Principles of Information
Systems
Eighth Edition
Chapter 10
Information and Decision Support
Systems
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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Principles and Learning Objectives
(continued)
• The management information system (MIS) must
provide the right information to the right person in
the right format at the right time
– Explain the uses of MISs and describe their inputs
and outputs
– Discuss information systems in the functional areas
of business organizations
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Principles and Learning Objectives
(continued)
• Decision support systems (DSSs) are used when
the problems are 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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Principles and Learning Objectives
(continued)
• Specialized support systems, such as group
support systems (GSSs) 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 GSS 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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Why Learn About Information and Decision
Support Systems?
• True potential of ISs is to help employees make
more informed business decisions
• These systems can cut costs, increase profits,
uncover new opportunities
• Examples
– Transportation coordinator can find least expensive
way to ship products
– Loan manager can determine creditworthiness
– Store managers can better maintain inventory
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Decision Making and Problem Solving
• Every organization needs effective decision making
• In most cases, strategic planning and overall goals
of the organization set the course for decision
making
• Information systems can assist with strategic
planning and problem solving
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Decision Making as a Component of
Problem Solving
• Decision-making phase: first part of problemsolving process
– Intelligence stage: potential problems or
opportunities are identified and defined
– Design stage: alternative solutions to the problem
are developed
– Choice stage: requires selecting a course of action
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Decision Making as a Component of
Problem Solving (continued)
Figure 10.1: How Decision Making Relates to Problem Solving
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Decision Making as a Component of
Problem Solving (continued)
• Problem solving: goes beyond decision making to
include implementation and monitoring stages
• Implementation stage: a solution is put into effect
• Monitoring stage: decision makers evaluate the
implementation
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Programmed Versus Nonprogrammed
Decisions
• Programmed decision
– Decision made using a rule, procedure, or
quantitative method
– Easy to computerize using traditional information
systems
• Nonprogrammed decision
– Decision that deals with unusual or exceptional
situations
– Not easily quantifiable
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Optimization, Satisficing, and Heuristic
Approaches
• Optimization model: find the best solution, usually
the one that will best help the organization meet its
goals
• Satisficing model: find a good—but not
necessarily the best—problem solution
• Heuristics: commonly accepted guidelines or
procedures that usually find a good solution
– การใช้วธิ ีลองผิดลองถูกและจาผลการทางานครั้งก่อนๆในการแก้ปัญหา
– การใช้วธิ ีการที่เป็ นที่ยอมรับว่าสามารถใช้แก้ปัญหาได้
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Optimization, Satisficing, and Heuristic
Approaches (continued)
Figure 10.2: Optimization Software
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Sense and Respond
• Sense and Respond (SaR) approach
– Determining problems or opportunities (sense)
– Developing systems to solve the problems or take
advantage of the opportunities (respond)
• One way to implement SaR is through
management information and decision support
systems
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An Overview of Management
Information Systems
• Management information system (MIS)
– Integrated collection of people, procedures,
databases, and devices
– Provides managers and decision makers with
information to help achieve organizational goals
– Can give the organization a competitive advantage
– Providing the right information to the right people
in the right format and at the right time
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Management Information Systems in
Perspective
• Management information system (MIS) (continued)
– Provides managers with information that supports
effective decision making and provides feedback on
daily operations
• Use of MISs spans all levels of management
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Management Information Systems in
Perspective (continued)
Figure 10.3: Sources of Managerial Information
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Inputs to a Management Information
System
• Internal data sources
– TPSs and ERP systems and related databases
– Data warehouses and data marts
– Specific functional areas throughout the firm
• External data sources
– Customers, suppliers, competitors, and stockholders
whose data is not already captured by the TPS
– Internet
– Extranets
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Outputs of a Management Information
System
Figure 10.4: An Executive Dashboard
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Outputs of a Management Information
System (continued)
