978-0073402987 Chapter 2 Section 2.1 Decision Support Systems

Type

Solution Manual

Book Title

Business Driven Information Systems 5th Edition

ISBN 13

978-0073402987

978-0073402987 Chapter 2 Section 2.1 Decision Support Systems

April 4, 2019

DECISIONS AND PROCESSES

VALUE DRIVEN BUSINESS

This guide provides a number of classroom activities, videos, and debates to

accompany Business Driven Information Systems Fourth Edition. A few

course suggestions:

Create one or two test questions based on the classroom activity to help

reward students who attend lectures.

Many professors have found that assigning an activity and then lecturing

on the material helps students gain a deeper understanding of the core

MIS concepts as they have already struggled with applying the material to

a real-world situation.

Asking a small group of students to explain their answer to the activity to

the entire class after completion ensures students come to class

prepared. I select a different group each activity to explain their answer

and they do not want to look unprepared in front of their fellow

classmates. It is a powerful motivator to get my students reading prior to

class. After the activity and student’s presentations then I lecture – keeps

my students engaged and helps to achieve a higher level of learning

outcomes as they are constantly tasked with applying the concepts during

class.

Create an Ask the Professor Discussion board that runs the entire course

where students can ask course and content related questions. I typically

promise to respond within 24 hours and I always encourage my students

to check the discussion board before sending an email. Many times if one

student a questions so do other students.

**Three Before Me Rule! This is something I have found that saves a

great deal of time answering email. I state the Three Before Me rule in

my syllabus. Before a student comes to me with a question they must

provide three sources they used to answer the question themselves. This

signiticantly cuts down on emails as many times students can 1nd the

answer to their questions but it seems easier just to email the professor.

Sources can include the syllabus, the Ask The Professor Q&A Discussion

Board, classmates, the textbook, etc. If I ask the student for the three

sources and they do not have them I dock participation points. Works

great on signiticantly cutting down my emails and helps to prepare my

students for the real world!

The core chapter material is covered in detail in the PowerPoint slides.

Each slide contains detailed teaching notes including exercises, class

activities, questions, and examples. Please review the PowerPoint slides

CHAPTER

for detailed notes on how to teach and enhance the core chapter material.

Enjoy your course and best of luck!

Paige Baltzan

Decision making and problem solving encompass large-scale,

opportunity-oriented, strategically focused solutions. Students today must

posse’s decision-making and problem-solving abilities to compete in the

ebusiness world. Organizations today can no longer use a “cook book”

approach to decision making. This chapter focuses on technology to help

make decisions, solve problems, and 1nd new innovative opportunities

including:

Transaction processing system

Decision support systems

Executive information systems

Arti1cial intelligence (AI)

Business process modeling

Business process management

Business process improvement

Business process reengineering

SECTION 2.1 – DECISION SUPPORT SYSTEMS

Making Organizational Business Decisions

Measuring Organization Business Decisions

Using MIS to Make Business Decisions

Using AI to Make Business Decisions

SECTION 2.2 – BUSINESS PROCESSES

Managing Business Processes

Using MIS to Improve Business Processes

SECTION 2.1

DECISION SUPPORT SYSTEMS

What is the value of information? The answer to this important question

varies depending on how the information is used. Two people looking at the

exact same pieces of information could extract completely di(erent value

from the information depending on the tools they are using to look at the

information. This chapter discusses technologies that people can use to help

make decisions and solve problems.

LEARNING OUTCOMES

Learning Outcome 2.1: Explain the importance of decision making

for managers at each of the three primary organization levels along

with the associated decision characteristics.

Decision-making skills are essential for all business professionals, at every

company level, who make decisions that run the business. At the operational

level, employees develop, control, and maintain core business activities

required to run the day-to-day operations. Operational decisions are

considered structured decisions, which arise in situations where established

processes offer potential solutions. Structured decisions are made frequently

and are almost repetitive in nature; they affect short-term business

strategies.

At the managerial level, employees are continuously evaluating company

operations to hone the firm’s abilities to identify, adapt to, and leverage

change. Managerial decisions cover short- and medium-range plans,

schedules, and budgets along with policies, procedures, and business

objectives for the firm. These types of decisions are considered

semistructured decisions; they occur in situations in which a few established

processes help to evaluate potential solutions, but not enough to lead to a

de1nite recommended decision.

