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13
ENHANCING
MANAGEMENT
DECISION MAKING
13.1
Prof Jess Role @ UEAB 2010
LEARNING OBJECTIVES
• DIFFERENTIATE DECISIONSUPPORT SYSTEMS (DSS) FROM
GROUP DECISION-SUPPORT
SYSTEMS (GDSS)
• DESCRIBE COMPONENTS OF DSS &
GDSS
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13.2
Prof Jess Role @ UEAB 2010
LEARNING OBJECTIVES
• DEMONSTRATE HOW DSS & GDSS
ENHANCE DECISION-MAKING
• DESCRIBE CAPABILITIES OF
EXECUTIVE SUPPORT SYSTEMS
(ESS)
• ASSESS BENEFITS OF ESS
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13.3
Prof Jess Role @ UEAB 2010
MANAGEMENT CHALLENGES
• DECISION-SUPPORT SYSTEMS
• GROUP DECISION-SUPPORT
SYSTEMS
• EXECUTIVE SUPPORT SYSTEMS
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13.4
Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEMS (DSS)
MANAGEMENT LEVEL COMPUTER
SYSTEM COMBINES DATA,
MODELS, USER - FRIENDLY
SOFTWARE FOR SEMISTRUCTURED
& UNSTRUCTURED DECISION
MAKING
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13.5
Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
• MODEL DRIVEN DSS: Uses models
for what-if and other analysis
• DATA-DRIVEN DSS: Allows
extraction, analysis of information
from databases
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13.6
Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
TPS
USER
INTERFACE
DSS DATA
BASE
EXTERNAL
DATA
DSS SOFTWARE SYSTEM
MODELS
OLAP TOOLS
DATAMINING TOOLS
USER
13.7
Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
•
•
•
•
TPS: Transaction processing system
MODEL: Representation of a problem
OLAP: On-line analytical processing
USER INTERFACE: How user enters
problem & receives answers
• DSS DATABASE: Current data from
applications or groups
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13.8
Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
• DATA MINING: Technology for finding
relationships in large data bases for
prediction
• DSS SOFTWARE SYSTEM: Tools for data
analysis
• SENSITIVITY ANALYSIS: “What-if”
questions about changes in model factors
*
13.9
Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
APPLICATIONS:
• SUPPLY CHAIN MANAGEMENT
• CUSTOMER RELATIONSHIP
MANAGEMENT
• SIMULATING BUSINESS
SCENARIOS
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13.10 Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
• GEOGRAPHIC INFORMATION SYSTEM
(GIS): Software to display digital maps
• WEB-BASED DSS: Available on Internet
for decisions, information, software
• CUSTOMER DSS (CDSS): System
supports buying decisions of customers
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13.11 Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
EXAMPLES:
• GENERAL ACCIDENT INSURANCE:
Customer buying patterns, fraud
detection
• BANK OF AMERICA: Customer
profiles
• FRITO-LAY: Price, advertising,
promotion selection
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13.12 Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
• BURLINGTON COAT FACTORY:
Store location, inventory mix
• KEYCORP: Targeting direct mail
marketing customers
• NATIONAL GYPSUM: Corporate
planning & forecasting
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13.13 Prof Jess Role @ UEAB 2010
DECISION SUPPORT
SYSTEM
• SOUTHERN RAILWAY: Train
dispatching and routing
• TEXAS OIL & GAS: Evaluating
drilling sites
• UNITED AIRLINES: Flight scheduling,
passenger demand forecasting
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13.14 Prof Jess Role @ UEAB 2010
GROUP DECISION-SUPPORT SYSTEM
(GDSS)
INTERACTIVE COMPUTER-BASED
SYSTEM FACILITATES SOLUTION
OF UNSTRUCTURED PROBLEMS
BY DECISION MAKERS WORKING
AS GROUP
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13.15 Prof Jess Role @ UEAB 2010
GDSS ENHANCED DECISION MAKING
ALLOWS: Improved pre-planning
• Increased participation
• Open, collaborative atmosphere
• Idea generation free of criticism
• Evaluation objectivity
• Idea organization & evaluation
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13.16 Prof Jess Role @ UEAB 2010
GDSS ENHANCED
DECISION MAKING
ALLOWS: Setting priorities & decision
making
• Documentation of meetings
• Access to external information
• Preservation of organizational memory
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13.17 Prof Jess Role @ UEAB 2010
TOOLS OF GDSS
•
•
•
•
•
ELECTRONIC QUESTIONNAIRES
ELECTRONIC BRAINSTORMING
IDEA ORGANIZERS
QUESTIONNAIRE TOOLS
TOOLS FOR VOTING,
SETTING PRIORITIES
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13.18 Prof Jess Role @ UEAB 2010
TOOLS OF GDSS
• STAKEHOLDER IDENTIFICATION &
ANALYSIS TOOLS
• POLICY FORMATION TOOLS
• GROUP DICTIONARIES
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13.19 Prof Jess Role @ UEAB 2010
ELECTRONIC MEETING SYSTEM
(EMS)
COLLABORATIVE GDSS: Uses
information technology to make
group meetings more productive
facilitates communication decision
making
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13.20 Prof Jess Role @ UEAB 2010
EXECUTIVE
SUPPORT SYSTEMS (ESS)
STRATEGIC INFORMATION SYSTEM
DESIGNED FOR UNSTRUCTURED
DECISION MAKING THROUGH
ADVANCED GRAPHICS AND
COMMUNICATIONS
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13.21 Prof Jess Role @ UEAB 2010
EXECUTIVE
SUPPORT SYSTEMS
• DRILL DOWN: ability to move from
summary to lower levels of detail
• Designed for specific needs of CEO
• Extensive support staff
• Executive has 24 hour per day ability to
examine, control progress throughout
organization
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13.22 Prof Jess Role @ UEAB 2010
EXECUTIVE
SUPPORT SYSTEMS
BENEFITS:
• FLEXIBILITY
• ABILITY TO ANALYZE, COMPARE,
HIGHLIGHT TRENDS
• GRAPHICS HELP EXPLORE SITUATION
• MONITOR PERFORMANCE
• TIMELINESS, AVAILABILITY OF DATA
ALLOWS PROMPT ACTION
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13.23 Prof Jess Role @ UEAB 2010
EXECUTIVE
SUPPORT SYSTEMS
USES IN A DIGITAL FIRM:
• BUSINESS INTELLIGENCE: Info on
salespeople, distributors, retailers
• MONITORING BUSINESS PERFORMANCE:
Balanced scorecard shows perspectives
of customers, internal processes,
learning, growth
• ENTERPRISE WIDE REPORTING &
ANALYSIS
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13.24 Prof Jess Role @ UEAB 2010
13
ENHANCING
MANAGEMENT
DECISION MAKING
13.25 Prof Jess Role @ UEAB 2010