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DECISIONMAKING SECTION SYSTEMSMIS and DSS
McGrawHill/Irwin
2008TheMcGrawHillCompanies,AllRightsReserved
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Management Information System (Information Reporting System)
Used by managers to
identify problems Solve problems Make decisions Status of the organization
Compares output with previous periods
Produces periodic reports
Scheduled reports Demand reports Exception reports
Are things working well?
Information produced is decision-oriented
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MIS plays key role in middle management functions
Planningfacilitates analysis by providing key information Staffingidentify, recruit, train, and retrain personnel Directingfacilitates communications in and outside organization Controllingprovides performance feedback
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Criteria for Effective MIS
Provide high quality information Responsive to managers inquiries Provide exception reporting Flexible Accepted by the user
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MIS uses only TPS data
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DECISION SUPPORT SYSTEMS
Decision support system (DSS) models information to support managers and business professionals during the decision-making process Three quantitative models used by DSSs include: 1. Sensitivity analysis the study of the impact that changes in one (or more) parts of the model have on other parts of the model 2. What-if analysis checks the impact of a change in an assumption on the proposed solution 3. Goal-seeking analysis finds the inputs necessary to achieve a goal such as a desired level of output
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DECISION SUPPORT SYSTEMS
What-if analysis
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DECISION SUPPORT SYSTEMS
Goal-seeking analysis
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DECISION SUPPORT SYSTEMS
Interaction a between TPS and a DSS
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Typical DSS Applications
General Accidental Insurancecustomer buying patterns and fraud detection Bank of America customer profiles Frito-Layprice, advertising, and promotion selection Burlington Coat Factorystore location and inventory mix United Airlinesflight scheduling, passenger demand forecast
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Whoareourmostfrequent customers?
CustomerData Warehouse
Usestatisticalanalysistoidentifythetop25%of frequentshopperssortedbysalesvolume.
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Docustomersliveclosetoretail outlets?
CustomerData Warehouse
Establishcorrelationbetweenstorelocation,customer addressandsalesfrequency.
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Howcanweresegmentinactive customers?
CustomerData Warehouse
Establishpastbuyingpatternsandthencreatemarketing plantoreachinactivecustomers.
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Group Decision Support
Interactive computerbased system to facilitate solutions of unstructured problems by a group
3570%oftimespentinmeetings #ofmeetings #lengthofmeetings #ofattendees
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