Information and Decision Support
Systems
Chapter 6
Fundamentals of Information
Systems, Second Edition
1
Principles and Learning Objectives
• Good decision-making and problem-solving
skills are the key to developing effective
information and decision support systems.
– Define the stages of decision making.
– Discuss the importance of implementation and
monitoring in problem solving.
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Systems, Second Edition
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Principles and Learning Objectives
• The management information system (MIS)
must provide the right information to the right
person in the right fashion at the right time.
– Define the term MIS and clearly distinguish the
difference between a TPS and an MIS.
– Discuss information systems in the functional areas of
business organizations.
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Systems, Second Edition
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Principles and Learning Objectives
• Decision support systems (DSSs) are used
when the problems are more unstructured.
– List and discuss important characteristics of DSSs
that give them the potential to be effective
management support tools.
– Identify and describe the basic components of a DSS.
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Systems, Second Edition
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Principles and Learning Objectives
• Specialized support systems, such as group
decision support systems (GDSSs) and
executive support systems (ESSs), use the
overall approach of a DSS in situations such as
group and executive decision making.
– State the goals of a GDSS and identify the
characteristics that distinguish it from a DSS.
– Identify the fundamental uses of an ESS and list the
characteristics of such a system.
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Systems, Second Edition
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Decision Making and
Problem Solving
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Systems, Second Edition
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How Decision Making Relates to Problem
Solving
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Systems, Second Edition
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Programmed versus Nonprogrammed
Decisions
• Programmed decisions
– Easy to computerize
• Nonprogrammed decisions
– Rules and relationships not defined
– Problem is not routine
– Not easily quantifiable
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Systems, Second Edition
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Problem Solving Approaches
• Optimization: find the best solution
• Satisficing: find a good solution
• Heuristics: rules of thumb
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Systems, Second Edition
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Optimization, Satisficing, and Heuristic
Approaches
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Systems, Second Edition
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An Overview of Management
Information Systems
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Systems, Second Edition
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Sources of Managerial Information
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Systems, Second Edition
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Reports Generated by an MIS
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Systems, Second Edition
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Reports Generated by an MIS
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Systems, Second Edition
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Guidelines for Developing MIS Reports
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Systems, Second Edition
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Functional Aspects of the
MIS
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Systems, Second Edition
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Functional Aspects of MIS
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Systems, Second Edition
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Overview of a Financial MIS
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Systems, Second Edition
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Manufacturing MIS
• Material requirements planning (MRP)
• Manufacturing resource planning (MRPII)
• Just in time (JIT) inventory system
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Systems, Second Edition
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Overview of a Manufacturing MIS
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Systems, Second Edition
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Overview of a Marketing MIS
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Systems, Second Edition
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Human Resource MIS
Concerned with activities related to employees
and potential employees of the organization.
• Subsystems include:
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needs and planning assessments
recruiting
training and skills development
scheduling and assignment
employee benefits
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Systems, Second Edition
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Overview of a Human Resource MIS
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Systems, Second Edition
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Other Management Information Systems
• Accounting MIS - provides aggregate
information on accounts payable, accounts
receivable, payroll, and many other applications.
• Geographic Information Systems - computer
system capable of assembling, storing,
manipulating, and displaying geographic
information.
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Systems, Second Edition
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An Overview of Decision
Support Systems
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Systems, Second Edition
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Capabilities of a Decision Support
System
• Support for problem-solving phases
• Support for different decision frequencies
• Support for different problem structures
• Support for various decision-making levels
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Systems, Second Edition
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Selected DSS Applications
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Systems, Second Edition
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Support for Various Decision-Making
Levels
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Systems, Second Edition
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Comparison of DSSs and MISs
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Systems, Second Edition
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Components of a DSS
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Systems, Second Edition
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Conceptual Model of a DSS
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Systems, Second Edition
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The Model Base
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Systems, Second Edition
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Group Decision Support
Systems
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Systems, Second Edition
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Configuration of a DSS
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Systems, Second Edition
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Characteristics of a GDSS
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Special design
Ease of use
Flexibility
Decision-making support
Anonymous input
Reduction of negative group behavior
Parallel communication
Automated record keeping
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Systems, Second Edition
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GDSS Alternatives
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Systems, Second Edition
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The GDSS Decision Room
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Systems, Second Edition
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Executive Support Systems
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Systems, Second Edition
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The Layers of Executive Decision
Making
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Systems, Second Edition
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Executive Support Systems (ESS) in
Perspective
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Tailored to individual executives
Easy to use
Drill down capabilities
Support need for external data
Can help when uncertainty is high
Future-oriented
Linked to value-added processes
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Systems, Second Edition
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Capabilities of an ESS
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Support for defining an overall vision
Support for strategic planning
Support for strategic organizing & staffing
Support for strategic control
Support for crisis management
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Systems, Second Edition
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Summary
• Decision-making phase - includes intelligence, design,
and choice
• Problem solving - also includes implementation and
monitoring
• Decision approaches - optimization, satisficing, and
heuristic
• Management information system - an integrated
collection of people, procedures, databases, and devices
that provide managers and decision makers with
information to help achieve organizational goals
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Systems, Second Edition
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Summary
• Decision support system (DSS) - an organized
collection of people, procedures, software, databases,
and devices working to support managerial decision
making
• Group decision support system (GDSS) - also called
a computerized collaborative work system, consists of
most of the elements in a DSS, plus software needed to
provide effective support in group decision-making
settings
• Executive support systems (ESSs) - specialized
decision support systems designed to meet the needs of
senior management
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Systems, Second Edition
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