Management Support Systems

Infsy 390
Dr. Ocker

Management Support Systems

MSS enables senior management to:

1. access common, shared sources of
2. internal and external information
3. that have been summarized in
4. easy-to-access, graphical displays.

Management Support Systems

function as an integrated approach to sharing

information in an easy-to-use, highly visual,
and personalized way
system helps promote a shared view of
business activities due to integration of tools
and distributed data/information
managers can get up-to-date information on
industry news, competitor/market trends and
internal operations

most successful MSS are

developed as

1. one aspect of a distributed,

enterprise information system
2. that enables flexible and integrated
information sharing and communication
3. both inside orgs. and with external
suppliers, customers and other
business partners.

1980s to 1990s

1980s - managers had support tools

designed to run on PCs (e.g.
spreadsheets, statistical packages,
graphics packages, word processing,
project management, etc.)
1990s - MSS provide integrated
environment for these support tools

MSS

MSS usually designed so that individual

manager can customize the system as
needed
MSS architecture - client/server
environment
one component of a distributed
information infrastructure

Four levels of functionality in

MSS

1. electronic briefing books

2. exception reporting
3. active exploration of info. resources
using
4. focused management support

1. electronic briefing books

graphical information displays that

provide pre-formatte d routine info.

displays stored as information

categories (e.g. pricing, product)

2. exception reporting

critical info. outside range of pre-defined

boundaries is highlighted
manager may be notified by system
some orgs. use traffic-light pattern for
exception reporting
green = no problems
yellow = caution, marginal condition
red = trouble, needs immediate attention

3. active exploration of info.

resources using

MSS can build queries to relational data

bases based on point and click of
managers
can move between internal and external
DBs
integrate all different analysis tools

4. focused management support

focus support on key management

activities or decisions (e.g. promotion
planning, pricing)
requires integration of variety of
sophisticated support tools customized
for specific activity

Implementing an MSS

Four key categories of risk must be managed:

1. need thorough understanding of individual,
team, and organizational information
requirements
2. involves mega-change to formal and
informal policies and practices for information
management and communication information
is power

Implementing an MSS

Four key categories of risk must be

managed:
3. implementation of an MSS should be
considered an organizational change
initiative need to manage the change
4. must manage the simultaneous
evolution of both the organization and
the technological infrastructure

Past

Back in 1980s, management support

tools consisted of stand-alone (e.g. not
integrated!!) systems.
Two major types of support systems
were (are) termed (1) DSS and (2)
EIS/ESS.
Heres some info. on these stand-alone
systems.

1. Decision support systems

systems that support rather than replace

"managers" in their decision-making activities
give decision maker access to data and models,
but the intelligence, intuition, and judgment of the
decision maker are integral parts of the system
DSS provide decision support - don't
automatically make the decision. They help with
the decision.

Primarily support planning function

Types of decisions

Organizational problems differ in terms

of how structured the problems are
the extent to which a solution procedure
can be stated

structured - routine, repetitive

unstructured - novel, nonroutine
semistructured - somewhere in between

DSS

DSS - computer system at management

level that combines data, analytical
models, and user-friendly software to
support semistructured and unstructured
decision making
give uses capability to analyze data provide software tools
a DSS is focused on a specific decision

Can define DSS as

computer-based systems
that help decision makers
confront un-structured and semistructured problems
through direct interaction
with data and analysis models

Differences between DSS and

MIS

(note - MIS refers to formal systems

developed by IS professionals; e.g.
management reporting systems)
DSS - end-user control of data and tools
aimed at top and middle managers
emphasize change, flexibility and quick
response iterative development process

Differences between DSS and

MIS

MIS - dominated by IS professionals

focuses on structured information flows
to
middle managers
traditional development process

Core DSS capabilities

representations - heavy use of graphs and charts

operations - mathematical manipulations of data
(e.g. assigning risks, generating statistics,
simulating alternatives)
memory aids - databases, views of data, work
spaces, libraries
control aids - user control activities of the DSS;
include software language for user control of
representations, operations, and memory