At the strategic level, managers develop overall business strategies, goals,

and objectives as part of the company’s strategic plan. They also monitor the

strategic performance of the organization and its overall direction in the

political, economic, and competitive business environment. Strategic

decisions are highly unstructured decisions, occurring in situations in which

no procedures or rules exist to guide decision makers toward the correct

choice. They are infrequent, extremely important, and typically related to

long-term business strategy.

Learning Outcome 2.2: De0ne critical success factors (CSFs) and key

performance indicators (KPIs), and explain how managers use them

to measure the success of MIS projects.

Metrics are measurements that evaluate results to determine whether a

project is meeting its goals. Two core metrics are critical success factors and

key performance indicators. CSFs are the crucial steps companies perform to

achieve their goals and objectives and implement their strategies and

include creating high-quality products, retaining competitive advantages,

and reducing product costs. KPIs are the quanti1able metrics a company

uses to evaluate progress toward critical success factors. KPIs are far more

specific than CSFs; examples include turnover rates of employees,

percentage of help-desk calls answered in the first minute, and number of

products returned.

It is important to understand the relationship between critical success factors

and key performance indicators. CSFs are elements crucial for a business

strategy’s success. KPIs measure the progress of CSFs with quanti1able

measurements, and one CSF can have several KPIs. Of course, both

categories will vary by company and industry. Imagine improved graduation

rates as a CSF for a college.

Learning Outcome 2.3: Classify the different operational support

systems, managerial support systems, and strategic support

systems, and explain how managers can use these systems to make

decisions and gain competitive advantages.

Being able to sort, calculate, analyze, and slice-and-dice information is

critical to an organization’s success. Without knowing what is occurring

throughout the organization there is no way that managers and executives

can make solid decisions to support the business. The different operational,

managerial, and strategic support systems include:

Operational: A transaction processing system (TPS) is the basic

business system that serves the operational level (analysts) in an

organization. The most common example of a TPS is an operational

accounting system such as a payroll system or an order-entry system.

Managerial: A decision support system (DSS) models information to

support managers and business professionals during the

decision-making process.

Strategic: An executive information system (EIS) is a specialized DSS

that supports senior level executives within the organization.

Learning Outcome 2.4: Describe arti0cial intelligence and identify

its 0ve main types.

Arti1cial intelligence (AI) simulates human thinking and behavior, such as the

ability to reason and learn. The 1ve most common categories of AI are:

1. Expert systems—computerized advisory programs that imitate the

reasoning processes of experts in solving diCcult problems.

2. Neural networks—attempts to emulate the way the human brain

works.

3. Genetic algorithm—a system that mimics the evolutionary,

survival-of-the-1ttest process to generate increasingly better solutions

to a problem.

4. Intelligent agents—a special-purpose knowledge-based information

system that accomplishes specific tasks on behalf of its users.

5. Virtual reality—a computer-simulated environment that can be a

simulation of the real world or an imaginary world.

CLASSROOM OPENER

GREAT BUSINESS DECISIONS – Walt Disney Decides to Call

His Mouse Cartoon Character Mickey, not Mortimer

Sunday, November 18, 1928, is a historic moment in time since it is the day

that the premier of Steamboat Willie debuted, a cinematic epic of seven

minutes in length. This was the first cartoon that synchronized sound and

action.

Like all great inventions, Mickey Mouse began his life in a garage. After going

bankrupt with the failure of his Laugh O Gram Company, Walt Disney decided

to rent a camera, assemble an animation stand, and set up a studio in his

uncle’s garage. At the age of 21, Walt and his older brother Roy launched the

Disney Company in 1923. The company had a rocky start. Its first 1lm, Alice,

hardly made enough money to keep the company in business. His second

1lm, Oswald the Rabbit, was released in 1927 with small fanfare. Then

Disney’s luck changed and in 1928 he released his seven minute 1lm about a

small mouse named Mickey. Disney never looked back.

