Chapter_09
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1- 10
Levels of Management Decision Making
• Operational management
– Managers or members of self-directed teams – Develop short-range plans such as weekly production schedules
1- 2
Learning Objectives
5. Explain how the following information systems can support the information needs of executives, managers, and business professionals:
• Tactical management
– Managers and business professionals in self-directed teams – Develop short- and medium-range plans, schedules and budgets – Specify the policies, procedures and business objectives for their subunits
– Time – Content – Form
1- 12
Attributes of Information Quality
1- 13
Decision Structure
• Structured – situations where the procedures to follow when a decision is needed can be specified in advance • Unstructured – decision situations where it is not possible to specify in advance most of the decision procedures to follow • Semistructured - decision procedures that can be prespecified, but not enough to lead to a definite recommended decision
a. Executive information systems b. Enterprise information portals c. Knowledge management systems
1- 3
Learning Objectives
5. Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business. 6. Give examples of several ways expert systems can be used in business ision-making situations.
1- 7
Real World Group Activity
2. How would you like to work for an executive whose dashboard provides the level of information about company and employee performance described in this case? Would you want that level of information when you enter the executive ranks? – Discuss this issue, and formulate suggestions on any changes or safeguards you would propose for the business use of dashboards.
1- 4
Case 1: Oracle Corporation and Others: Dashboards for Executives and Business Professionals: The Power and the Challenge
• The dashboard has become the CEO’s killer app. • Dashboards provide key business information to executives, managers, and business professionals. • At GE executives use dashboard to follow the production of everything from light bulbs to dishwashers, making sure production lines are running smoothly. • Dashboards have some challenges. These tools can raise pressure on employees, create divisions in the office, and lead workers to hoard information. • Dashboards can hurt the morale of employees.
Chapter 9
Decision Support Systems
McGraw-Hill/Irwin
©2008,The McGraw-Hill Companies, All Rights Reserved
Learning Objectives
1. Identify the changes taking place in the form and use of decision support in business. 2. Identify the role and reporting alternatives of management information systems. 3. Describe how online analytical processing can meet key information needs of managers. 4. Explain the decision support system concept and how it differs from traditional management information systems.
1- 16
Business Intelligence Applications
1- 6
Real World Internet Activity
1. Use the Internet to research makers of dashboards for large and small business. For example, try NetSuite, Hyperion Solutions, and for relatively inexpensive versions and Microsoft, Oracle, and SAP for more costly corporate dashboards. Evaluate the dashboard examples and demos you experience. Pick your favorites and explain your reasons for doing so to the class.
1- 5
Case Study Questions
1. What is the attraction of dashboards to CEOs and other executives? What real business value do they provide to executives? 2. The case emphasizes that managers of small businesses and many business professionals now rely on dashboards. What business benefits do dashboards provide to this business audience? 3. What are several reasons for criticism of the use of dashboards by executives? Do you agree with any of this criticism? Why or why not?
1- 11
Information Quality
• Information products whose characteristics, attributes, or qualities make the information more value • Information has 3 dimensions:
1- 8
Information required at different management levels
1- 9
Levels of Management Decision Making
• Strategic management
– Executives develop organizational goals, strategies, policies, and objectives – As part of a strategic planning process
Decision Support Systems
Provide information and techniques to analyze specific problems
Periodic, exception, demand, Interactive inquiries and and push reports and responses responses Prespecified, fixed format Ad hoc, flexible, and adaptable format Information produced by analytical modeling of business data
1- 14
Information Systems to support decisions
Management Information Systems
Decision support provided Information form and frequency Information format Information processing methodology Provide information about the performance of the organization
1- 15
Information produced by extraction and manipulation of business data
Decision Support Trends
• Personalized proactive decision analytics • Web-Based applications • Decisions at lower levels of management and by teams and individuals • Business intelligence applications
Levels of Management Decision Making
• Operational management
– Managers or members of self-directed teams – Develop short-range plans such as weekly production schedules
1- 2
Learning Objectives
5. Explain how the following information systems can support the information needs of executives, managers, and business professionals:
• Tactical management
– Managers and business professionals in self-directed teams – Develop short- and medium-range plans, schedules and budgets – Specify the policies, procedures and business objectives for their subunits
– Time – Content – Form
1- 12
Attributes of Information Quality
1- 13
Decision Structure
• Structured – situations where the procedures to follow when a decision is needed can be specified in advance • Unstructured – decision situations where it is not possible to specify in advance most of the decision procedures to follow • Semistructured - decision procedures that can be prespecified, but not enough to lead to a definite recommended decision
a. Executive information systems b. Enterprise information portals c. Knowledge management systems
1- 3
Learning Objectives
5. Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business. 6. Give examples of several ways expert systems can be used in business ision-making situations.
1- 7
Real World Group Activity
2. How would you like to work for an executive whose dashboard provides the level of information about company and employee performance described in this case? Would you want that level of information when you enter the executive ranks? – Discuss this issue, and formulate suggestions on any changes or safeguards you would propose for the business use of dashboards.
1- 4
Case 1: Oracle Corporation and Others: Dashboards for Executives and Business Professionals: The Power and the Challenge
• The dashboard has become the CEO’s killer app. • Dashboards provide key business information to executives, managers, and business professionals. • At GE executives use dashboard to follow the production of everything from light bulbs to dishwashers, making sure production lines are running smoothly. • Dashboards have some challenges. These tools can raise pressure on employees, create divisions in the office, and lead workers to hoard information. • Dashboards can hurt the morale of employees.
Chapter 9
Decision Support Systems
McGraw-Hill/Irwin
©2008,The McGraw-Hill Companies, All Rights Reserved
Learning Objectives
1. Identify the changes taking place in the form and use of decision support in business. 2. Identify the role and reporting alternatives of management information systems. 3. Describe how online analytical processing can meet key information needs of managers. 4. Explain the decision support system concept and how it differs from traditional management information systems.
1- 16
Business Intelligence Applications
1- 6
Real World Internet Activity
1. Use the Internet to research makers of dashboards for large and small business. For example, try NetSuite, Hyperion Solutions, and for relatively inexpensive versions and Microsoft, Oracle, and SAP for more costly corporate dashboards. Evaluate the dashboard examples and demos you experience. Pick your favorites and explain your reasons for doing so to the class.
1- 5
Case Study Questions
1. What is the attraction of dashboards to CEOs and other executives? What real business value do they provide to executives? 2. The case emphasizes that managers of small businesses and many business professionals now rely on dashboards. What business benefits do dashboards provide to this business audience? 3. What are several reasons for criticism of the use of dashboards by executives? Do you agree with any of this criticism? Why or why not?
1- 11
Information Quality
• Information products whose characteristics, attributes, or qualities make the information more value • Information has 3 dimensions:
1- 8
Information required at different management levels
1- 9
Levels of Management Decision Making
• Strategic management
– Executives develop organizational goals, strategies, policies, and objectives – As part of a strategic planning process
Decision Support Systems
Provide information and techniques to analyze specific problems
Periodic, exception, demand, Interactive inquiries and and push reports and responses responses Prespecified, fixed format Ad hoc, flexible, and adaptable format Information produced by analytical modeling of business data
1- 14
Information Systems to support decisions
Management Information Systems
Decision support provided Information form and frequency Information format Information processing methodology Provide information about the performance of the organization
1- 15
Information produced by extraction and manipulation of business data
Decision Support Trends
• Personalized proactive decision analytics • Web-Based applications • Decisions at lower levels of management and by teams and individuals • Business intelligence applications