CHAPTER 6
MANAGERIAL SUPPORT SYSTEMS
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CHAPTER 6
MANAGERIAL SUPPORT SYSTEMS
Managerial support systems are the topic of this second of three chapters
devoted to our survey of information technology (IT) application areas.
Managerial support systems are designed to provide support to a specific
manager or a small group of managers, and they include applications to support
managerial decision making such as group support systems, executive
information systems, and expert systems.
Decision Support Systems
A Decision support systems (DSS) is a computer-based systems, almost
always interactive, designed to assits a manager (or anoter decision maker) in
making decisions. A DSS incorporates both data and models to help a decision
maker solve a problem, especially a problem that is not well structured. The data
are often extracted from a transaction processing system or a data warehouse,
but that is not always the case. The model might be simple, such as a profit-andloss model to calculate profit given certain assumptions, or complex, such as an
optimization model to suggest loading for each machine in job shop.
All of the DSS examples cited are more properly called specific DSSs.
These are the actual applications that assist in the decision-making process. In
Group support system (GSS) are an important variant of DSSs in which the
system is designed to support a group rather than an individual. GSSs,
sometimes called group DSSs or electronic meeting sytems, strive to take
advantage of the power of a group to make better decisions than individuals
acting alone. GSSs represent an attempt to make these group sessions more
productive.
Geographic Information Systems
Geographic information system (GIS), spatial decision support system
(SDSS), location intelligence, geodemographics, computer mapping, and
automated routing are names for a family of applications based on manipulation
of relationships in space. Geographic technologies such as a GIS capture, store,
manipulate, display, and analyze data spatially referenced to the Earth.
1. Business Adopts Geographic Technologies
Geographic technologies in business were a well-kept secret for many
years; the earliest business adopters of GISs seldom talked about it
because of its competitive value.
2. Whats behind geographic technologies
Two approaches to representing spatial data are widely used :
a. Raster-based GISs
Raster-based GISs rely on dividing space into small, equal-sized cells
arranged in a grid. In a GIS, these cells (raters) can take on a range of
values and are aware of their location relative to other cells.
b. Vector-based GISs
Vector-based GISs are widely used in public administration and utilities
and, arguably, are the most common approach used in business. Vector
systems associate features in the landscape with either a point, a line,
or a polygon.
3. Issues for Information systems organizations
Business applications of GISs are often initially introduced into a company
to support a single function such as market research or field service.
Experience shows us that GISs soon spread within and across groups.
Thanks to the maturity of GIS tools, organizations can acquire off-the-shelf
geographic technologies with scripting languages, application program
interfaces with popular desktop software packages, ad internet-based
interactive mapping packages.
Executive Information Systems/business intelligence systems
The key concept behind an Executive information system (EIS) is that such
a system delivers online current information about business conditions in an
aggregate form easily accessible to senior executives and other managers. An
EIS is designed to be used directly by these managers without the assistance of
intermediaries. An EIS uses state-of-the-art graphics, communications, and data
storage methods to provide the executive easy online access to current
information about the status of the organization.
As a result, today the user base in most companies has been broadened to
encompass all levels of management in the firm-and sometimes even managers
in customer and supplier organizations. Largely because of this broadening of the
user base, today the EIS label has often been replaced with the broader term
performance management (PM) software. The emphasis on competitive
information has become so important in the last few years that many
organizations now call their EISs business intelligence (BI) systems or
competitive intelligence systems.
build both the content and the structure of the KMS. Therefore, a
knowledge taxonomy was developed so that knowledge about each of the
drugs sold by the firm was organized separately.
KMS Success
What does it take for a KMS to be a success? One stream of research
suggests that both the supply and the demand sides of KM must be considered
simultaneously. In other words, organizational support factors on the supply side
involving leadership commitment, manager and peer support for KM initiatives,
and knowledge quality control and on the demand side involving incentives and
reward systems, relevance of knowledge, ease of using the KMS, and
satisfication with the use of the KMS are as important as the KMS itself and that
these factors must be managed carefully and concurrently.
Artificial Intelligence
The idea of artificial intelligence (AI), the study of how to make computers
do things that are currently done better by people, is well over 50 years old, but
only in the last 30 years have computers become powerful enough to make AI
applications commercially attractive. AI research has evolved into six separate
but related areas; these are natural languages, robotics, perceptive systems
(vision and hearing), genetic programming (also called evolutionary design),
expert systems, and neural networks.
Expert Systems
How does one capture the logic of an expert in a computer system? To
design an expert system, a specialist known as a knowledge engineer (a
specially trained systems analyst) works very closely with one or more experts in
the area under study. Knowledge engineers try to learn everything they can
about the way in which the expert makes decisions. If one is trying to build an
expert system for estate planning, for example, the knowledge engineer works
with experienced estate planners to see how they do their job.
Neural Networks
Whereas expert systems try to capture the expertise of humans in a
computer program, neural networks attempt to tease out meaningful patterns
from vast amounts of data. Neural networks can recognize patterns too obscure
for humans to detect, and they adapts as new information is received. The key
characteristic of neural networks is that they learn. The neural network program
is originally given a set of data consisting of many variables associated with a
large number of cases, or events, in which the outcomes are known.
Uses of Neural Networks
Categorization
Credit
rating
assessment
and
Prediction/Forecasting
risk
Fraud detection
Process control
Weather prediction
Character recognition
Production requirements
Medical diagnosis
Bacteria identification
Virtual Reality
Virtual reality is a fascinating application are with rapidly growing
importance. Virtual reality (VR) refers to the use of computer-based systems to
create an environment that seems real to one or more senses (usually including
sight) of the human user or users. VR exists today, but with nowhere near the
reality of the Enterprises holodeck. You might have played a video game where
you dont a head-mounted computer display and a glove to get directly into the
action. The use of VR in a nonentertainment setting falls primarily into three
categories-training, design, and marketing. Training examples will be presented
first, followed by examples of the use of VR in design and in marketing.