Management Information System Session 11 th Dated: -23-05-2010 BY: - Neeraj Gupta Figure 1.3 Several subsystems make up this corporate accounting system.

Management Information System

Session 11th Dated: -23-05-2010BY: - Neeraj Gupta

Figure 1.3 Several subsystems make up this corporate accounting system.

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Decision Support Success of an organization largely depends on the quality of

decisions made by employees Computer-based systems can help when:

There are large amounts of information There is a lot of processing involved

Two types of decision support aids: Decision support systems (DSSs) Expert systems (ESs)

Applications today may combine both types Provide single optimal solution or set of solutions

Decision Support (continued)

Decision support modules today may be part of larger enterprise applications

Are also called business analysis tools or business intelligence applications

Are designed to streamline the decision-making process

Data warehouses and online processing (OLAP) technologies have enhanced the ability to use data for decision making

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Decision Support Systems

Decision support system (DSS): a computer-based information system designed to help knowledge workers select one of many alternative solutions to a problem

Advantages of DSSs include: Help increase market share Help reduce costs Help increase profitability Help enhance product quality

Types of DSS in an Organization Data Driven DSS: -Data-Driven DSS take the massive amounts

of data available through the company's TPS and MIS systems and cull from it useful information which executives can use to make more informed decisions.

These systems include file drawer and management reporting systems, data warehousing and analysis systems, EIS. Business Intelligence Systems are also examples of Data-Driven DSS. Data- Driven DSS emphasize access to and manipulation of large databases of structured data and especially a time-series of internal company data and sometimes external data.

Model-Driven DSS: -Model-Driven DSS, includes systems that use accounting and financial models, representational models, and optimization models.

Types of DSS in an Organization Knowledge Driven DSS: -Knowledge-Driven DSS can suggest

or recommend actions to managers. These DSS are personal computer systems with specialized problem-solving expertise. A related concept is Data Mining.

Document-Driven DSS/Knowledge Management System: -Is evolving to help managers retrieve and manage unstructured documents and Web pages. Examples of documents that would be accessed by a Document-Based DSS are policies and procedures, product specifications, catalogs, and corporate historical documents, including minutes of meetings, corporate records, and important correspondence.

Types of DSS in an Organization Communication Driven DSS and Group DSS: -

This fifth generic type of Decision Support System includes communication, collaboration and decision support technologies that do not fit within those DSS types identified. A Group DSS is a hybrid Decision Support System that emphasizes both the use of communications and decision models.

Inter-Organizational or Intra-Organizational DSS Function-Specific or General Purpose DSS

Decision Support Systems (continued)

Components of DSS The user interface The database The models and analytical tools and The DSS architecture and network

Most DSSs consist of three components: Data management module - assesses the data and provides a

means to select data by specified criteria Model management module – turns data into useful information Dialog module - part of a DSS that allows user interaction with the

program These components help users:

Enter a request in a convenient manner Search vast amounts of data Process the data through desired models View the results in a desired format

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Decision Support Systems in Action DSSs can be used on demand or integrated

into a scheme that enforces corporate policy DSSs help maintain standard criteria in

decision making throughout the organization Automated decision production is becoming

very popular The only labor required is for data entry

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Decision Support Systems in Action (continued)

DSSs are used in many industries: Food production and retailing: to forecast the

number of patrons, the amount of ingredients to purchase, etc.

Agriculture: allows farmers to make decisions about how to control specific pests, and for picking farm locations

Tax planning: tax helper applications such as TurboTax and TaxCut

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Decision Support Systems in Action (continued) DSSs are used in many industries (continued):

Web site planning and adjustment: to analyze shopper behavior, and to design Web sites based on page usage

Yield management: to maximize revenue from airline trips or lodging

Financial services: to determine loan amounts, and to qualify customers based on credit history

Benefits selection: to allow employees to make decisions about their benefits

Examples of DSS Applications

Decision Support Systems in Action (continued)

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Decision Support Systems in Action (continued)

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DSS and MIS

Group Decision Support Systems Group decision support system (GDSS):

Also called a group intelligence system, collaborative system, or simply a group system

Facilitates the contribution of ideas, brainstorming, and choosing promising solutions

Typically allows participants to define a problem, contribute ideas, then vote on the decision

GDSSs help structure the decision-making process while allowing participants to remain anonymous

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Elements required for a GDSS Preplanning Open, collaborative meeting atmosphere Evaluation objectivity: Reduces "office politics"

and the chance that ideas will be dismissed. Documentation: Clear communication about what

took place and what decisions were made by the group.

Preservation of "organizational memory“-even absent members get to know what happened in a meeting.

GDSS and Software tools that can be used Electronic questionnaires Electronic brainstorming: Allows all users to

participate without fear of reprisal or criticism Questionnaire tools-Facts available when required Stakeholder identification: Determines the impact

of the group's decision Group dictionaries: Reduce the problem of

different interpretations

Goals of GDSS

Mitigate the problems of group work Accentuate the Benefits of group work Support multiple group processes

Limitations of GDSS

Participants have to type in their ideas, comments and criticisms.

With a GDSS your focus is continually drawn to the many different comments and discussions taking place at the same time.

Maintaining a separate meeting room with networked computers can be expensive.

The use of GDSS also requires a trained facilitator – someone who can lead discussions, help users, and control the GDSS software on the network.

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Geographic Information Systems A Geographic Information System (GIS), or geographical

information system captures, stores, analyzes, manages, and presents data that is linked to location.

Geographic information system (GIS): a decision aid for map-related decisions Processes location data to aid in decision making

GISs are used to help: Find shortest paths for deliveries or school bus routes City planning for police coverage and health care resources Find oil drilling locations Locate suitable outdoor recreation sites Businesses determine locations for service kiosks

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Geographic Information Systems (continued) A DSS that uses geographic databases to construct and display

maps and other graphics displays A typical GIS consists of three components:

A database of quantitative and qualitative data A database of maps A program that displays information on maps

Web technology helps promote the use of GISs: Examples: Google Earth, Mapquest, Yahoo Maps

HTML and XML support the presentation of marked maps Used to aid sales and government work

Views of GIS Database View Map View Model View

Views of GIS

Views of GIS

Components of GIS

Hardware Software Data People Method

Advantages of GIS

Planning of project Make better decisions Visual Analysis Improve Organizational Integration

Application of GIS

Different streams of planning: Urban planning, housing, transportation planning architectural conservation, urban design, landscape.

Street Network Based Application: It is an addressed matched application, vehicle routing and scheduling: location and site selection and disaster planning.

Natural Resource Based Application: Management and environmental impact analysis of wild and scenic recreational resources, flood plain, wetlands, aquifers, forests, and wildlife.

View Shed Analysis: Hazardous or toxic factories sitting and ground water modelling. Wild life habitat study and migrational route planning.

Land Parcel Based: Zoning, sub-division plans review, land acquisition, environment impact analysis, nature quality management and maintenance etc.

Facilities Management: Can locate underground pipes and cables for maintenance, planning, tracking energy use.

That’s all for Today!