FundamentalsofInformationSystems,SeventhEdition
1FundamentalsofInformationSystems,
SeventhEdition
Chapter 6Information and Decision
Support Systems
Fundamentals of Information Systems, Seventh Edition 2
PrinciplesandLearningObjectives
• Gooddecision-makingandproblem-solvingskillsarethekeytodevelopingeffectiveinformationanddecisionsupportsystems– Definethestagesofdecisionmaking– Discusstheimportanceofimplementationandmonitoringinproblemsolving
Fundamentals of Information Systems, Seventh Edition 3
PrinciplesandLearningObjectives(continued)
• Themanagementinformationsystem(MIS)mustprovidetherightinformationtotherightpersonintherightformatattherighttime– ExplaintheusesofMISsanddescribetheirinputsandoutputs
– Discussinformationsystemsinthefunctionalareasofbusinessorganizations
Fundamentals of Information Systems, Seventh Edition 4
PrinciplesandLearningObjectives(continued)
• Decisionsupportsystems(DSSs)areusedwhentheproblemsareunstructured– ListanddiscussimportantcharacteristicsofDSSsthatgivethemthepotentialtobeeffectivemanagementsupporttools
– IdentifyanddescribethebasiccomponentsofaDSS
Fundamentals of Information Systems, Seventh Edition 5
PrinciplesandLearningObjectives(continued)
• Specializedsupportsystems,suchasgroupsupportsystems(GSSs)andexecutivesupportsystems(ESSs),usetheoverallapproachofaDSSinsituationssuchasgroupandexecutivedecisionmaking– StatethegoalsofaGSSandidentifythecharacteristicsthatdistinguishitfromaDSS
– IdentifythefundamentalusesofanESSandlistthecharacteristicsofsuchasystem
– Listanddiscussotherspecial-purposesystems
WhyLearnAboutInformationandDecisionSupportSystems?
• Truepotentialofinformationsystems:– Isinhelpingyouandyourcoworkersmakemoreinformeddecisions
• Theresultcanbeincreasedrevenues,reducedcosts,andtherealizationofcorporategoals
Fundamentals of Information Systems, Seventh Edition 6
Fundamentals of Information Systems, Seventh Edition 7
DecisionMakingandProblemSolving
• Everyorganizationneedseffectivedecisionmaking
• Inmostcases,strategicplanningandoverallgoalsoftheorganizationsetthecoursefordecisionmaking
• Informationsystemsassistwithproblemsolving,helpingpeoplemakebetterdecisionsandsavelives
Fundamentals of Information Systems, Seventh Edition 8
DecisionMakingasaComponentofProblemSolving
• Decision-makingphase:– Intelligencestage:
• Identifyanddefinepotentialproblemsoropportunities
– Designstage:• Developalternativesolutionstotheproblemandevaluatetheirfeasibility
– Choicestage:• Selectacourseofaction
DecisionMakingasaComponentofProblemSolving(continued)
Fundamentals of Information Systems, Seventh Edition 9
Fundamentals of Information Systems, Seventh Edition 10
DecisionMakingasaComponentofProblemSolving(continued)
• Problemsolving:– Includesandgoesbeyonddecisionmaking– Includesimplementationandmonitoringstage
• Monitoringstage:– Decisionmakersevaluatetheimplementation
• Wereanticipatedresultsachieved• Isthereaneedforfurthermodification
Fundamentals of Information Systems, Seventh Edition 11
ProgrammedversusNonprogrammedDecisions
• Programmeddecisions:– Madeusingarule,procedure,orquantitativemethod
– Easytocomputerizeusingtraditionalinformationsystems
• Nonprogrammeddecisions:– Decisionsthatdealwithunusualorexceptionalsituations
– Noteasilyquantifiable
Fundamentals of Information Systems, Seventh Edition 12
Optimization,Satisficing,andHeuristicApproaches
• Optimizationmodel:– Findsthebestsolution,usuallytheonethatwillbesthelptheorganizationmeetitsgoals
• Satisficingmodel:– Findsagood,butnotnecessarilythebest,problemsolution
• Heuristics:– Commonlyacceptedguidelinesorproceduresthatusuallyfindagoodsolution
TheBenefitsofInformationandDecisionSupportSystems
• Decisionsupportsystems:– Performanceistypicallyafunctionofdecisionqualityandproblemcomplexity
• Problemcomplexity:– Dependsonhowhardtheproblemistosolveandimplement
13FundamentalsofInformationSystems,SeventhEdition
