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  1. The Business Pressures-Responses-Support Model
    • Three components:
    • business pressures that result from today's business climate
    • responses (actions taken) by companies to counter the pressures (or to take advantage of the opportunities available in the envir.)
    • computerized support that facilitates the monitoring of the envir. and enhances the response actions taken by orgs.
  2. Business Environment Factors
    • markets,
    • consumer demands,
    • technology,
    • societal
  3. Organizational Responses
    • Be Reactive, Anticipative, Adaptive, and Proactive
    • Managers may take actions, such as:
    • - Employ strategic planning
    • - Use new and innovative business models
    • - Restructure business processes
    • - Participate in business alliances
    • - Improve corporate information systems
    • - Improve partnership relationships
    • - Encourage innovation and creativity
    • - Improve customer service and relationships
    • - Move to electronic commerce (e-commerce)
    • - Move to make-to-order production and on-demand manufacturing and services
    • - Use new IT to improve communication, data access (discovery of information), and collaboration
    • - Respond quickly to competitors' actions (e.g., in pricing, promotions, new products and services)
    • - Automate many tasks of white-collar employees
    • - Automate certain decision processes
    • - Improve decision making by employing analytics
  4. Mintzberg's 10 Managerial Roles
    • Interpersonal
    • 1. Figurehead
    • 2. Leader
    • 3. Liasio
    • Informational
    • 4. Monitor
    • 5. Disseminator
    • 6. Spokesperson
    • Decisional
    • 7. Entrepreneur
    • 8. Disturbance handler
    • 9. Resource allocator
    • 10. Negotiator
  5. Four-step process(the scientific approach) managers usually make decisions
    • 1. Define the problem (or opportunity)
    • 2. Construct a model that describes the real-world problem
    • 3. Identify possible solutions to the modeled problem and evaluate the solutions
    • 4. Compare, choose, and recommend a potential solution to the problem
  6. Decision making is difficult, because
    • -Technology, information systems, advanced search engines, and globalization result in more and more alternatives from which to choose
    • -Government regulations and the need for compliance, political instability and terrorism, competition, and changing consumer demands produce more uncertainty, making it more difficult to predict consequences and the future
    • -Other factors are the need to make rapid decisions, the frequent and unpredictable changes that make trial-and-error learning difficult, and the potential costs of making mistakes
  7. Why Use Computerized DSS
    -Computerized DSS can facilitate decision via:
    • - Speedy computations
    • - Improved communication and collaboration
    • - Increased productivity of group members
    • - Improved data management
    • - Overcoming cognitive limits
    • - Quality support; agility support
    • - Using Web; anywhere, anytime support
  8. A Decision Support Framework (by Gory and Scott-Morten, 1971)
    • operational control, managerial control, strategic planning
    • structured 1. 2. 3.
    • Semistructured 4. 5. 6.
    • Unstructured 7. 8. 9.
  9. Degree of Structuredness (Simon, 1977)
    • -Decision are classified as
    • - Highly structured (a.k.a. programmed)
    • Semi-structured
    • Highly unstructured (i.e., non-programmed)
  10. Types of Control (Anthony, 1965)
    • - Strategic planning (top-level, long-range)
    • - Management control (tactical planning)
    • - Operational control
  11. Computer Support for Structured Decisions
    • - Structured problems: encountered repeatedly, have a high level of structure
    • - It is possible to abstract, analyze, and classify them into specific categories
    • - e.g., make-or-buy decisions, capital budgeting, resource allocation, distribution, procurement, and inventory control
    • - For each category a solution approach is developed => Management Science
  12. Simon’s Decision-Making Process: Steps of Decision Support
    • Intelligence
    • Design
    • Choice
    • Implementation
  13. The five-step Management Science/Operation Research approach managers follow to solve problem
    • 1. Define the problem
    • 2. Classify the problem into a standard category (*)
    • 3. Construct a model that describes the real-world problem
    • 4. Identify possible solutions to the modeled problem and evaluate the solutions
    • 5. Compare, choose, and recommend a potential solution to the problem
  14. Automated Decision Making (ADS) (or decision automation systems)
    • A relatively new approach to supporting decision making
    • Applies to highly structured decisions
    • Is a rule-based system that provides a solution to a repetitive managerial problem in a specific area
    • ADS are driven by business rules!
