Fundamentals of Information Systems, Seventh Editionhome.ku.edu.tr/~mehmetgonen/indr481_fall2015/indr481... · · 2015-12-08Fundamentals of Information Systems, Seventh Edition

FundamentalsofInformationSystems,SeventhEdition

1FundamentalsofInformationSystems,

SeventhEdition

Chapter 6Information and Decision

Support Systems

Fundamentals of Information Systems, Seventh Edition 2

PrinciplesandLearningObjectives

• Gooddecision-makingandproblem-solvingskillsarethekeytodevelopingeffectiveinformationanddecisionsupportsystems– Definethestagesofdecisionmaking– Discusstheimportanceofimplementationandmonitoringinproblemsolving


PrinciplesandLearningObjectives(continued)

• Themanagementinformationsystem(MIS)mustprovidetherightinformationtotherightpersonintherightformatattherighttime– ExplaintheusesofMISsanddescribetheirinputsandoutputs

– Discussinformationsystemsinthefunctionalareasofbusinessorganizations



• Decisionsupportsystems(DSSs)areusedwhentheproblemsareunstructured– ListanddiscussimportantcharacteristicsofDSSsthatgivethemthepotentialtobeeffectivemanagementsupporttools

– IdentifyanddescribethebasiccomponentsofaDSS



• Specializedsupportsystems,suchasgroupsupportsystems(GSSs)andexecutivesupportsystems(ESSs),usetheoverallapproachofaDSSinsituationssuchasgroupandexecutivedecisionmaking– StatethegoalsofaGSSandidentifythecharacteristicsthatdistinguishitfromaDSS

– IdentifythefundamentalusesofanESSandlistthecharacteristicsofsuchasystem

– Listanddiscussotherspecial-purposesystems

WhyLearnAboutInformationandDecisionSupportSystems?

• Truepotentialofinformationsystems:– Isinhelpingyouandyourcoworkersmakemoreinformeddecisions

• Theresultcanbeincreasedrevenues,reducedcosts,andtherealizationofcorporategoals



DecisionMakingandProblemSolving

• Everyorganizationneedseffectivedecisionmaking

• Inmostcases,strategicplanningandoverallgoalsoftheorganizationsetthecoursefordecisionmaking

• Informationsystemsassistwithproblemsolving,helpingpeoplemakebetterdecisionsandsavelives


DecisionMakingasaComponentofProblemSolving

• Decision-makingphase:– Intelligencestage:

• Identifyanddefinepotentialproblemsoropportunities

– Designstage:• Developalternativesolutionstotheproblemandevaluatetheirfeasibility

– Choicestage:• Selectacourseofaction

DecisionMakingasaComponentofProblemSolving(continued)



DecisionMakingasaComponentofProblemSolving(continued)

• Problemsolving:– Includesandgoesbeyonddecisionmaking– Includesimplementationandmonitoringstage

• Monitoringstage:– Decisionmakersevaluatetheimplementation

• Wereanticipatedresultsachieved• Isthereaneedforfurthermodification


ProgrammedversusNonprogrammedDecisions

• Programmeddecisions:– Madeusingarule,procedure,orquantitativemethod

– Easytocomputerizeusingtraditionalinformationsystems

• Nonprogrammeddecisions:– Decisionsthatdealwithunusualorexceptionalsituations

– Noteasilyquantifiable


Optimization,Satisficing,andHeuristicApproaches

• Optimizationmodel:– Findsthebestsolution,usuallytheonethatwillbesthelptheorganizationmeetitsgoals

• Satisficingmodel:– Findsagood,butnotnecessarilythebest,problemsolution

• Heuristics:– Commonlyacceptedguidelinesorproceduresthatusuallyfindagoodsolution

TheBenefitsofInformationandDecisionSupportSystems

• Decisionsupportsystems:– Performanceistypicallyafunctionofdecisionqualityandproblemcomplexity