TheBenefitsofInformationandDecisionSupportSystems(continued)
Fundamentals of Information Systems, Seventh Edition 14
Fundamentals of Information Systems, Seventh Edition 15
AnOverviewofManagementInformationSystems
• Managementinformationsystem(MIS):– Integratedcollectionofpeople,procedures,databases,anddevicesthatprovidesmanagersanddecisionmakerswithinformationtohelpachieveorganizationsgoals
– Cangivetheorganizationacompetitiveadvantage
Fundamentals of Information Systems, Seventh Edition 16
ManagementInformationSystemsinPerspective
• PurposeofanMIS:– Tohelpanorganizationachieveitsgoalsbyprovidingmanagerswithinsightintotheregularoperationsoftheorganization
– Providetherightinformationtotherightpersonintherightformatattherighttime
• Businesstransactions:– Canentertheorganizationthroughtraditionalmethods,orviatheInternet,orviaanextranet
ManagementInformationSystemsinPerspective(continued)
Fundamentals of Information Systems, Seventh Edition 17
Fundamentals of Information Systems, Seventh Edition 18
InputstoaManagementInformationSystem
• Internaldatasources:– TPSandERPsystemsandrelateddatabases– Datawarehousesanddatamarts– Specificfunctionalareasthroughoutthefirm
• Externaldatasources:– Customers,suppliers,competitors,andstockholderswhosedataisnotalreadycapturedbytheTPSandERPsystems
– Internet
Fundamentals of Information Systems, Seventh Edition 19
OutputsofaManagementInformationSystem
• Scheduledreports:– Producedperiodically,suchasdaily,weekly,ormonthly
– Key-indicator reportsummarizesthepreviousday’scriticalactivities
• Demandreports:– Developedtoprovidecertaininformationuponrequest
OutputsofaManagementInformationSystem(continued)
• Exceptionreports:– Automaticallyproducedwhenasituationisunusualorrequiresmanagementaction
– Triggerpointsshouldbesetcarefully• Drill-downreports:
– Provideincreasinglydetaileddataaboutasituation
Fundamentals of Information Systems, Seventh Edition 20
Fundamentals of Information Systems, Seventh Edition 21
CharacteristicsofaManagementInformationSystem
• MISsperformthefollowingfunctions:– Providereportswithfixedandstandardformats– Producehard-copyandsoft-copyreports– Useinternaldatastoredincomputersystem– Allowuserstodevelopcustomreports– Requireuserrequestsforreportsdevelopedbysystemspersonnel
Fundamentals of Information Systems, Seventh Edition 22
FunctionalAspectsoftheMIS
• Mostorganizationsarestructuredalongfunctionalareas
• MIScanbedividedalongfunctionallinestoproducereportstailoredtoindividualfunctions
Fundamentals of Information Systems, Seventh Edition 23
FinancialManagementInformationSystems
• FinancialMIS:– Providesfinancialinformationtoexecutivesandothers
• SomefinancialMISsubsystemsandoutputs:– Profit/lossandcostsystems– Auditing– Usesandmanagementoffunds
Fundamentals of Information Systems, Seventh Edition 24
ManufacturingManagementInformationSystems
• ManufacturingMISsubsystemsandoutputs:– Usedtomonitorandcontroltheflowofmaterials,products,andservicesthroughtheorganization
• Commoninformationsubsystemsandoutputsusedinmanufacturing:– Designandengineering– Masterproductionscheduling– Inventorycontrol– Processcontrol– Qualitycontrolandtesting
Fundamentals of Information Systems, Seventh Edition 25
MarketingManagementInformationSystems
• MarketingMIS:– Supportsproductdevelopment,distribution,pricingdecisions,promotionaleffectiveness,andsalesforecasting
– MarketingfunctionsincreasinglybeingperformedontheInternetandmobiledevices
• Subsystems:– Marketingresearch– Productdevelopmentanddelivery– Promotionandadvertising– Productpricing– Salesanalysis
Fundamentals of Information Systems, Seventh Edition 26
HumanResourceManagementInformationSystems
• Concernedwithactivitiesrelatedtoprevious,currentandpotentialemployees
• Subsystems:– Humanresourceplanning– Personnelselectionandrecruiting– Trainingandskillsinventory– Schedulingandjobplacement– Wageandsalaryadministration– Outplacement