DSS

DSS is a decision-making scratch pad,

backed up by databases - used to
support decision-making processes
can be applied to problems with
quantifiable dimensions that provide
criteria for evaluation of alternative
solutions
helps DM identify best alternative

3 basic Components of DSS

1. DSS database - collection of current or historical data

which has been extracted from corporate databases; DSS
manipulates live organizational data to support decision
making
2. model base - collection of mathematical and
analytical models
model - abstract representation, e.g. statistical functions
sensitivity analysis - models that ask what-if questions to
determine the impact of changes in one or more factors
on outcomes
e.g. what is we increase price by 5%?

3 basic Components of DSS

3. DSS software system - permits easy

interaction between users and the DSS
database and model base
Building a DSS - requires intense user
interaction because customized to specific
users and specific type of decision; must be
flexible and able to evolve; use an iterative
development method like prototyping

DSS
DSS Subsystems
Subsystems &
& The
The
Capabilities
Capabilities They
They Offer
Offer
Data Management
for Retrieval
Data Extraction
from Internal and
External Databases

Data
Management

Model
Management

Creation,
Maintenance,
and Use of
Models

Menus, Icons,
Dialog
Natural Language,
Management Graphics
DSS on a Computer Platform
Human Decision Maker

User

models

Model is built by using a variety of

assumptions about the relationship
between its variables
by comparing alternatives (what ifs),
you can vary the premises and
compare the outcomes

DSS supports asking 2 types of

questions

Scenario generation - what-if mode

user considers alternative scenarios and
their results
e.g. what if advertising expenditures are
increased by 5%

goal-seeking
user asks what would it take in terms of
input factors to achieve a particular outcome

Spreadsheets for decision support

very popular tools for decision support activities:

1) based on familiar way to view data (table)
and
relationships between data take form of
a report
2) very easy to use
allow users to make corrections, additions, and
deletions quickly and easily
can perform what if analyses by changing
some values and viewing results

Spreadsheets for decision support

thousands of templates for spreadsheet

packages to help users - templates are
prepared spreadsheet models into
which users only enter data - all
relationships and calculating formulas
are provided and in place

examples for financial planning

loan amortization
depreciation
lease versus buy
break-even analysis
discounted cash flows and net present
value

Spreadsheets

about 20-30% of users will become

dissatisfied with spreadsheets for
decision support and will want more
powerful tools, but many users will stay
with spreadsheets as primary DSS,
especially for smaller problems

Development
Development &
& Adaptation
Adaptation of
of DSS
DSS
Problem Definition by
Users and Developers
Development of
Initial Prototype

Adaptation
Loop

Prototype/DSS
Evaluation
Development
Loop

Are Current
Requirements
Satisfied?
no

yes

Validation and
Documentation of DSS

Prototype/DSS
Modification
DSS Ready for Use

2. Executive support systems

(ESS)

help senior level managers with

unstructured problems dealing with
monitoring and control functions

monitor organizational performance

track activities of competitors
spot problems
identify opportunities
forecast trends

ESS combines computing and

communications

includes functions for providing summary

performance data
data typically covers sales, production, earnings,
budgets, and forecasts
uses graphics to display and visualize data in a very
easy to use fashion
combine data from internal and external sources
environmental scanning/alerting - for news on
government regulations, competition, financial and
economic developments, and scientific topics

ESS combines computing and

communications

support electronic communications

ESS

used by both top level execs. and

managers several levels below

Relationship
Relationship between
between EIS
EIS and
and DSS
DSS
User

Executive

Task

Primary Support
Areas

EIS

Problem/Opportunity
Discovery and
Assessment

Monitoring and
Control,
Strategic Planning

DSS

Seeking Problem
Solution:
Decision-Making
Process

Planning

Flow of Problems

Analyst/
Middle
Manager