Summary
Highlights
Decisions in organizations are categorized into three types: structured, semi-structured, and unstructured. Structured decisions are programmable and can be automated due to well-defined procedures. Semi-structured decisions involve both structured elements that benefit from information retrieval and analytical models, and less defined aspects. Unstructured decisions are unique, one-time scenarios without standard operating procedures, often involving multiple criteria and conflicting objectives, making them challenging.
Herbert Simon's model outlines three phases of decision-making: intelligence, design, and choice, with an added fourth phase: implementation. The intelligence phase involves identifying problems and opportunities. The design phase focuses on defining criteria, generating alternatives, and associating them. The choice phase selects the best course of action from practical alternatives. Finally, the implementation phase carries out the chosen alternative and obtains necessary resources, with DSS often providing follow-up assessments.
A Decision Support System (DSS) is an interactive information system comprising hardware, software, data, and models, designed to aid organizational decision-making. Key requirements include interactivity, human element incorporation, use of internal and external data, inclusion of models, and active support for decision-makers. DSS features include 'what-if' analysis, goal-seeking, sensitivity analysis, and exception reporting to monitor performance outside defined ranges.
Several roles are crucial for designing, implementing, and using a DSS: the user, managerial designer, technical designer, and model builder. Managerial designers define management issues like data collection and organization. Technical designers focus on system development, while model builders act as liaisons between users and designers. DSS development can leverage existing organizational resources or require new hardware and software, and while DSS facilitates improvement, it doesn't guarantee them.
Executive Information Systems (EIS) are a type of DSS providing executives with easy access to internal and external data. Their success hinges on ease of use and access to diverse data for trend spotting, forecasting, and analysis. A digital dashboard, a common EIS component, integrates and presents information from multiple sources in a unified, visual format, tailored to management needs, offering status, trend analysis, and exception reporting.
Group Support Systems (GSS) use computer and communication technologies to facilitate decision-making in groups by overcoming interaction limitations. The effectiveness of a GSS depends on matching its sophistication to the group's size and task scope. Related technologies like groupware focus on communication, collaboration, and coordination for teamwork. Electronic meeting systems enable geographically dispersed decision-makers to participate in group decision processes.
A Geographic Information System (GIS) captures, stores, processes, and displays geographic information. It utilizes spatial and non-spatial data, specialized techniques for storing coordinates, digitized maps, and spatially oriented databases. GIS can associate spatial attributes with geographic objects on maps, supporting data management, organizational efficiency, and effectiveness by integrating and analyzing spatial data from various sources. Key functions include data conversion, integration with maps, and analysis.
Designing effective management support systems requires several key factors: full commitment from top management, understanding that costs are monetary while benefits are often qualitative, and examining executive decision-making processes to identify information needs. Communication is vital for involving key decision-makers. Designers should avoid technical jargon, keep systems simple, use consistent layouts and formats for ease of use, and continuously monitor response times and adapt to technological changes.