Fundamentals of Information Systems, Seventh Edition 27
OtherManagementInformationSystems
• AccountingMIS:– Providesaggregateinformationonaccountspayable,accountsreceivable,payroll,andmanyotherapplications
• Geographicinformationsystem(GIS):– Capableofassembling,storing,manipulating,anddisplayinggeographicallyreferencedinformation
Fundamentals of Information Systems, Seventh Edition 28
AnOverviewofDecisionSupportSystems
• DSS:– Organizedcollectionofpeople,procedures,software,databases,anddevicesusedtohelpmakedecisionsthatsolveproblems
• FocusofaDSS:– Isondecision-makingeffectivenessregardingunstructuredorsemistructuredbusinessproblems
Fundamentals of Information Systems, Seventh Edition 29
CharacteristicsofaDecisionSupportSystem
• Someimportantcharacteristics:– Providerapidaccesstoinformation– Handlelargeamountsofdatafromdifferentsources
– Providereportandpresentationflexibility– Offerbothtextualandgraphicalorientation– Supportdrill-downanalysis
CharacteristicsofaDecisionSupportSystem(continued)
• Performcomplex,sophisticatedanalysisandcomparisonsusingadvancedsoftware
• Supportoptimization,satisficing,andheuristicapproaches
• Performsimulationanalysis• Forecastafutureopportunityorproblem
FundamentalsofInformationSystems,SeventhEdition
30
Fundamentals of Information Systems, Seventh Edition 31
CapabilitiesofaDecisionSupportSystem
• Supportproblem-solvingphases:– AspecificDSSmightsupportonlyoneorafewphases
• Supportvariousdecisionfrequencies:– AdhocDSSisconcernedwithsituationsordecisionsthatcomeuponlyafewtimes
– InstitutionalDSShandlessituationsordecisionsthatoccurmorethanonce
CapabilitiesofaDecisionSupportSystem(continued)
• Supportvariousproblemstructures:– Highlystructuredproblemsarestraightforward,requiringknownfactsandrelationships
– Semistructuredorunstructuredproblems aremorecomplex
• Supportvariousdecision-makinglevels:– DSSscanprovidehelpformanagersatvariouslevelswithintheorganization– operational,tactical,andstrategic
Fundamentals of Information Systems, Seventh Edition 32
CapabilitiesofaDecisionSupportSystem(continued)
Fundamentals of Information Systems, Seventh Edition 33
AComparisonofDSSandMIS
• DSSdiffersfromanMISinnumerousways,including:– Thetypeofproblemssolved– Thesupportgiventousers– Thedecisionemphasisandapproach– Thetype,speed,output,anddevelopmentofthesystemused
34FundamentalsofInformationSystems,SeventhEdition
Fundamentals of Information Systems, Seventh Edition 36
ComponentsofaDecisionSupportSystem
• AtthecoreofaDSSareadatabaseandamodelbase
• Userinterface(dialoguemanager):– AllowsdecisionmakerstoeasilyaccessandmanipulatetheDSSandtousecommonbusinesstermsandphrases
• AccesstotheInternet,networks,andothercomputer-basedsystems
ComponentsofaDecisionSupportSystem(continued)
Fundamentals of Information Systems, Seventh Edition 37
Fundamentals of Information Systems, Seventh Edition 38
TheDatabase
• Databasemanagementsystem:– Allowsmanagersanddecisionmakerstoperformqualitativeanalysis ondatastoredincompany’sdatabases,datawarehouses,anddatamarts
– Canalsobeusedtoconnecttoexternaldatabases• Data-drivenDSS:
– Oftenemploysdataminingandbusinessintelligence
Fundamentals of Information Systems, Seventh Edition 39
TheModelBase
• Modelbase:– Allowsmanagersanddecisionmakerstoperformquantitative analysisonbothinternalandexternaldata
• Model-drivenDSS:– Performsmathematicalorquantitativeanalysis
• Modelmanagementsoftware(MMS):– CoordinatestheuseofmodelsinaDSS
Fundamentals of Information Systems, Seventh Edition 41
TheUserInterfaceorDialogueManager
• AllowsuserstointeractwiththeDSStoobtaininformation
• AssistswithallaspectsofcommunicationsbetweenuserandhardwareandsoftwarethatconstitutetheDSS
Fundamentals of Information Systems, Seventh Edition 42
GroupSupportSystems
• Groupsupportsystem(GSS):– Alsoknownasgroupdecisionsupportsystemandcomputerizedcollaborativeworksystem
