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1、13,Chapter,Enhancing Decision Making for the Digital Firm,Describe different types of decisions and the decision-making process Evaluate the role of information systems in helping people working individually and in a group make decisions more efficiently Demonstrate how executive support systems can
2、 help senior managers make better decisions,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,OBJECTIVES,Assess how systems that support decision making can provide value for the firm Identify the challenges posed by decision-support systems, group decision-sup
3、port systems, and executive support systems and management solutions,OBJECTIVES (Continued),Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,Challenge: Coordinate the daily arrival of 70 rail cars and 500 trucks to ensure just-in-time delivery of car parts Sol
4、utions: Adopt Transportation Efficiency Support System (TESYS) to synchronize the deliveries with available loading docks and production schedules Develop new business processes for coordinating logistics with production needs Illustrates the how IT enhances decision making and increases business pr
5、ocess efficiency in a manufacturing environment,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,DaimlerChrysler Bremen Plant Case,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Business intelligence enables firms to:,Business Intelligence and Decision Support,M
6、anagement Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,Amass information Develop knowledge about operations Change decision-making behavior to achieve profitability and other business goals,Systems and Technologies for Business Intelligence,DECISION MAKING AND DECISI
7、ON-SUPPORT SYSTEMS,Figure 13-1,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,Business Decision Making and the Decision-Making Process,Senior management Middle management and project teams Operational management and project teams Individual employees,Decisio
8、n-Making Levels:,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Information Requirements of Key Decision-Making Groups in a Firm,Figure 13-2,Management Information Syst
9、ems Chapter 13 Enhancing Decision Making for the Digital Firm,Unstructured decisions:,Types of Decisions,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,Novel, non-routine decisions requiring judgment and insights
10、Examples: Approve capital budget; decide corporate objectives,Structured decisions:,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,Routine decisions with definite procedures Examples: Restock inventory; determine
11、special offers to customers,Semistructured decisions:,Only part of decision has clear-cut answers provided by accepted procedures Examples: Allocate resources to managers; develop a marketing plan,Types of Decisions (Continued),Management Information Systems (MIS) Decision-Support Systems (DSS) Exec
12、utive Support Systems (ESS) Group Decision-Support Systems (GDSS),Systems for Decision Support,There are four kinds of systems that support the different levels and types of decisions:,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,DECISION MAKING AND DECISI
13、ON-SUPPORT SYSTEMS,Stages in Decision Making,Figure 13-3,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Information quality: Accuracy, integrity, consistency, completeness, validity, timeliness, accessibility,Deci
14、sion Making in the Real World,In the real world, investments in decision-support systems do not always work because of,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Management filters: Biases and bad decisions of
15、 managers Organizational inertia: Strong forces within organization that resist change,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Decision Making in the Real World (Continued),Six Major Trends: Detailed enterp
16、rise-wide data Broadening decision rights and responsibilities,Trends in Decision Support and Business Intelligence,The rise of client/server computing, the Internet, and Web technologies made a major impact on systems that support decision making.,Management Information Systems Chapter 13 Enhancing Decision Making for the Digital Firm,DECISION MAKING AND DECISION-SUPPORT SYSTEMS,Intranets and portals Personalization and customization of information Extranets and collaborative commerce Team sup