information technology foundations-bit 112 chapter 9 managerial support systems
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Information Technology Foundations-BIT 112
CHAPTER 9
Managerial Support Systems
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Chapter Outline
9.1 Managers and Decision Making
9.2 Business Intelligence, Multidimensional Data Analysis, Data Mining, and Decision Support Systems
9.3 Digital Dashboards
9.4 Data Visualization Technologies
9.5 Intelligent Systems
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Learning Objectives
• Describe the concepts of management, decision making and computerized support for decision making.
• Describe multidimensional data analysis and data mining
• Describe dashboards
• Describe data visualization, and explain geographical information systems and virtual reality.
• Describe artificial intelligence (AI).
• Define an expert system and identify its components.
• Describe natural language processing and natural language generation, and neural networks.
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9.1 Managers and Decision Making
• Management – A process by which organizational goals are achieved
through the use of resources (people, money, energy, materials, space, time).
• Managers have three basic roles (Mintzberg 1973)a) Interpersonal roles: figurehead, leader, liaison b) Informational roles: monitor, disseminator, spokespersonc) Decisional roles: entrepreneur, disturbance handler,
resource allocator, negotiator.
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The Manager’s Job & Decision Making (continued)
• Decision refers to a choice that individuals and group make among two or more alternatives.
• Decision making is a systematic process composed of three major phases: (Simon 1977)– Intelligence Phase-the starting point where reality is examined and the
problem is defined. – Design Phase-design and construct a model, or simplified representation of
reality– Choice Phase-selecting a solution to test “on paper.”
• Example, Making A Decision About A New Automobile:– Intelligence—review automobile maintenance records showing chronic
transmission problems. Seek information from dealers, consumer reports and friends about new automobiles.
– Design—Establish objectives and criteria for evaluating automobiles. Establish weights illustrating the relative importance of these criteria. Analyze alternative possibilities.
– Choice— generate summary statistics on the evaluation of each automobile.
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Decision Making Process
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Why Managers Need IT Support
• The number of alternatives to be considered constantly increases.
• Decisions must be made under time pressure.
• Decisions are more complex.
• Decision makers can be in different locations and so is the information.
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9.2 BI, Multidimensional Data Analysis, Data Mining, and DSSs
• Business Intelligence (BI) refers to applications and technologies for consolidating, analyzing, and providing access to vast amounts of data to help users make better business and strategic decisions.
• Two types of BI Systems:– Those that provide data analysis tools
• Multidimensional data analysis (or online analytical processing)
• Data mining• Decision support systems
– Those that provide information in structured format• Dashboards
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Multidimensional Data Analysis (or online analytical processing)
• Provides users with a look at what is happening or what has happened.
• Allows users to analyze data in such a way that they can quickly answer business questions.
Figure 4.11
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Data Mining
• Searching for valuable business information in a large database, data warehouse, or data mart.
• Data mining performs two basic operations:– Predicting trends and behaviors– Identifying previously unknown patterns and relationships
Credit card companies often use Data Mining
to check for fraudulent credit
card use.
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Decision Support Systems (DSS)
• Decision support systems– combine models and data in an attempt to solve semi-
structured and some unstructured problems with extensive user involvement.
– A DSS is not a standalone system, usually a collection of computer information systems.
• DSS Analysis capabilities– Sensitivity analysis is the study of the impact that changes
in one (or more) parts of a model have on other parts.– What-if analysis is the study of the impact of a change in
the assumptions (input data) on the proposed solution.– Goal-seeking analysis is the study that attempts to find the
value of the inputs necessary to achieve a desired level of output.
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Two Types of Group-based Decision Support Solutions
• Group decision support system (GDSS) – an interactive computer-based system that supports the process
of finding solutions by a group of decision makers. – Decision Room (War Room) is a face-to-face setting for a group
DSS, in which terminals are available to the participants.
