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Fifth Edition

1

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

M a n a g I n g I n f o r m a t i o n T e c h n o l o g y i n t h e E


B u s i n e s s E n t e r p r i s e

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

C h a p t e r

James A. O’Brien

6

E
-
Business

Decision

Support

Fifth Edition

James A. O’Brien

2

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Chapter Objectives


Identify the changes taking place in the form
and use of decision support in E
-
Business
enterprises.


Identify the role and reporting alternatives of
management information systems.


Describe how online analytical processing
can meet key information needs of
managers.


Explain the decision support system concept
and how it differs from traditional
management information systems
.


Fifth Edition

James A. O’Brien

3

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Chapter Objectives



Explain how executive information systems
can support the information needs of
executives and managers.


Identify how neural networks, fuzzy logic,
genetic algorithms, virtual reality, and
intelligent agents can be used in business.


Give examples of several ways expert
systems can be used in business decision
-
making situations.

Fifth Edition

James A. O’Brien

4

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Decisions in the E
-
Business


Strategic

Management

Tactical

Management

Operational

Management

Decision Characteristics

Unstructured

Semi
-
structured

Structured

Fifth Edition

James A. O’Brien

5

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Management Information System Reports

Periodic Scheduled

Reports

Exception Reports

Demand Reports

and Responses

Push Reports

Major

Management

Information

Systems Reports

Fifth Edition

James A. O’Brien

6

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Online Analytical Processing

OLAP

Server

Multi
-

dimensional

database

Corporate

Databases

Client PC

Web
-
enabled OLAP

Software

Data is retrieved from corporate databases

and staged in an OLAP multi
-
dimensional

database


Operational DB


Data Marts


Data Warehouse

Fifth Edition

James A. O’Brien

7

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Decision Support Systems

What If
-
Analysis

Sensitivity Analysis

Goal
-
Seeking Analysis

Optimization Analysis

Important

Decision

Support

Systems

Analytical Models

Fifth Edition

James A. O’Brien

8

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Enterprise Information Portals and DSS

Enterprise Information Portal Gateway

Enterprise Information Portal User Interface

Search

Agents

OLAP

Data

Mining

Knowledge

Management

Database Management Functions

Data

Mart

Other

Business

Applications

Operational

Database

Analytical

Database

Knowledge

Base

DSS

What
-
If Models

Sensitivity Models

Goal
-
Seeking Models

Optimization Models

Internet

Intranet

Extranet

Fifth Edition

James A. O’Brien

9

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Artificial Intelligence Applications

Cognitive

Science

Applications

Artificial

Intelligence

Robotics

Applications

Natural

Interface

Applications


Expert Systems


Fuzzy Logic


Genetic Algorithms


Neural Networks


Visual Perceptions


Locomotion


Navigation


Tactility


Natural Language


Speech Recognition


Multisensory Interface


Virtual Reality

Fifth Edition

James A. O’Brien

10

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

AI Application Areas in Business

Neural Networks

Fuzzy Logic Systems

Virtual Reality

Expert Systems

AI Application

Areas in

Business

Intelligent Agents

Genetic Algorithms

Fifth Edition

James A. O’Brien

11

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Intelligent Agents

Interface

Tutors

Presentation

Agents

Network

Navigation

Agents

Role
-

Playing

Agents

User

Interface

Agents

Information

Management

Agents

Search

Agents

Information

Brokers

Information

Filters

Fifth Edition

James A. O’Brien

12

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Components of Expert Systems

The Expert System









Knowledge

Base

User

Workstation

Expert

Advice

User

Interface

Programs

Inference

Engine

Program

Expert System Development









Workstation

Knowledge

Engineering

Knowledge

Acquisition

Program

Expert and/or

Knowledge Engineer

Fifth Edition

James A. O’Brien

13

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Expert System Applications

Decision Management

Diagnostic/Troubleshooting

Maintenance/Scheduling

Design/Configuration

Selection/Classification

Major

Application

Categories

of Expert Systems

Process Monitoring/Control

Fifth Edition

James A. O’Brien

14

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Chapter Summary


Decision support systems in business are
changing. The growth of corporate intranets,
extranets, and other web technologies have
increased the demand for a variety of
personalized, proactive, web
-
enabled analytical
techniques to support DSS.


Information systems must support a variety of
management decision
-
making levels and
decisions. These include the three levels of
management activity: strategic, tactical, and
operational.

Fifth Edition

James A. O’Brien

15

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Chapter Summary (cont)


Online analytical processing is used to analyze
complex relationships among large amounts of
data stored in multidimensional databases.
Data mining analyzes large stores of historical
data contained in data warehouses.


Decision support systems are interactive
computer
-
based information systems that use
DSS software and a model base to provide
information to support semi
-
structured and
unstructured decision making.

Fifth Edition

James A. O’Brien

16

M a n a g e m e n t I n f o r m a t i o n S y s t e m s

Irwin/McGraw
-
Hill

Copyright © 2002, The McGraw
-
Hill Companies, Inc. All rights reserved.

Chapter Summary (cont)


The major application domains in
artificial intelligence include a variety of
applications in cognitive sciences,
robotics, and natural interfaces.


Major AI application areas include:


Neural Networks


Fuzzy Logic


Genetic Algorithms


Virtual Reality


Intelligent Agents