session 11 enhancing management decision-making for the digital firm
DESCRIPTION
SESSION 11 ENHANCING MANAGEMENT DECISION-MAKING FOR THE DIGITAL FIRM. DECISION-SUPPORT SYSTEMS (DSS). Computer system at the management level of an organization Combines data, analytical tools, and models Supports semi-structured and unstructured decision-making. - PowerPoint PPT PresentationTRANSCRIPT
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SESSION 11SESSION 11
ENHANCING MANAGEMENTENHANCING MANAGEMENT
DECISION-MAKINGDECISION-MAKING
FOR THE DIGITAL FIRMFOR THE DIGITAL FIRM
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• Computer system at the management level of Computer system at the management level of an organizationan organization
• Combines data, analytical tools, and models Combines data, analytical tools, and models
• Supports semi-structured and unstructured Supports semi-structured and unstructured decision-makingdecision-making
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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MISMIS
• Provides reports based on routine flow of Provides reports based on routine flow of datadata
• Assists in general control of the Assists in general control of the organizationorganization
• Address structured problemsAddress structured problems
MIS and DSS
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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DSSDSS
• Provides new sets of capabilities for Provides new sets of capabilities for nonroutine decisions and user controlnonroutine decisions and user control
• Emphasizes change, flexibility, rapid Emphasizes change, flexibility, rapid response, models, assumptions, ad hoc response, models, assumptions, ad hoc queries, and display graphicsqueries, and display graphics
• Support semistructured and unstructured Support semistructured and unstructured problem analysisproblem analysis
MIS and DSS
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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Model-driven DSSModel-driven DSS
• Primarily stand-alone Primarily stand-alone
• Uses model to perform “what-if” and other Uses model to perform “what-if” and other kinds of analysiskinds of analysis
Types of Decision-Support Systems
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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Data-driven DSSData-driven DSS
• Allows users to extract and analyze useful Allows users to extract and analyze useful information from previous databasesinformation from previous databases
DataminingDatamining
• Finds hidden patterns and relationships in Finds hidden patterns and relationships in large databases to infer ruleslarge databases to infer rules
Types of Decision-Support Systems
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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• AssociationsAssociations
• SequencesSequences
• ClassificationClassification
• ClusteringClustering
• ForecastingForecasting
Types of information yielded from datamining
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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Overview of a Decision-Support System (DSS)
Figure 12-1
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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DSS database DSS database
• Collection of current or historical dataCollection of current or historical data
DSS software systemDSS software system
• Collection of software tools/mathematical Collection of software tools/mathematical and analytical models and analytical models
Components of Decision-Support Systems
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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ModelModel
• Abstract representation illustrating Abstract representation illustrating components or relationships components or relationships
• Sensitivity analysisSensitivity analysis
• Asks “what-if” questions repeatedly to Asks “what-if” questions repeatedly to determine the impact of changedetermine the impact of change
Components of Decision-Support Systems
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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Sensitivity Analysis
Figure 12-2
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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• Comprehensive examination of supply Comprehensive examination of supply management chain management chain
• Searches for most efficient and cost-Searches for most efficient and cost-effective combinationeffective combination
• Reduces overall costsReduces overall costs
• Increases speed and accuracy of filling Increases speed and accuracy of filling customer orderscustomer orders
DSS for Supply Chain Management
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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• Uses data mining to guide decisions Uses data mining to guide decisions
• Consolidates customer information into Consolidates customer information into massive data warehousesmassive data warehouses
• Uses various analytical tools to slice Uses various analytical tools to slice information into small segments information into small segments
DSS for Customer Relationship Management
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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DSS for Customer Analysis and Segmentation
Figure 12-3
DECISION-SUPPORT SYSTEMS (DSS)DECISION-SUPPORT SYSTEMS (DSS)
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• Interactive computer-based system Interactive computer-based system
• Facilitates solution to unstructured Facilitates solution to unstructured problems by a set of decision makers problems by a set of decision makers working together as a groupworking together as a group
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
What Is a GDSS?
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• Improved preplanningImproved preplanning
• Increased participation Increased participation
• Open, collaborative meeting atmosphereOpen, collaborative meeting atmosphere
• Criticism-free idea generationCriticism-free idea generation
• Evaluation objectivityEvaluation objectivity
How GDSS can Enhance Group Decision-Making
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
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• Idea organization and evaluationIdea organization and evaluation
• Setting priorities and making decisionsSetting priorities and making decisions
• Documentation of meetingsDocumentation of meetings
• Access to external informationAccess to external information
• Preservation of “organizational memory”Preservation of “organizational memory”
How GDSS can Enhance Group Decision-Making
GROUP DECISION-SUPPORT SYSTEMS (GDSS)
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Executive Support Systems (ESS):Executive Support Systems (ESS):
• Information system at strategic level of an Information system at strategic level of an organizationorganization
• Addresses unstructured decision-making Addresses unstructured decision-making through advanced graphics and through advanced graphics and communicationscommunications
EXECUTIVE SUPPORT IN THE ENTERPRISE
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• Brings together data from the entire Brings together data from the entire organization organization
• Allows managers to select, access, and Allows managers to select, access, and tailor data using analytical tools and tailor data using analytical tools and online-data displaysonline-data displays
The Role of Executive Support Systems in the Organization
EXECUTIVE SUPPORT IN THE ENTERPRISE
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• Provides data and tools without addressing Provides data and tools without addressing specific problemsspecific problems
• Provides greater clarity and insight into dataProvides greater clarity and insight into data
• Capabilities for highlighting trends and drilling Capabilities for highlighting trends and drilling down speed up decision-makingdown speed up decision-making
• Improves performance monitoring of the firmImproves performance monitoring of the firm
• Increases management’s span of control and Increases management’s span of control and better monitoring of activitiesbetter monitoring of activities
Benefits of Executive Support Systems
EXECUTIVE SUPPORT IN THE ENTERPRISE
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ESS for business intelligence:ESS for business intelligence:
• Identifies changing market conditions, Identifies changing market conditions, formulate responses, track formulate responses, track implementation efforts abd learn from implementation efforts abd learn from feedbackfeedback• Ex: BP Sony NV, the Netherlands banchEx: BP Sony NV, the Netherlands banch
Executive Support Systems and the Digital Firm
EXECUTIVE SUPPORT IN THE ENTERPRISE
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Monitoring corporate performance: Monitoring corporate performance: balanced scorecard systemsbalanced scorecard systems
• Model for analyzing firm performanceModel for analyzing firm performance
• Supplements traditional financial Supplements traditional financial measures with measurements from measures with measurements from additional business perspectivesadditional business perspectives • Ex: ING BankEx: ING Bank
Executive Support Systems and the Digital Firm
EXECUTIVE SUPPORT IN THE ENTERPRISE