The truth is Mickey Mouse began life as Mortimer Mouse. Walt Disney’s wife,

Lilly, did not like the name and suggested Mickey instead. Walt Disney has

often been heard to say, “I hope we never lose sight of one fact – that this

was all started by a mouse.”

Would Mortimer have been as successful as Mickey? Would Mortimer have

been more successful than Mickey? How could Walt Disney have used

technology to help support his all-important decision to name his primary

character? There are many new technologies helping to drive decision

support systems, however it is important to note that some decisions, such

as the name of a mouse, are made by the most complex decision support

system available - the human brain.

CLASSROOM EXERCISE

Building Arti0cial Intelligence

The idea of robots and arti1cial intelligence is something that has captured

people’s attention for years. From the robots in Star Wars to the surreal

computer world in the Matrix, everyone seems to be fascinated with the idea

of robots.

Break your students into groups and challenge them to build a robot. The

robot can perform any function or activity they choose. The robot must

contain a digital dashboard and enable decision support capabilities for its

owner. Have the students draw a prototype of their robot and present their

robot to the class. Have your entire class vote on which robot they would

invest in if they were a venture capital firm.

CLASSROOM EXERCISE

Great Example of DSS

The Analyst™ is a diagnostic tool, now accessible online, that 1lls the gap

between what you need and what busy, human doctors can offer. With less

and less time to address a patient's individual needs and yet more and more

research and other information to digest, incorrect and incomplete diagnoses

are frequently made On this site they have a great diagram that compares

The Analyst to a Doctor.

http://www.diagnose-me.com/?

page=dizz&gclid=CIbdzaP785ECFQwcawodfCXpxA

CLASSROOM EXERCISE

Hod Lipson Demonstrates Cool Little Robots

Hod Lipson demonstrates a few of his cool little robots, which have the ability

to learn, understand themselves and even self-replicate. At the root of this

uncanny demo is a deep inquiry into the nature of how humans and living

beings learn and evolve, and how we might harness these processes to make

things that learn and evolve.

Hod Lipson works at the intersection of engineering and biology, studying

robots and the way they "behave" and evolve. His work has exciting

implications for design and manufacturing -- and serves as a window to

understand our own behavior and evolution.

http://www.ted.com/index.php/talks/view/id/165

CLASSROOM EXERCISE

Building AI – Facebook Founders Fund AI Start-Up

The idea of robots and arti1cial intelligence is something that has captured

people’s attention for years. From the robots in Star Wars to the surreal

computer world in the Matrix, everyone seems to be fascinated with the idea

of robots.

Arti1cial intelligence research start-up Vicarious announced today that it has

received a $15 million Series A round led by Good Ventures. The funding

values the company at more than $100 million.

http://www.inc.com/john-mcdermott/facebook-founders-fund-arti1cial-intellig

ence-start-up.html

Break your students into groups and challenge them to build a robot to

compete for a $15 million grant from Facebook. The robot can perform any

function or activity they choose. The robot must contain a digital dashboard

and enable decision support capabilities for its owner. Have the students

draw a prototype of their robot and present their robot to the class. Have

your entire class vote on which robot they would invest in if they were a

venture capital firm.

***Best Videos for Class – show them in order to see the advances in

technology!

Nao Robot Example (3 mins)

http://www.youtube.com/watch?v=2STTNYNF4lk

NAO Next Generation (3 mins)

http://www.youtube.com/watch?v=nNbj2G3GmAo&feature=related

NAO Robots – All The Single Ladies Dance (Students will LOVE this!!)

http://www.youtube.com/watch?v=vgEFC8Eb6i4&feature=related

CLASSROOM VIDEO

Something to Get Their Attention

Sheena Lyengar did her thesis work on “how people make decisions.” Great

Ted.com to show your students.

http://www.ted.com/talks/sheena_iyengar_on_the_art_of_choosing.html

CLASSROOM VIDEO

Take a Walk or a Drive – Virtually!

This is an interesting website where you can view yourself walking or driving

down streets in different cities. I use this as a decision support tool to use to

map a tour if I was planning a trip to one of these cities. There is an

excellent video on the website that demonstrates the amazing capabilities of

Streetside.

http://www.microsoft.com/maps/en-GB/streetside.aspx

How can you use Streetside to improve business decisions?

