Management Support Systems
Infsy 390
Dr. Ocker
Management Support Systems
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MSS enables senior management to:
1. access common, shared sources of
2. internal and external information
3. that have been summarized in
4. easy-to-access, graphical displays.
Management Support Systems
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function as an integrated approach to
sharing information in an easy-to-use,
highly visual, and personalized way
system helps promote a shared view of
business activities due to integration of
tools and distributed data/information
managers can get up-to-date
information on industry news,
competitor/market trends and internal
most successful MSS are
developed as
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1. one aspect of a distributed,
enterprise information system
2. that enables flexible and integrated
information sharing and communication
3. both inside orgs. and with external
suppliers, customers and other
business partners.
1980s to 1990s
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1980s - managers had support tools
designed to run on PCs (e.g.
spreadsheets, statistical packages,
graphics packages, word processing,
project management, etc.)
1990s - MSS provide integrated
environment for these support tools
MSS
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MSS usually designed so that individual
manager can customize the system as
needed
MSS architecture - client/server
environment
one component of a distributed
information infrastructure
Four levels of functionality in
MSS
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1. electronic briefing books
2. exception reporting
3. active exploration of info. resources
using
4. focused management support
1. electronic briefing books
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graphical information displays that
provide pre-formatte d routine info.
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displays stored as information
categories (e.g. pricing, product)
2. exception reporting
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critical info. outside range of pre-defined
boundaries is highlighted
manager may be notified by system
some orgs. use traffic-light pattern for
exception reporting
– green = no problems
– yellow = caution, marginal condition
– red = trouble, needs immediate attention
3. active exploration of info.
resources using
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MSS can build queries to relational data
bases based on point and click of
managers
can move between internal and external
DBs
integrate all different analysis tools
4. focused management support
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focus support on key management
activities or decisions (e.g. promotion
planning, pricing)
requires integration of variety of
sophisticated support tools customized
for specific activity
Implementing an MSS
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Four key categories of risk must be
managed:
1. need thorough understanding of
individual, team, and organizational
information requirements
2. involves mega-change to formal and
informal policies and practices for
information management and
communication information is power
Implementing an MSS
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Four key categories of risk must be
managed:
3. implementation of an MSS should be
considered an organizational change
initiative need to manage the change
4. must manage the simultaneous
evolution of both the organization and
the technological infrastructure
Past
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Back in 1980s, management support
tools consisted of stand-alone (e.g. not
integrated!!) systems.
Two major types of support systems
were (are) termed (1) DSS and (2)
EIS/ESS.
Here’s some info. on these stand-alone
systems.
1. Decision support systems
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systems that support rather than replace
"managers" in their decision-making activities
give decision maker access to data and
models, but the intelligence, intuition, and
judgment of the decision maker are integral
parts of the system
DSS provide decision support - don't
automatically make the decision. They help
with the decision.
Primarily support planning function
Types of decisions
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Organizational problems differ in terms
of how structured the problems are
 the extent to which a solution procedure
can be stated
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structured - routine, repetitive
unstructured - novel, nonroutine
semistructured - somewhere in between
DSS
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DSS - computer system at management
level that combines data, analytical
models, and user-friendly software to
support semistructured and
unstructured decision making
give uses capability to analyze data provide software tools
a DSS is focused on a specific decision
Can define DSS as
 computer-based systems
 that help decision makers
 confront un-structured and semistructured problems
 through direct interaction
 with data and analysis models
Differences between DSS and
MIS
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(note - MIS refers to formal systems
developed by IS professionals; e.g.