• Problemcomplexity:– Dependsonhowhardtheproblemistosolveandimplement

13FundamentalsofInformationSystems,SeventhEdition

TheBenefitsofInformationandDecisionSupportSystems(continued)



AnOverviewofManagementInformationSystems

• Managementinformationsystem(MIS):– Integratedcollectionofpeople,procedures,databases,anddevicesthatprovidesmanagersanddecisionmakerswithinformationtohelpachieveorganizationsgoals

– Cangivetheorganizationacompetitiveadvantage


ManagementInformationSystemsinPerspective

• PurposeofanMIS:– Tohelpanorganizationachieveitsgoalsbyprovidingmanagerswithinsightintotheregularoperationsoftheorganization

– Providetherightinformationtotherightpersonintherightformatattherighttime

• Businesstransactions:– Canentertheorganizationthroughtraditionalmethods,orviatheInternet,orviaanextranet

ManagementInformationSystemsinPerspective(continued)



InputstoaManagementInformationSystem

• Internaldatasources:– TPSandERPsystemsandrelateddatabases– Datawarehousesanddatamarts– Specificfunctionalareasthroughoutthefirm

• Externaldatasources:– Customers,suppliers,competitors,andstockholderswhosedataisnotalreadycapturedbytheTPSandERPsystems

– Internet


OutputsofaManagementInformationSystem

• Scheduledreports:– Producedperiodically,suchasdaily,weekly,ormonthly

– Key-indicator reportsummarizesthepreviousday’scriticalactivities

• Demandreports:– Developedtoprovidecertaininformationuponrequest

OutputsofaManagementInformationSystem(continued)

• Exceptionreports:– Automaticallyproducedwhenasituationisunusualorrequiresmanagementaction

– Triggerpointsshouldbesetcarefully• Drill-downreports:

– Provideincreasinglydetaileddataaboutasituation



CharacteristicsofaManagementInformationSystem

• MISsperformthefollowingfunctions:– Providereportswithfixedandstandardformats– Producehard-copyandsoft-copyreports– Useinternaldatastoredincomputersystem– Allowuserstodevelopcustomreports– Requireuserrequestsforreportsdevelopedbysystemspersonnel


FunctionalAspectsoftheMIS

• Mostorganizationsarestructuredalongfunctionalareas

• MIScanbedividedalongfunctionallinestoproducereportstailoredtoindividualfunctions


FinancialManagementInformationSystems

• FinancialMIS:– Providesfinancialinformationtoexecutivesandothers

• SomefinancialMISsubsystemsandoutputs:– Profit/lossandcostsystems– Auditing– Usesandmanagementoffunds


ManufacturingManagementInformationSystems

• ManufacturingMISsubsystemsandoutputs:– Usedtomonitorandcontroltheflowofmaterials,products,andservicesthroughtheorganization

• Commoninformationsubsystemsandoutputsusedinmanufacturing:– Designandengineering– Masterproductionscheduling– Inventorycontrol– Processcontrol– Qualitycontrolandtesting


MarketingManagementInformationSystems

• MarketingMIS:– Supportsproductdevelopment,distribution,pricingdecisions,promotionaleffectiveness,andsalesforecasting

– MarketingfunctionsincreasinglybeingperformedontheInternetandmobiledevices

• Subsystems:– Marketingresearch– Productdevelopmentanddelivery– Promotionandadvertising– Productpricing– Salesanalysis


HumanResourceManagementInformationSystems

• Concernedwithactivitiesrelatedtoprevious,currentandpotentialemployees

• Subsystems:– Humanresourceplanning– Personnelselectionandrecruiting– Trainingandskillsinventory– Schedulingandjobplacement– Wageandsalaryadministration– Outplacement


OtherManagementInformationSystems

• AccountingMIS:– Providesaggregateinformationonaccountspayable,accountsreceivable,payroll,andmanyotherapplications

