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Unit 7 Decision Support Systems Decision Support Systems & & The Virtual Office The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell yright 2001 Prentice-Hall, Inc. 1-1

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Page 1: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Unit 7Decision Support SystemsDecision Support Systems

&&

The Virtual OfficeThe Virtual Office

MANAGEMENT INFORMATION SYSTEMS 8/ERaymond McLeod, Jr. and George Schell

Copyright 2001 Prentice-Hall, Inc.

1-1

Page 2: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Chapter 13Decision Support SystemsDecision Support Systems

MANAGEMENT INFORMATION SYSTEMS 8/ERaymond McLeod, Jr. and George Schell

Copyright 2001 Prentice-Hall, Inc.

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Page 3: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Simon’s Types of Simon’s Types of DecisionsDecisions

Programmed decisionsProgrammed decisions– repetitive and routinerepetitive and routine– have a definite procedurehave a definite procedure

Nonprogrammed decisionsNonprogrammed decisions– Novel and unstructuredNovel and unstructured– No cut-and-dried method for handling problemNo cut-and-dried method for handling problem

Types exist on a continuumTypes exist on a continuum

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Page 4: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Simon’s Problem Solving Simon’s Problem Solving PhasesPhases

IntelligenceIntelligence– Searching environment for conditions calling for a Searching environment for conditions calling for a

solutionsolution

DesignDesign– Inventing, developing, and analyzing possible courses of Inventing, developing, and analyzing possible courses of

actionaction

ChoiceChoice– Selecting a course of action from those available Selecting a course of action from those available

ReviewReview– Assessing past choicesAssessing past choices

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Page 5: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Definitions of a Decision Definitions of a Decision Support System (DSS)Support System (DSS)

General definition - General definition - a system providing both a system providing both problem-solving and communications capabilities problem-solving and communications capabilities for semistructured problemsfor semistructured problems

Specific definition - Specific definition - a system that supports a a system that supports a single manager or a relatively small group of single manager or a relatively small group of managers working as a problem-solving team in managers working as a problem-solving team in the solution of a semistructured problem by the solution of a semistructured problem by providing information or making suggestions providing information or making suggestions concerning concerning specific specific decisions.decisions.

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Page 6: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

The DSS ConceptThe DSS Concept Gorry and Scott Morton coined the phrase ‘DSS’ in Gorry and Scott Morton coined the phrase ‘DSS’ in

1971, about ten years after MIS became popular1971, about ten years after MIS became popular Decision types in terms of problem structureDecision types in terms of problem structure

– Structured problems can be solved with algorithms and Structured problems can be solved with algorithms and decision rulesdecision rules

– Unstructured problems have no structure in Simon’s Unstructured problems have no structure in Simon’s phasesphases

– Semistructured problems have structured and Semistructured problems have structured and unstructured phasesunstructured phases

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Page 7: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Degree ofDegree ofproblemproblemstructurestructure

The Gorry and Scott Morton GridThe Gorry and Scott Morton GridManagement levelsManagement levels

StructuredStructured

SemistructuredSemistructured

UnstructuredUnstructured

OperationalOperational controlcontrol

ManagementManagement controlcontrol

StrategicStrategicplanningplanning

Accountsreceivable

Order entry

Inventory control

Budget analysis--engineered costs

Short-term forecasting

Tanker fleet mix

Warehouse andfactory location

Productionscheduling

Cashmanagement

PERT/COST systems

Variance analysis-- overall budget

Budget preparation

Sales and production

Mergers and acquisitions

New product planning

R&D planning

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Page 8: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Alter’s DSS TypesAlter’s DSS Types

In 1976 Steven Alter, a doctoral student In 1976 Steven Alter, a doctoral student built on Gorry and Scott-Morton framework built on Gorry and Scott-Morton framework – Created a taxonomy of six DSS typesCreated a taxonomy of six DSS types– Based on a study of 56 DSSsBased on a study of 56 DSSs

Classifies DSSs based on “degree of Classifies DSSs based on “degree of problem solving support.”problem solving support.”

