Management

Information System
Week 15
Decision Support Systems
 Decision
• Companies are investing Support
in data-driven decisionin Business
support application
frameworks to help them respond to
• Changing market conditions
• Customer needs
• This is accomplished by several types of
• Management information
• Decision support
• Other information systems
Chapter 10
3 Decision Support
Systems
Levels of Managerial Decision Making

Chapter 10
4 Decision Support
Systems
 Decision Structure

• Structured (operational)
• The procedures to follow when decision
is needed can be specified in advance

• Unstructured (strategic)
• It is not possible to specify in advance
most of the decision procedures to follow

• Semi-structured (tactical)
• Decision procedures can be pre-specified,
but not enough to lead to the correct decision Chapter 10
5 Decision Support
Systems
 Decision Support
Management Information Systems
Systems
Decision Support Systems

Decision support Provide information about the performance Provide information and techniques to
provided of the organization analyze specific problems

Information form and Periodic, exception, demand, and push Interactive inquiries and responses
frequency reports and responses

Information format Prespecified, fixed format Ad hoc, flexible, and adaptable format

Information Information produced by extraction and Information produced by analytical

processing manipulation of business data modeling of business data
methodology

Chapter 10
6 Decision Support
Systems
 Decision Support Trends
• The emerging class of applications focuses on
• Personalized decision support
• Modeling
• Information retrieval
• Data warehousing
• What-if scenarios
• Reporting
7
Chapter 10
Decision Support
Systems
Business Intelligence Applications

Chapter 10
8 Decision Support
Systems
 Decision Support Systems

• Decision support systems use the following to support the making of

semi-structured business decisions
• Analytical models
• Specialized databases
• A decision-maker’s own insights and judgments
• An interactive, computer-based modeling process
• DSS systems are designed to be ad hoc,
quick-response systems that are initiated and controlled by decision makers
Chapter 10
9 Decision Support
Systems
 DSS Components

Chapter 10
10 Decision Support
Systems
 DSS Model Base
• Model Base
• A software component that consists of
models used in computational and analytical routines that mathematically
express relations among variables

• Spreadsheet Examples
• Linear programming
• Multiple regression forecasting
• Capital budgeting present value
11
Chapter 10
Decision Support
Systems
 Management Information Systems

• The original type of information system

that supported managerial decision making
• Produces information products that support
many day-to-day decision-making needs

• Produces reports, display, and responses

• Satisfies needs of operational and tactical decision makers who face structured decisions
Chapter 10
12 Decision Support
Systems
 Online Analytical Processing

• OLAP
• Enables managers and analysts to examine
and manipulate large amounts of detailed and consolidated data from many
perspectives

• Done interactively, in real time, with rapid response to queries

Chapter 10
13 Decision Support
Systems
 Online Analytical Operations
• Consolidation
• Aggregation of data
• Example: data about sales offices rolled up
to the district level

• Drill-Down
• Display underlying detail data
• Example: sales figures by individual product
• Slicing and Dicing
• Viewing database from different viewpoints
• Often performed along a time axis
14
Chapter 10
Decision Support
Systems
 Geographic Information Systems

• DSS uses geographic databases to construct

and display maps and other graphic displays

• Supports decisions affecting the geographic distribution of people and other

resources

• Often used with Global Positioning Systems (GPS) devices

Chapter 10
15 Decision Support
Systems
 Data Visualization Systems

• Represents complex data using interactive,

three-dimensional graphical forms
(charts, graphs, maps)

• Helps users interactively sort, subdivide, combine, and organize data

while it is in its graphical form

Chapter 10
16 Decision Support
Systems
• Using a decision Using Decision Support Systems
support system involves an interactive analytical modeling process

