Chapter 9
Information, Decision
Support…
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Decision Making and Problem Solving
Management Information Systems
Decision Support Systems
Group Decision Support Systems
Hybrid and Special-Purpose Systems
9.1
Decision Making and
Problem Solving
Key Terms
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Decision making
Problem solving
Programmed decisions
Nonprogrammed decisions
Optimization model
Heuristics
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Decision Making
& Problem Solving Process
Intelligence Stage
Potential Problems and
opportunities are identified
and defined
Design Stage
Alternative solutions to the
problem are developed
Choice Stage
Select a course of
action
Decision
Making
Problem
Solving
Implementation
Solution put into
effect
Monitoring
Evaluate the
implementation
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Decision Types
Programmed decisions
MIS
Structured situations with well defined
relationships
Quantifiable
Non-programmed decisions
DSS
Ill-structured situations with vague or changing
relationships between variables
Not easily quantifiable in advance
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MIS vs. DSS
 A MIS sheds light on a
wide-range of common,
day-to-day business
decisions.
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 A DSS supports
decision making for
specific unique and
difficult decisions.
Optimization and Heuristic
Approaches
 An optimization model finds the best
solution, usually the one that will best help
individuals or organizations meet their goals.
 Heuristics, often referred to as “rules of
thumb”—commonly accepted guidelines or
procedures that usually find a good solution,
but not necessarily the optimal solution—are
often used in the decision-making process.
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9.2
Management Information
Systems
Key Terms
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Management Information System (MIS)
Business Intelligence
Scheduled report
Demand report
Exception report
Enterprise Resource Planning (ERP) System
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Management Information
Systems (MIS)
 MIS: an information system
designed to provide routine
information to managers and
decision makers
 Business intelligence (BI):
Technologies that are used to
gather and report information
that supports intelligent
business decision making.
www.sas.com/technologies/bi
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MIS Input and Output
Corporate
Databases
Transactions
Database
Scheduled
reports
in
External
Databases
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MIS
out
Demand
reports
Exception
reports
Reports, Reports, Reports
www.cognos.com/products/business_intelligence/reporting_sapbw/
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Reports
 Scheduled Reports are produced
periodically on a schedule; daily, weekly,
monthly, quarterly, annualy, ect.
 Demand Reports are developed to get
certain information at a person’s request.
 Exception Reports are automatically
produced when a situation is unusual or
requires action.
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Enterprise Resource Planning
 ERP: integrates all data processing in an
enterprise into one unified systemthat draws
from a common database system.
ERP
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9.3
Decision Support Systems
Key Terms
• Decision Support System
• What-if analysis
• Goal-seeking analysis
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Expert
System (ES)
greater
complexity
and
intelligence,
less
activity
Decision
Support System (DSS)
Management
Information System (MIS)
Transaction Processing System (TPS)
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Decision Support Systems
 A decision support system (DSS) is
an information system used to support
problem-specific decision making.
www.epocrates.com
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What-if?
 What-if analysis
is the process of
making
hypothetical
changes to
problem data
and observing
the impact on the
results.
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What-if is used in projecting paths of hurricanes
Goal-seeking
 Goal-seeking analysis is the process of
determining what problem data is required
for a given result.
What must be done in order to safely
withdraw troops within a year?
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9.4
Group Decision Support
Systems
Key Terms
• Group decision support system (GDSS)
• Groupware
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Group Decision Support
Systems (GDSS)
 A GDSS or
computerized
collaborative work
system is
designed to
provide effective
support in group
decision-making
settings.
A GDSS is flexible, supports anonymous input, and reduces negative group dynamics
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Groupware
 GDSS software, called groupware, helps
with joint work group scheduling,
communication, and management.
www.lotus.com
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9.5
Hybrid and SpecialPurpose Systems
Key Terms
• Knowledge Management System
• Geographic information system (GIS)
• Informatics
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Knowledge Management
System
 A knowledge management
(KM) system assists an
organization in capturing,
storing, and distributing
knowledge for use and reuse
by the organization and
sometimes by its partners and
customers.
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Specialized Systems
 A geographic
information system
(GIS) is capable of
storing, manipulating, and
displaying geographic or
spatial information
including maps of
locations or regions
around the world.
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Informatics
 Informatics combines traditional
disciplines, like science and
medicine, with computer systems
and technology.
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Chapter 9 Questions?
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