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Page 9: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Levels of Alter’s DSSsLevels of Alter’s DSSs

Level of problem-solving support from Level of problem-solving support from lowest to highest lowest to highest – Retrieval of information elementsRetrieval of information elements– Retrieval of information filesRetrieval of information files– Creation of reports from multiple filesCreation of reports from multiple files– Estimation of decision consequencesEstimation of decision consequences– Propose decisionsPropose decisions– Make decisionsMake decisions

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Page 10: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Importance of Alter’s Importance of Alter’s StudyStudy

Supports concept of developing systems Supports concept of developing systems that address particular decisionsthat address particular decisions

Makes clear that DSSs need not be Makes clear that DSSs need not be restricted to a particular application typerestricted to a particular application type

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Page 11: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Retrieve Retrieve information information

elementselements

Analyze Analyze entire entire filesfiles

Prepare Prepare reports reports

from from multiple multiple

filesfiles

Estimate Estimate decision decision

consequen-consequen-cesces

Propose Propose decisionsdecisions

Degree Degree of of problem problem solving solving supportsupport

Degree of Degree of complexity of the complexity of the problem-solving problem-solving

systemsystem

LittleLittle MuchMuch

Alter’s DSS TypesAlter’s DSS Types

Make Make decisionsdecisions

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Page 12: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Three DSS ObjectivesThree DSS Objectives

1.1. Assist in solving semistructured problems Assist in solving semistructured problems

2.2. Support, not replace, the manager Support, not replace, the manager

3.3. Contribute to decision effectiveness, rather Contribute to decision effectiveness, rather than efficiencythan efficiency

Based on studies of Keen and Scott-Morton

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Page 13: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

GDSS software

MathematicalMathematicalModelsModels

OtherOther group group membersmembers

DatabaseDatabase

GDSSGDSSsoftwaresoftware

EnvironmentEnvironment IndividualIndividual problemproblem solverssolvers

Decision support system

EnvironmentEnvironment

Legend:Data Information Communication

A DSS ModelA DSS Model

ReportReportwritingwriting

softwaresoftware

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Page 14: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Database ContentsDatabase Contents Used by Three Software SubsystemsUsed by Three Software Subsystems

– Report writers Report writers » Special reportsSpecial reports» Periodic reportsPeriodic reports» COBOL or PL/ICOBOL or PL/I» DBMSDBMS

– Mathematical modelsMathematical models» Simulations Simulations » Special modeling languagesSpecial modeling languages

– Groupware or GDSSGroupware or GDSS

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Page 15: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Group Decision Support Group Decision Support SystemsSystems

Computer-based system that supports groups of Computer-based system that supports groups of people engaged in a common task (or goal) and people engaged in a common task (or goal) and that provides an interface to a shared that provides an interface to a shared environment.environment.

Used in problem solvingUsed in problem solving Related areasRelated areas

– Electronic meeting system (EMS) Electronic meeting system (EMS) – Computer-supported cooperative work (CSCW)Computer-supported cooperative work (CSCW)– Group support system (GSS)Group support system (GSS)– GroupwareGroupware

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Page 16: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

How GDSS Contributes How GDSS Contributes to Problem Solvingto Problem Solving

Improved communicationsImproved communications Improved discussion focusImproved discussion focus Less wasted timeLess wasted time

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Page 17: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

GDSS Environmental GDSS Environmental SettingsSettings

Synchronous exchange Synchronous exchange – Members meet at same timeMembers meet at same time– Committee meeting is an exampleCommittee meeting is an example

Asynchronous exchangeAsynchronous exchange– Members meet at different timesMembers meet at different times– E-mail is an exampleE-mail is an example

More balanced participation.More balanced participation.

