13. 13.

1 1 2002 by Prentice Hall

c h a p t e r

ENHANCING ENHANCING
MANAGEMENT MANAGEMENT
DECISION MAKING DECISION MAKING
13. 13.2 2 2002 by Prentice Hall
EARNING OB1ECTIVES EARNING OB1ECTIVES
W W DIFFERENTIATE DECISION DIFFERENTIATE DECISION- -
SUPPORT SYSTEMS SUPPORT SYSTEMS (DSS) (DSS) FROM FROM
GROUP DECISION GROUP DECISION- -SUPPORT SUPPORT
SYSTEMS SYSTEMS (GDSS) (GDSS)
W W DESCRIBE COMPONENTS OF DSS & DESCRIBE COMPONENTS OF DSS &
GDSS GDSS
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13. 13.3 3 2002 by Prentice Hall
EARNING OB1ECTIVES EARNING OB1ECTIVES
W W DEMONSTRATE HOW DSS & GDSS DEMONSTRATE HOW DSS & GDSS
ENHANCE DECISION ENHANCE DECISION- -MAKING MAKING
W W DESCRIBE CAPABILITIES OF DESCRIBE CAPABILITIES OF
EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS
(ESS) (ESS)
W W ASSESS BENEFITS OF ESS ASSESS BENEFITS OF ESS
* *
13. 13.4 4 2002 by Prentice Hall
MANAGEMENT CHAENGES MANAGEMENT CHAENGES
W W DECISION DECISION- -SUPPORT SYSTEMS SUPPORT SYSTEMS
W W GROUP DECISION GROUP DECISION- -SUPPORT SUPPORT
SYSTEMS SYSTEMS
W W EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS
* *
13. 13.5 5 2002 by Prentice Hall
DECISION SUPPORT DECISION SUPPORT
SYSTEMS (DSS) SYSTEMS (DSS)
MANAGEMENT LEVEL COMPUTER MANAGEMENT LEVEL COMPUTER
SYSTEM SYSTEM COMBINES DATA, COMBINES DATA,
MODELS, USER MODELS, USER - - FRIENDLY FRIENDLY
SOFTWARE FOR SEMISTRUCTURED SOFTWARE FOR SEMISTRUCTURED
& UNSTRUCTURED DECISION & UNSTRUCTURED DECISION
MAKING MAKING
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13. 13.6 6 2002 by Prentice Hall
W W MODEL DRIVEN DSS: MODEL DRIVEN DSS: Uses modeIs Uses modeIs
for what for what- -if and other anaIysis if and other anaIysis
W W DATA DATA- -DRIVEN DSS: DRIVEN DSS: AIIows AIIows
extraction, anaIysis of information extraction, anaIysis of information
from databases from databases
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DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
13. 13.7 7 2002 by Prentice Hall
TPS
EXTERNAL
DATA
DSS DATA
BASE
DSS SOFTWARE SYSTEM
MODELS
OLAP TOOLS
DATAMINING TOOLS
USER
INTERFACE
USER
DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
13. 13.8 8 2002 by Prentice Hall
W W TPS: TPS: Transaction processing system Transaction processing system
W W MODEL: MODEL: Representation of a probIem Representation of a probIem
W W OLAP: OLAP: On On- -Iine anaIyticaI processing Iine anaIyticaI processing
W W USER INTERFACE: USER INTERFACE: How user enters How user enters
probIem & receives answers probIem & receives answers
W W DSS DATABASE: DSS DATABASE: Current data from Current data from
appIications or groups appIications or groups
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DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
13. 13.9 9 2002 by Prentice Hall
W W DATA MINING: DATA MINING: TechnoIogy for TechnoIogy for
finding reIationships in Iarge data finding reIationships in Iarge data
bases for prediction bases for prediction
W W DSS SOFTWARE SYSTEM: DSS SOFTWARE SYSTEM: TooIs for TooIs for
data anaIysis data anaIysis
W W SENSITIVITY ANALYSIS: SENSITIVITY ANALYSIS: "What "What- -if" if"
questions about changes in modeI questions about changes in modeI
factors factors
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DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
13. 13.10 10 2002 by Prentice Hall
W W SUPPLY CHAIN MANAGEMENT SUPPLY CHAIN MANAGEMENT
