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    Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 1

    Managing Information Technology

    6th Edition

    CHAPTER 7

    MANAGERIAL SUPPORT SYSTEMS

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    DECISION SUPPORT SYSTEMS

    Designed to assist decision makers with

    unstructured problems

    Usually interactive

    Incorporates data and models

    Data often comes from transaction processing

    systems or data warehouse

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    DECISION SUPPORT SYSTEMS

    Three major components:

    1. Data management: select

    and handle appropriate

    data

    2. Model management:

    apply the appropriate

    model

    3. Dialog management:

    facilitate user interface to

    the DSS

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    DECISION SUPPORT SYSTEMS

    Specific DSS actual DSS applications that

    directly assist in decision making

    DSS generator a software package used to build

    a specific DSS quickly and easily

    Example: Microsoft Excel

    DSS GeneratorDSS Model 1

    DSS Model 2

    DSS Model 3

    used to create

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    DATA MINING

    Employs different technologies to search for (mine)nuggets of information from data stored in a datawarehouse

    Data mining decision techniques: Decision trees

    Linear and logistic regression

    Association rules for finding patterns

    Clustering for market segmentation

    Rule induction Statistical extraction of if-then rules

    Nearest neighbor

    Genetic algorithms

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    DATA MINING

    Online analytical processing (OLAP)

    Essentially querying against a database

    Program extracts data from the database and

    structures it by individual dimensions, such as

    region or dealer

    OLAP described as human-driven, whereas data

    mining is technique-driven

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    DATA MINING

    Data mining software:

    Oracle 10g Data Mining(http://www.oracle.com/technology/products/bi/odm/index.html)

    SAS Enterprise Miner(http://www.sas.com/technologies/analytics/datamining/miner/)

    XLMiner(http://www.xlminer.com/)

    IBM Intelligent Miner Modeling(http://www-306.ibm.com/software/data/iminer/)

    Angoss Softwares KnowledgeSEEKER,KnowledgeSTUDIO, and StrategyBUILDER(http://www.angoss.com/analytics_software/)

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    DATA MINING

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    DATA MINING

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    DATA MINING

    American Honda Motor Co.

    Uses SAS Data Mining to analyze warranty claims, call

    center data, customer feedback, parts sales, andvehicle sales

    Early warning system to find and forestall problems

    Allows analysts to zero in on a single performanceissue

    During development, analysts identified issues withthree different vehicle models and were able toresolve the problems quickly

    Data Mining example

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    GROUP SUPPORT SYSTEMS

    Type ofDSS to support a group rather than anindividual

    Specialized type of groupware

    Attempt to make group meetings moreproductive

    Now focus on supporting team in all itsendeavors, including different time, differentplace mode virtual teams

    Example of GSS software: GroupSystems(http://www.groupsystems.com/)

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    GROUP SUPPORT SYSTEMS

    Traditional same-time, same-place meeting layout

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    GEOGRAPHIC INFORMATION SYSTEMS

    Systems based on manipulation of relationships

    in space that use geographic data

    Early GIS users:

    Natural resource management

    Public administration

    NASA and the military

    Urban planning Forestry

    Map makers

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    GEOGRAPHIC INFORMATION SYSTEMS

    Businesses are increasing their usage of

    geographic technologies

    Business uses: Determining site locations

    Market analysis and planning

    Logistics and routing

    Environmental engineering

    Geographic pattern analysis

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    GEOGRAPHIC INFORMATION SYSTEMS

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    GEOGRAPHIC INFORMATION SYSTEMS

    Approaches to representing spatial data:

    Raster-based GISs rely on dividing space into

    small, uniform cells (rasters) in a grid

    Vector-based GISs associate features in the

    landscape with a point, line, or polygon

    Coverage model different layers representsimilar types of geographic features in the same

    area and are stacked on top of one another

    Whats behind geographic technologies

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    GEOGRAPHIC INFORMATION SYSTEMS

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    GEOGRAPHIC INFORMATION SYSTEMS

    Whats behind geographic technologies (contd)

    Questions Answered by Geographic Analysis

    What is adjacent to this feature?

    Which site is the nearest one, or how many are within a

    certain distance?

    What is contained within this area, or how many are

    contained within this area?