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Page 18: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

GDSS TypesGDSS Types Decision roomsDecision rooms

– Small groups face-to-faceSmall groups face-to-face– Parallel communicationParallel communication– AnonymityAnonymity

Local area decision networkLocal area decision network– Members interact using a LANMembers interact using a LAN

Legislative sessionLegislative session– Large group interactionLarge group interaction

Computer-mediated conferenceComputer-mediated conference– Permits large, geographically dispersed group interactionPermits large, geographically dispersed group interaction

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Page 19: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Smaller Larger

GROUPGROUP SIZESIZE

Face-to-face

Dispersed

DecisionRoom

Local Area Decision Network

Legislative Session

Computer-Mediated

Conference

MEMBERMEMBERPROXIMITYPROXIMITY

Group Size and Location Determine Group Size and Location Determine GDSS Environmental SettingsGDSS Environmental Settings

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Page 20: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

GroupwareGroupware

FunctionsFunctions– E-mailE-mail– FAXFAX– Voice messagingVoice messaging– Internet accessInternet access

Lotus Notes Lotus Notes – Popular groupware productPopular groupware product– Handles data important to managersHandles data important to managers

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Page 21: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Electronic mail X X X XFAX X X O XVoice messaging O XInternet access X X O XBulletin board system X 3 OPersonal calendaring X X 3 XGroup calendaring X X O XElectronic conferencing O X 3 3Task management X X 3 XDesktop video conferencingODatabase access O X 3Workflow routing O X 3 XReengineering O X 3Electronic forms O 3 3 OGroup documents O X X O

Main Groupware FunctionsMain Groupware Functions IBM TeamWARE Lotus Novell IBM TeamWARE Lotus Novell Function Workgroup Office Notes GroupWiseFunction Workgroup Office Notes GroupWise

X = standard featureX = standard feature O = optional featureO = optional feature 3 = third party offering3 = third party offering13-21

Page 22: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Artificial Intelligence (AI)Artificial Intelligence (AI)

The activity of providing such machines as computers with the ability to display behavior that would be regarded as intelligent if it were observed in humans.

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Page 23: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

History of AIHistory of AI

Early historyEarly history– John McCarthy coined term, AI, in 1956, at John McCarthy coined term, AI, in 1956, at

Dartmouth College conference.Dartmouth College conference.

– Logic Theorist (first AI program. Herbert Simon Logic Theorist (first AI program. Herbert Simon played a part)played a part)

– General problem solver (GPS)General problem solver (GPS)

Past 2 decadesPast 2 decades– Research has taken a back seat to MIS and DSS Research has taken a back seat to MIS and DSS

developmentdevelopment

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Page 24: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Areas of Artificial IntelligenceAreas of Artificial Intelligence

ExpertExpertsystemssystems AIAI

hardwarehardware

RoboticsRobotics

PerceptivePerceptive systemssystems (vision,(vision, hearing)hearing)

NeuralNeuralnetworksnetworks

NaturalNatural languagelanguage

Learning

Artificial IntelligenceArtificial Intelligence

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Page 25: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Appeal of Expert SystemsAppeal of Expert Systems Computer program that codes the Computer program that codes the

knowledge of human experts in the form of knowledge of human experts in the form of heuristicsheuristics

Two distinctions from DSSTwo distinctions from DSS– 1. Has potential to extend manager’s problem-1. Has potential to extend manager’s problem-

solving abilitysolving ability– 2. Ability to explain how solution was reached2. Ability to explain how solution was reached

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Page 26: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Know-ledgebase

User

Userinterface

Instructions &information

Solutions &explanations Knowledge

Inference engine

Problem Domain

Expert and knowledge engineer

Developmentengine ExpertExpert

systemsystemAn Expert An Expert

System ModelSystem Model13-26

Page 27: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Expert System ModelExpert System Model User interfaceUser interface

– Allows user to interact with systemAllows user to interact with system Knowledge baseKnowledge base

– Houses accumulated knowledgeHouses accumulated knowledge Inference engineInference engine

– Provides reasoningProvides reasoning– Interprets knowledge baseInterprets knowledge base

Development engineDevelopment engine– Creates expert systemCreates expert system

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Page 28: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

User InterfaceUser Interface

User enters:User enters:– InstructionsInstructions– InformationInformation

Expert system provides:Expert system provides:– SolutionsSolutions– Explanations ofExplanations of

» QuestionsQuestions

» Problem solutionsProblem solutions

}Menus, commands, natural language, GUI

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Page 29: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Knowledge BaseKnowledge Base

Description of problem domainDescription of problem domain RulesRules

– Knowledge representation techniqueKnowledge representation technique– ‘‘IF:THEN’ logicIF:THEN’ logic– Networks of rulesNetworks of rules

» Lowest levels provide evidenceLowest levels provide evidence

» Top levels produce 1 or more conclusionsTop levels produce 1 or more conclusions

» Conclusion is called a Goal variable.Conclusion is called a Goal variable.

