MIS study
Enhancing
Decision Making
12.1
© 2010 by Prentice Hall
Management Information Systems
Enhancing Decision Making
LEARNING
G OBJECTIVES
O
C
S
• Describe different types yp of decisions and the decisionmaking process.
• Assess how information systems support the activities of managers and management decision making making. • Demonstrate how decision-support systems (DSS) differ yp provide value to the business. from MIS and how they
• Demonstrate how executive support systems (ESS) help senior managers make better decisions.
• Evaluate the role of information systems in helping people working in a group make decisions more efficiently. 12.2
© 2010 by Prentice Hall
Management Information Systems
Enhancing Decision Making
Decision Making and Information f S
Systems
• Business value of improved p decision making g • Improving hundreds of thousands of “small” decisions adds up to large annual value for the business
• Types of decisions:
• Unstructured: Decision maker must provide judgment, evaluation, l ti and d iinsight i ht tto solve l problem bl • Structured: Repetitive and routine; involve definite procedure for handling so they do not have to be treated each time as new
• Semistructured: Only part of problem has clear-cut answer provided by accepted procedure
12.3
© 2010 by Prentice Hall
Management Information Systems
Enhancing Decision Making
Decision Making and Information f S
Systems
• Senior managers: g • Make many unstructured decisions
• E.g., Should we enter a new market?
• Middle managers:
• Make more structured decisions but these may include unstructured components
• E.g., Why is order fulfillment report showing decline in
Minneapolis?
• Operational
O
ti l managers, rank k and d file fil employees l • Make more structured decisions
E g Does customer meet criteria for credit?
• E.g.,
12.4
© 2010 by Prentice Hall
Management Information
Decision Making
12.1
© 2010 by Prentice Hall
Management Information Systems
Enhancing Decision Making
LEARNING
G OBJECTIVES
O
C
S
• Describe different types yp of decisions and the decisionmaking process.
• Assess how information systems support the activities of managers and management decision making making. • Demonstrate how decision-support systems (DSS) differ yp provide value to the business. from MIS and how they
• Demonstrate how executive support systems (ESS) help senior managers make better decisions.
• Evaluate the role of information systems in helping people working in a group make decisions more efficiently. 12.2
© 2010 by Prentice Hall
Management Information Systems
Enhancing Decision Making
Decision Making and Information f S
Systems
• Business value of improved p decision making g • Improving hundreds of thousands of “small” decisions adds up to large annual value for the business
• Types of decisions:
• Unstructured: Decision maker must provide judgment, evaluation, l ti and d iinsight i ht tto solve l problem bl • Structured: Repetitive and routine; involve definite procedure for handling so they do not have to be treated each time as new
• Semistructured: Only part of problem has clear-cut answer provided by accepted procedure
12.3
© 2010 by Prentice Hall
Management Information Systems
Enhancing Decision Making
Decision Making and Information f S
Systems
• Senior managers: g • Make many unstructured decisions
• E.g., Should we enter a new market?
• Middle managers:
• Make more structured decisions but these may include unstructured components
• E.g., Why is order fulfillment report showing decline in
Minneapolis?
• Operational
O
ti l managers, rank k and d file fil employees l • Make more structured decisions
E g Does customer meet criteria for credit?
• E.g.,
12.4
© 2010 by Prentice Hall
Management Information