W W CUSTOMER RELATIONSHIP CUSTOMER RELATIONSHIP
MANAGEMENT MANAGEMENT
W W SIMULATING BUSINESS SIMULATING BUSINESS
SCENARIOS SCENARIOS
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DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
APPLICATIONS: APPLICATIONS:
13. 13.11 11 2002 by Prentice Hall
W W GEOGRAPHIC INFORMATION GEOGRAPHIC INFORMATION
SYSTEM (GIS): SYSTEM (GIS): Software to dispIay Software to dispIay
digitaI maps digitaI maps
W W WEB WEB- -BASED DSS: BASED DSS: AvaiIabIe on AvaiIabIe on
Internet for decisions, information, Internet for decisions, information,
software software
W W CUSTOMER DSS (CDSS): CUSTOMER DSS (CDSS): System System
supports buying decisions of supports buying decisions of
customers customers
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DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
13. 13.12 12 2002 by Prentice Hall
W W GENERAL ACCIDENT INSURANCE: GENERAL ACCIDENT INSURANCE:
Customer buying patterns, fraud Customer buying patterns, fraud
detection detection
W W BANK OF AMERICA: BANK OF AMERICA: Customer Customer
profiIes profiIes
W W FRITO FRITO- -LAY: LAY: Price, advertising, Price, advertising,
promotion seIection promotion seIection
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DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
EXAMPLES: EXAMPLES:
13. 13.13 13 2002 by Prentice Hall
W W BURLINGTON COAT FACTORY: BURLINGTON COAT FACTORY:
Store Iocation, inventory mix Store Iocation, inventory mix
W W KEYCORP: KEYCORP: Targeting direct maiI Targeting direct maiI
marketing customers marketing customers
W W NATIONAL GYPSUM: NATIONAL GYPSUM: Corporate Corporate
pIanning & forecasting pIanning & forecasting
* *
DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
13. 13.14 14 2002 by Prentice Hall
W W SOUTHERN RAILWAY: SOUTHERN RAILWAY: Train Train
dispatching and routing dispatching and routing
W W TEXAS OIL & GAS: TEXAS OIL & GAS: EvaIuating EvaIuating
driIIing sites driIIing sites
W W UNITED AIRLINES: UNITED AIRLINES: FIight scheduIing, FIight scheduIing,
passenger demand forecasting passenger demand forecasting
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DECISION SUPPORT DECISION SUPPORT
SYSTEM SYSTEM
13. 13.15 15 2002 by Prentice Hall
GROUP DECISION GROUP DECISION- -SUPPORT SYSTEM SUPPORT SYSTEM
(GDSS) (GDSS)
INTERACTIVE COMPUTER INTERACTIVE COMPUTER- -BASED BASED
SYSTEM FACILITATES SOLUTION SYSTEM FACILITATES SOLUTION
OF UNSTRUCTURED PROBLEMS OF UNSTRUCTURED PROBLEMS
BY DECISION MAKERS WORKING BY DECISION MAKERS WORKING
AS GROUP AS GROUP
* *
13. 13.16 16 2002 by Prentice Hall
ALLOWS: ALLOWS: Improved pre Improved pre- -pIanning pIanning
W W Increased participation Increased participation
W W Open, coIIaborative atmosphere Open, coIIaborative atmosphere
W W Idea generation free of criticism Idea generation free of criticism
W W EvaIuation objectivity EvaIuation objectivity
W W Idea organization & evaIuation Idea organization & evaIuation
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GDSS ENHANCED DECISION MAKING GDSS ENHANCED DECISION MAKING
13. 13.17 17 2002 by Prentice Hall
ALLOWS: ALLOWS: Setting priorities & decision Setting priorities & decision
making making
W W Documentation of meetings Documentation of meetings
W W Access to externaI information Access to externaI information
W W Preservation of organizationaI memory Preservation of organizationaI memory
