Chapter 10: Information and Decision Support Systems

Intelligence stage

identify and define potential problems or opportunities

Design stage

develop alternative solutions to the problem and evaluate their feasibility

Choice stage

select a course of action

Implementation stage

a stage of problem solving in which a solution is put into effect

Monitoring stage

the final stage of the problem-solving process in which decision makers evaluate the implementation

Programmed decisions

• Routine and repetitive decisions made using a rule, procedure, or quantitative method

• Easy to computerize using traditional information systems

Nonprogrammed decisions

• One-time decisions that deal with unusual or exceptional situations

• Not easily quantifiable

Structured decisions

the variables that comprise the decision are known and can be measured quantitatively

Unstructured decisions

the variables that affect the decision cannot be measured quantitatively

Semistructured decisions

only some of the variables can be measured quantitatively

management information system (MIS)

• An integrated collection of people, procedures, databases, and devices

• Provides managers and decision makers with information to help achieve organizations goals

• Can give the organization a competitive advantage

Exception reports

• Automatically produced when a situation is unusual or requires management action

• Trigger points should be set carefully

Drill-down reports

provide increasingly detailed data about a situation

Financial MIS

an information system that provides financial information to executives and others

Manufacturing Management Information Systems

These subsystems and outputs are used to monitor and control the flow of materials, products, and services through the organization

Marketing Management Information Systems

a system that uses data gathered from both internal and external sources to provide reporting and aid decision making in all areas of marketing

Human Resource Management Information Systems

Concerned with activities related to previous, current and potential employees.

Accounting MIS

Provides aggregate information on accounts payable, accounts receivable, payroll, and many other applications

Geographic information system (GIS)

Capable of assembling, storing, manipulating, and displaying geographically referenced information

Decision Support Systems (DSS)

an organized collection of people, procedures, software, databases, and devices used to help make decisions that solve problems

Support problem-solving phases

A specific DSS might support only one or a few phases

Ad hoc DSS

concerned with situations or decisions that come up only a few times

Institutional DSS

handles situations or decisions that occur more than once

DSS database management system

Allows managers and decision makers to perform qualitative analysis on data stored in company’s databases, data warehouses, and data marts, using data mining and business intelligence

Model Base

Allows managers and decision makers to perform quantitative analysis on both internal and external data

Model management software (MMS)

Coordinates the use of models in a DSS, including financial, statistical analysis, graphical, and project-management models

User Interface or Dialogue Manager

• Allows users to interact with the DSS to obtain information

• Assists with all aspects of communications between the user and the hardware and software that constitute the DSS

Group Support Systems

• Also called a group decision support system and a computerized collaborative work system

• Consists of most elements in a DSS, plus software to provide effective support in group decision-making settings

• Also called groupware or workgroup software.