    Which features does this element cross, or how many pathsare available?

    What could be seen from this location?

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    GEOGRAPHIC INFORMATION SYSTEMS

    Thanks to maturity of GIS tools, organizations

    can acquire off-the-shelf technologies

    Managing technology options now less of a

    challenge than managing spatial data

    Base maps, zip code maps, street networks, and

    advertising media market maps should be bought Other data are spread throughout the

    organization in internal databases

    Issues for information systems organizations

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    GEOGRAPHIC INFORMATION SYSTEMS

    Environmental Systems Research Institute (ESRI)(http://www.esri.com/)

    MapInfo(http://www.mapinfo.com/)

    Autodesk(http://www.autodesk.com/geospatial )

    Tactician(http://www.tactician.com/)

    Intergraph Corp.(http://www.intergraph.com/)

    GISvendors

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    Executive Information Systems/

    Business Intelligence Systems

    Executive information system (EIS)

    Hands-on tool that focuses, filters, and organizes

    information so that an executive can make moreeffective use of it

    Data come from:

    Filtered and summarized transaction data

    Competitive information, assessments and insights

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    Executive Information Systems/

    Business Intelligence Systems

    Executive information system (EIS) (contd)

    Delivers online current information about business

    conditions in aggregate form Easily accessible to senior executives and other

    managers

    Designed to be used without intermediary assistance

    Uses state-of-the-art graphics, communications anddata storage methods

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    Executive Information Systems/

    Business Intelligence Systems

    User base for EISs has expanded to encompass all

    levels of management new label is performance

    management (PM) software Focus on competitive information has also lead to

    the term business intelligence system

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    Executive Information Systems/

    Business Intelligence Systems

    InforPM(http://www.infor.com/solutions/pm/)

    Qualitech Solutions Executive Dashboard(http://www.iexecutivedashboard.com/)

    SAP Strategy Management(http://www.sap.com/solutions/performancemanagement/strategy/ )

    SAS/EIS(http://www.sas.com/products/eis/)

    Symphony Metreo SymphonyRPM(http://www.symphony-metreo.com/products/rpm_performance_management.asp )

    Commercial EIS software

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    Executive Information Systems/

    Business Intelligence Systems The term dashboard is used by many vendors for

    this type of layout:

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    Executive Information Systems/

    Business Intelligence Systems

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    KNOWLEDGE MANAGEMENT SYSTEMS

    Knowledge management (KM):

    Set of practical and action-oriented management

    practices

    Involves strategies and processes of identifying,creating, capturing, organizing, transferring, and

    leveraging knowledge to help compete

    Relies on recognizing knowledge held by individuals

    and the firm

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    KNOWLEDGE MANAGEMENT SYSTEMS

    Knowledge management system (KMS):

    System for managing organizational knowledge

    Technology or vehicle that facilitates the sharing and

    transferring of knowledge so that valuable knowledgecan be reused

    Enables people and organizations to enhance

    learning, improve performance, and produce long-

    term competitive advantage

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    KNOWLEDGE MANAGEMENT SYSTEMS

    May have little formal management and control Communities ofpractice (COP):individuals with similar

    interests

    COP KMS provides members with vehicle to exchangeideas, tips, and other knowledge

    Members are responsible for validating and structuringknowledge

    May have extensive management and control

    KM team to oversee process of validating knowledge

    Team provides structure, organization, and packaging forhow knowledge is presented to users

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    KNOWLEDGE MANAGEMENT SYSTEMS

    Corporate KMS

    KM team formed to develop organization-wide KMS

    Coordinators within communities of practiceresponsible for overseeing knowledge in the

    community

    Portal software provides tools, including discussion

    forums

    Any member of the community can post a question or

    tip

    KMS Initiatives Within a Pharmaceutical Firm

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    KNOWLEDGE MANAGEMENT SYSTEMS

    Field sales KMS

    Another KM team formed to build both content

    and structure of KMS for field sales

    Taxonomy developed so that knowledge would be

    organized separately

    KM team formats documents and enters into KMS Tips and advice required to go through validation

    and approval process first

    KMS Initiatives Within a Pharmaceutical Firm

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    KNOWLEDGE MANAGEMENT SYSTEMS

