CHAPTER 12

Managerial Support Systems

CHAPTER OUTLINE
12.1 Managers and Decision Making
12.2 What Is Business Intelligence?
12.3 Business Intelligence Applications for
Data Analysis
12.4 Business Intelligence Applications for
Presenting Results
12.5 Business Intelligence in Action: Corporate
Performance Management
LEARNING OBJECTIVES
1. Identify the phases in the decision-making
process, and use a decision-support framework
to demonstrate how technology supports
managerial decision making.
2. Describe and provide examples of the three
different ways in which organizations use
business intelligence.
LEARNING OBJECTIVES (continued)
3. Specify the BI applications available to users
for data analysis, and provide examples of how
each might be used to solve a business
problem at your university.
4. Describe three BI applications that present
the results of data analyses to users, and offer
examples of how businesses and government
agencies can use each of these technologies.
LEARNING OBJECTIVES (continued)

5. Describe corporate performance

management, and provide an example of how
your university could use CPM.
 Chapter Opening Case:
Quality Assurance at Daimler AG

Source: Alperium/Shutterstock
12.1 Managers and Decision Making

Management

Sigrid Olsson/Photo Alto/Age Fotostock

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)

Decisions and Decision making

Source: Image Source Limited

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 the decision making processes fall
along the continuum ranging from highly structured to
highly unstructured decisions.

Highly Semistructured Higly

structured unstructured

Order entry Loan approval Building new plant

The Nature of Decisions

The second dimension of decision support

deals with the nature of decisions

Operational control
Management control
Strategic planning
12.2 What Is Business Intelligence?

Source: Angela Waye/Shutterstoc

 The Scope of Business Intelligence

Smaller organizations: Larger organizations:

Excel spreadsheets Data mining, predictive analytics,
dashboards
Source: Dundas Software, www.dundas.com/ dashboard/online-examples/
screenshots/Marketing-Dashboard.aspx
How Organizations Use BI

Develop few, related BI applications

Data mart

Develop infrastructure to support enterprisewide BI

Enterprise data warehouse

Support organizational transformation

Enterprise data warehouse
12.3 Business Intelligence Applications
for Data Analysis

Multidimensional Analysis or
Online Analytical Processing
(OLAP)

Data Mining

Decision Support Systems

Toh Kheng Ho/Age Fotostock America, Inc.
Multidimensional Analysis or
Online Analytical Processing (OLAP)

Source: Angela Waye/Shutterstoc

Data Mining

Source: Corbis/Image Source Limited

How Business Intelligence Works

Aydin/Age Fotostock America, Inc.

Decision Support Systems (DSS)
DSS capabilities
Sensitivity analysis
What-if analysis
Goal-seeking analysis

STOCKBROKERXTRA/Age Fotostock America, Inc.

12.4 Business Intelligence Applications
for Presenting Results

Dashboards

Data Visualization Technologies

Geographic Information Systems

Real-Time BI
Digital Dashboard (example)

Source: MicroStrategy
Digital Dashboard (example)

Source: Dundas Software, www.dundas.com/ dashboard/online-examples/

screenshots/Marketing-Dashboard.aspx
Digital Dashboard Demo

http://www.informationbuilders.com/rfr/qtdem
o/AdvVis_ExecDash/AdvVis_ExecDash.html
A Bloomberg Terminal

Source: Carlos Osario/Zuma Press

Management Cockpit

Source: The Management Cockpit is a registered trademark of SAP,created by Professor M.Georges .

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!
Example of data visualization

Hans Rosling at the TED Talks

 GISMO

GISMO is a geographic information system

developed for the city of Corvallis, Oregon.
12.5 Business Intelligence in Action:
Corporate Performance Management

FIGURE 12.7 1-8000 CONTACTS customer service agent dashboard.

Chapter Closing Case

The Business Problem

The IT Solutions

The Results
TECHNOLOGY GUIDE
FOUR

Intelligent Systems
TECHNOLOGY GUIDE OUTLINE

TG4.1 Introduction to Intelligent Systems

TG4.2 Expert Systems
TG4.3 Neural Networks
TG4.4 Fuzzy Logic
TG4.5 Genetic Algorithms
TG4.6 Intelligent Agents
LEARNING OBJECTIVES
1. Differentiate between artificial intelligence
and human intelligence.
2. Define expert systems, and provide
examples of their use.
3. Define neural networks, and provide
examples of their use.
4. Define fuzzy logic, and provide examples of
its use.
LEARNING OBJECTIVES (continued)
5. Define genetic algorithms, and provide
examples of their use.
6. Define intelligent agents, and provide
examples of their use.
TG4.1 Introduction to Intelligent Systems

Intelligent systems
Artificial intelligence (AI)

Luis Alonso Ocana/Age Fotostock America, Inc.

TG 4.2 Expert Systems
Expertise
Expert systems (ESs)
Expertise Transfer from Human to Computer

Knowledge acquisition
Knowledge representation
Knowledge inferencing
Knowledge transfer
The Components of Expert Systems

Knowledge base
Inference engine
User interface
Blackboard
Explanation subsystem
TG4.3 Neural Network
TG 4.5 Genetic Algorithms

Genetic algorithms have three functional

characteristics:

Selection

Crossover:

Mutation:
TG 4.6 Intelligent Agents

Information Agents
Monitoring-and-Surveillance Agents
User Agents