8/3/2019 MIS Topic No 08
1/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
TTooppiicc NNoo..:: 88 MM aannaaggeemm eenntt SSuuppppoorrtt SSyysstteemm
Introduction The term Management Support System refers to the application of any
technology either as an independent tool or in combination with other
information technology
MSS is very essential due to its functionality importance as to supportmanagement task in general with Decision Support System
They are collection of computer technologies that support managerial work,essentially decision making
MSS Tools DSS Decision Support System: The process of making decisions is DSS. The
emphasis is on Support rather than on automation of decision.
BI Business Intelligence: Its highlighting area is better understanding ofmarket behavior and views of business operations. It works on the tacticalareas of business.
GSS Group Decision Support System: It is adapted by a group of peoplewho collaborate to support integrated systems thinking for complex decision
making
ES Expert System: A specific area to act as an expert consultant to users EIS Executive Support System: These are MIS, tailored to the strategic
information needs of top management. It emphasis on graphical displays andeasy to use interfaces for better representation of data
ERP Enterprise Resource Planning: The system is designed to co-ordinate althe resources, information and activities needed to complete business
8/3/2019 MIS Topic No 08
2/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
processes. An ERP solution is characterized by supporting a variety of
business functions.
SCM Supply Chain Management: It is the management of a network ofinter-connected businesses involved in the ultimate provisions of product and
service packages required by the end customers.
Integration of MSS Functional Area Integration: It implies that different application are provided
as a single system. It integrated two or more MIS both internally or externally
within the organization
Physical Area Integration: It refers to packaging the hardware, software andcommunication features required to accomplish functional integration.
Reasons for MSS Integration Increasing the capabilities of the MSS Applications: DSS with ES Enhance the capabilities of Non-MSS Applications: ERP for analysis Enhancement by Intelligent Tools: ES enhance DSS with intelligent agents
Decision Mak ing Decision is an art of choosing an optimum alternative from a set of available
alternative in the influence of the information pool regarding the environment
of the decision
It is the process of selection course of action to accomplish a desired result Decision making is the study of identifying and choosing alternatives based
on the values and preference of the decision maker
Decision making is the process sufficiently reducing uncertainty and doubtabout alternatives to allow a reasonable choice to be made from among them
8/3/2019 MIS Topic No 08
3/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Decision making takes place in adopting the objectives and choosing themeans and again when a change in the situation creates a necessity for
adjustments
Types of Decision Programmed Decisions:
They are routine or structured They are repetitive or short term Definite procedure is to be followed There are laid down norms & situations are known They are taken at the lower or operating levels in an organisation Example: Inventory should be ordered when inventory levels drop
to 100 units is to adhere to a rule.
Non-Programmed Decisions: Innovative New or complex situations Important and Critical Strategic and Long term Example: Determining the appropriate training program
Characteristics of DSS DSS should aid the decision maker in decision making particularly in tactical /
strategic issues DSS should be able to create general purpose models, simulations capabilities
and other analytical tools available to a decision maker.
DSS should enable users to use DSS without assistance from MISProfessionals
8/3/2019 MIS Topic No 08
4/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
DSS should be readily adapted to meet information requirement for anydecision making environment
DSS should provide mechanism to enable rapid response to a decisionmakers request for information
DSS should have capability to interface with corporate database & flexible toaccommodate variety of management styles
DSS should facilitate communications between various levels of decisionmaking
Iterative methods are better advised DSS should be able to address structured and semi structured issues
Programmed & Non P rogrammed Decisions
Elements of Decision Mak ing The decision maker The decision problem or goal Attitudes, values and personal goals of the decision maker Assumptions with regards to future events and things The environment in which decision is to be taken Availability of known alternatives with significance and scope Analytical results in the whole perspective
8/3/2019 MIS Topic No 08
5/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
The constraints The act of selection or choice Timing of decision Proper communication of decision for its effective execution
Decision Making Environment Ambiguity: Problem is not clear, the goal is not clear and hence output is not
clear
Certainty: Input-Output relation is known and hence the result is known Uncertainty: Unawareness about resources, inputs & outputs so results are
also unpredictable
Risk: Totally unknown results in terms of profit or loss
Factors influencing Decision Mak ing Time pressures: The quality of decision depends on the availability of time
given to the manager for taking decisions.
Managers Value: The quality of decision is also based on the perception andbehavior of the manager while taking a call. Decision should support
objectives and based on priorities. Value judgment reflected in the
alternatives chosen.
Organizational Policy: Any decision taken or implemented should not againstthe policy framed by the organization.
Managers tendency for Risk: It's an integral component of decision makingprocess. It helps evaluating the alternatives with success ratios.
