ENHANCING MANAGEMENT DECISION MAKING

13.13.11 Prof Jess Role @ UEAB 2010

1313 ENHANCING ENHANCING

MANAGEMENT MANAGEMENT DECISION DECISION MAKINGMAKING


LEARNING OBJECTIVESLEARNING OBJECTIVES

• DIFFERENTIATE DECISION-DIFFERENTIATE DECISION-SUPPORT SYSTEMS (DSS) FROM SUPPORT SYSTEMS (DSS) FROM GROUP DECISION-SUPPORT GROUP DECISION-SUPPORT SYSTEMS (GDSS)SYSTEMS (GDSS)

• DESCRIBE COMPONENTS OF DSS & DESCRIBE COMPONENTS OF DSS & GDSSGDSS

**


LEARNING OBJECTIVESLEARNING OBJECTIVES

• DEMONSTRATE HOW DSS & GDSS DEMONSTRATE HOW DSS & GDSS ENHANCE DECISION-MAKINGENHANCE DECISION-MAKING

• DESCRIBE CAPABILITIES OF DESCRIBE CAPABILITIES OF EXECUTIVE SUPPORT SYSTEMS EXECUTIVE SUPPORT SYSTEMS (ESS)(ESS)

• ASSESS BENEFITS OF ESSASSESS BENEFITS OF ESS

**


MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES

• DECISION-SUPPORT SYSTEMSDECISION-SUPPORT SYSTEMS

• GROUP DECISION-SUPPORT GROUP DECISION-SUPPORT SYSTEMSSYSTEMS

• EXECUTIVE SUPPORT SYSTEMSEXECUTIVE SUPPORT SYSTEMS

**


DECISION SUPPORT DECISION SUPPORT SYSTEMS (DSS)SYSTEMS (DSS)

MANAGEMENT LEVEL COMPUTER MANAGEMENT LEVEL COMPUTER SYSTEM SYSTEM COMBINES DATA, COMBINES DATA, MODELS, USER - FRIENDLY MODELS, USER - FRIENDLY

SOFTWARE FOR SEMISTRUCTURED SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION & UNSTRUCTURED DECISION

MAKINGMAKING**


• MODEL DRIVEN DSS: Uses models MODEL DRIVEN DSS: Uses models for what-if and other analysisfor what-if and other analysis

• DATA-DRIVEN DSS: Allows DATA-DRIVEN DSS: Allows extraction, analysis of information extraction, analysis of information from databasesfrom databases

**

DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM


TPSEXTERNAL

DATADSS DATA

BASE

DSS SOFTWARE SYSTEMMODELS

OLAP TOOLS

DATAMINING TOOLS

USERINTERFACE

USER



• TPS: Transaction processing systemTPS: Transaction processing system• MODEL: Representation of a problemMODEL: Representation of a problem• OLAP: On-line analytical processingOLAP: On-line analytical processing• USER INTERFACE: How user enters USER INTERFACE: How user enters

problem & receives answersproblem & receives answers• DSS DATABASE: Current data from DSS DATABASE: Current data from

applications or groupsapplications or groups**



• DATA MINING: Technology for finding DATA MINING: Technology for finding relationships in large data bases for relationships in large data bases for predictionprediction

• DSS SOFTWARE SYSTEM: Tools for data DSS SOFTWARE SYSTEM: Tools for data analysisanalysis

• SENSITIVITY ANALYSIS: SENSITIVITY ANALYSIS: ““What-ifWhat-if”” questions about changes in model factorsquestions about changes in model factors

**



• SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT

• CUSTOMER RELATIONSHIP CUSTOMER RELATIONSHIP MANAGEMENTMANAGEMENT

• SIMULATING BUSINESS SIMULATING BUSINESS SCENARIOSSCENARIOS

**


APPLICATIONS:APPLICATIONS:


• GEOGRAPHIC INFORMATION SYSTEM GEOGRAPHIC INFORMATION SYSTEM (GIS): Software to display digital maps(GIS): Software to display digital maps

• WEB-BASED DSS: Available on Internet WEB-BASED DSS: Available on Internet for decisions, information, softwarefor decisions, information, software

• CUSTOMER DSS (CDSS): System CUSTOMER DSS (CDSS): System supports buying decisions of customerssupports buying decisions of customers

**



• GENERAL ACCIDENT INSURANCE: GENERAL ACCIDENT INSURANCE: Customer buying patterns, fraud Customer buying patterns, fraud detectiondetection

• BANK OF AMERICA: Customer BANK OF AMERICA: Customer profilesprofiles

• FRITO-LAY: Price, advertising, FRITO-LAY: Price, advertising, promotion selectionpromotion selection

**


EXAMPLES:EXAMPLES:


• BURLINGTON COAT FACTORY: BURLINGTON COAT FACTORY: Store location, inventory mixStore location, inventory mix

• KEYCORP: Targeting direct mail KEYCORP: Targeting direct mail marketing customersmarketing customers

• NATIONAL GYPSUM: Corporate NATIONAL GYPSUM: Corporate planning & forecastingplanning & forecasting

**



• SOUTHERN RAILWAY: Train SOUTHERN RAILWAY: Train dispatching and routingdispatching and routing

