Managerial Support

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CHAPTER 6

• Managerial Support
• Systems

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MANAGERIAL SUPPORT SYSTEMS

• DECISION SUPPORT SYSTEMS
• DATA MINING
• GROUP SUPPORT SYSTEMS
• GEOGRAPHIC INFO SYSTEMS
• EXECUTIVE INFO SYSTEMS
• EXPERT SYSTEMS
• NEURAL NETWORKS
• VIRTUAL REALITY

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DECISION SUPPORT SYSTEMS

• COMPUTER-BASED SYSTEM, USUALLY INTERACTIVE,
  DESIGNED TO ASSIST MANAGERS IN MAKING DECISIONS
• INCORPORATES BOTH DATA AND MODELS, INTENDED TO
  ASSIST IN THE SOLUTION OF SEMI- OR UNSTRUCTURED
  PROBLEMS

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DSS COMPONENTS

• MODEL MANAGEMENT Helps user determine
  appropriate analytic tools
• DATA MANAGEMENT Provides access to select,
  handle data
• USER INTERFACE Allows user to interact with
  system

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TYPICAL DSS APPLICATIONS

• PROFIT LOSS MODEL
• MACHINE LOADING OF MACHINES IN A JOB SHOP
• COST/BENEFIT ANALYSIS
• PRO FORMA FINANCIAL STATEMENT
• WHAT-IF ANALYSIS

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DATA MINING

• EMPLOYS TECHNIQUES (SUCH AS DECISION TREES OR
  NEURAL NETWORKS) TO SEARCH OR MINE FOR SMALL
  NUGGETS OF INFORMATION FROM VAST QUANTITIES OF
  DATA STORED IN AN ORGANIZATIONS DATA WAREHOUSE

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DATA MINING TECHNIQUES

• ONLINE ANALYTICAL PROCESSING Human-driven
  analysis querying a database with specific
  criteria
• DECISION TREES
• NEURAL NETWORKS
• MATHEMATICAL PROGRAMMING
• STATISTICAL ANALYSIS

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USES OF DATAMINING
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USES OF DATAMINING
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GROUP SUPPORT SYSTEMS (GPS)

• SYSTEM DESIGNED TO MAKE GROUP SESSIONS MORE
  PRODUCTIVE Brainstorming, issue structuring,
  voting, conflict resolution
• A VARIANT OF DSS IN WHICH THE SYSTEM IS DESIGNED
  TO SUPPORT A GROUP
• A SPECIALIZED TYPE OF GROUPWARE

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GSS CHARACTERISTICS

• PARALLEL HUMAN PROCESSING
• EQUAL OPPORTUNITY FOR PARTICIPATION
• ANONYMITY
• COMPLETE RECORD OF MEETING
• OUTPUT OF ONE PHASE LEADS TO NEXT
• CAN MORE EASILY APPLY STRUCTURE

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GEOGRAPHIC INFORMATION SYSTEMS (GIS)

• A COMPUTER-BASED SYSTEM DESIGNED TO COLLECT,
  STORE, RETRIEVE, MANIPULATE, AND DISPLAY SPATIAL
  DATA
• A SPATIALLY BASED DSS
• TYPICALLY A DIGITIZED MAP WITH OTHER DATA LINKED
  TO THE MAP COORDINATES

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TWO TYPES OF GIS

• RASTER
• Grids of equal-sized cells groupedor linked to
  make lines and shapes
• Values of cells vary
• Example Satellite images, pixels on screen
• VECTOR
• Points, Lines, and Polygons
• Approximates curves, can link into networks
• Example Property boundaries, sales territories

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GIS COVERAGE MODEL

• WHAT IS ADJACENT TO FEATURE?
• WHICH IS NEAREST SITE?
• WHAT DOES AREA CONTAIN?
• WHICH FEATURES DOES THIS ELEMENT CROSS?
• HOW MANY FEATURES ARE A CERTAIN DISTANCE FROM
  SITE?

