Dss_and_MIS

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MIS, DSS, & ESS : 

MIS, DSS, & ESS Purpose, Definition, and Concepts

Business decisions are … : 

Last 21 2 Business decisions are … Programmed decisions Structured situations with well defined relationships Quantifiable Management information system (MIS) Easy to computerize Non-programmed decisions Rules and relationships not defined Problem is not routine Not easily quantifiable DSS, GDSS, ESS

How do we solve these kinds of business problems? : 

Last 21 3 How do we solve these kinds of business problems? Optimize them: find the best solution Satisfice them: find a good enough solution Use heuristics on them: rules of thumb

Reporting in an MIS : 

Last 21 4 Reporting in an MIS Structured situations – structured decisions – structured reports Fixed format, standard reports Hard-copy or soft-copy reports Uses internal data User-developed reports Users must request formal reports from IS department

Detail level of an MIS report – drill downs : 

Last 21 5 Detail level of an MIS report – drill downs

Description of DSS & GDSS : 

Last 21 6 Description of DSS & GDSS TIME FRAME UNSTRUCTURED PROBLEMS WHERE THE NEED IS FOR THE COMBINED PROCESSING OF DATA AND MANAGERIAL JUDGEMENT COMPLICATED PROBLEMS WITH MISSING OR UNCERTAIN DATA SOURCES & WITH UNKNOWN VARIABLE RELATIONSHIPS PRINCIPLE OF “SATISFICING”

DEFINITION OF A DSS OR GDSS : 

Last 21 7 DEFINITION OF A DSS OR GDSS “ AN INTERACTIVE, FLEXIBLE COMPUTER BASED SYSTEM, CONSISTING OF RULES, MODELS, DATA, AND A USER FRIENDLY INTERFACE, COUPLED WITH THE USER'S OWN INSIGHTS AND VALUE STRUCTURE.”

Payoffs from DSS … : 

Last 21 8 Payoffs from DSS … EXPANDS MANAGERIAL POWER & EFFECTIVENESS BREADTH OF UNDERSTANDING OF THE PROBLEM FLEXIBILITY IN ANALYSIS USER FRIENDLY SYSTEMS

Relevance of DSS to managers … : 

Last 21 9 Relevance of DSS to managers … DECISIONS MADE BY MANAGERS NOT BY MACHINES CAN USE QUANT MODELS TO ESTABLISH DECISION BOUNDARY BLEND OF HUMAN JUDGMENT AND STRUCTURE DSS IS USED TO SUPPORT SPECIFIC DECISIONS SOLUTIONS NOT IMPOSED (TWO DIRECTIONAL SEARCH) SEARCH IS FOR BEST PROCESS AND EFFECTIVE SOLUTION ( NOT FOR AN OPTIMUM!)

Applications … : 

Last 21 10 Applications … LONG RANGE PLANNING WORK FORCE ALLOCATION LONG RANGE STAFFING ESTIMATING MATERIAL NEEDS INDUSTRIAL HAZARD ASSESSMENT ASSESSMENT OF THE NEED FOR INTELLIGENCE BUDGETING RESOURCE EXPLORATION PLANNING WAREHOUSE DISTRIBUTION AND STOCKING PATIENT BED & OPERATING ROOM ASSIGNMENT ASSESSMENT OF THE IMPACT OF MARKET RESPONSE ON OPERATIONS OF THE FIRM

Examples applications of DSS… : 

Last 21 11 Examples applications of DSS… A home loan calculator: http://www.eaussie.com.au/ An auto loan calculator: http://www.bankrate.com/brm/rate/auto_home.asp Human resources management with salary administration: Salaries model using Excel Evaluating non-quantifiable alternatives: Alternatives evaluation model using Excel

OUTCOMES OF USING A DSS … : 

Last 21 12 OUTCOMES OF USING A DSS … A set of implementable decisions, which solve problems that are not suited for operations research, transaction processing or MIS. A DSS supports the solutions of complex problems through the use of simplified models & user-friendly systems

Components of a DSS : 

Last 21 13 Components of a DSS

What’s in a model base? : 

Last 21 14 What’s in a model base? Financial models Cash flow Internal rate of return Economic models Market models Regional demand Inventories Forecasting models Statistical analysis models Summary statistics Trend projections Hypothesis testing Graphical models Project management models

GDSS and the decision room : 

Last 21 15 GDSS and the decision room -Special design -Ease of use -Flexibility -Decision-making support -Anonymous input -Reduction of negative group behavior -Automated record keeping -Ease of communication -Delphi and NGT

INFORMATION SOURCES FOR A DSS or GDSS … : 

Last 21 16 INFORMATION SOURCES FOR A DSS or GDSS … EXTERNAL SOURCES INTERNAL SOURCES

REASONS FOR USING DECISION SUPPORT SYSTEMS : 

Last 21 17 REASONS FOR USING DECISION SUPPORT SYSTEMS Unstable environment Competition Difficulty in Tracking the Firm and the Market Lack of I/S Support Diverse, Individual Needs

Why use a DSS or GDSS: what the users say? : 

Last 21 18 Why use a DSS or GDSS: what the users say? FACTORS CITED BY % ACCURATE INFORMATION 67 % DSS VIEWED AS WINNER 44 % NEED FOR NEW INFORMATION 33 % MANAGEMENT WANTS DSS 22 % TIMELY RESULTS BY DSS 17 % COST OF INFO. REDUCED 6 % (survey results)

Executive Support Systems (ESS) : 

Last 21 19 Executive Support Systems (ESS) Tailored to individual executives Easy to use Drill down capabilities Support need available for external data Can help when uncertainty is high Future-oriented Graphical output Costly

Relationship of TPS, MIS, DSS, ESS, & ES : 

Last 21 20 Relationship of TPS, MIS, DSS, ESS, & ES

INFORMATION SYSTEMS USE BY MANAGEMENT LEVEL : 

Last 21 21 INFORMATION SYSTEMS USE BY MANAGEMENT LEVEL INFORMATION SYSTEMS LEVEL MIS DSS ES TPS _______________________________________________ STRATEGIC y y y TACTICAL y y OPERATING y y ?y STAFF/MFG. y _______________________________________________

…..end MIS, DSS, & ESS concepts, definitions, and their purpose : 

Last 21 22 …..end MIS, DSS, & ESS concepts, definitions, and their purpose

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