In The Name Of God

Workouts of Chapter1 Professor: Dr. Rashidi Anahita Zarein

901275867

June 2012

Section 1.1

1. what type of information is accessible through visualization applications? One-dimensional Two-dimensional Three-dimensional Multi-dimensional Temporal Hierarchical Network 5. can the same data warehouse be used for business intelligence and optimization applications?

Section 1.2
1. List the components of and explain the Business PressuresResponsesSupport model. Pressures/Factors: globalization, booming electronic markets on the internet, Innovative Marketing methods, Need for real-time, on-demand transactions. Organizational Responses: Be reactive, anticipate, adaptive, and proactive. Companies that go out of business do so because they don't anticipate changes in the market. They stay the same and suffer for it instead of looking for new ways to combat future problems/needs. Computerized Decision Support: The responses to the business environmental factors are usually facilitated by computer support in the form of data warehousing, software tools for data analysis and manipulation, monitoring conditions through the use of dashboards, etc.

2. What are the major factors in todays business environment? Markets strong competition, expansion of global markets, electronic markets blooming on the Internet, innovative marketing methods, opportunities for outsourcing with IT support, and need for real time on-demand transactions Customer Demands strong competition, expansion of global markets, electronic markets blooming on the Internet, innovative marketing methods, opportunities for outsourcing with IT support, and need for real time on-demand transactions Technology-Related more innovations, new products and services, obsolescence rate is increasing, information overload is increasing Societal

wanting customization, wanting quality, diversity of products, and speed of delivery, and customers becoming powerful and less loyal

Section 1.3
1. Describe the three major managerial roles, and list some of the specific activities in each. Managerial roles fall into the three major categories: Interpersonal activities. Examples of interpersonal activities include being a figurehead, a leader and a liaison. Informational activities. Examples of informational activities include monitoring, disseminating and acting as a spokesperson. Decisional activities. Examples of decisional roles include being an entrepreneur, handling disturbances, allocating resources and negotiating 3. Describe the four steps managers take in making a decision. Step 1. Define the problem (i.e., a decision situation that may deal with some difficulty or with an opportunity). Step 2. Construct a model that describes the real-world problem. Step 3. Identify possible solutions to the modeled problem and evaluate the solutions. Step 4. Compare, choose, and recommend a potential solution to the problem.

Section 1.4
2. List some capabilities of computing that can facilitate managerial decision making. These include speedy computation, improved communication and collaboration, increased group member productivity, improved data management, managing data warehouses, quality and agility support, overcoming human cognitive limits in information processing and storage, using the Web, and the ability to access information anywhere, anytime. 4. Why is the Web considered so important for decision support? The Web provides: access to a vast body of data, information, and knowledge available around the world; a common, user-friendly and readily available graphical user interface; the ability to collaborate effectively with remote partners; availability of intelligent search tools that enable managers to find information they need quickly and inexpensively.

Section 1.5

1. What are structured, unstructured, and semistructured decisions? Provide two examples of each. STRUCTURED DECISIONS Many analysts categorize decisions according to the degree of structure involved in the decision-making activity. Business analysts describe a structured decision as one in which all three components of a decision-the data, process, and evaluation-are determined. Since structured decisions are made on a regular basis in business environments, it makes sense to place a comparatively rigid framework around the decision and the people making it. Structured decision support systems may simply use a checklist or form to ensure that all necessary data is collected and that the decision making process is not skewed by the absence of necessary data. If the choice is also to support the procedural or process component of the decision, then it is quite possible to develop a program either as part of the checklist or form. In fact, it is also possible and desirable to develop computer programs that collect and combine the data, thus giving the process a high degree of consistency or structure. When there is a desire to make a decision more structured, the support system for that decision is designed to ensure consistency. Many firms that hire individuals without a great deal of experience provide them with detailed guidelines on their decision making activities and support them by giving them little flexibility. One interesting consequence of making a decision more structured is that the liability for inappropriate decisions is shifted from individual decision makers to the larger company or organization. Examples: finding an appropriate inventory level, choosing an optimal investment strategy. UNSTRUCTURED DECISIONS At the other end of the continuum are unstructured decisions. While these decisions have the same components as structured ones-data, process, and evaluation-there is little agreement on their nature. With unstructured decisions, for example, each decision maker may use different data and processes to reach a conclusion. In addition, because of the nature of the decision there may only a limited number of people within the organization that are even qualified to evaluate the decision. Generally, unstructured decisions are made in instances in which all elements of the business environment-customer expectations, competitor response, cost of securing raw materials, etc.-are not completely understood (new product and marketing strategy decisions commonly fit into this category). Unstructured decision systems typically focus on the individual or team that will make the decision. These decision makers are usually entrusted with decisions that are unstructured because of their experience or expertise, and therefore it is their individual ability that is of value. One approach to support systems in this area is to construct a program that simulates the process used by a particular individual. In essence, these systems-commonly referred to as "expert systems"-prompt the user with a series of questions regarding a decision situation. "Once the expert system has sufficient information about the decision scenario, it uses an

