Transcript Ch_13_ems_added

c h a p t e r
13
ENHANCING
MANAGEMENT
DECISION MAKING
13.1
© 2002 by Prentice Hall
LEARNING OBJECTIVES
• DIFFERENTIATE DECISIONSUPPORT SYSTEMS (DSS) FROM
GROUP DECISION-SUPPORT
SYSTEMS (GDSS)
• DESCRIBE COMPONENTS OF DSS &
GDSS
*
13.2
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LEARNING OBJECTIVES
• DEMONSTRATE HOW DSS & GDSS
ENHANCE DECISION-MAKING
• DESCRIBE CAPABILITIES OF
EXECUTIVE SUPPORT SYSTEMS
(ESS)
• ASSESS BENEFITS OF ESS
*
13.3
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MANAGEMENT CHALLENGES
• DECISION-SUPPORT SYSTEMS
• GROUP DECISION-SUPPORT
SYSTEMS
• EXECUTIVE SUPPORT SYSTEMS
*
13.4
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DECISION SUPPORT
SYSTEMS (DSS)
MANAGEMENT LEVEL COMPUTER
SYSTEM COMBINES DATA,
MODELS, USER - FRIENDLY
SOFTWARE FOR SEMISTRUCTURED
& UNSTRUCTURED DECISION
MAKING
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13.5
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DECISION SUPPORT
SYSTEM
• MODEL DRIVEN DSS: Uses models
for what-if and other analysis
• DATA-DRIVEN DSS: Allows
extraction, analysis of information
from databases
*
13.6
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DECISION SUPPORT
SYSTEM
TPS
USER
INTERFACE
DSS DATA
BASE
EXTERNAL
DATA
DSS SOFTWARE SYSTEM
MODELS
OLAP TOOLS
DATAMINING TOOLS
USER
13.7
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DECISION SUPPORT
SYSTEM
•
•
•
•
13.8
TPS: Transaction processing system
MODEL: Representation of a problem
OLAP: On-line analytical processing
USER INTERFACE: How user enters
problem & receives answers
• DSS DATABASE: Current data from
applications or groups
*
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DECISION SUPPORT
SYSTEM
13.9
• DATA MINING: Technology for finding
relationships in large data bases for
prediction
• DSS SOFTWARE SYSTEM: Tools for
data analysis
• SENSITIVITY ANALYSIS: “What-if”
questions about changes in model
factors
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*
DECISION SUPPORT
SYSTEM
APPLICATIONS:
• SUPPLY CHAIN MANAGEMENT
• CUSTOMER RELATIONSHIP
MANAGEMENT
• SIMULATING BUSINESS SCENARIOS
*
13.10
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DECISION SUPPORT
SYSTEM
• GEOGRAPHIC INFORMATION
SYSTEM (GIS): Software to display
digital maps
• WEB-BASED DSS: Available on
Internet for decisions, information,
software
• CUSTOMER DSS (CDSS): System
supports buying decisions of
customers
13.11
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DECISION SUPPORT
SYSTEM
EXAMPLES:
• GENERAL ACCIDENT INSURANCE:
Customer buying patterns, fraud
detection
• BANK OF AMERICA: Customer
profiles
• FRITO-LAY: Price, advertising,
promotion selection
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13.12
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DECISION SUPPORT
SYSTEM
• BURLINGTON COAT FACTORY: Store
location, inventory mix
• KEYCORP: Targeting direct mail
marketing customers
• NATIONAL GYPSUM: Corporate
planning & forecasting
*
13.13
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DECISION SUPPORT
SYSTEM
• SOUTHERN RAILWAY: Train
dispatching and routing
• TEXAS OIL & GAS: Evaluating
drilling sites
• UNITED AIRLINES: Flight scheduling,
passenger demand forecasting
*
13.14
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GROUP DECISION-SUPPORT SYSTEM
(GDSS)
INTERACTIVE COMPUTER-BASED
SYSTEM FACILITATES SOLUTION OF
UNSTRUCTURED PROBLEMS BY
DECISION MAKERS WORKING AS
GROUP
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13.15
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GDSS ENHANCED DECISION MAKING
ALLOWS: Improved pre-planning
• Increased participation
• Open, collaborative atmosphere
• Idea generation free of criticism
• Evaluation objectivity
• Idea organization & evaluation
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13.16
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GDSS ENHANCED
DECISION MAKING
ALLOWS: Setting priorities & decision
making
• Documentation of meetings
• Access to external information
• Preservation of organizational memory
*
13.17
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TOOLS OF GDSS
•
•
•
•
•
13.18
ELECTRONIC QUESTIONNAIRES
ELECTRONIC BRAINSTORMING
IDEA ORGANIZERS
QUESTIONNAIRE TOOLS
TOOLS FOR VOTING,
SETTING PRIORITIES
*
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TOOLS OF GDSS
• STAKEHOLDER IDENTIFICATION &
ANALYSIS TOOLS
• POLICY FORMATION TOOLS
• GROUP DICTIONARIES
*
13.19
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ELECTRONIC MEETING SYSTEM
(EMS)
COLLABORATIVE GDSS: Uses
information technology to make
group meetings more productive
facilitates communication decision
making
*
13.20
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The Research Model for Electronic Meetings
GROUP
• Individual Member
Characteristics
• Group Size
• History
• Formal/Informal
• Ongoing/One-Time
• Experience
• Cohesiveness
• etc.
TASK
• Type of Task (e.g.,
Judgmental)
• Rational/Political
• Complexity
• etc.
OUTCOME
PROCESS
• Degree of Structure
• Number of Sessions
• Anonymity
• Satisfaction with Process
and Outcome
• Outcome Quality
• Time Required
• Leadership
• Number of Alternates
• Participation
• Number of Comments
• Conflict
• Consensus
• Organization Culture
• Non-Task Behavior
• Confidence
• Environment
• etc.
• etc.
CONTEXT
• Incentives and
Reward Systems
• etc.
EMS
• Presence/Absence of
EMS Tools
• Methods Design
• Environmental Design
13.21
• etc.
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EXECUTIVE
SUPPORT SYSTEMS (ESS)
STRATEGIC INFORMATION SYSTEM
DESIGNED FOR UNSTRUCTURED
DECISION MAKING THROUGH
ADVANCED GRAPHICS AND
COMMUNICATIONS
*
13.22
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EXECUTIVE
SUPPORT SYSTEMS
• DRILL DOWN: ability to move from
summary to lower levels of detail
• Designed for specific needs of CEO
• Extensive support staff
• Executive has 24 hour per day ability to
examine, control progress throughout
organization
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13.23
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EXECUTIVE
SUPPORT SYSTEMS
BENEFITS:
• FLEXIBILITY
• ABILITY TO ANALYZE, COMPARE,
HIGHLIGHT TRENDS
• GRAPHICS HELP EXPLORE SITUATION
• MONITOR PERFORMANCE
• TIMELINESS, AVAILABILITY OF DATA
ALLOWS PROMPT ACTION
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13.24
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EXECUTIVE
SUPPORT SYSTEMS
USES IN A DIGITAL FIRM:
• BUSINESS INTELLIGENCE: Info on
salespeople, distributors, retailers
• MONITORING BUSINESS PERFORMANCE:
Balanced scorecard shows perspectives
of customers, internal processes,
learning, growth
• ENTERPRISE WIDE REPORTING &
ANALYSIS
*
13.25
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c h a p t e r
13
ENHANCING
MANAGEMENT
DECISION MAKING
13.26
© 2002 by Prentice Hall