13. enhancing management decision making 13.1. decision support systems (dss) management level...
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13. ENHANCIN
G
MANAGEMENT
DECISION M
AKING
13. ENHANCIN
G
MANAGEMENT
DECISION M
AKING
13.1
DECISION SUPPORT SYSTEMS (DSS)
DECISION SUPPORT SYSTEMS (DSS)
MANAGEMENT LEVEL COMPUTER MANAGEMENT LEVEL COMPUTER
SYSTEM SYSTEM
COMBINES DATA, MODELS,COMBINES DATA, MODELS,
USER - FRIENDLY SOFTWAREUSER - FRIENDLY SOFTWARE
FOR SEMISTRUCTURED &FOR SEMISTRUCTURED &
UNSTRUCTURED DECISION MAKINGUNSTRUCTURED DECISION MAKING**
13.2
COMPONENTS OF DSSCOMPONENTS OF DSS
TPSKWS
DBMS
MODEL BASE StatisticalForecastingOperationalPlanning
DSS SOFTWARE
User Interface
MIS
USER13.3
DSS & MISDSS & MIS
DIMENSIONDIMENSION DSSDSS MISMIS
PHILOSOPHYPHILOSOPHY INTEGRATED TOOLS,INTEGRATED TOOLS, STRUCTURED INFORMATIONSTRUCTURED INFORMATION
DATA, LANGUAGEDATA, LANGUAGE TO END USERSTO END USERS
SYSTEMS ANALYSISSYSTEMS ANALYSIS TOOLS FOR DECISIONTOOLS FOR DECISION IDENTIFY INFORMATIONIDENTIFY INFORMATION
PROCESSPROCESS REQUIREMENTSREQUIREMENTS
DESIGNDESIGN ITERATIVE PROCESSITERATIVE PROCESS DELIVER SYSTEM BASEDDELIVER SYSTEM BASED
ON FROZEN REQUIREMENTSON FROZEN REQUIREMENTS
13.4
DECISION SUPPORT SYSTEMS (DSS)
DECISION SUPPORT SYSTEMS (DSS)
• REPRESENTATIONS: Graphs; Charts; REPRESENTATIONS: Graphs; Charts; Lists; Reports; SymbolsLists; Reports; Symbols
• OPERATIONS: Logical, Mathematical OPERATIONS: Logical, Mathematical Manipulation of DataManipulation of Data
• MEMORY AIDS: Update, Refresh MemoryMEMORY AIDS: Update, Refresh Memory• CONTROL AIDS: User Controls Activities CONTROL AIDS: User Controls Activities
& Functions& Functions
**
13.5
EXAMPLES OF DSS SYSTEMSEXAMPLES OF DSS SYSTEMS AMERICAN AIRLINESAMERICAN AIRLINES PRICE & ROUTE SELECTIONSPRICE & ROUTE SELECTIONS
CHAMPLIN PETROLEUM CHAMPLIN PETROLEUM CORPORATION PLANNING & FORECASTINGCORPORATION PLANNING & FORECASTING
EQUICO CAPITAL CORPORATIONEQUICO CAPITAL CORPORATION INVESTMENT EVALUATIONINVESTMENT EVALUATION
FRITO-LAY, INC..FRITO-LAY, INC.. PRICE, ADVERTISING, PROMOTIONPRICE, ADVERTISING, PROMOTION
GENERAL DYNAMICSGENERAL DYNAMICS PRICE EVALUATIONPRICE EVALUATION
JUNIPER LUMBERJUNIPER LUMBER PRODUCTION OPTIMIZATIONPRODUCTION OPTIMIZATION
KmartKmart PRICE EVALUATIONPRICE EVALUATION
NATIONAL GYPSUMNATIONAL GYPSUM CORPORATE PLANNING, FORECASTINGCORPORATE PLANNING, FORECASTING
SOUTHERN RAILWAYSOUTHERN RAILWAY TRAIN DISPATCHING & ROUTINGTRAIN DISPATCHING & ROUTING
TEXAS OIL & GAS CORPORATIONTEXAS OIL & GAS CORPORATION EVALUATION OF DRILLING SITESEVALUATION OF DRILLING SITES
13.6
COMPONENTS OF DSSCOMPONENTS OF DSS
• DATABASE: Current & Historical Data DATABASE: Current & Historical Data from Many Sources, as Requiredfrom Many Sources, as Required
• MODEL BASE: Collection of Mathematical MODEL BASE: Collection of Mathematical & Analytical Building Blocks& Analytical Building Blocks
• MODEL: Abstract Representation of a MODEL: Abstract Representation of a PhenomenonPhenomenon
• SENSITIVITY ANALYSIS: What - If SENSITIVITY ANALYSIS: What - If Questions; Impact of Changes in InputsQuestions; Impact of Changes in Inputs
**13.7
BUILDING DSSBUILDING DSS
• FOCUSES ON NEEDS OF USERFOCUSES ON NEEDS OF USER
• WHAT CAPABILITIES DO USERS WHAT CAPABILITIES DO USERS CONSIDER IMPORTANT?CONSIDER IMPORTANT?