• Geographicinformationsystem(GIS):– Capableofassembling,storing,manipulating,anddisplayinggeographicallyreferencedinformation


AnOverviewofDecisionSupportSystems

• DSS:– Organizedcollectionofpeople,procedures,software,databases,anddevicesusedtohelpmakedecisionsthatsolveproblems

• FocusofaDSS:– Isondecision-makingeffectivenessregardingunstructuredorsemistructuredbusinessproblems


CharacteristicsofaDecisionSupportSystem

• Someimportantcharacteristics:– Providerapidaccesstoinformation– Handlelargeamountsofdatafromdifferentsources

– Providereportandpresentationflexibility– Offerbothtextualandgraphicalorientation– Supportdrill-downanalysis

CharacteristicsofaDecisionSupportSystem(continued)

• Performcomplex,sophisticatedanalysisandcomparisonsusingadvancedsoftware

• Supportoptimization,satisficing,andheuristicapproaches

• Performsimulationanalysis• Forecastafutureopportunityorproblem


30


CapabilitiesofaDecisionSupportSystem

• Supportproblem-solvingphases:– AspecificDSSmightsupportonlyoneorafewphases

• Supportvariousdecisionfrequencies:– AdhocDSSisconcernedwithsituationsordecisionsthatcomeuponlyafewtimes

– InstitutionalDSShandlessituationsordecisionsthatoccurmorethanonce

CapabilitiesofaDecisionSupportSystem(continued)

• Supportvariousproblemstructures:– Highlystructuredproblemsarestraightforward,requiringknownfactsandrelationships

– Semistructuredorunstructuredproblems aremorecomplex

• Supportvariousdecision-makinglevels:– DSSscanprovidehelpformanagersatvariouslevelswithintheorganization– operational,tactical,andstrategic


CapabilitiesofaDecisionSupportSystem(continued)


AComparisonofDSSandMIS

• DSSdiffersfromanMISinnumerousways,including:– Thetypeofproblemssolved– Thesupportgiventousers– Thedecisionemphasisandapproach– Thetype,speed,output,anddevelopmentofthesystemused

34FundamentalsofInformationSystems,SeventhEdition

AComparisonofDSSandMIS(continued)



ComponentsofaDecisionSupportSystem

• AtthecoreofaDSSareadatabaseandamodelbase

• Userinterface(dialoguemanager):– AllowsdecisionmakerstoeasilyaccessandmanipulatetheDSSandtousecommonbusinesstermsandphrases

• AccesstotheInternet,networks,andothercomputer-basedsystems

ComponentsofaDecisionSupportSystem(continued)



TheDatabase

• Databasemanagementsystem:– Allowsmanagersanddecisionmakerstoperformqualitativeanalysis ondatastoredincompany’sdatabases,datawarehouses,anddatamarts

– Canalsobeusedtoconnecttoexternaldatabases• Data-drivenDSS:

– Oftenemploysdataminingandbusinessintelligence


TheModelBase

• Modelbase:– Allowsmanagersanddecisionmakerstoperformquantitative analysisonbothinternalandexternaldata

• Model-drivenDSS:– Performsmathematicalorquantitativeanalysis

• Modelmanagementsoftware(MMS):– CoordinatestheuseofmodelsinaDSS

TheModelBase(continued)



TheUserInterfaceorDialogueManager

• AllowsuserstointeractwiththeDSStoobtaininformation

• AssistswithallaspectsofcommunicationsbetweenuserandhardwareandsoftwarethatconstitutetheDSS


GroupSupportSystems

• Groupsupportsystem(GSS):– Alsoknownasgroupdecisionsupportsystemandcomputerizedcollaborativeworksystem

– ConsistsofmostelementsinaDSS,plussoftwaretoprovideeffectivesupportingroupdecisionmaking

– Alsocalledgroupdecisionsupportsystemorcomputerizedcollaborativeworksystem

GroupSupportSystems(continued)