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Page 30: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Evidence

Conclusion

Conclusion

Evidence Evidence Evidence Evidence

Evidence Evidence Evidence

Conclusion

A Rule Set That Produces One Final

Conclusion

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Page 31: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Rule SelectionRule Selection

Selecting rules to efficiently solve a Selecting rules to efficiently solve a problem is difficultproblem is difficult

Some goals can be reached with only a few Some goals can be reached with only a few rules; rules 3 and 4 identify bird rules; rules 3 and 4 identify bird

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Page 32: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Inference EngineInference Engine

Performs reasoning by using the contents of Performs reasoning by using the contents of knowledge base in a particular sequenceknowledge base in a particular sequence

Two basic approaches to using rulesTwo basic approaches to using rules– 1. Forward reasoning (data driven)1. Forward reasoning (data driven)– 2. Reverse reasoning (goal driven)2. Reverse reasoning (goal driven)

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Page 33: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Forward ReasoningForward Reasoning(Forward Chaining)(Forward Chaining)

Rule is evaluated as: Rule is evaluated as: – (1) true, (2) false, (3) unknown(1) true, (2) false, (3) unknown

Rule evaluation is an iterative processRule evaluation is an iterative process When no more rules can fire, the reasoning When no more rules can fire, the reasoning

process stops even if a goal has not been process stops even if a goal has not been reachedreached

Start with inputs and work to solution

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Page 34: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Rule 1Rule 1

Rule 3Rule 3

Rule 2Rule 2

Rule 4Rule 4

Rule 5Rule 5

Rule 6Rule 6

Rule 7Rule 7

Rule 8Rule 8

Rule 9Rule 9

Rule 10Rule 10

Rule 11Rule 11

Rule 12Rule 12

IF ATHEN B

IF CTHEN D

IF MTHEN E

IF KTHEN F

IF GTHEN H

IF ITHEN J

IF B OR DTHEN K

IF ETHEN L

IF K AND L THEN N

IF M THEN O

IF N OR OTHEN P

F

IF (F AND H)OR JTHEN M

IF (F AND H)OR JTHEN M

The The ForwardForward

ReasoningReasoningProcessProcess

T

TT

T

T

T

T

T

T

F

T

Legend:Legend: First pass

Second pass

Third pass

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Page 35: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Reverse Reasoning StepsReverse Reasoning Steps(Backward Chaining)(Backward Chaining)

Divide problem into subproblemsDivide problem into subproblems Try to solve one subproblemTry to solve one subproblem Then try anotherThen try another

Start with solution and work back to inputs

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Page 36: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

T

Rule 1

Rule 2

Rule 3

Rule 9

Rule 11 Legend:Problems to be solved

Step 4

Step 3

Step 2

Step 1

Step 5

IF A THEN B

IF B OR DTHEN K

IF K AND LTHEN N

IF N OR O THEN P

IF CTHEN D

IF MTHEN E

IF ETHEN L

IF (F AND H)OR JTHEN M

IF MTHEN O

IF MTHEN O

T

The First Five The First Five Problems Problems

Are IdentifiedAre IdentifiedRule 7

Rule 10

Rule 12

Rule 8

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Page 37: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

If KThen F

Legend:Problems to be solved

If GThen H

If IThen J

If MThen O

Step 8

Step 9Step 7 Step 6

Rule 4

Rule 5

Rule 11Rule 6

T

IF (F And H)Or J

Then MT

Rule 9

T T

Rule 12

T

If N Or OThen P

The Next Four Problems AreThe Next Four Problems AreIdentifiedIdentified

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Page 38: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Forward Versus Reverse Forward Versus Reverse ReasoningReasoning