  15. Computer Support for Unstructured Decisions
    • - Unstructured problems can be only partially supported by standard computerized quantitative methods
    • - They often require customized solutions
    • - They benefit from data and information
    • - Intuition and judgment may play a role
    • - Computerized communication and collaboration technologies along with knowledge management is often used
  16. Computer Support for Semi-structured Problems
    • - Solving semi-structured problems may involve a combination of standard solution procedures and human judgment
    • - MS handles the structured parts while DSS deals with the unstructured parts
    • - With proper data and information, a range of alternative solutions, along with their potential impacts
  17. Decision Support Systems
    • Interactive computer-based systems, which help decision makers utilize data and models to solve unstructured problems" - Gorry and Scott-Morton, 1971
    • -Decision support systems couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions. It is a computer-based support system for management decision makers who deal with semistructured problems - Keen and Scott-Morton, 1978
    • The term DSS can be used as an umbrella term to describe any computerized system that supports decision making in an organization
    • -As a Specific App.: In a narrow sense DSS refers to a process for building customized applications for unstructured or semi-structured problems
  18. Components of the DSS Architecture
    • Data, Model, Knowledge/Intelligence,
    • User, Interface (API and/or user interface)
    • -DSS often is created by putting together loosely coupled instances of these components
  19. Two major types of DSS:
    • Model-oriented DSS
    • Data-oriented DSS
  20. Business Intelligence (BI)
    • Is an umbrella term that combines architectures, tools, databases, analytical tools, applications, and methodologies
    • Like DSS, BI a content-free expression, so it means different things to different people
    • BI's major objective is to enable easy access to data (and models) to provide business managers with the ability to conduct analysis
    • BI helps transform data, to information (and knowledge), to decisions and finally to action
  21. A Brief History of BI
    • The term BI was coined by the Gartner Group in the mid-1990s
    • However, the concept is much older
    • 1970s - MIS reporting - static/periodic reports
    • 1980s - Executive Information Systems (EIS)
    • 1990s - OLAP, dynamic, multidimensional, ad-hoc reporting -> coining of the term “BI”
    • 2005+ Inclusion of AI and Data/Text Mining capabilities; Web-based Portals/Dashboards
    • 2010s - yet to be seen
  22. BI system four major components:
    • A data warehouse, with its source data
    • Business analytics, a collection of tools for manipulating, mining, and analyzing the data in the data warehouse;
    • Business performance management (BPM) for monitoring and analyzing performance
    • A user interface (e.g., dashboard)
  23. MicroStrategy, Corp. distinguishes five styles of BI and offers tools for each:
    • Report delivery and alerting
    • Enterprise reporting (using dashboards and scorecards)
    • Cube analysis (also known as slice-and-dice analysis)
    • Ad-hoc queries
    • Statistics and data mining
  24. The DSS–BI Connection
    • First, their architectures are very similar because BI evolved from DSS
    • Second, DSS directly support specific decision making, while BI provides accurate and timely information, and indirectly support decision making
    • Third, BI has an executive and strategy orientation, especially in its BPM and dashboard components, while DSS, in contrast, is oriented toward analysts
    • Fourth, most BI systems are constructed with commercially available tools and components, while DSS is often built from scratch
    • Fifth, DSS methodologies and even some tools were developed mostly in the academic world, while BI methodologies and tools were developed mostly by software companies
    • Sixth, many of the tools that BI uses are also considered DSS tools (e.g., data mining and predictive analysis are core tools in both)
    • Although some people equate DSS with BI, these systems are not, at present, the same
    • -some people believe that DSS is a part of BI—one of its analytical tools
    • -others think that BI is a special case of DSS that deals mostly with reporting, communication, and collaboration (a form of data-oriented DSS)
    • -BI is a result of a continuous revolution and, as such, DSS is one of BI's original elements
    • -In this book, we separate DSS from BI
    • MSS = BI and/or DSS
  25. Work system:
    A system in which human participants and/or machines perform a business process, using information, technology, and other resources, to produce products and/or services for internal or external customers
  26. Elements of a Work System
    • 1. Business process. Variations in the process rationale, sequence of steps, or methods used for performing particular steps
    • 2. Participants. Better training, better skills, higher levels of commitment, or better real-time or delayed feedback
    • 3. Information. Better information quality, information availability, or information presentation
    • 4. Technology. Better data storage and retrieval, models, algorithms, statistical or graphical capabilities, or computer interaction
    • 5. Product and services. Better ways to evaluate potential decisions
    • 6. Customers. Better ways to involve customers in the decision process and to obtain greater clarity about their needs
    • 7. Infrastructure. More effective use of shared infrastructure, which might lead to improvements
    • 8. Environment. Better methods for incorporating concerns from the surrounding environment
    • 9. Strategy. A fundamentally different operational strategy for the work system
  27. Major Tool Categories for MSS
    • Data mgmt
    • Reporting status tracking
    • Visualization
    • Business analytics
    • Strategy and performance mgmt
    • Communication and collaboration
    • Social networking Knowledge mgmt
    • Intelligent systems
    • Enterprise systems
  28. Hybrid (Integrated) Support Systems
    • -The objective of computerized decision support, regardless of its name or nature, is to assist management in solving managerial or organizational problems (and assess opportunities and strategies) faster and better than possible without computers
    • -Every type of tool has certain capabilities and limitations. By integrating several tools, we can improve decision support because one tool can provide advantages where another is weak
    • -The trend is therefore towards developing hybrid (integrated) support system
  29. Hybrid (Integrated) Support Systems: Type of integration
    • -Use each tool independently to solve different aspects of the problem
    • -Use several loosely integrated tools. This mainly involves transferring data from one tool to another for further processing
    • -Use several tightly integrated tools. From the user's standpoint, the tool appears as a unified system
    • -In addition to performing different tasks in the problem-solving process, tools can support each other
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2013-03-04 17:00:25
IS425 Exam1

Exam Study Guide for IS425
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