IS Ch. 6 Flashcards
Decision Making Phase
the first part of problem solving, including three stages:
-intelligence
-design
choice
intelligence stage
- first stage of decision making
- identify and define potential problems or opportunities
design stage
- second stage of decision making
- develop alternative solutions to the problem and evaluate their feasibility
choice stage
- 3rd stage of decision making
- requires selecting a course of action
problem solving
decision making + implementation stage and monitoring stage
implementation stage
a stage of problem solving in which a solution is put into effect
monitoring stage
the final stage of the problem-solving process in which decision makers evaluate the implementation
programed decision
a decision made using a rule, procedure, or quantitative method
nonprogrammed decision
a decision that deals with unusual or exceptional situations
structured decisions
necessary variables are known and can be measured
unstructured decisions
variables that affect the decision cannot be measured quantitatively
semistructured decisions
only some of the variables can be measured quantitatively
optimization model
a process to find the best solution to help the organization meet its goals
satisficing model
finds a good- but not necessarily the best- solution to a problem
heuristics
commonly accepted guidelines or procedures that usually find a good solution.
“rule of thumb” strategies
benefits of information and decision support systems
- decision quality
- problem complexity
- speedier decisions
Management Information System (MIS)
an organized collection of people, procedures, software, databases and devices that provides routine information to managers and decision makers.
executive dashboard
a diagram that presents a set of key performance indicators about the state of a process at a specific point in time to enable managers to make better real-time decisions
internal inputs to a management information system (MIS)
- org’s transaction processing systems (TPSs)
- org’s enterprise resource planning systems (ERPs)
- related databases
external inputs to a management information system (MIS)
- customers
- suppliers
- competitors
- stockholders
- internet
types of reports generated by a management information system (MIS)
- scheduled
- key-indicator
- demand
- exception
- drill down
scheduled report
a report produced periodically, such as daily, weekly or monthly
Key-Indicator Report
A summary of the previous day’s critical activities, typically available at the beginning of each workday
Demand Report
Report developed to give certain information at someones request
exception report
a report automatically produced when a situation is unusual or requires management action
Drill-down report
a report that provides increasingly detailed data about a situation
characteristics of a management information system
- provide reports with fixed and standard formats
- produce hard-copy and soft-copy reports
- use internal data stored in the computer system
- allow users to develop custom reports
- require user requests for reports developed by systems personnel
financial management information system (MIS)
an information system that provides financial information for workers who need to make better decisions on a daily basis
functions of financial management information systems (MIS)
- integrate financial and operational information from multiple sources into a single system
- provide easy access to data for both financial and nonfinancial users
- make financial data immediately available to shorten analysis turnaround time
- enable analysis of financial data along multiple dimensions
- analyze historical and current financial activity
- monitor and control the use of funds over time
profit center
has both revenue and expenses
revenue center
gains revenue from sale of products or services
cost center
does not directly generate revenue, has only expenses
auditing
provides an objective appraisal of the accounting, financial, and operational procedures and information of an organization
financial audit
assesses the reliability and integrity of the organizations financial information and the methods used to process it
operational audit
assessment of how well management uses resources and how effectively organizational plans are being executed
internal auditing
auditing performed by individuals within the organization
external auditing
auditing performed by an outside group
financial MIS subsystems
- profit/loss and cost systems
- auditing
- uses and management of funds
manufacturing management information systems subsystems and outputs:
- design and engineering
- master production scheduling
- inventory control
- just in time (JIT) inventory
- process control
- quality control and testing
CAD and CAM
computer assisted design and computer aided manufacturing
economic order quantity (EOQ)
the quantity that should be reordered to minimize total inventory costs
reorder point (ROP)
a critical inventory quantity level
just-in-time (JIT) inventory
inventory management approach in which inventory and materials are delivered just before they are used in manufacturing
computer-integrated manufacturing (CIM)
using computers to link the components of the production process into an effective system
flexible manufacturing system (FMS)
allows manufacturing facilities to rapidly and efficiently change from making one product to making another
quality control
ensures that the finished product meets the customer’s needs
marketing MIS
uses data gathered from both internal and external sources to provide reporting and aid decision making in all areas of marketing
subsystems of a marketing MIS
- market research
- product design
- media selection
- advertising
- selling
- channel distribution
- product pricing
human resource MIS (HRMIS) or personnel MIS
information system concerned with activities related to previous, current, and potential employees of an organization
activities performed by human resource MIS’s (HRMIS’s)
- workforce analysis and planning
- hiring
- training
- job and task assignment
- wage and salary administration
- outplacement
Accounting MIS
an information system that provides aggregate information on accounts payable, account receivable, payroll, and other applications
geographic information system (GIS)
computer system capable of assembling, storing, manipulating, and displaying geographic information
decision support systems characteristics
- Provide rapid access to information
- Handle large amounts of data from different sources
- Provide report and presentation flexibility
- Offer both textual and graphical orientation
- Support drill-down analysis
- perform complex, sophisticated analysis and comparisons
- support optimization, satisficing, and heuristic approaches
- perform simulation analysis
- forecast future opportunities or problems
ad hos decision support system (DSS)
a DSS concerned with situations or decision that come up only a few times during the life of the organization
institutional decision support system (DSS)
a DSS that handles situations or decisions that occur more than once. used repeatedly and refined over the years
output of DSS vs MIS
DSS: usually screen oriented, ability to generate printed reports
MIS: oriented towards printed reports and documents
users and level of control of DSS vs MIS
DSS: supports individuals and small groups, users have more control in short run
MIS: supports the organization, users have less control in short run
dialogue manager
user interface that allows decision makers to easily access and manipulate the DSS and to use common business terms and phrases
model base
part of a DSS that allows managers and decision makers to perform quantitative analysis on both internal and external data
model management software (MMS)
software that coordinates the use of models in a DSS
group decision support system (GSS)
most of the elements in a DSS, plus software to provide effective support in group decision-making settings
delphi approach
structured, interactive, iterative decision-making method.
relies on input from a panel of experts.
group consensus approach
a group decision-making process that seeks the consent of all participants
nominal group technique (NGT)
a structured method for group brainstorming that encourages contributions from everyone
multivoting
voting processes used to reduce the number of options to be considered
decision room
a room that supports decision making. combines face-to-face verbal interaction with technology to make the meeting more effective and efficient
virtual workgroups
teams of people located around the world working on common problems