Reverse reasoning is faster than forward Reverse reasoning is faster than forward reasoningreasoning

Reverse reasoning works best under certain Reverse reasoning works best under certain conditionsconditions– Multiple goal variablesMultiple goal variables– Many rulesMany rules– All or most rules do not have to be examined in All or most rules do not have to be examined in

the process of reaching a solutionthe process of reaching a solution

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Page 39: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Development EngineDevelopment Engine Programming languages Programming languages

– LispLisp– PrologProlog

Expert system shellsExpert system shells– Ready made processor that can be tailored to a Ready made processor that can be tailored to a

particular problem domainparticular problem domain Case-based reasoning (CBR)Case-based reasoning (CBR) Decision treeDecision tree

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Page 40: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Expert System Expert System AdvantagesAdvantages

For managersFor managers– Consider more alternativesConsider more alternatives– Apply high level of logicApply high level of logic– Have more time to evaluate decision rulesHave more time to evaluate decision rules– Consistent logicConsistent logic

For the firmFor the firm– Better performance from management teamBetter performance from management team– Retain firm’s knowledge resourceRetain firm’s knowledge resource

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Page 41: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Expert System Expert System DisadvantagesDisadvantages

Can’t handle inconsistent knowledgeCan’t handle inconsistent knowledge Can’t apply judgment or intuitionCan’t apply judgment or intuition

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Page 42: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Keys to Successful ES Keys to Successful ES DevelopmentDevelopment

Coordinate ES development with strategic planningCoordinate ES development with strategic planning Clearly define problem to be solved and understand Clearly define problem to be solved and understand

problem domainproblem domain Pay particular attention to ethical and legal Pay particular attention to ethical and legal

feasibility of proposed systemfeasibility of proposed system Understand users’ concerns and expectations Understand users’ concerns and expectations

concerning systemconcerning system Employ management techniques designed to retain Employ management techniques designed to retain

developersdevelopers

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Page 43: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Neural NetworksNeural Networks

Mathematical model of the human brainMathematical model of the human brain– Simulates the way neurons interact to process Simulates the way neurons interact to process

data and learn from experiencedata and learn from experience Bottom-up approach to modeling human Bottom-up approach to modeling human

intuitionintuition

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Page 44: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

The Human BrainThe Human Brain

Neuron -- the information processorNeuron -- the information processor– Input -- dendritesInput -- dendrites– Processing -- somaProcessing -- soma– Output -- axonOutput -- axon

Neurons are connected by the synapseNeurons are connected by the synapse

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Page 45: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Soma(processor)

Axon

Synapse

Dendrites (input)

Axonal Paths (output)

Simple Biological NeuronsSimple Biological Neurons

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Page 46: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Evolution of Artificial Evolution of Artificial Neural Systems (ANS)Neural Systems (ANS)

McCulloch-Pitts mathematical neuron McCulloch-Pitts mathematical neuron function (late 1930s) was the starting pointfunction (late 1930s) was the starting point

Hebb’s learning law (early 1940s)Hebb’s learning law (early 1940s) NeurocomputersNeurocomputers

– Marvin Minsky’s Snark (early 1950s)Marvin Minsky’s Snark (early 1950s)– Rosenblatt’s Perceptron (mid 1950s)Rosenblatt’s Perceptron (mid 1950s)

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Page 47: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Current MethodologyCurrent Methodology

Mathematical models don’t duplicate Mathematical models don’t duplicate human brains, but exhibit similar abilitieshuman brains, but exhibit similar abilities

Complex networksComplex networks Repetitious trainingRepetitious training

– ANS “learns” by exampleANS “learns” by example

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Page 48: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

y1

y2

y3

yn-1

y

w1

w2

w3

wn-1

Single Artificial NeuronSingle Artificial Neuron

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Page 49: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

The Multi-The Multi-Layer Layer

PerceptronPerceptron

Yn2

ININnn

OUTOUTnnOUTOUT11

ININ11

YY11

Input Input LayerLayer

OutputLOutputLayerayer

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Page 50: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Knowledge-based Systems Knowledge-based Systems

in Perspectivein Perspective Much has been accomplished in neural nets Much has been accomplished in neural nets

and expert systemsand expert systems Much work remainsMuch work remains Systems abilities to mimic human Systems abilities to mimic human

intelligence are too limited and regarded as intelligence are too limited and regarded as primitiveprimitive

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Page 51: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Summary [cont.]Summary [cont.]

