MIS & DSS
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The document outlines the problem-solving process in Decision Support Systems (DSS), including the intelligence, design, and choice phases. It discusses the types of decisions (structured, semi-structured, unstructured) and their respective information sources, as well as the components of Management Information Systems (MIS) and their output types. Additionally, it compares DSS and MIS in terms of user involvement, goal, and processing type.
MIS & DSS
- 1. MIS & DSS Dr. Kamal Gulati 1
- 2. Management Information Systems and Decision Support Systems
- 3. Problem Solving Process In DSS 3 Intelligence Phase Design Phase Choice Phase REALITY Implementation of the Solution SUCCESS FAILURE Testing of Proposed Solutions Verification of the Model Monitoring
- 4. Decision Making Decision making attributes: Intelligence Design Choice Problem Solving attributes: Decision making Implementation Monitoring 4
- 5. Decision Making Levels 5 Characteristics Operational decisions Tactical decisions Strategic decisions Time period affected Short term Intermediate term Long term Frequency Frequently Not so often Rare Structure of problems Structured Semistructured Unstructured Source of information Mostly internal Internal and External Mostly external Degree of detail Detailed information Mainly summarized information Summarized information
- 6. Structured vs. Unstructured Problems •Structured problem requires programmed decision based on a known rule, formula or procedure •Unstructured problem requires non- programmed decision based on the individual knowledge and expertise. •Semi structured problem requires combination of both types of decisions 6
- 7. Programmed vs. Non-programmed Decisions • Programmed decisions • Decision made using a rule, procedure, or quantitative method • Easy to computerize using traditional information systems • Non-programmed decisions • Decision that deals with unusual or exceptional situations • Not easily quantifiable 7
- 8. Management Information Systems • Provide routine information to managers in the functional areas • MIS inputs: • Come from TPS • Internal databases • External databases • MIS outputs – various reports 8
- 9. MIS outputs •Routine, scheduled report – is produced periodically •Key-indicator report – a summary of previous day critical activities •Demand (ad hoc) report – is developed at a person’s request •Exception report – is automatically produced when a situation is unusual •Drill-down report – provides increasingly detailed information 9
- 10. Functional Aspects of MIS • Financial MIS • Manufacturing MIS • Marketing MIS • Customer relationship management • Human resource MIS • Accounting MIS 10
- 11. Intelligence Stage of Decision Making • Initial stage in which potential problems or opportunities are defined: • Evaluation of information • Qualitative analysis • Quantitative analysis • Interpretation – Is there is a problem (opportunity) 11
- 12. Design Stage of Decision Making • Second stage of decision making • Alternative solutions to the problem are developed: • Formulate a model • Set up criteria for a choice • Search for alternatives • Evaluate outcomes 12
- 13. Models A model is a simplified representation of reality Models classification: Mental model is a narrative description of reality Iconic (scale) model is a physical replica of a system, which is based on a different scale from original Analog model - a physical model, but the shape of the model differs from that of the actual system Mathematical (quantitative) model describes a real system based on mathematical formulas and constructs 13
- 14. Mathematical Models • Model variables – investigated characteristics of real world system • Parameters – represent internal and external conditions • Managerial decisions are reflected in model’s initial values and parameters 14
- 15. Mathematical models • Analytical models • Simulation models: • Advanced math. techniques • Computational methods • Computational algorithms • IT support 15
- 16. Another Classification of the Models • Optimization model • allows to find the best solutions • Satisficing model • Allows to find good, but not always best solution • Heuristic – commonly accepted guideline or procedure 16
- 17. Model Investigation • Model validation • Stability analysis – model reaction to small disturbances in initial values • Sensitivity analysis – model reaction to small disturbances in parameters values • Simulation experiments 17
- 18. Simulation experiments • What-if analysis – checks the consequences of possible solution • Goal-seeking analysis – attempts to find inverse solution: • Not every model has inverse solutions • Computational algorithms based on series of direct simulations must be used 18
- 19. Choice Stage of Decision Making • Requires selecting a course of actions • Include steps: • Selection of best (good) alternative • Plan for implementation • Design a control system 19
- 20. A Framework for Computerized Decision Support • Structured problem – all stages are structured • Semi structured problem – not all stages are structured • Unstructured problem – all stages are unstructured, require intuition and knowledge 20
- 21. Requirements for DSS •Support all problem-solving phases •Support different decision frequencies •Support different problem structures •Support various decision-making levels •Support several interdependent and/or sequential decisions •Utilize models or complex computations 21
- 22. Type of Data Processing 22 Decision Support Data Driven Decision Support Model Driven Decision Support OLAP, data mining Models
- 23. Components of DSS • DSS is an information system • DSSs are supported on the software level • Database (including management component) • Model base (including management component) • Dialogue manager (User interface) 23
- 24. Decision Support Systems • Individual DSSs: • Functional analysts • Low-level managers • Group Decision Support Systems (GDSS): • Groups of managers • Top-level managers 24
- 25. Comparison of DSS and MIS Factor DSS MIS Problem Type Semistructured and unstructured Structured Goal Help to make a decision Provide information in a timely manner Users Decision makers Organizational employees 25
- 26. Comparison of DSS and MIS (cont…) Factor DSS MIS User’s involvement Select or construct models, plan experiments Very little or none Scope Process of decision making Information Output Interactive, is displayed on the screen Soft and hard copies of reports are generated Type of processing Online processing Hybrid processing 26