management reporting systems)
DSS - end-user control of data and
tools
aimed at top and middle managers
emphasize change, flexibility and quick
response iterative development process
Differences between DSS and
MIS
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MIS - dominated by IS professionals
focuses on structured information flows
to
middle managers
traditional development process
Core DSS capabilities
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representations - heavy use of graphs and
charts
operations - mathematical manipulations of
data (e.g. assigning risks, generating
statistics, simulating alternatives)
memory aids - databases, views of data, work
spaces, libraries
control aids - user control activities of the
DSS; include software language for user
control of representations, operations, and
DSS
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DSS is a decision-making scratch pad,
backed up by databases - used to
support decision-making processes
can be applied to problems with
quantifiable dimensions that provide
criteria for evaluation of alternative
solutions
helps DM identify best alternative
3 basic Components of DSS
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1. DSS database - collection of current or historical
data which has been extracted from corporate
databases; DSS manipulates live organizational data
to support decision making
2. model base - collection of mathematical and
analytical models
model - abstract representation, e.g. statistical
functions
sensitivity analysis - models that ask “what-if”
questions to determine the impact of changes in one
or more factors on outcomes
e.g. what is we increase price by 5%?
3 basic Components of DSS
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3. DSS software system - permits easy
interaction between users and the DSS
database and model base
Building a DSS - requires intense user
interaction because customized to
specific users and specific type of
decision; must be flexible and able to
evolve; use an iterative development
method like prototyping
DSS Subsystems & The
Capabilities They Offer
Data Management
for Retrieval
Data
Management
Model
Management
Data Extraction
from Internal and
External Databases
Creation,
Maintenance,
and Use of
Models
Menus, Icons,
Dialog
Natural Language,
Management Graphics
DSS on a Computer Platform
Human Decision Maker
User
models
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Model is built by using a variety of
assumptions about the relationship
between its variables
by comparing alternatives (what if’s),
you can vary the premises and compare
the outcomes
DSS supports asking 2 types of
questions
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Scenario generation - what-if mode
– user considers alternative scenarios and
their results
– e.g. what if advertising expenditures are
increased by 5%
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goal-seeking
– user asks “what would it take in terms of
input factors to achieve a particular
outcome
Spreadsheets for decision support
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very popular tools for decision support
activities:
1) based on familiar way to view data (table)
and
relationships between data take
form of a report
2) very easy to use
allow users to make corrections, additions,
and deletions quickly and easily
can perform “what if” analyses by changing
some values and viewing results
Spreadsheets for decision support
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thousands of templates for spreadsheet
packages to help users - templates are
prepared spreadsheet models into
which users only enter data - all
relationships and calculating formulas
are provided and in place
examples for financial planning
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loan amortization
depreciation
lease versus buy
break-even analysis
discounted cash flows and net present
value
Spreadsheets
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about 20-30% of users will become
dissatisfied with spreadsheets for
decision support and will want more
powerful tools, but many users will stay
with spreadsheets as primary DSS,
especially for smaller problems
Development & Adaptation of DSS
Problem Definition by
Users and Developers
Development of
Initial Prototype
Adaptation
Loop
Prototype/DSS
Evaluation
Development
Loop
Are Current
Requirements
Satisfied?
no
yes
Validation and
Documentation of DSS
Prototype/DSS
Modification
DSS Ready for Use
2. Executive support systems
(ESS)
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help senior level managers with
unstructured problems dealing with
monitoring and control functions
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monitor organizational performance
track activities of competitors
spot problems
identify opportunities
forecast trends
ESS combines computing and
communications
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includes functions for providing summary
performance data
data typically covers sales, production, earnings,
budgets, and forecasts
uses graphics to display and visualize data in a very
easy to use fashion
combine data from internal and external sources
environmental scanning/alerting - for news on
government regulations, competition, financial and
economic developments, and scientific topics
ESS combines computing and
communications
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support electronic communications
ESS
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used by both top level execs. and
managers several levels below
Relationship between EIS and DSS
User
Executive
Task
Primary Support
Areas
EIS
Problem/Opportunity
Discovery and
Assessment
Monitoring and
Control,
Strategic Planning
DSS
Seeking Problem
Solution:
Decision-Making
Process
Planning
Flow of Problems
Analyst/
Middle
Manager