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NEW DIRECTIONS FOR GIS

• 3-D, DYNAMIC SIMULATION
• MAP-ENABLED INTERNET SITES
• GIS EMBEDDED IN APPLICATIONS
• REAL-TIME TRACKING OF ASSETS-IN-MOTION

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EXECUTIVE INFORMATION SYSTEMS (EIS)

• COMPUTER APPLICATION USED DIRECTLY BY TOP
  MANAGERS, WITHOUT THE ASSISTANCE OF
  INTERMEDIARIES, TO PROVIDE THEM ON-LINE ACCESS TO
  CURRENT INFORMATION ABOUT STATUS OF ORGANIZATION
  AND ITS ENVIRONMENT

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CHARACTERISTICS OF EIS

• PRIMARILY USED FOR TRACKING AND CONTROL
• CUSTOMIZED TO THE INDIVIDUAL EXECUTIVE
• GRAPHICAL
• EASY TO USE
• INCORPORATES BOTH HARD AND SOFT DATA

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ARTIFICIAL INTELLIGENCE (AI)

• USING THE COMPUTER TO PERFORM TASKS DONE BY
  HUMANS IN SELECTED AREAS
• NATURAL LANGUAGES
• ROBOTICS
• PERCEPTIVE SYSTEMS
• EXPERT SYSTEMS
• NEURAL NETWORKS

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EXPERT SYSTEMS

• ONE BRANCH OF ARTIFICIAL INTELLIGENCE (AI)
• CONCERNED WITH BUILDING SYSTEMS THAT INCORPORATE
  DECISION-MAKING LOGIC OF A HUMAN EXPERT IN A
  SPECIFIC SKILL

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EXPERT SYSTEMS

• KNOWLEDGE BASE Model of Human Knowledge
• RULE - BASED EXPERT SYSTEM AI system based on IF
  - THEN statements (Bifurcation) Rule Base
  Collection of IF - THEN knowledge
• KNOWLEDGE FRAMES Knowledge organizes in chunks
  based on shared relationships

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EXPERT SYSTEMS

• AI SHELL Programming environment of expert
  system
• INFERENCE ENGINE Search through rule base
• FORWARD CHAINING Uses input, searches rules for
  answer
• BACKWARD CHAINING Begins with hypothesis, seeks
  information until hypothesis accepted or rejected

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EXAMPLES OF EXPERT SYSTEMS

• MYCIN Diagnose, treat blood diseases
• CATS-1 Diagnose locomotive problems
• MARKET SURVEILLANCE Detects insider trading on
  stock market
• FINANCIAL ANALYSIS SUPPORT TECHNIQUE Credit
  analysis in banks
• INDIVIDUAL DEVELOPMENT PLAN GOAL ADVISOR Helps
  set career goals

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NEURAL NETWORKS

• BASED ON HOW HUMAN NERVOUS SYSTEM WORKS
• USE STATISTICAL ANALYSIS TO RECOGNIZE PATTERNS
  FROM VAST AMOUNTS OF DATA BY A PROCESS OF
  ADAPTIVE LEARNING
• CONSIST OF SOFTWARE THAT ATTEMPTS TO EMULATE
  PROCESSING PATTERNS OF BIOLOGICAL BRAIN

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EXAMPLES OF NEURAL NETWORKS

• BANKAMERICA Neural network evaluates commercial
  loan applications
• AMERICAN EXPRESS System reads handwriting on
  credit card slips
• STATE OF WYOMING System reads hand-printed
  numbers on tax forms
• ARCO AND TEXACO Neural network helps pinpoint
  oil and gas deposits

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EXAMPLES OF NEURAL NETWORKS

• SPIEGEL Prune mailing list to eliminate those
  unlikely to order again
• DEERE COMPANY Pension fund management

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VIRTUAL REALITY (VR)

• USE OF COMPUTER-BASED SYSTEMS TO CREATE AN
  ENVIRONMENT THAT SEEMS REAL TO ONE OR MORE SENSE
  (USUALLY INCLUDING SIGHT)
• USED IN VIDEO GAMES, TRAINING EDUCATION,
  PROVIDING SERVICE AT A DISTANCE, PRODUCT DESIGN,
  INTERACTIVE WORLD WIDE WEB APPLICATIONS

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CHAPTER 6

• Managerial Support
• Systems