MANAGERIAL DECISION TOOLS

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MANAGERIAL DECISION TOOLS

• A Historical Perspective

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Origins

• DP/TPS historic, accounting machines, computers.
• AI/ES pre WW2, symbolic logical problems,
  dolving non-numeric problems.
• OR/MSc WW2, simulate normative market.
• DBMS post WW2, need for large volumes of varied
  data data search.
• MIS late 50s, need for data analysis,
  timeliness, reliable content, generality of
  response, evolving.
• DSS, GDSS late 70s, solving non-syochastic
  problems, lack of data structure.
• ESS early 80s in response to the needs of
  strategic level managers for a simple,
  userfriendly, yet powerfull information display
  system.
• KWS late 80s, to help with the management of
  business related new knowledge.

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Impact

• DP/TPS predefined procedures, needs identifiable
  data sources, formats, predefinable outputs,
  needs.
• AI/ES structured narrowly defined problems,
  narrow, in-depth expertise.
• OR/MSc structured problem solving task,
  availability of objectives, constraints, data.
• DBMS unstructured, large, complex situations,
  helps define objective with data manipulation.
• MIS structured tasks, where info. needs, flows,
  dec. rules, can be pre-determined.
• DSS, GDSS unstructured decisions, need for mgrl.
  judgement data examination analys.
• ESS unstructured decisions on the highest level
  of the organization.
• KWS organization of knowledge for decision
  purposes.

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Payoff

• DP/TPS speed, accuracy, repeatability, volume,
  storage, access.
• AI/ES better solutions to logical problems,
  broader knowledge base.
• OR/MSc better solutions to large complex
  quantitative problems.
• DBMS define better problems relating to
  realistic situations.
• MIS cost reduction, speed, satisfy mgrl. need,
  redirection of clerical effort.
• DSS, GDSS expanding mgrl. power, effective-ness,
  understanding of issues.
• ESS speed, access, repeatable long term
  projections, reliability of responses to queries.
• KWS model base, graphics, simulations of events
  to explore alternatives.

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Relevance to managers

• DP/TPS minimal, little new information is
  generated!!!
• AI/ES structured logical problems solved.
• OR/MSc prescribed solutions to complex problems.
• DBMS availability of data from many sources,
  reliability, organization of complexity.
• MIS difficult to measure! but up-to-date,
  precise information, can be on demand or
  predefined.
• DSS, GDSS control of tool, mgr. is part of the
  process, not imposed, search for best approach.
• ESS review of large amounts of analized
  information.
• KWS satisfaction of having evaluated several
  alternative scenarios.

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What is an MIS?

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What is an MIS?

• Managerial knowledge derived from data.
• What can you do with this?
• Is it functional?
• What sort of definition do you need?

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What is an MIS?

• Management information is a statement
  (des-cription) about the structure (behavior,
  nature, etc.) of an operational, tactical, or
  strategic entity (thing, person, problem, future
  .) that enables the manager to make a decision
  or commitment.
• What can you do with this?
• Is it functional?

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What is good information?

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What is good information?

• Timely
• Accurate
• Reduces uncertainty
• Pertinent
• Elements of surprise

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Major components of a computer based information
system

• Hardware
• Software
• People
• Data
• Procedures

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Why is information different by managerial levels?

• Strategic level (top level)
• Tactical level (mid level)
• Operational level (lower level)

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Information Managerial Levels
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Information Managerial Levels (Contd)
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Information Managerial Levels (Contd)
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END Managerial Decision Tools