CharacteristicsofaGSSThatEnhanceDecisionMaking

• Specialdesign• Easeofuse• Flexibility• Decision-makingsupport:

– Delphiapproach– Brainstorming– Groupconsensusapproach– Nominalgrouptechnique


CharacteristicsofaGSSThatEnhanceDecisionMaking(continued)

• Anonymousinput• Reductionofnegativegroupbehavior• Parallelandunifiedcommunication• Automatedrecordkeeping


GSSHardwareandSoftwareTools

• GSShardwareincludescomputers,laptops,tabletcomputers,smartphones,andotherdevices

• Advancedvideodevices

GSSHardwareandSoftwareTools(continued)

• GSSsoftwareoftencalledgroupwareorworkgroupsoftware

• Helpswithjointworkgroupscheduling,communication,andmanagement

• GSSsoftwarepackages:– LotusNotes– OfficeCommunicator– Sharepoint– WebOffice– BaseCamp


47


GSSHardwareandSoftwareTools(continued)

• GSSsuseanumberoftools,including:– E-mail,instantmessaging(IM),andtextmessaging(TM)

– Videoconferencing– Groupscheduling– Projectmanagement– Documentsharing


GSSAlternatives

• Decisionroom:– Decisionmakersarelocatedinthesamebuildingorgeographicarea

– Combinesface-to-faceverbalinteractionwithtechnology

• Localareadecisionnetwork:– Groupmembersarelocatedinthesamebuildingorgeographicareaunderconditionswheregroupdecisionmakingisfrequent

GSSAlternatives(continued)



GSSAlternatives(continued)

• Teleconferencing:– Decisionfrequencyislow– Locationofgroupmembersisdistant

• Wideareadecisionnetwork:– Decisionfrequencyishigh– Locationofgroupmembersisdistant


ExecutiveSupportSystems

• Executivesupportsystem(ESS):– SpecializedDSS– Includeshardware,software,data,procedures,andpeopleusedtoassistsenior-levelexecutives

– Alsocalledanexecutiveinformationsystem(EIS)

ExecutiveSupportSystems(continued)


ExecutiveSupportSystemsinPerspective

• ESSisspecialtypeofDSS– DSSprovidesvarietyofmodelingandanalysistoolstoenableuserstoanswerquestions

– ESSpresentsstructuredinformationaboutaspectsoftheorganizationthatexecutivesconsiderimportant


54


CapabilitiesofExecutiveSupportSystems

• ESSprovidessupportfor:– Definingoverallvision– Strategicplanning– Strategicorganizingandstaffing– Strategiccontrol– Crisismanagement


Summary

• Problemsolving:– Beginswithdecisionmaking– Includesimplementationandmonitoring– Decisionmakingisacomponent

• Managementinformationsystem:– Integratedcollectionofpeople,procedures,databases,anddevices

• DatathatenterstheMIS:– Originatesfrombothinternalandexternalsources


Summary(continued)

• OutputofmostMISs:– Scheduledreports,key-indicatorreports– Demandreports,exceptionreports– Drill-downreports

• PrimarysourcesofinputtofunctionalMISs:– Corporatestrategicplan– DatafromtheERPsystemandTPS– Informationfromsupplychainandbusinesstransactions

– ExternalsourcesincludingtheInternetandextranets


Summary(continued)

• ComponentsofaDSS:– Thedatabase,modelbase,extranets,networks– Userinterfaceordialoguemanager– Linktoexternaldatabases,theInternet– Thecorporateintranet,extranets,networks

• Groupsupportsystem(GSS):– ConsistsofmostoftheelementsinaDSS,plussoftwaretoprovideeffectivesupportingroupdecision-makingsettings


Summary(continued)

• Executivesupportsystems(ESSs)– Specializeddecisionsupportsystemsdesignedtomeettheneedsofseniormanagement

– Typicallyeasytouse,offerawiderangeofcomputerresources,andhandleavarietyofinternalandexternaldata