• Organizational Decision Support System (ODSS) – a DSS that focuses on an organizational task or activity
involving a sequence of operations and decision makers.– ODSS Characteristics:
• It affects several organizational units or corporate problems.• It cuts across organizational functions or hierarchical layers.• It involves computer-based and (usually) communications
technologies.
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9.3 Digital Dashboards
• Dashboards:– Provide rapid
access to timely information.
– Provide direct access to management reports.
– Are very user friendly and supported by graphics.
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Sample Performance Dashboard (Figure 9.4)
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Another Example of Dashboard
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9.4 Data Visualization Systems
• Data visualization is the process of presenting data to users in visual formats, thereby making IT applications more attractive and understandable to users.
• The Power of Visualization– Even though a picture is “worth a thousand words,” we
have to be very careful about just what we are seeing.– Remember, on the Internet, it is “user beware!”
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New York City Police Department Command Center
Data visualization in action
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Example Of Data Visualization
• 21-minute video that illustrates data visualization
Hans Rosling at the TED Talks
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Two Types Of Data Visualization Systems
• Geographical Information Systems: a computer-based system for capturing, integrating, manipulating, and displaying data using digitized maps.
• Virtual Reality: interactive, computer-generated, three-dimensional graphics delivered to the user via a head-mounted display.
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GIS for existing land use
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GISMO
• GISMO is a geographical information system developed for the city of Corvallis, Oregon.
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Virtual Reality
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Technology of Data Glove
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Virtual Reality manipulation with data glove
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Driving Simulator
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Virtual Tour Of A Museum
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9.5 Intelligent Systems
• Intelligent systems is a term that describes the various commercial applications of Artificial intelligence (AI).
• AI is a subfield of computer science concerned with:– studying the thought processes of humans– recreating those processes via machines, such as computer
and robots.
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Expert Systems
• Expert Systems (ESs) attempt to mimic human experts by applying expertise in a specific domain. – Can support decision makers or completely replace them.
• Expertise refers to the extensive, task-specific knowledge acquired from training, reading and experience.
Star Trek Voyager’s doctor: a 24th century expert system
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Four Activities Involved in the Transfer of Expertise from an Expert to Computer and then to a User
• Knowledge acquisition: – Knowledge is from experts or from documented sources.
• Knowledge representation: – Acquired knowledge is organized as rules or frames (objective-
oriented) and stored electronically in a knowledge base.
• Knowledge inferencing: – Given the necessary expertise stored in the knowledge base, the
computer is programmed so that it can make inferences. The reasoning function is performed in a component called the inference engine, which is the brain of ES.
• Knowledge transfer: – The inferenced expertise is transferred to the user in the form of
a recommendation.
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The Components of Expert Systems
• Knowledge base – Contains knowledge necessary for understanding, formulating
and solving problems.
• Inference engine – A computer program that provides a methodology for
reasoning and formulating conclusions.
• User interface – Enables users to communicate with the computer
• Blackboard – An area of working memory set aside for the description of a
current problem.
• Explanation subsystem – Explains its recommendations.
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Natural Language Processing & Voice Technologies
• Natural language processing (NLP): – Communicating with a computer in English or whatever
language you may speak.
• Natural language understanding/speech (voice) recognition: – The ability of a computer to comprehend instructions given
in ordinary language, via the keyboard or by voice.
• Natural language generation/voice synthesis: – Technology that enables computers to produce ordinary
language, by “voice” or on the screen, so that people can understand computers more easily.
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Neural Networks
• Neural network is a system of programs and data structures that approximates the operation of the human brain.
• Neural networks are particularly good at recognizing subtle, hidden and newly emerging patterns within complex data as well as interpreting incomplete inputs.
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Fuzzy Logic
• Fuzzy logic deals with the uncertainties by simulating the process of human reasoning, allowing the computer to behave less precisely and logically than conventional computers do. – Involves decision in gray areas.– Uses creative decision-making processes.
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Chapter Closing Case P. 290
GPS sensor