Fundamentals of Information Systems, Second Edition 1 Information and Decision Support Systems...
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Transcript of Fundamentals of Information Systems, Second Edition 1 Information and Decision Support Systems...
![Page 1: Fundamentals of Information Systems, Second Edition 1 Information and Decision Support Systems Chapter 6.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649d565503460f94a33f0d/html5/thumbnails/1.jpg)
Fundamentals of Information Systems, Second Edition
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Information and Decision Support Systems
Chapter 6
![Page 2: Fundamentals of Information Systems, Second Edition 1 Information and Decision Support Systems Chapter 6.](https://reader035.fdocuments.in/reader035/viewer/2022062516/56649d565503460f94a33f0d/html5/thumbnails/2.jpg)
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Learning Objectives
– Define the stages of decision making.– Discuss the importance of
implementation and monitoring in problem solving.
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Learning Objectives
– Define the term MIS and clearly distinguish the difference between a TPS and an MIS.
– Discuss information systems in the functional areas of business organizations.
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Learning Objectives
• Decision support systems (DSSs) are used when the problems are more 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.
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Learning Objectives
• Specialized support systems, such as group decision support systems (GDSSs) 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 GDSS 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.
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Decision Making and Problem Solving
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How Decision Making Relates to Problem Solving
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Decision Making
• Intelligence– Identify problems and opportunities– Investigate resource and environmental constraints
• Design– Generate alternatives– Evaluate alternatives
• Choice– Select a course of action
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Problem Solving
• Decision making• Implementation
– Apply the solution– Inform related parties– Execute solution steps
• Monitoring– Ensure that the solution is implemented as planned– Monitor for unforeseen situations
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Programmed versus Nonprogrammed Decisions
• Programmed decisions– Rules or procedures– Easy to computerize– Ex: Order new items when the inventory drops below
100
• Nonprogrammed decisions– Rules and relationships not defined– Problem is not routine– Not easily quantifiable– Determine a training program for a new employee
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Problem Solving Approaches
• Optimization: find the best solution• Satisficing:
– Find a good solution– Does not look at all solutions– Easier to find then an optimum solution
• Heuristics: – Rules of thumb– Commonly accepted guidelines– Ex: Always have 5 units of an item in stock
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Optimization, Satisficing, and Heuristic Approaches
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An Overview of Management Information Systems
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Sources of Managerial Information
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Transforming Data to Information
• Internal Input– TPSs– ERPs
• External Input – Customers– Suppliers– Competitors
• Output– Predetermined Reports
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Reports (1)
• Scheduled Reports– Periodically– Ex: Daily report to monitor the production of an item– Key-indicator report: Summarizes the previous
day’s critical activities
• Demand Reports– Give information when needed– FedEx package reports for customers– Competitors
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Reports (2)
• Exception Reports– Generated when something unusual happens– Trigger point: Manager decides on the “unusual
event”– Ex: Report on orders that are not delivered in five
days
• Drill Down Reports– Detailed report about a situation– See the situation at different levels
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Reports Generated by an MIS
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Reports Generated by an MIS
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Guidelines for Developing MIS Reports
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Functional Aspects of the MIS
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Functional Aspects of MIS
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Financial MIS
• Provide financial information to internal parties– Integrate financial and operational information from
several sources– Ease analysis by providing fast financial data– Enable financial analysis from different aspects; time,
product, customer– Analyze historical and current data– Monitor use of funds
• Report to external parties• Auditing
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Overview of a Financial MIS
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Manufacturing MIS
• Material requirements planning (MRP)– Determine when finished products are needed– Determine deadlines accordingly
• Manufacturing resource planning (MRPII)– Network scheduling– Improve customer service and productivity
• Just in time (JIT) inventory system– Inventory and materials delivered right before usage
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Overview of a Manufacturing MIS
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Marketing MIS
• Supports managerial activities– Product development– Distribution– Pricing decisions– Promotional effectiveness– Sales forecasting
• Customer relationship software (CRM)– Collect customer data– Inform customers on products
• Example report: Possible prices for products
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Overview of a Marketing MIS
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Human Resource MIS
Concerned with activities related to employees and potential employees of the organization.
• Subsystems include:– needs and planning assessments– recruiting– training and skills development– scheduling and assignment– employee benefits
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Overview of a Human Resource MIS
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Other Management Information Systems
• Accounting MIS – Provides aggregate information on accounts payable,
accounts receivable, payroll, and many other applications.
– Sometimes done by other companies
• Geographic Information Systems – Computer system capable of assembling, storing,
manipulating, and displaying geographic information.– Useful when the geographic position of the data is
important