases, telecommunication, and devices, which

helps decision makers to solve unstructured or semi-structured business

problems.

Components of DSS are: Hardware Resource, Software Resource, DataResource, Model Resource, People Resource and Decision Support System

Packages


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Components of DSS

Appli cations of DSS Independent Problems Interrelated Problems Organizational Problems

Benefits of DSS: Improving personal efficiency Improving problem solving Facilitating communications Promoting learning or training Increasing organizational control


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Limitations of DSS DSS has definite computational constraints due to limited memories and

capacity

It is slow, compared to the speed of large IT automation machines Most DSS are individual based but others can link with limited access Procedures are little common to every DSS It is difficult to know interdependencies of functions provided by system It is tough to keep tracking of consequences of DSS functions usage Few aspects need deep understanding about the specific domain knowledge Usage of different data base models and data models leads translation

problem

Users may have to work on several decision scenarios at some time

MIS Vs. DSS

mis topic no 08

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