inference engine which draws upon a data base of expertise in this decision area to provide the manager with the best possible alternative for the problem," explained Jatinder N.D. Gupta and Thomas M. Harris in the Journal of Systems Management. " The purported advantage of this decision aid is that it allows the manager the use of the collective knowledge of experts in this decision realm. Some of the current DSS applications have included long-range and strategic planning policy setting, new product planning, market planning, cash flow management, operational planning and budgeting, and portfolio management."Another approach is to monitor and document the process that was used so that the decision maker(s) can readily review what has already been examined and concluded. An even more novel approach used to support these decisions is to provide environments that are specially designed to give these decision makers an atmosphere that is conducive to their particular tastes. The key to support of unstructured decisions is to understand the role that individuals experience or expertise plays in the decision and to allow for individual approaches. Examples: writing a corporate mission statement, selecting a location for a company picnic. SEMI-STRUCTURED DECISIONS In the middle of the continuum are semi-structured decisions, and this is where most of what are considered to be true decision support systems are focused. Decisions of this type are characterized as having some agreement on the data, process, and/or evaluation to be used, but are also typified by efforts to retain some level of human judgement in the decision making process. An initial step in analyzing which support system is required is to understand where the limitations of the decision maker may be manifested (i.e., the data acquisition portion, the process component, or the evaluation of outcomes).Grappling with the latter two types of decisions-unstructured and semi-structured-can be particularly problematic for small businesses, which often have limited technological or work force resources. As Gupta and Harris indicated, "many decision situations faced by executives in small business are one-of-a-kind, one-shot occurrences requiring specifically tailored solution approaches without the benefit of any previously available rules or procedures. This unstructured or semi-structured nature of these decisions situations aggravates the problem of limited resources and staff expertise available to a small business executive to analyze important decisions appropriately. Faced with this difficulty, an executive in a small business must seek tools and techniques that do not demand too much of his time and resources and are useful to make his life easier." Subsequently, small businesses have increasingly turned to DSS to provide them with assistance in business guidance and management. Examples: trading bonds, setting marketing budgets for consumer products, performing capital acquisition analysis

3. What are the nine cells of the decision framework? Explain what each is for.

5. Define automated decision systems (ADS). ADS- Automated Decision Systems are rule-based sytems that provide a solution in one functional area (marketing, finance, manufacturing, etc) to a repetitive managerial problem, usually in one industry. Some examples are: Provide a credit score, accept/deny a loan application, determine price of a store item, recommend item to purchase.

Section 1.6
3. Describe the architecture of DSS. The DSS architecture consists of four components, plus optionally a fifth. The four required components are: data: to drive the system; models: to manipulate the data; users: to control the system; and a user interface: through which they control it. DSS may also optionally have a knowledge (or intelligence) component.

4. How is the term DSS used in the academic world? The term DSS is used primarily in the academic world today. It is commonly used to describe the area of research related to computer support for decision making, is the name of a leading journal in the field, and is a standard course title. The industry tends to use the term business intelligence.