How can you use Streetside to uncover business intelligence?

How can you use Streetside to develop a new business idea?

How can you use Streetside to revamp a business process

CLASSROOM EXERCISE

DSS Everywhere!

•Break your students into groups and ask them to compare sensitivity

analysis, what-if analysis, and goal-seeking analysis and to provide a

business example of when they would use each type?

Sensitivity analysis – studies the impact on a single change in a

current model. For example – if we continually change the amount

of inventory we carry, how low can our inventories go before issues

start occurring in other parts of the supply chain? This would

require changing the inventory level and watching the model to see

“how sensitive” it is to inventory levels.

What-if analysis – determines the impact of change on an

assumption or an input. For example – if the economic condition

improves, how will it affect our sales?

Goal-seeking analysis – solves for a desired goal. For example – we

want to improve revenues by 30 percent, how much does sales

have to increase and costs have to decrease to meet this goal?

•Can you name a few different situations when you would use

consolidation, drill-down, and slice-and-dice?

Consolidation would occur when grouping multiple store sales

together to get a total for the company

Drill-down would occur when digging into the numbers on the

balance sheet or income statement, such as revenues broken down

into individual product revenues for each store during different

dates and times

Slice-and-dice would occur when users begin looking at information

with different dimensions, similar to the cubes of information

CLASSROOM EXERCISE

Measuring efficiency and effectiveness

Break your students into groups and ask them to create a plan to measure

the eCciency and effectiveness of this course and recommendations on how

they would improve the course to make it more eCcient and more effective.

Student answers to this exercise will vary. They will need to determine ways

to benchmark current eCciency and effectiveness and ways to continuously

monitor and measure against the benchmarks to determine if the course is

becoming more or less eCcient and effective (class quizzes and exams are

the most obvious benchmarks). Ask your students to present their plan and

recommendations to the entire class. Be sure students’ plans and

recommendations address the following:

•Design of the classroom

•Room temperature

•Lighting and electronic capabilities of the classroom

•Technology available in the classroom

•Length of class

•Email and instant messaging

•Students’ attendance

•Students’ preparation

•Students’ arrival time

•Quizzes and exams (frequency, length, grades)

TEN WORST DRIVING DECISION ON VIDEO

Great way to kick o( a discussion on how decisions impact business. People

have accidents. That’s not what this post is about. People also do stupid,

reckless things. But we’re not focusing on that now either. This is about

people that obviously lack the requisite skills to operate a motor vehicle –

who were also unfortunate enough to have the evidence caught on 1lm.

http://onemansblog.com/2007/02/07/10-worst-drivers-ever-caught-on-video/

ROBOT VIDEOS – GREAT AI

Robot Violinist - Video

http://www.youtube.com/watch?v=EzjkBwZtxp4

Robot Emotions

The emotional robot Science correspondent Alok Jha visits the University of

Hertfordshire to meet an android developed to show emotions

http://www.guardian.co.uk/technology/video/2010/aug/09/emotional-robot-un

iversity-hertfordshire

Robot Babies

The State Department readies new Internet freedom policies, the FAA may

lift the ban on cell phones during air travel, and Japanese researchers are

working on robot babies.

http://news.cnet.com/1606-2_3-50100306.html

BUSINESS DRIVEN START-UP – DIGITAL DASHBOARD FOR

TRACKING JUNK

This is a great video to get your students thinking about how they can use Excel to

create a digital dashboard. Ask your students if they could setup a digital

dashboard for their courses what would it look like and how would it measure their

progress. How to Setup a Digital Dashboard in Microsoft Excel

http://www.youtube.com/watch?v=V9GMCS-WjyI

Business Dashboards

http://www.microstrategy.com/dashboards/

CORE MATERIAL

The core chapter material is covered in detail in the PowerPoint slides. Each

slide contains detailed teaching notes including exercises, class activities,

questions, and examples. Please review the PowerPoint slides for detailed

notes on how to teach and enhance the core chapter material.

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978-0073402987 Chapter 2 Section 2.1 Decision Support Systems

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Business Driven Information Systems 5th Edition