• TEXAS OIL & GAS: Evaluating drilling TEXAS OIL & GAS: Evaluating drilling sitessites

• UNITED AIRLINES: Flight scheduling, UNITED AIRLINES: Flight scheduling, passenger demand forecastingpassenger demand forecasting

**



GROUP DECISION-SUPPORT SYSTEM GROUP DECISION-SUPPORT SYSTEM (GDSS)(GDSS)

INTERACTIVE COMPUTER-BASED INTERACTIVE COMPUTER-BASED SYSTEM FACILITATES SOLUTION SYSTEM FACILITATES SOLUTION OF UNSTRUCTURED PROBLEMS OF UNSTRUCTURED PROBLEMS BY DECISION MAKERS WORKING BY DECISION MAKERS WORKING

AS GROUPAS GROUP

**


ALLOWS: Improved pre-planningALLOWS: Improved pre-planning• Increased participationIncreased participation• Open, collaborative atmosphereOpen, collaborative atmosphere• Idea generation free of criticismIdea generation free of criticism• Evaluation objectivityEvaluation objectivity• Idea organization & evaluationIdea organization & evaluation

**

GDSS ENHANCED DECISION GDSS ENHANCED DECISION MAKINGMAKING


ALLOWS: Setting priorities & decision ALLOWS: Setting priorities & decision makingmaking

• Documentation of meetingsDocumentation of meetings• Access to external informationAccess to external information• Preservation of organizational memoryPreservation of organizational memory

**

GDSS ENHANCED GDSS ENHANCED DECISION MAKINGDECISION MAKING


TOOLS OF GDSSTOOLS OF GDSS

• ELECTRONIC QUESTIONNAIRESELECTRONIC QUESTIONNAIRES

• ELECTRONIC BRAINSTORMINGELECTRONIC BRAINSTORMING

• IDEA ORGANIZERSIDEA ORGANIZERS

• QUESTIONNAIRE TOOLSQUESTIONNAIRE TOOLS

• TOOLS FOR VOTING,TOOLS FOR VOTING, SETTING PRIORITIESSETTING PRIORITIES

**


TOOLS OF GDSSTOOLS OF GDSS

• STAKEHOLDER IDENTIFICATION & STAKEHOLDER IDENTIFICATION & ANALYSIS TOOLSANALYSIS TOOLS

• POLICY FORMATION TOOLSPOLICY FORMATION TOOLS

• GROUP DICTIONARIESGROUP DICTIONARIES

**


ELECTRONIC MEETING SYSTEM ELECTRONIC MEETING SYSTEM (EMS)(EMS)

COLLABORATIVE GDSS: Uses COLLABORATIVE GDSS: Uses information technology to make information technology to make group meetings more productive group meetings more productive facilitates communication decision facilitates communication decision makingmaking

**


STRATEGIC INFORMATION SYSTEM STRATEGIC INFORMATION SYSTEM DESIGNED FOR UNSTRUCTURED DESIGNED FOR UNSTRUCTURED

DECISION MAKING THROUGH DECISION MAKING THROUGH ADVANCED GRAPHICS AND ADVANCED GRAPHICS AND

COMMUNICATIONSCOMMUNICATIONS

**

EXECUTIVE EXECUTIVE SUPPORT SYSTEMS (ESS)SUPPORT SYSTEMS (ESS)


EXECUTIVE EXECUTIVE SUPPORT SYSTEMSSUPPORT SYSTEMS

• DRILL DOWN: ability to move from DRILL DOWN: ability to move from summary to lower levels of detailsummary to lower levels of detail

• Designed for specific needs of CEODesigned for specific needs of CEO• Extensive support staffExtensive support staff• Executive has 24 hour per day ability to Executive has 24 hour per day ability to

examine, control progress throughout examine, control progress throughout organizationorganization

**



BENEFITS:BENEFITS:• FLEXIBILITYFLEXIBILITY• ABILITY TO ANALYZE, COMPARE, ABILITY TO ANALYZE, COMPARE,

HIGHLIGHT TRENDSHIGHLIGHT TRENDS• GRAPHICS HELP EXPLORE SITUATIONGRAPHICS HELP EXPLORE SITUATION• MONITOR PERFORMANCEMONITOR PERFORMANCE• TIMELINESS, AVAILABILITY OF DATA TIMELINESS, AVAILABILITY OF DATA

ALLOWS PROMPT ACTIONALLOWS PROMPT ACTION**



USES IN A DIGITAL FIRM:USES IN A DIGITAL FIRM:• BUSINESS INTELLIGENCE: Info on BUSINESS INTELLIGENCE: Info on

salespeople, distributors, retailerssalespeople, distributors, retailers• MONITORING BUSINESS PERFORMANCE: MONITORING BUSINESS PERFORMANCE:

Balanced scorecard shows perspectives Balanced scorecard shows perspectives of customers, internal processes, of customers, internal processes, learning, growthlearning, growth

• ENTERPRISE WIDE REPORTING & ENTERPRISE WIDE REPORTING & ANALYSISANALYSIS

**


1313 ENHANCING ENHANCING

MANAGEMENT MANAGEMENT DECISION DECISION MAKINGMAKING

ENHANCING MANAGEMENT DECISION MAKING

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