Section 1.7
2. List and describe the major components of BI. BI systems have four major components: the data warehouse (analogous to the data in the DSS architecture), business analytics and business performance management (together, analogous to models in the DSS architecture), and the user interface (which corresponds to the component of the same name in the DSS architecture). One could also list the user as a component here, as was done there.

4. What are the major similarities and differences of DSS and BI?
BI uses a data warehouse, whereas DSS can use any data source (including a data warehouse).

Most DSS are built to support decision making directly, whereas most BI systems are built to provide information that it is believed will lead to improved decision making. BI has a strategy/executive orientation whereas DSS are usually oriented toward analysts. BI systems tend to be developed with commercially available tools, whereas DSS tend to use more custom programming to deal with problems that may be unstructured. DSS methodologies and tools originated largely in academia, whereas BI arose largely from the software industry. Many BI tools, such as data mining and predictive analysis, have come to be considered DSS tools as well.

5. Define MSS. The term MSS, or management support system, refers to a broad concept of using technology to support managerial tasks in general and decision making in particular.

Section 1.8
3. List the nine elements of a work system Participants are people who perform the work. Some may use computers and IT extensively, whereas others may use little or no technology. When analyzing a work system the more encompassing role of work system participant is more important than the more limited role of technology user (whether or not particular participants happen to be technology users) Information includes codified and non-codified information used and created as participants perform their work. Information may or may not be computerized. Data not related to the work system is not directly relevant, making the distinction between data and information secondary when describing or analyzing a work system. Knowledge can be viewed as a special case of information. Technologies include tools (such as cell phones, projectors, spreadsheet software, and automobiles) and techniques (such as management by objectives, optimization, and remote tracking) that work system participants use while doing their work. Products and services are the combination of physical things, information, and services that the work system produces. This may include physical products, information products, services, intangibles such as enjoyment and peace of mind, and social products such as arrangements, agreements, and organizations. Customers are people who receive direct benefit from products and services the work system produces. They include external customers who receive the organization's products and/or services and internal customers who are employees or contractors working inside the organization. Environment includes the organizational, cultural, competitive, technical, and regulatory environment within which the work system operates. These factors affect system performance even though the system does not rely on them directly in order to operate. The organizations general norms of behavior are part of its culture, whereas more specific behavioral norms and expectations about specific activities within the work system are considered part of its processes and activities.

Infrastructure includes human, informational, and technical resources that the work system relies on even though these resources exist and are managed outside of it and are shared with other work systems. For example, technical infrastructure includes computer networks, programming languages, and other technologies shared by other work systems and often hidden or invisible to work system participants. Strategies include the strategies of the work system and of the department(s) and enterprise(s) within which the work system exists. Strategies at the department and enterprise level may help in explaining why the work system operates as it does and whether it is operating properly.

6. Explain how decision making can be improved by changing an element of a work system. One could, for example, change the information element of the work system. This could be done through better information quality, availability, and/or presentation. Since better information leads to better decisions, this change to the work system can improve decision making. Other correct answers are possible, as the student can choose to discuss any of the nine elements of a work system. A correct answer must (a) reflect the content of the text as regards possible improvements in the work system element, and (b) relate improvement in the work system element to better decision making. 7.

Section 1.9
2. In what ways can the Web facilitate the use of these tools? The Web facilitates the use of these tools by providing access. This includes (a) a common, familiar way to access a variety of software located anywhere and (b) a standard way for DSS to obtain data from a variety of sources. 3. What is a hybrid system? What are its benefits? Hybrid systems are complex systems which have discrete event dynamics as well as continuous time dynamics. (For example, an A/C unit has discrete modes, either on or off, but changes the temperature in a continuous way over time.) Other examples of continuous systems controlled by discrete logic include Aircraft autopilot modes Chemical plants Coordinating processes Air and ground transportation Swarms of vehicles

Other examples of hybrid systems involve continuous systems with phased operation, such as

Biological cell growth Walking robots Insect motion

Benefits : Greater System Flexibility Extended System Longevity Relevant NI Products and Whitepapers Available instrumentation Buses Improved reliability Improved energy services Continuous power Increased operational life Efficient use of energy Reduced cost