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Information and Decision Support Systems

Information and Decision Support Systems. Chapter 6. Learning Objectives. Define the stages of decision making. Discuss the importance of implementation and monitoring in problem solving. Learning Objectives.

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Information and Decision Support Systems

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  1. Information and Decision Support Systems Chapter 6 Fundamentals of Information Systems, Second Edition

  2. Learning Objectives • Define the stages of decision making. • Discuss the importance of implementation and monitoring in problem solving. Fundamentals of Information Systems, Second Edition

  3. Learning Objectives • Define the term MIS and clearly distinguish the difference between a TPS and an MIS. • Discuss information systems in the functional areas of business organizations. Fundamentals of Information Systems, Second Edition

  4. Learning Objectives • Decision support systems (DSSs) are used when the problems are more unstructured. • List and discuss important characteristics of DSSs that give them the potential to be effective management support tools. • Identify and describe the basic components of a DSS. Fundamentals of Information Systems, Second Edition

  5. Learning Objectives • Specialized support systems, such as group decision support systems (GDSSs) and executive support systems (ESSs), use the overall approach of a DSS in situations such as group and executive decision making. • State the goals of a GDSS and identify the characteristics that distinguish it from a DSS. • Identify the fundamental uses of an ESS and list the characteristics of such a system. Fundamentals of Information Systems, Second Edition

  6. Decision Making and ProblemSolving Fundamentals of Information Systems, Second Edition

  7. How Decision Making Relates to Problem Solving Fundamentals of Information Systems, Second Edition

  8. Decision Making • Intelligence • Identify problems and opportunities • Investigate resource and environmental constraints • Design • Generate alternatives • Evaluate alternatives • Choice • Select a course of action Fundamentals of Information Systems, Second Edition

  9. Problem Solving • Decision making • Implementation • Apply the solution • Inform related parties • Execute solution steps • Monitoring • Ensure that the solution is implemented as planned • Monitor for unforeseen situations Fundamentals of Information Systems, Second Edition

  10. Programmed versus Nonprogrammed Decisions • Programmed decisions • Rules or procedures • Easy to computerize • Ex: Order new items when the inventory drops below 100 • Nonprogrammed decisions • Rules and relationships not defined • Problem is not routine • Not easily quantifiable • Determine a training program for a new employee Fundamentals of Information Systems, Second Edition

  11. Problem Solving Approaches • Optimization: find the best solution • Satisficing: • Find a good solution • Does not look at all solutions • Easier to find then an optimum solution • Heuristics: • Rules of thumb • Commonly accepted guidelines • Ex: Always have 5 units of an item in stock Fundamentals of Information Systems, Second Edition

  12. Optimization, Satisficing, and Heuristic Approaches Fundamentals of Information Systems, Second Edition

  13. An Overview of Management Information Systems Fundamentals of Information Systems, Second Edition

  14. Sources of Managerial Information Fundamentals of Information Systems, Second Edition

  15. Transforming Data to Information • Internal Input • TPSs • ERPs • External Input • Customers • Suppliers • Competitors • Output • Predetermined Reports Fundamentals of Information Systems, Second Edition

  16. Reports (1) • Scheduled Reports • Periodically • Ex: Daily report to monitor the production of an item • Key-indicator report: Summarizes the previous day’s critical activities • Demand Reports • Give information when needed • FedEx package reports for customers • Competitors Fundamentals of Information Systems, Second Edition

  17. Reports (2) • Exception Reports • Generated when something unusual happens • Trigger point: Manager decides on the “unusual event” • Ex: Report on orders that are not delivered in five days • Drill Down Reports • Detailed report about a situation • See the situation at different levels Fundamentals of Information Systems, Second Edition

  18. Reports Generated by an MIS Fundamentals of Information Systems, Second Edition

  19. Reports Generated by an MIS Fundamentals of Information Systems, Second Edition

  20. Guidelines for Developing MIS Reports Fundamentals of Information Systems, Second Edition

  21. Functional Aspects of the MIS Fundamentals of Information Systems, Second Edition

  22. Functional Aspects of MIS Fundamentals of Information Systems, Second Edition

  23. Financial MIS • Provide financial information to internal parties • Integrate financial and operational information from several sources • Ease analysis by providing fast financial data • Enable financial analysis from different aspects; time, product, customer • Analyze historical and current data • Monitor use of funds • Report to external parties • Auditing Fundamentals of Information Systems, Second Edition

  24. Overview of a Financial MIS Fundamentals of Information Systems, Second Edition

  25. Manufacturing MIS • Material requirements planning (MRP) • Determine when finished products are needed • Determine deadlines accordingly • Manufacturing resource planning (MRPII) • Network scheduling • Improve customer service and productivity • Just in time (JIT) inventory system • Inventory and materials delivered right before usage Fundamentals of Information Systems, Second Edition

  26. Overview of a Manufacturing MIS Fundamentals of Information Systems, Second Edition

  27. Marketing MIS • Supports managerial activities • Product development • Distribution • Pricing decisions • Promotional effectiveness • Sales forecasting • Customer relationship software (CRM) • Collect customer data • Inform customers on products • Example report: Possible prices for products Fundamentals of Information Systems, Second Edition

  28. Overview of a Marketing MIS Fundamentals of Information Systems, Second Edition

  29. Human Resource MIS Concerned with activities related to employees and potential employees of the organization. • Subsystems include: • needs and planning assessments • recruiting • training and skills development • scheduling and assignment • employee benefits Fundamentals of Information Systems, Second Edition

  30. Overview of a Human Resource MIS Fundamentals of Information Systems, Second Edition

  31. Other Management Information Systems • Accounting MIS • Provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications. • Sometimes done by other companies • Geographic Information Systems • Computer system capable of assembling, storing, manipulating, and displaying geographic information. • Useful when the geographic position of the data is important Fundamentals of Information Systems, Second Edition

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