8/3/2019 MIS Topic No 08
6/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Decision Making Process
8/3/2019 MIS Topic No 08
7/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Decision Mak ing Process: Classical Model of DSS In this model, a manager, when confronted with a decision making situation,
would collect ALL the information that is required for that activity and would
take a decision which would be IN THE BEST INTERESTS OF THE
ORGANISATION.
In this model, a manager, when confronted with a decision making situation,would collect ALL the information that is required for that activity and would
take decision which would be IN THE BEST INTERESTS OF THE
ORGANISATION.
Decision Making Process: Administrative Model ofDSS
In this model, the manager is concerned about himself. As and whenconfronted with a decision making situation, would collect WHATEVER
information that is required for that activity and would take a decision which
may not be in the best interests of the organization but would certainly be IN
THE BEST INTERESTS OF THE MANAGER. This model is based on the
observation of manager.
8/3/2019 MIS Topic No 08
8/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Managers rarely have all the information they need or want. They are notaware of all possible alternatives and are not able to predict consequences
Organizations goals constraint decision making process Early alternatives and solutions are quickly adopted because of constraints
and limitations
Decision Making Process: Herbert Simon Model ofDSS
The Herbert Simons Model is related to the Decision Making Process. Thismodel mainly describes the core of decision making process and support on
wide front of the same. This model is consists of following 3 Sub-Inter related
phases:
8/3/2019 MIS Topic No 08
9/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Intelligence Phase of HS Model Organizational Objectives, Search and SCANNING environment, Data
Collection, Problem Identification, Problem Classification, Problem Statement
Social Environment: Economic, Legal and Social Environment for Operation Competitive Environment: Understands & Analysis the characteristics, trends
& behavior of market
Organizational Environment: Capabilities, Strengths, Weakness, Constraints &other factors which affects the operations of organization
Design Phase of HS Model Formulate a Model Set Criteria for Choice Search for Alternatives Predict and Measure Outcomes
8/3/2019 MIS Topic No 08
10/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Choice Phase of HS Model: Solution to the Model Sensitivity Analysis Selection of best (good) alternative(s) Plan for implementation (action) Design of a control system
DSS ??? It refers to a class of systems, which support the process of making
decisions. The emphasis is on support rather than the automation of decision
making. It allows the decision maker to retrieve data and test alternative
solutions during the process of problem solving
It specialized in problem identification, selecting relevant data, picking theapproach to be used in decision making and evaluating the alternative
courses of action.
DSS as interactive computer based system, which helps decision makersutilize data and model to solve unstructured problems
DSS enables the business executives t take the efficient, effective andeconomic decisions
Goals of DSS Provides rapid access to information
Handle large amounts of data from different sources and locations Provide report and presentation flexibility Offer both textual and graphical orientation Support drill down analysis
8/3/2019 MIS Topic No 08
11/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Perform complex, sophisticated analysis and comparisons using advancedsoftware
Functions of DSS What-If? Analysis: Change in variable and their relevant effect in decision Sensitivity Analysis: One variable changes and makes impact on overall effect
of decision
Goal Seeking Analysis: It sets a target value for a variable and thenrepeatedly changes the value of variable to meet the target value
Optimization Analysis: The goal is to find the optimum value for one or moretarget variables at given certain constraints
Components of DSS A Decision Support System (DSS) is an interactive computer based
information system with an organized collection of models, people,
procedures, software, databases, telecommunication, and devices, which
helps decision makers to solve unstructured or semi-structured business
problems.
Components of DSS are: Hardware Resource, Software Resource, DataResource, Model Resource, People Resource and Decision Support System
Packages
8/3/2019 MIS Topic No 08
12/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Components of DSS
Appli cations of DSS Independent Problems Interrelated Problems Organizational Problems
Benefits of DSS: Improving personal efficiency Improving problem solving Facilitating communications Promoting learning or training Increasing organizational control
8/3/2019 MIS Topic No 08
13/13
MM aannaaggeemmeenntt II nn ffoorrmm aatt iioonn SSyysstteemmssPPrrooff.. PPrraakkaasshh MM SSoonnii
Queries? Email: [email protected]
Limitations of DSS DSS has definite computational constraints due to limited memories and
capacity
It is slow, compared to the speed of large IT automation machines Most DSS are individual based but others can link with limited access Procedures are little common to every DSS It is difficult to know interdependencies of functions provided by system It is tough to keep tracking of consequences of DSS functions usage Few aspects need deep understanding about the specific domain knowledge Usage of different data base models and data models leads translation
problem
Users may have to work on several decision scenarios at some time
MIS Vs. DSS
Top Related