– ConsistsofmostelementsinaDSS,plussoftwaretoprovideeffectivesupportingroupdecisionmaking
– Alsocalledgroupdecisionsupportsystemorcomputerizedcollaborativeworksystem
Fundamentals of Information Systems, Seventh Edition 44
CharacteristicsofaGSSThatEnhanceDecisionMaking
• Specialdesign• Easeofuse• Flexibility• Decision-makingsupport:
– Delphiapproach– Brainstorming– Groupconsensusapproach– Nominalgrouptechnique
Fundamentals of Information Systems, Seventh Edition 45
CharacteristicsofaGSSThatEnhanceDecisionMaking(continued)
• Anonymousinput• Reductionofnegativegroupbehavior• Parallelandunifiedcommunication• Automatedrecordkeeping
Fundamentals of Information Systems, Seventh Edition 46
GSSHardwareandSoftwareTools
• GSShardwareincludescomputers,laptops,tabletcomputers,smartphones,andotherdevices
• Advancedvideodevices
GSSHardwareandSoftwareTools(continued)
• GSSsoftwareoftencalledgroupwareorworkgroupsoftware
• Helpswithjointworkgroupscheduling,communication,andmanagement
• GSSsoftwarepackages:– LotusNotes– OfficeCommunicator– Sharepoint– WebOffice– BaseCamp
FundamentalsofInformationSystems,SeventhEdition
47
Fundamentals of Information Systems, Seventh Edition 48
GSSHardwareandSoftwareTools(continued)
• GSSsuseanumberoftools,including:– E-mail,instantmessaging(IM),andtextmessaging(TM)
– Videoconferencing– Groupscheduling– Projectmanagement– Documentsharing
Fundamentals of Information Systems, Seventh Edition 49
GSSAlternatives
• Decisionroom:– Decisionmakersarelocatedinthesamebuildingorgeographicarea
– Combinesface-to-faceverbalinteractionwithtechnology
• Localareadecisionnetwork:– Groupmembersarelocatedinthesamebuildingorgeographicareaunderconditionswheregroupdecisionmakingisfrequent
Fundamentals of Information Systems, Seventh Edition 51
GSSAlternatives(continued)
• Teleconferencing:– Decisionfrequencyislow– Locationofgroupmembersisdistant
• Wideareadecisionnetwork:– Decisionfrequencyishigh– Locationofgroupmembersisdistant
Fundamentals of Information Systems, Seventh Edition 52
ExecutiveSupportSystems
• Executivesupportsystem(ESS):– SpecializedDSS– Includeshardware,software,data,procedures,andpeopleusedtoassistsenior-levelexecutives
– Alsocalledanexecutiveinformationsystem(EIS)
ExecutiveSupportSystemsinPerspective
• ESSisspecialtypeofDSS– DSSprovidesvarietyofmodelingandanalysistoolstoenableuserstoanswerquestions
– ESSpresentsstructuredinformationaboutaspectsoftheorganizationthatexecutivesconsiderimportant
FundamentalsofInformationSystems,SeventhEdition
54
Fundamentals of Information Systems, Seventh Edition 55
CapabilitiesofExecutiveSupportSystems
• ESSprovidessupportfor:– Definingoverallvision– Strategicplanning– Strategicorganizingandstaffing– Strategiccontrol– Crisismanagement
Fundamentals of Information Systems, Seventh Edition 56
Summary
• Problemsolving:– Beginswithdecisionmaking– Includesimplementationandmonitoring– Decisionmakingisacomponent
• Managementinformationsystem:– Integratedcollectionofpeople,procedures,databases,anddevices
• DatathatenterstheMIS:– Originatesfrombothinternalandexternalsources
Fundamentals of Information Systems, Seventh Edition 57
Summary(continued)
• OutputofmostMISs:– Scheduledreports,key-indicatorreports– Demandreports,exceptionreports– Drill-downreports
• PrimarysourcesofinputtofunctionalMISs:– Corporatestrategicplan– DatafromtheERPsystemandTPS– Informationfromsupplychainandbusinesstransactions
– ExternalsourcesincludingtheInternetandextranets
Fundamentals of Information Systems, Seventh Edition 58
Summary(continued)
• ComponentsofaDSS:– Thedatabase,modelbase,extranets,networks– Userinterfaceordialoguemanager– Linktoexternaldatabases,theInternet– Thecorporateintranet,extranets,networks
• Groupsupportsystem(GSS):– ConsistsofmostoftheelementsinaDSS,plussoftwaretoprovideeffectivesupportingroupdecision-makingsettings