• Scheduled report: produced periodically, or on schedule,
such as daily, weekly, or monthly
– Key-indicator report: summary of previous day’s critical
activities(กิจกรรมที่ตอ้ งใช้ความระมัดระวัง มักถูกใช้โดยmanager , executive)
• Demand report: developed to give certain information at
someone’s request เช่น FedEx ให้ลกู ค้า track ดูเส้นทางการขนส่ งสิ นค้าได้ , ฝ่ าย
บริ หารขอดูชวั่ โมงการทางานของลูกจ้าง เป็ นต้น
• Exception report: automatically produced when a situation
is unusual or requires management action (เพราะจะเป็ นรายงานที่ถกู
สร้างขึ้นมาเมื่อปั ญหานั้นต้องได้รับการแก้ไขหรื อถูกแก้ไขแล้ว)
• Drill-down reports: provide increasingly detailed data about
a situation
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Outputs of a Management Information
System (continued)
Figure 10.5: Reports Generated by an MIS
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Outputs of a Management Information
System (continued)
1. สร้างรายงานให้ตรงกับความต้องการ
2. สร้างเฉพาะรายงานที่ใช้ประโยชน์ได้
เท่านั้น
3. ใส่ ใจกับเนื้อหา รายละเอียด ใน
รายงาน
4. ใช้ Exception report ในการ
จัดการต่างๆ
5. ตั้งค่าต่างๆ(parameter) ด้วย
ความระมัดระวัง
6. ทารายงานในเวลาที่เหมาะสมใช้งาน
7. ทบทวนรายงานอย่างน้อยปี ละ1ครั้ง
Table 10.1: Guidelines for Developing MIS Reports
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Characteristics of a Management
Information System
•
•
•
•
•
Provide reports with fixed and standard formats
Produce hard-copy and soft-copy reports
Use internal data stored in computer system
Allow users to develop custom reports
Require user requests for reports developed by
systems personnel
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Functional Aspects of the MIS
• Most organizations are structured along functional
lines or areas
• MIS can be divided along functional lines to
produce reports tailored to individual functions
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Functional Aspects of the MIS
(continued)
Figure 10.6: An Organization’s MIS
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Financial Management Information
Systems
• Financial MIS: provides financial information to
executives and others
• Some financial MIS subsystems and outputs
– Profit/loss and cost systems: profit and revenue
centers
– Auditing: internal and external
– Uses and management of funds
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Financial Management Information
Systems (continued)
Figure 10.7: Overview of a Financial MIS
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Manufacturing MIS
• Manufacturing MIS subsystems and outputs monitor and control
the flow of materials, products, and services through the
organization
• Design and engineering: CAD systems
– CAD (computer aided design) การใช้คอมพิวเตอร์ช่วยออกแบบ
• Master production scheduling and inventory control
– Methods: EOQ ( economic order quantity)
Quantity that should be reordered to minimize total inventory costs
– Methods: MRP ( material requirement planning)
การวางแผนความต้องการวัตถุดิบเพื่อใช้ในการผลิตสิ นค้า
– Methods: JIT (just-in-time)
Inventory and materials are delivered just before they are used in
manufacturing a product
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Manufacturing MIS
• Process control
– Techniques: CAM (computer-assisted manufacturing)
• System that directly controls manufacturing equipment
– Techniques: CIM (computer-integrated manufacturing)
• Using computer to link the components of the production
process into an effective system
– Techniques: FMS (flexible manufacturing system)
• Approach that allow manufacturing facilities to rapidly and
efficiently change from making one product to making another
• Quality control and testing
– เป็ นกระบวนการการควบคุมคุณภาพและการทดสอบ ทาเพื่อวัดผลว่าสิ นค้า/บริ การที่ผลิตขึ้นมา ตรงกับความ
ต้องการของลูกค้ามากน้อยเพียงใด รวมถึงเป็ นการวัดคุณภาพของสิ นค้าและบริ การนั้นๆ ว่าสูงมากน้อยเพียงใด
Manufacturing Management
Information Systems (continued)
Figure 10.8: Overview of a Manufacturing MIS
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Marketing Management Information
Systems
• Marketing MIS: supports managerial activities in
product development, distribution, pricing
decisions, and promotional effectiveness
• Subsystems
– Marketing research การวิจยั ตลาด สารวจความพึงพอใจลูกค้า เช่น สารวจ
สัมภาษณ์ แบบสอบถาม เป็ นต้น
– Product development เช่น พัฒนากระบวนการผลิต พัฒนาฝี มือแรงงาน ใช้
วัตถุดิบที่มีคุณภาพ เป็ นต้น
– Promotion and advertising การส่ งเสริ มการขายและโฆษณา
– Product pricing การตั้งราคาขายปลีก-ส่ ง-ส่ วนลดต่างๆ
– Sales analysis การวิเคราะห์การขายโดยดูจากสิ นค้า ผูข้ าย ลูกค้า เป็ นต้น
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Marketing Management Information
Systems (continued)
Figure 10.9: Overview of a Marketing MIS
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Marketing Management Information
Systems (continued)
Figure 10.10: Reports Generated to Help Marketing Managers Make Good
Decisions
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Human Resource Management
Information Systems
• Human resource MIS: concerned with activities
related to employees and potential employees
• Subsystems
–
–
–
–
–
–
Human resource planning การวางแผนคาดคะเนลูกจ้างในอนาคต
Personnel selection and recruiting การเลือกและรับสมัครงาน
Training and skills inventory การฝึ กอบรมและการประเมินต่างๆ
Scheduling and job placement วางแผนการทางาน วางคนถูกงาน
Wage and salary administration การคิดค่าจ้างรายวัน/รายเดือน
Outplacement การออกจากงาน
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Human Resource Management
Information Systems (continued)