• TEND TO EMPLOY ANALYTICAL TEND TO EMPLOY ANALYTICAL MODELSMODELS
• CUSTOMIZED TO SPECIFIC USERSCUSTOMIZED TO SPECIFIC USERS
**
13.8
GROUP DECISION-SUPPORT SYSTEM
(GDSS)GROUP DECISION-SUPPORT SYSTEM
(GDSS)
INTERACTIVEINTERACTIVE
COMPUTER-BASED SYSTEMCOMPUTER-BASED SYSTEM
FACILITATES SOLUTION OFFACILITATES SOLUTION OF
UNSTRUCTURED PROBLEMSUNSTRUCTURED PROBLEMS
BY DECISION MAKERS WORKING ASBY DECISION MAKERS WORKING AS
GROUPGROUP
**13.9
ADVANTAGES OF GDSSADVANTAGES OF GDSS
• IMPROVED PRE-PLANNINGIMPROVED 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
**
13.10
ADVANTAGES OF GDSSADVANTAGES OF GDSS
• SETTING PRIORITIES & DECISION SETTING PRIORITIES & DECISION MAKINGMAKING
• DOCUMENTATION OF MEETINGSDOCUMENTATION OF MEETINGS• ACCESS TO EXTERNAL INFORMATIONACCESS TO EXTERNAL INFORMATION• PRESERVATION OF ORGANIZATIONAL PRESERVATION OF ORGANIZATIONAL
MEMORYMEMORY• ELECTRONIC QUESTIONNAIRESELECTRONIC QUESTIONNAIRES
**
13.11
WHAT IS GDSS?WHAT IS GDSS?
• Hardware - facility, computers, Hardware - facility, computers, network, display boardsnetwork, display boards
• Software - organize and gather data, Software - organize and gather data, commscomms
• People - participants, trained People - participants, trained facilitatorfacilitator
GDSS SOFTWARE TOOLSGDSS SOFTWARE TOOLS
• ELECTRONIC BRAINSTORMINGELECTRONIC BRAINSTORMING• IDEA ORGANIZERSIDEA ORGANIZERS• QUESTIONNAIRE EVALUATION TOOLSQUESTIONNAIRE EVALUATION TOOLS• TOOLS FOR VOTING; SETTING PRIORITIESTOOLS FOR VOTING; SETTING PRIORITIES• STAKEHOLDER IDENTIFICATION & STAKEHOLDER IDENTIFICATION &
ANALYSISANALYSIS• POLICY FORMATION TOOLSPOLICY FORMATION TOOLS• GROUP DICTIONARIESGROUP DICTIONARIES
**13.13
ELECTRONIC MEETING SYSTEM (EMS)
ELECTRONIC MEETING SYSTEM (EMS)
COLLABORATIVE GDSSCOLLABORATIVE GDSS
USES INFORMATION TECHNOLOGYUSES INFORMATION TECHNOLOGY
TO MAKE GROUP MEETINGS MORETO MAKE GROUP MEETINGS MORE
PRODUCTIVEPRODUCTIVE
FACILITATES COMMUNICATION FACILITATES COMMUNICATION
DECISION MAKINGDECISION MAKING
**13.14
HOW GDSS ENHANCED DECISION MAKING
HOW GDSS ENHANCED DECISION MAKING
• IMPROVED PRE-PLANNINGIMPROVED 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
**
13.15
HOW GDSS ENHANCED DECISION MAKING
HOW GDSS ENHANCED DECISION MAKING
• SETTING PRIORITIES; MAKING SETTING PRIORITIES; MAKING DECISIONSDECISIONS
• DOCUMENTATION OF MEETINGSDOCUMENTATION OF MEETINGS• ACCESS TO EXTERNAL INFORMATIONACCESS TO EXTERNAL INFORMATION• PRESERVATION OF ORGANIZATIONAL PRESERVATION OF ORGANIZATIONAL
MEMORYMEMORY
**
13.16
EXECUTIVE SUPPORT SYSTEMS (ESS)
EXECUTIVE SUPPORT SYSTEMS (ESS)
STRATEGIC INFORMATION SYSTEMSTRATEGIC INFORMATION SYSTEM
DESIGNED FOR UNSTRUCTUREDDESIGNED FOR UNSTRUCTURED
DECISION MAKINGDECISION MAKING
THROUGH ADVANCED GRAPHICSTHROUGH ADVANCED GRAPHICS
AND COMMUNICATIONSAND COMMUNICATIONS
**
13.17
EXECUTIVE SUPPORT SYSTEMS (ESS)
EXECUTIVE SUPPORT SYSTEMS (ESS)
COMMUNITYCOMMUNITY
EXECUTIVEEXECUTIVE
STRATEGYSTRATEGY
ACTIONACTION
ESSESS
EMSEMS
MANAGERSMANAGERS
MISMIS
TPSTPS
DBMSDBMS
DATABASEDATABASE
13.18
EXECUTIVE SUPPORT SYSTEMS (ESS)
EXECUTIVE SUPPORT SYSTEMS (ESS)
• BRIEFING BOOKS: On-Line Data, Fixed Format BRIEFING BOOKS: On-Line Data, Fixed Format Reports for ExecutivesReports for Executives
• DRILL DOWN: Ability to move from Summary to DRILL DOWN: Ability to move from Summary to Lower Levels of DetailLower Levels of Detail
• Designed for Specific Needs of CEODesigned for Specific Needs of CEO
• ExtensExtensive Support Staffive Support Staff
• ExecutivExecutive has 24 Hour per Day Ability to e has 24 Hour per Day Ability to Examine, Examine, Control Progress Throughout Control Progress Throughout OrganizaOrganizationtion
**13.19
MANAGEMENT CHALLENGESMANAGEMENT CHALLENGES
• BUILD SYSTEMS TO FULFILL BUILD SYSTEMS TO FULFILL EXECUTIVE INFORMATION EXECUTIVE INFORMATION REQUIREMENTSREQUIREMENTS
• INTEGRATE DSS & ESSINTEGRATE DSS & ESS
**
13.20