AIAI– Neural networksNeural networks– Expert systemsExpert systems

Limitations and promiseLimitations and promise

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Page 52: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Chapter 14The Virtual OfficeThe Virtual Office

MANAGEMENT INFORMATION SYSTEMS 8/ERaymond McLeod, Jr. and George Schell

Copyright 2001 Prentice-Hall, Inc.

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Page 53: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

IntroductionIntroduction Automation began in the factoryAutomation began in the factory

– Numerical control (NC)Numerical control (NC)– Direct numerical control (DNC)Direct numerical control (DNC)– CAD/CAMCAD/CAM– RoboticsRobotics

Office automation (OA) began with IBM in the 1960’sOffice automation (OA) began with IBM in the 1960’s– Word processingWord processing– Magnetic Tape/Selectric TypewriterMagnetic Tape/Selectric Typewriter

Office automation systems are characterized by Office automation systems are characterized by communicationcommunication

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Page 54: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Office Automation (OA)Office Automation (OA)

Formal and informal electronic systemsFormal and informal electronic systems Communication of informationCommunication of information Persons inside and outside the firm are Persons inside and outside the firm are

affectedaffected Used by managers, professionals, Used by managers, professionals,

secretaries, and clerical employeessecretaries, and clerical employees– managers and professionals are collectively managers and professionals are collectively

known as knowledge workersknown as knowledge workers

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Page 55: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

The Virtual OfficeThe Virtual Office Office work can be done at virtually any Office work can be done at virtually any

geographic locationgeographic location Must be linked by electronic communicationMust be linked by electronic communication ImpactImpact

– Emerged with the appearance of low cost Emerged with the appearance of low cost microprocessorsmicroprocessors

– TeleprocessingTeleprocessing

– TelecommutingTelecommuting

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Page 56: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Advantages of the Virtual Advantages of the Virtual OfficeOffice

Reduced facility costsReduced facility costs Reduced equipment costReduced equipment cost Formal communications networkFormal communications network Reduced work stoppagesReduced work stoppages Social contributionsSocial contributions

– Those unable to leave their homes can Those unable to leave their homes can now work in new waysnow work in new ways

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Page 57: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Disadvantages of the Disadvantages of the Virtual OfficeVirtual Office

Sense of not belongingSense of not belonging Fear of job lossFear of job loss Low moraleLow morale Family tensionFamily tension

These are disadvantages to the employee!

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Page 58: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Recommended Virtual Recommended Virtual Office StrategyOffice Strategy

Provide computer resourcesProvide computer resources Provide access to information sourcesProvide access to information sources Provide noncomputer suppliesProvide noncomputer supplies Arrange to forward phone callsArrange to forward phone calls Utilize conference callsUtilize conference calls Schedule regular meetingsSchedule regular meetings Follow a work routineFollow a work routine

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Page 59: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Virtual OrganizationVirtual Organization

Extends idea of a virtual office to an entire Extends idea of a virtual office to an entire organizationorganization

No ties to physical locationNo ties to physical location Three I EconomyThree I Economy

– InformationInformation– IdeasIdeas– IntelligenceIntelligence

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Page 60: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

OA ModelOA Model

Information and communicationInformation and communication– No dataNo data

Computer and noncomputer applicationsComputer and noncomputer applications "Other problem solvers" "Other problem solvers"

– Internal Internal – EnvironmentalEnvironmental

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Page 61: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Environment

Environment

The firm

Problem SolverOther

Problem Solvers

Database

Transform

NoncomputerApps

Computer-Apps

Inputphysical resources

Outputphysical resources

An OA ModelAn OA Model Communications Information

Office Automation System

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Page 62: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Office Automation (OA) Office Automation (OA) ApplicationsApplications