Figure 10.11: Overview of a Human Resource MIS
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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 system (GIS): capable
of assembling, storing, manipulating, and
displaying geographic information
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An Overview of Decision Support
Systems
• DSS: organized collection of people, procedures,
software, databases, and devices used to help
make decisions that solve problems
• Focus of a DSS is on decision-making
effectiveness regarding unstructured or
semistructured business problems
• Used by managers at all levels
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Characteristics of a Decision Support
System
• Provide rapid access to information
• Handle large amounts of data from different
sources
• Provide report and presentation flexibility
• Offer both textual and graphical orientation
• Support drill-down analysis
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Characteristics of a Decision Support
System (continued)
• Perform complex, sophisticated analysis and
comparisons using advanced software packages
• Support optimization, satisficing, and heuristic
approaches
• What-if analysis: making hypothetical changes to
problem data and observing impact on results
• Goal-seeking analysis: determining problem data
required for a given result
• Simulation: ability of the DSS to duplicate features
of a real system
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Characteristics of a Decision Support
System (continued)
Figure 10.13: With a spreadsheet program, a manager can enter a goal, and
the spreadsheet will determine the input needed to achieve the goal.
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Capabilities of a Decision Support
System
• Support problem-solving phases
• Support different decision frequencies
– Ad hoc DSS เฉพาะกิจ
– Institutional DSS เกิดหลายๆครั้ง เป็ นประจา
• Support different problem structures
– Highly structured problems
– Semistructured or unstructured problems
• Support various decision-making levels
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Capabilities of a Decision Support
System (continued)
Figure 10.14: Decision-Making Level
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A Comparison of DSS and MIS
Table 10.3: Comparison of DSSs and MISs
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A Comparison of DSS and MIS
(continued)
Table 10.3: Comparison of DSSs and MISs (continued)
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Components of a Decision Support
System
• Database
• Model base
• Dialogue manager: user interface that allows
decision makers to:
– Easily access and manipulate the DSS
– Use common business terms and phrases
• Access to the Internet, networks, and other
computer-based systems
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Components of a Decision Support
System (continued)
Figure 10.15: Conceptual Model of a DSS
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The Database
• Database management system
– Allows managers and decision makers to perform
qualitative analysis on data stored in company’s
databases, data warehouses, and data marts
– Can also be used to connect to external databases
• Data-driven DSS: primarily performs qualitative
analysis based on the company’s databases
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The Model Base
• Model base: provides decision makers with access to a
variety of models and assists them in decision making
– Allows them to perform quantitative analysis on both
internal and external data
• Model-driven DSS: primarily performs mathematical or
quantitative analysis
• Model management software (MMS): software that
coordinates the use of models in a DSS
1.Finance=Excel
, 2. Statistic=SPSS ,
3.Graphical= Power point,4. Project management=Project
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The User Interface or Dialogue
Manager
• Allows users to interact with the DSS to obtain
information
• Assists with all aspects of communications
between user and hardware and software that
constitute the DSS
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Group Support Systems
• Group support system (GSS)
– Consists of most elements in a DSS, plus software
to provide effective support in group decision making
– Also called group decision support system or
computerized collaborative work system
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Group Support Systems (continued)
Figure 10.16: Configuration of a GSS
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Characteristics of a GSS That
Enhance Decision Making
•
•
•
•
Special design
Ease of use
Flexibility
Decision-making support
–
–
–
–
Delphi approach รวบรวมความคิดจากหลากหลายที่
Brainstorming รวบรวมความคิดแบบระดมความคิดเห็น
Group consensus approach ความคิดเห็นเป็ นเอกฉันท์ของกลุ่ม
Nominal group technique เช่น การลงคะแนนเสี ยง การโหวต
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Characteristics of a GSS That
Enhance Decision Making (continued)
• Anonymous input เช่น การประเมินการเรี ยนการสอน
• Reduction of negative group behavior เช่น พวกมากลากไป
• Parallel communication เช่น การระดมความคิดเห็น พร้อมกับใส่ ขอ้ มูล
ลงไปในคอมฯ เพื่อสรุ ปผลหรื อได้ผล เร็ วขึ้น
• Automated record keeping สามารถเก็บข้อมูล เก็บผล ไว้ดูภายหลัง
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GSS Software
• Often called groupware or workgroup software
• Helps with joint work group scheduling,
communication, and management
– E-mail,instant messing,videoconference,group
schedule,project management,document share etc.