• Decision makers are not demanding pre-specified information

• They are exploring possible alternatives
• What-If Analysis
• Observing how changes to selected variables affect other variables
• Sensitivity Analysis
• Observing how repeated changes to a single variable affect other variables
• Goal-seeking Analysis
• Making repeated changes to selected variables until a chosen variable reaches a target
value
• Optimization Analysis Chapter 10
17 Decision Support
Systems
• Finding an optimum value for selected variables, given certain constraints
• Provides decision support through knowledge discovery
Data Mining
• Analyzes vast stores of historical business data
• Looks for patterns, trends, and correlations
• Goal is to improve business performance
• Types of analysis
• Regression
• Decision tree
• Neural network
• Cluster detection
18
Chapter 10
Decision Support
Systems

• Market basket analysis

 Market Basket Analysis
• One of the most common uses for data mining
• Determines what products customers purchase together with other products

• Results affect how companies

• Market products
• Place merchandise in the store
• Lay out catalogs and order forms
• Determine what new products to offer
• Customize solicitation phone calls
19
Chapter 10
Decision Support
Systems
 Executive Information Systems
• Combines many features of MIS and DSS
• Provide top executives with immediate and
easy access to information

• Identify factors that are critical to accomplishing strategic objectives (critical

success factors)

• So popular that it has been expanded to managers, analysis, and other

knowledge workers
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20 Decision Support
Systems
 Features of an EIS
• Information presented in forms tailored to the preferences of the executives
using the system
• Customizable graphical user interfaces
• Exception reports
• Trend analysis
• Drill down capability

Chapter 10
21 Decision Support
Systems
 Enterprise Information Portals

• An EIP is a Web-based interface and integration of MIS, DSS, EIS, and other
technologies
• Available to all intranet users and select
extranet users

• Provides access to a variety of internal and external business applications and services

• Typically tailored or personalized to the user

or groups of users

• Often has a digital dashboard

• Also called enterprise knowledge portals Chapter 10

22 Decision Support
Systems
Security and Ethical Challenges
 IT Security, Ethics, and Society

• IT has both beneficial

and detrimental effects on
society and people

• Manage work activities to

minimize the detrimental
effects of IT

• Optimize the beneficial

effects
Chapter 13
Security and
24
Ethical
Challenges
 Business Ethics

• Ethics questions that managers confront as part of their daily business

decision making include:
• Equity
• Rights
• Honesty
• Exercise of corporate power
Chapter 13
Security and
25
Ethical
Challenges
 Corporate Social Responsibility Theories
• Stockholder Theory
• Managers are agents of the stockholders
• Their only ethical responsibility is to increase the profits of the business without
violating the law or engaging in fraudulent practices

• Social Contract Theory

• Companies have ethical responsibilities to all members of society, who allow
corporations to exist

• Stakeholder Theory
• Managers have an ethical responsibility to manage a firm for the benefit of all its
Chapter 13
stakeholders
26
Security and
Ethical
Challenges

• Stakeholders are all individuals and groups that have a stake in, or claim on, a company
 Principles of Technology Ethics
• Proportionality - The good achieved by the technology must outweigh the harm or
risk; there must be no alternative that achieves the same or comparable benefits with
less harm or risk

• Informed Consent - Those affected by the technology should understand and accept
the risks

• Justice
• The benefits and burdens of the technology should be distributed fairly
• Those who benefit should bear their fair share of the risks, and those who do not
benefit should not suffer a significant increase in risk

• Minimized Risk - Even if judged acceptable by the other three guidelines, the
Chapter 13
technology must
27 be implemented so as to avoid all unnecessary risk Security and
Ethical
Challenges
 Responsible Professional Guidelines

• A responsible professional
• Acts with integrity
• Increases personal competence
• Sets high standards of personal performance
• Accepts responsibility for his/her work
• Advances the health, privacy, and general
welfare of the public Chapter 13
Security and
28
Ethical
Challenges
 Computer Crime

• Computer crime includes

• Unauthorized use, access, modification, or destruction of hardware, software, data, or
network resources