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GDSS ENHANCED GDSS ENHANCED
DECISION MAKING DECISION MAKING
13. 13.18 18 2002 by Prentice Hall
TOOS OF GDSS TOOS OF GDSS
W W ELECTRONIC QUESTIONNAIRES ELECTRONIC QUESTIONNAIRES
W W ELECTRONIC BRAINSTORMING ELECTRONIC BRAINSTORMING
W W IDEA ORGANIZERS IDEA ORGANIZERS
W W QUESTIONNAIRE TOOLS QUESTIONNAIRE TOOLS
W W TOOLS FOR VOTING, TOOLS FOR VOTING,
SETTING PRIORITIES SETTING PRIORITIES
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13. 13.19 19 2002 by Prentice Hall
TOOS OF GDSS TOOS OF GDSS
W W STAKEHOLDER IDENTIFICATION & STAKEHOLDER IDENTIFICATION &
ANALYSIS TOOLS ANALYSIS TOOLS
W W POLICY FORMATION TOOLS POLICY FORMATION TOOLS
W W GROUP DICTIONARIES GROUP DICTIONARIES
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13. 13.20 20 2002 by Prentice Hall
EECTRONIC MEETING SYSTEM EECTRONIC MEETING SYSTEM
(EMS) (EMS)
COLLABORATIVE GDSS: COLLABORATIVE GDSS: Uses Uses
information technoIogy to make information technoIogy to make
group meetings more productive group meetings more productive
faciIitates communication decision faciIitates communication decision
making making
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13. 13.21 21 2002 by Prentice Hall
STRATEGIC INFORMATION SYSTEM STRATEGIC INFORMATION SYSTEM
DESIGNED FOR UNSTRUCTURED DESIGNED FOR UNSTRUCTURED
DECISION MAKING THROUGH DECISION MAKING THROUGH
ADVANCED GRAPHICS AND ADVANCED GRAPHICS AND
COMMUNICATIONS COMMUNICATIONS
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EXECUTIVE EXECUTIVE
SUPPORT SYSTEMS (ESS) SUPPORT SYSTEMS (ESS)
13. 13.22 22 2002 by Prentice Hall
EXECUTIVE EXECUTIVE
SUPPORT SYSTEMS SUPPORT SYSTEMS
W W DRILL DOWN: DRILL DOWN: abiIity to move from abiIity to move from
summary to Iower IeveIs of detaiI summary to Iower IeveIs of detaiI
W W Designed for specific needs of CEO Designed for specific needs of CEO
W W Extensive support staff Extensive support staff
W W Executive has 24 hour per day abiIity to Executive has 24 hour per day abiIity to
examine, controI progress throughout examine, controI progress throughout
organization organization
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13. 13.23 23 2002 by Prentice Hall
EXECUTIVE EXECUTIVE
SUPPORT SYSTEMS SUPPORT SYSTEMS
BENEFITS: BENEFITS:
W W FLEXIBILITY FLEXIBILITY
W W ABILITY TO ANALYZE, COMPARE, ABILITY TO ANALYZE, COMPARE,
HIGHLIGHT TRENDS HIGHLIGHT TRENDS
W W GRAPHICS HELP EXPLORE SITUATION GRAPHICS HELP EXPLORE SITUATION
W W MONITOR PERFORMANCE MONITOR PERFORMANCE
W W TIMELINESS, AVAILABILITY OF DATA TIMELINESS, AVAILABILITY OF DATA
ALLOWS PROMPT ACTION ALLOWS PROMPT ACTION
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13. 13.24 24 2002 by Prentice Hall
EXECUTIVE EXECUTIVE
SUPPORT SYSTEMS SUPPORT SYSTEMS
USES IN A DIGITAL FIRM: USES IN A DIGITAL FIRM:
W W BUSINESS INTELLIGENCE: BUSINESS INTELLIGENCE: Info on Info on
saIespeopIe, distributors, retaiIers saIespeopIe, distributors, retaiIers
W W MONITORING BUSINESS PERFORMANCE: MONITORING BUSINESS PERFORMANCE:
BaIanced scorecard shows perspectives BaIanced scorecard shows perspectives
of customers, internaI processes, of customers, internaI processes,
Iearning, growth Iearning, growth
W W ENTERPRISE WIDE REPORTING & ENTERPRISE WIDE REPORTING &
ANALYSIS ANALYSIS
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13. 13.25 25 2002 by Prentice Hall
c h a p t e r

ENHANCING ENHANCING
MANAGEMENT MANAGEMENT
DECISION MAKING DECISION MAKING