• Examples
–
–
–
–
–
Virtual Office from Groove Networks
Lotus Notes
Office Communicator
IBM’s Workplace
Microsoft’s NetMeeting
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GSS Software (continued)
• Examples of groupware products available on the
Web
– WebEx, Genesys Meeting Center, GoToMeeting
Corporate
• GSS software incorporated into existing software
packages
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GSS Alternatives
• Decision room
– Decision makers are located in the same building or
geographic area
– Decision makers are occasional users of the GSS
approach
• Local area decision network
– Group members are located in the same building or
geographic area
– Group decision making is frequent
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GSS Alternatives (continued)
Figure 10.18: The GSS Decision Room
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GSS Alternatives (continued)
• Teleconferencing
– Decision frequency is low
– Location of group members is distant
• Wide area decision network
– Decision frequency is high
– Location of group members is distant
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Executive Support Systems
• Executive support system (ESS):
– Specialized DSS
– Includes hardware, software, data, procedures, and
people used to assist senior-level executives
– Also called an executive information system (EIS)
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Executive Support Systems
(continued)
Figure 10.19: The Layers of Executive Decision Making
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Executive Support Systems in
Perspective
•
•
•
•
Tailored to individual executives
Easy to use
Drill-down capabilities
Support need for external data เช่น ข้อมูลจากคู่แข่ง นโยบาย
รัฐบาล สถานการณ์การเมือง เป็ นต้น
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Executive Support Systems in
Perspective (continued)
• Can help with situations that have a high degree of
uncertainty
• Future-oriented
• Linked to value-added business processes
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Capabilities of Executive Support
Systems
• Support for defining overall vision สนับสนุนการกาหนดวิสยั ทัศน์
• Support for strategic planning สนับสนุนการวางแผนยุทธศาสตร์
– Determining long-term objectives through analysis of
current organization and prediction of future trends
• Support for strategic organizing and staffing สนับสนุนการ
ดาเนินยุทธศาสตร์ และคณะทางาน
• Support for strategic control สนับสนุนการควบคุมยุทธศาสตร์
• Support for crisis management สนับสนุนการจัดการเหตุการณ์ฉุกเฉิ น
เช่น น้ าท่วม แผ่นดินไหว พายุ ฯลฯ
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Summary
• Decision-making phase: includes intelligence,
design, and choice stages
• Problem-solving process: includes decision-making
phase, and implementation and monitoring stages
• Management information system (MIS): provides
managers with information that supports effective
decision making and provides feedback on daily
operations
• Financial MIS: provides financial information to
executives and others
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Summary (continued)
• Manufacturing MIS: monitors and controls flow of
materials, products, and services through the
organization
• Marketing MIS: supports managerial activities in
product development, distribution, pricing
decisions, and promotional effectiveness
• Human resource MIS: concerned with activities
related to employees and potential employees
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Summary (continued)
• Accounting MIS: provides aggregate information on
accounts payable, accounts receivable, payroll,
and other applications
• Geographic information system (GIS): capable of
assembling, storing, manipulating, and displaying
geographic information
• DSS: organized collection of people, procedures,
software, databases, and devices used to help
make decisions that solve problems
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Summary (continued)
• Group support system (GSS): consists of most
elements in a DSS, plus software to provide
effective support in group decision making
• Executive support system (ESS): specialized DSS;
includes all hardware, software, data, procedures,
and people used to assist senior-level executives
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