CHAPTER 9

Managerial Support Systems

CHAPTER OUTLINE
9.1 Managers and Decision Making
9.2 Business Intelligence, Multidimensional
Data Analysis, Data Mining, and Decision
Support Systems
9.3 Digital Dashboards
9.4 Data Visualization Technologies
9.5 Intelligent Systems

LEARNING OBJECTIVES
Describe the concepts of management,

decision making and computerized support

for decision making.
Describe multidimensional data analysis and
data mining
Describe dashboards

LEARNING OBJECTIVES (continued)

Describe data visualization, and explain

geographical information systems and virtual

reality.
Describe artificial intelligence (AI).
Define an expert system and identify its
components.
Describe natural language processing and
natural language generation, and neural
networks.

Chapter Opening Case

9.1 Managers and Decision Making

Management is a process by which
organizational goals are achieved
through the use of resources (people,
money, energy, materials, space,
time).

The Managers Job and Decision Making

Managers have three basic roles (Mintzberg
1973)
Interpersonal roles
Informational roles
Decisional roles

The Managers Job & Decision Making

(continued)
Decision refers to a choice that individuals

and group make among two or more

alternatives.
Decision making is a systematic process
composed of three major phases:
intelligence, design and choice (Simon 1977)

Implementation phase was added later.

Decision Making Process

Why Managers Need IT Support

The number of alternatives to be considered

constantly increases.
Decisions must be made under time
pressure.
Decisions are more complex
Decision makers can be in different locations
and so is the information.

A Framework for Computerized

Decision Analysis

Problem Structure
The first dimension deals with the problem
structure, where does the decision making
processes fall along the continuum ranging
from highly structured to highly unstructured
decisions.
Structured
Unstructured
Semistructured

The Nature of Decisions

The second dimension of decision support
deals with the nature of decisions
Operational control
Management control
Strategic planning

9.2 BI, Multidimensional Data

Analysis, Data Mining, and DSSs
Business Intelligence (BI)
Two types of BI Systems:

Those that provide data analysis tools

Multidimensional data analysis (or online

analytical processing)
Data mining
Decision support systems

Those that provide information in structured

format

Dashboards

How Business Intelligence Works

(Figure 9.3)

Multidimensional Data Analysis

Provides users with a look at what is

happening or what has happened.

Allows users to analyze data in such a way
that they can quickly answer business
questions.

Data Mining
Searching for valuable business information

in a large database or data warehouse.

Data mining performs two basic operations:
Predicting trends and behaviors
Identifying previously unknown patterns and
relationships

9.2 Decision Support Systems (DSS)

Decision support systems
DSS capabilities

Sensitivity analysis
What-if analysis
Goal-seeking analysis

Group Decision Support Systems

(GDSS)
Group decision support system (GDSS) is

an interactive computer-based system that

supports the process of finding solutions by a
group of decision makers.
Decision Room is a face-to-face setting for a
group DSS, in which terminals are available
to the participants.

Organizational Decision Support

System (ODSS)
Organizational Decision Support System

(ODSS) is a DSS that focuses on an

organizational task or activity involving a
sequence of operations and decision makers.

9.3 Digital Dashboards

Dashboards:

Provide rapid access to timely information.

Provide direct access to management reports.
Are very user friendly and supported by
graphics.

Sample Performance Dashboard

(Figure 9.4)

Another Example of Dashboard

Executive Dashboard Demo

http://www.informationbuilders.com/rfr/qtdemo
/AdvVis_ExecDash/AdvVis_ExecDash.html

A Bloomberg Terminal (Figure 9.5)

Management Cockpit (Figure 9.6)

Management Cockpit
A strategic management room that enables top-level

decision makers to pilot their businesses better.

The environment encourages more efficient
management meetings and boosts team
performance via effective communication.
Key performance indicators and information relating
to critical success factors are displayed graphically
on the walls of the meeting room.
External information can be easily imported to the
room to allow competitive analysis.

Halliburtons CyberWell (ITs About Business 9.3)

3D image
similar to that
produced by
CyberWell

9.4 Data Visualization Systems

The Power of Visualization

Even though a picture is worth a thousand

words, we have to be very careful about just
what we are seeing.
Remember, on the Internet, it is user beware!

New York City Police Department

Command Center

Data visualization in action

Example of data visualization

Hans Rosling at the TED Talks

Types of data visualization systems

Geographical Information Systems
Virtual Reality

Geographic Information System

GIS for
existing
land use

GISMO
GISMO is a geographical information system
developed for the city of Corvallis, Oregon.

Virtual Reality

Technology of Data Glove

Virtual Reality manipulation with data glove

Driving Simulator

Flight Simulator

External view

Internal view

VR Head-Mounted Display at
Dentists Office

Virtual Tour of a museum

Virtual Reality (continued)

The VirtuSphere

VR Body Suit

9.5 Intelligent Systems

Intelligent systems
Artificial intelligence (AI)

Expert Systems
Expertise
Expert systems (ESs)
Star Trek
Voyagers doctor:
a 24th century
expert system

Expert Systems (continued)

The transfer of expertise from an expert to a
computer and then to a user involves four
activities:
Knowledge acquisition
Knowledge representation
Knowledge inferencing
Knowledge transfer

The Components of Expert Systems

Knowledge base
Inference engine
User interface
Blackboard
Explanation subsystem

Structure and Process of an Expert

System

Natural Language Processing & Voice

Technologies
Natural language processing (NLP)
Natural language understanding / speech

(voice) recognition
Natural language generation/voice synthesis

Neural Networks
Neural network is a system of programs and

data structures that approximates the

operation of the human brain.
Neural networks are particularly good at
recognizing subtle, hidden and newly
emerging patterns within complex data as
well as interpreting incomplete inputs.

Neural Network

Fuzzy Logic
Fuzzy logic deals with the uncertainties by

simulating the process of human reasoning,

allowing the computer to behave less
precisely and logically than conventional
computers do.
Involves decision in gray areas.
Uses creative decision-making processes.

Chapter Closing Case

GPS
sensor