Word processingWord processing Electronic and voice mailElectronic and voice mail Computer calendaringComputer calendaring Audio conferencingAudio conferencing Video conferencingVideo conferencing Computer conferencing Computer conferencing FAXFAX VideotexVideotex ImagingImaging Desktop publishingDesktop publishing

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Page 63: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Word ProcessingWord Processing

Use of a computer to perform automatically Use of a computer to perform automatically many of the tasks necessary to prepare many of the tasks necessary to prepare typed or printed documentstyped or printed documents

Contribution to managers is the preparation Contribution to managers is the preparation of more effective communicationsof more effective communications

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Page 64: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

A Word Processing SystemA Word Processing System

Secretary or manager

Document storage

CPU Typed documents

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Page 65: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Electronic Mail (E-mail)Electronic Mail (E-mail) Use of a computer network that allows users Use of a computer network that allows users

to send, store and retrieve messages using to send, store and retrieve messages using terminals and storage devicesterminals and storage devices

Good when two-way conversation is not Good when two-way conversation is not neededneeded

Easy asynchronous communicationEasy asynchronous communication Eliminates phone tagEliminates phone tag

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Page 66: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

An Electronic Mail SystemAn Electronic Mail System

Mail storage

CPU

Mail displayand entry

Mail display and entry

Mail displayand entry

User 1

User 2

User n

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Page 67: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Voice MailVoice Mail

Like e-mail except messages are sent and received Like e-mail except messages are sent and received over telephone systems in audio formover telephone systems in audio form

Requires computers with an ability to store audio Requires computers with an ability to store audio messages digitally and convert them back upon messages digitally and convert them back upon retrievalretrieval

Managers do not have to typeManagers do not have to type Less equipment and infrastructure than Less equipment and infrastructure than

e-mail e-mail

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Page 68: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Computer

Message coding and

decoding unit

User 1 User 2

Secondarystorage

AAVoice Voice MailMail

SystemSystem14-68

Page 69: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Electronic CalendaringElectronic Calendaring

Use of a networked computer to store and Use of a networked computer to store and retrieve a manager’s appointment calendarretrieve a manager’s appointment calendar

Allows other managers’ calendars to be Allows other managers’ calendars to be accessedaccessed

Facilitates schedulingFacilitates scheduling Does not communicate problem-solving Does not communicate problem-solving

informationinformation

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Page 70: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

An Electronic Calendaring SystemAn Electronic Calendaring System

Calendar storage

CPU

Calendar displayand entry

Calendar display and entry

Calendar displayand entry

Manager 1

Manager 2

Manager n

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Page 71: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Audio ConferencingAudio Conferencing

Uses voice communications equipment to Uses voice communications equipment to establish an audio link between establish an audio link between geographically dispersed peoplegeographically dispersed people

Conference call was first form of this Conference call was first form of this systemsystem

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Page 72: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Rules for Added Efficiency Rules for Added Efficiency in Audio Conferencingin Audio Conferencing

Have a moderatorHave a moderator Keep participants to a manageable sizeKeep participants to a manageable size Send an agenda firstSend an agenda first Identify yourself when speakingIdentify yourself when speaking Keep a taped recordKeep a taped record Distribute a hard copy transcript or meeting Distribute a hard copy transcript or meeting

minutesminutes

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Page 73: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

An Audio Conferencing SystemAn Audio Conferencing System

AudioChannel

Location 1 Location n

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Page 74: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Video ConferencingVideo Conferencing

Use of television equipment to link Use of television equipment to link geographically dispersed conference geographically dispersed conference participantsparticipants

Three general configurationsThree general configurations– One-way video and audioOne-way video and audio– One-way video and two-way audioOne-way video and two-way audio– Two-way video and audioTwo-way video and audio

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Page 75: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Video channel

Videochannel

Location 1Location n

A. One-way video transmission

B. Two-way video transmission

Video Video ConferencingConferencing

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Page 76: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Desktop Video Desktop Video ConferencingConferencing

Video and audio equipment are attached to each Video and audio equipment are attached to each workstation in the network enabling the two-way workstation in the network enabling the two-way communication of picture and soundcommunication of picture and sound