    Supply-side (i.e., knowledge contribution)

    Leadership commitment

    Manager and peer support for KM initiatives Knowledge quality control

    Demand-side (i.e., knowledge reuse)

    Incentives and reward systems

    Relevance of knowledge

    Ease of using the KMS

    Satisfaction with the use of the KMS

    KMS success

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    KNOWLEDGE MANAGEMENT SYSTEMS

    Social capital

    Motivation to participate

    Cognitive capability to understand and apply the

    knowledge

    Strong relationships among individuals

    KMS success (contd)

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    ARTIFICIAL INTELLIGENCE

    The study of how to make computers do thingsthat are currently done better by people

    Six areas of AI research:

    Natural languages: systems that translate ordinaryhuman instructions into a language that computerscan understand and execute

    Robotics: machines that accomplish coordinated

    physical tasks like humans do (see Ch.6) Perceptive systems: machines possessing a visual

    and/or aural perceptual ability that affects theirphysical behavior

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    ARTIFICIAL INTELLIGENCE

    Six areas of AI research (contd):

    Genetic programming: problems are divided into

    segments, and solutions to these segments are linked

    together to breed new solutions Expert systems

    Neural networksMost relevant for

    managerial support

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    EXPERT SYSTEMS

    Attempt to capture the expertise of humans in a

    computer program

    Knowledge engineer:

    A specially trained systems analyst who works closely withone or more experts in the area of study

    Learns from experts how they make decisions

    Loads decision information from experts (rules) into

    module called knowledge base

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    EXPERT SYSTEMS

    Major components of an expert system: Knowledge base: contains the inference rules that are followed in

    decision making and the parameters, or facts, relevant to the decision

    Inference engine: a logical framework that automatically executes a

    line of reasoning when supplied with the inference rules and

    parameters involved in the decision

    User interface: the module used by the end user

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    EXPERT SYSTEMS

    Buy a fully developed system created for aspecific application

    Develop using a purchased expert system shell(basic framework) and user-friendly speciallanguage

    Have knowledge engineers custom build usingspecial-purpose language (such as Prolog orLisp)

    Obtaining an expert system

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    EXPERT SYSTEMS

    Examples ofExpert Systems

    Stanford Universitys MYCIN Diagnoses and prescribes treatment for

    meningitis and blood diseases

    General Electrics CATS-1 Diagnoses mechanical problems in diesel

    locomotives

    AT&Ts ACE Locates faults in telephone cables

    Market Surveillance Detects insider trading

    FAST Used by banking industry for credit analysis

    IDP Goal Advisor Assists in setting short- and long-range

    employee career goals Nestl Foods Provides employees information on pension

    fund status

    USDAs EXNUT Helps peanut farmers manage irrigated peanut

    production

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    NEURAL NETWORKS

    Designed to tease out meaningful patterns from vastamounts of data that humans would find difficult toanalyze without computer support

    Process:

    1. Program given set of data2. Program analyzed data, works out correlations, selects variables

    to create patterns

    3. Pattern used to predict outcomes, then results compared toknown results

    4. Program changes pattern by adjusting variable weights orvariables themselves

    5. Repeats process over and over to adjust pattern

    6. When no further adjustment possible, ready to be used tomake predictions for future cases

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    NEURAL NETWORKS

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    VIRTUAL REALITY

    Use of a computer-based system to create an

    environment that seems real to one or more of the

    human senses

    Non-entertainment uses ofVR:

    Training

    Design

    Marketing

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    VIRTUAL REALITY

    Example Uses ofVR

    Training U.S. Army to train tank crews

    Amoco for training its drivers

    Duracell for training factory workers on using newequipment

    Design Design of automobiles

    Walk-throughs of air conditioning/ furnace units

    Marketing Interactive 3-D images of products (used on the Web)

    Virtual tours used by real estate companies or resort

    hotels

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    VIRTUAL REALITY

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    Holland-America

    http://www.hollandamerica.com/virtual-tours-

    videos/Main.action

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    All rights reserved. No part of this publication may be reproduced, stored in a

    retrieval system, or transmitted, in any form or by any means, electronic,

    mechanical, photocopying, recording, or otherwise, without the prior written

    permission of the publisher. Printed in the United States of America.

    Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall