Fundamentals of Information Systems, Fifth Edition Chapter 6 Information and Decision Support SystemsPrinciples 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 Fundamentals of Information Systems, Fifth Edition 2Fundamentals of Information Systems, Fifth Edition 3 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 organizationsPrinciples and Learning Objectives (continued) • Decision support systems (DSSs) are used when 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 Fundamentals of Information Systems, Fifth Edition 4Fundamentals of Information Systems, Fifth Edition 5 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 – List and discuss the use of other special purpose systemsDecision Making and Problem Solving • Strategic planning and the overall goals of the organization – Set the course for decision making, helping employees and business units achieve their objectives and goals Fundamentals of Information Systems, Fifth Edition 6Fundamentals of Information Systems, Fifth Edition 7 Decision Making as a Component of Problem Solving • Decision-making phase – Intelligence stage: Identify and define potential problems or opportunities – Design stage: Develop alternative solutions to the problem – Choice stage: Select a course of actionFundamentals of Information Systems, Fifth Edition 8 Decision Making as a Component of Problem Solving (continue)Fundamentals of Information Systems, Fifth Edition 9 Decision Making as a Component of Problem Solving (continued) • Problem solving – Goes beyond decision making to include the implementation stage • Implementation stage – Solution is put into effect • Monitoring stage – Decision makers evaluate the implementationProgrammed Versus Nonprogrammed Decisions • Programmed decision – Decision made using a rule, procedure, or quantitative method – Easy to computerize using traditional information systems • Nonprogrammed decisions – Deals with unusual or exceptional situations – Not easily quantifiable Fundamentals of Information Systems, Fifth Edition 10Optimization, Satisficing, and Heuristic Approaches • Optimization model – Finds 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 Fundamentals of Information Systems, Fifth Edition 11The Benefits of Information and Decision Support Systems • Performance of these systems is: – Typically a function of decision quality and problem complexity • Decision quality can result in: – Increased effectiveness – Increased efficiency – Higher productivity Fundamentals of Information Systems, Fifth Edition 12Fundamentals of Information Systems, Fifth Edition 13 The Benefits of Information and Decision Support Systems (continued)Fundamentals of Information Systems, Fifth Edition 14 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 companies a competitive advantageManagement Information Systems in Perspective • MIS provides managers with information that supports effective decision making and provides feedback on daily operations • Use of MISs spans all levels of management Fundamentals of Information Systems, Fifth Edition 15Fundamentals of Information Systems, Fifth Edition 16 Management Information Systems in Perspective (continued)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 – The Internet – Extranets Fundamentals of Information Systems, Fifth Edition 17Outputs of a Management Information System • Scheduled reports – Produced periodically, or on a schedule • Key-indicator report – Summary of previous day’s critical activities • Demand reports – Developed to give certain information upon request • Exception reports – Automatically produced when a situation is unusual or requires management action • Drill-down reports – Provide increasingly detailed data about a situation Fundamentals of Information Systems, Fifth Edition 18Characteristics of a Management Information System • MISs perform the following functions – Provide reports with fixed and standard formats – Produce hard-copy and soft-copy reports – Use internal data stored in the computer system – Allow users to develop their own custom reports – Require user requests for reports developed by systems personnel Fundamentals of Information Systems, Fifth Edition 19Functional 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 Fundamentals of Information Systems,
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