Technical concernsTechnical concerns– Many desktop computers are powerful enough alreadyMany desktop computers are powerful enough already

– Requires high-speed communications networkRequires high-speed communications network

– Cost is typically less that $1,000 for the additional Cost is typically less that $1,000 for the additional equipment to make a standard PC a desktop video equipment to make a standard PC a desktop video stationstation

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Page 77: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Computer ConferencingComputer Conferencing Uses a networked computer that allows Uses a networked computer that allows

participants with some common characteristic to participants with some common characteristic to exchange information regarding a particular topicexchange information regarding a particular topic

One of the largest was an IBM PC computer One of the largest was an IBM PC computer conferenceconference– Over 4,000 topic areasOver 4,000 topic areas

– Over 40,000 membersOver 40,000 members

Computers must be networked togetherComputers must be networked together

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Page 78: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

TeleconferencingTeleconferencing

Incorporates all other conferencing techniques Includes:

• audio• video• computer conferencing

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Page 79: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

FAXFAX

Original document

Facsimile machine

Analogchannel

Facsimile machine

Documentcopy

Uses special equipment that can read a document at one end of a communication channel and make a copy at the other end

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Page 80: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

VideotexVideotex

Uses a computer to store and display a Uses a computer to store and display a stored narrative and graphic material on a stored narrative and graphic material on a CRT screenCRT screen– Can be created in the firm’s own computerCan be created in the firm’s own computer– Can be owned by a service and accessed by the Can be owned by a service and accessed by the

firm (such as the Dow Jones News / Retrieval firm (such as the Dow Jones News / Retrieval Service)Service)

– Can be owned by other firmsCan be owned by other firms

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Page 81: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

ImagingImaging

Uses optical character recognition (OCR) to Uses optical character recognition (OCR) to convert data on paper to a digital format for convert data on paper to a digital format for storage in a secondary storage devicestorage in a secondary storage device

Performed by a document management Performed by a document management (DM) system(DM) system

Conserves space since documents are not Conserves space since documents are not stored in paper formstored in paper form

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Page 82: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

A Document Management A Document Management SystemSystem

OCROCRReaderReader

Network serverNetwork server

DBMDBMSS

WorkstationWorkstation WorkstationWorkstation

WorkstationWorkstationWorkstationWorkstation

LaserLaserprinterprinter

LaserLaserprinterprinterDocumentsDocuments

to be readto be read

Optical Optical disk disk

storage storage unitunit

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Page 83: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Desktop PublishingDesktop Publishing Uses a computer to prepare output that is very Uses a computer to prepare output that is very

close in quality to that produced by a typesetterclose in quality to that produced by a typesetter Requires high resolution monitor and printing Requires high resolution monitor and printing

devicesdevices Three areas of applicationsThree areas of applications

– administrativeadministrative

– technicaltechnical

– corporatecorporate

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Page 84: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Desk-Top Publishing Desk-Top Publishing SystemSystem

High-resolutionscreen

Keyboard MicrocomputerLaser printer output

Document storage

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Page 85: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

OA and Virtual Office in OA and Virtual Office in PerspectivePerspective

Aimed at the heart of business problem Aimed at the heart of business problem solvingsolving– Supplements interpersonal communicationsSupplements interpersonal communications– Provides opportunity for better communicationsProvides opportunity for better communications

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Page 86: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

SummarySummary

Early OA was directed at secretarial staff Early OA was directed at secretarial staff and clerksand clerks

Communication needs of managers and Communication needs of managers and knowledge workers were recognizedknowledge workers were recognized

Virtual office concept emergedVirtual office concept emerged Goal of OA is increased productivityGoal of OA is increased productivity

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Page 87: Unit 7 Decision Support Systems & The Virtual Office MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall,

Summary [cont.]Summary [cont.] Variety of applicationsVariety of applications

– Word processingWord processing– E-mailE-mail– Voice mailVoice mail– Electronic calendaringElectronic calendaring– Audio conferencingAudio conferencing– Video conferencingVideo conferencing– Computer conferencingComputer conferencing– FaxFax– VideotexVideotex

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