• The unauthorized release of information

• The unauthorized copying of software
• Denying an end user access to his/her own hardware, software, data, or network resources
• Using or conspiring to use computer or network resources illegally to obtain information or
tangible property
Chapter 13
Security and
29
Ethical
Challenges
 Hacking

• Hacking is
• The obsessive use of computers
• The unauthorized access and use of networked computer systems
• Electronic Breaking and Entering
• Hacking into a computer system and reading files, but neither stealing nor damaging anything
• Cracker
• A malicious or criminal hacker who maintains knowledge of the vulnerabilities found for
Chapter 13
Security and
private advantage
30
Ethical
Challenges
• Denial of Service
Common Hacking Tactics
• Hammering a website’s equipment with too many requests for information

• Clogging the system, slowing performance, or crashing the site

• Scans

• Widespread probes of the Internet to determine types of computers, services, and connections

• Looking for weaknesses

• Sniffer

• Programs that search individual packets of data as they pass through the Internet

• Capturing passwords or entire contents

• Spoofing
Chapter 13
Security and
• 31
Faking an e-mail address or Web page to trick users into passing along critical information like
Ethical
Challenges
passwords or credit card numbers
• Trojan House Common Hacking Tactics
• A program that, unknown to the user, contains instructions that exploit a known
vulnerability in some software
• Back Doors
• A hidden point of entry to be used in case the original entry point is detected or blocked
• Malicious Applets
• Tiny Java programs that misuse your computer’s resources, modify files on the hard
disk, send fake email, or steal passwords
• War Dialing
• Programs that automatically dial thousands of telephone numbers in search of a way in
through a modem connection
Chapter 13

• Logic Bombs 32
Security and
Ethical
Challenges

• An instruction in a computer program that triggers a malicious act

 Common Hacking Tactics

• Buffer Overflow

• Crashing or gaining control of a computer by sending too much data to buffer memory

• Password Crackers

• Software that can guess passwords

• Social Engineering

• Gaining access to computer systems by talking unsuspecting company employees out of

valuable information, such as passwords

• Dumpster Diving
Chapter 13
• Sifting
33 through a company’s garbage to find information to help break into their computers
Security and
Ethical
Challenges
 Unauthorized Use at Work
• Unauthorized use of computer systems and networks is time and resource
theft
• Doing private consulting
• Doing personal finances
• Playing video games
• Unauthorized use of the Internet or company networks
• Sniffers
• Used to monitor network traffic or capacity
Chapter 13
• Find evidence of improper use
34
Security and
Ethical
Challenges
 Internet
• General email abuses
Abuses in the Workplace
• Unauthorized usage and access
• Copyright infringement/plagiarism
• Newsgroup postings
• Transmission of confidential data
• Pornography
• Hacking
• Non-work-related download/upload
• Leisure use of the Internet
Chapter 13
• Use of external ISPs
35
Security and
Ethical
Challenges
• Moonlighting
 Software Piracy

• Software Piracy
• Unauthorized copying of computer programs
• Licensing
• Purchasing software is really a payment
for a license for fair use A third of the software industry’s
revenues are lost to piracy
• Site license allows a certain number of copies Chapter 13
Security and
36
Ethical
Challenges
 Theft of Intellectual Property
• Intellectual Property
• Copyrighted material
• Includes such things as music, videos, images, articles, books, and software
• Copyright Infringement is Illegal
• Peer-to-peer networking techniques have made it easy to trade pirated intellectual
property

• Publishers Offer Inexpensive Online Music

• Illegal downloading of music and video is Chapter 13
Security and
down and continues
37 to drop Ethical
Challenges
 Viruses and Worms
• A virus is a program that cannot work without being inserted into another
program
• A worm can run unaided
• These programs copy annoying or destructive routines into networked
computers
• Copy routines spread the virus
• Commonly transmitted through
• The Internet and online services
• Email and file attachments Chapter 13
Security and
38
• Disks from contaminated computers Ethical
Challenges