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Learning Objectives
Understand how management uses computer technologies. Learn basic concepts of decision-making. Understands decision support systems. Recognize different types of decision support systems used in the workplace. Determine which type of decision support system is applicable in specific situations.
New technologies and better information distribution have resulted in more alternatives for management. Complex operations have increased the costs of errors, causing a chain reaction throughout the organization. Rapidly changing global economies and markets are producing greater uncertainty and requiring faster response in order to maintain competitive advantages. Increasing governmental regulation coupled with political destabilization have caused great uncertainty.
Quick computations at a lower cost Group collaboration and communication Increased productivity Ready access to information stored in multiple databases and data warehouse Ability to analyze multiple alternatives and apply risk management Enterprise resource management Tools to obtain and maintain competitive advantage
Cognitive Limits
The human mind has limited processing and storage capabilities. Any single person is therefore limited in their decision making abilities. Collaboration with others allows for a wider range of possible answers, but will often be faced with communications problems. Computers improve the coordination of these activities. This knowledge sharing is enhanced through the use of GSS, KMS, and EIS
Decision support system (DSS) Management Science Business Analytics Data Mining Data Warehouse Business Intelligence Online analytical processing (OLAP) Computer-assisted systems engineering (CASE) Group support systems (GSS) Geography information system (GIS)
Enterprise information system (EIS) Enterprise resource management(ERM) Enterprise resource planning(ERP) Customer resource management(CRM) Supply chain management (SCM) Knowledge management system (KMS) Expert system(ES) Artificial neural networks (ANN) Intelligent Agents E-commerce DSS
Type of Decision:
Structured
(Programmed)
Operational Control
Accounts receivable, accounts payable, order entry
Managerial Control
Budget analysis, short-term forecasting, personnel reports
Strategic Planning
Investments, warehouse locations, distribution centers
Semistructured
Mergers and acquisitions, new product planning, compensation, QA, HR policy planning
Unstructured (Unprogrammed)
Technology Support
Type of Control
Operational Control
Managerial Control
Strategic Planning
TPS - Computerized system that perform and record the daily routine transaction necessary to conduct the business. OS - Computer systems, such as word processing ,e-mail, scheduling, that are designed to increase the productivity of data workers in office. KWS - Information system that aid knowledge workers in the creation and integration of new knowledge in the organization.
MIS - Information systems at management level to serve the function of planning, controlling, and decision making by providing routine summary and expectation reports. DSS - Information systems at management level to combine data and sophisticated analysis model to support non routine decision making. ESS - Information systems at strategic level designed to address non routine decision making through advanced graphics and communication
DSS
Interactive ; simulation
MIS
Summary transaction data ; High volume data ; simple models Design specification ; Knowledge base
Middle manager
KWS
Modeling ; simulation
Models; graphics
OS
Documents ; schedules
Clerical workers
TPS
Transaction ; events
References
DSS and IS by Turban, Aronson, Liang , 7th edition, page no:-34,35,36,37 MIS by Laudon & Laudon , 7th edition, page no:-40,41,42,43
Thank you
Questions ? Please