Mis & Decision Making

1. MIS & Decision Making By Arun Mishra

2. DECISION MAKING Decision making is the developing concepts leading to the selection of a course of action among variations. Every decision making process produces a final choice It can be an action or an opinion. It begins when we need to do something but we do not know what e.g. Decision to raise a Purchase Order

3. Decision making in business and management In general, business and management systems should be set up to allow decision making at the lowest possible level. Several decision making models or practices for business include: SWOT Analysis - Evaluation by the decision making individual or organization of Strengths, Weaknesses, Opportunities and Threats with respect to desired end state or objective. Buyer decision processes - transaction before, during, and after a purchase Corporate finance: The investment decision The financing decision The dividend decision working capital management decisions Cost-benefit analysis - process of weighing the total expected costs vs. the total expected benefits

4. Types of Decisions Unstructured/ Nonprogrammed Structured/ Programmed Semi-structured

5. Information Requirements of Key Decision-Making Groups in a Firm

6. The Decision-Making Process Phases of Decision Making Process Intelligence Design Choice Implementation

7. Stages in Decision Making

8. Phases of Decision Making Process Intelligence gathering Definition of problem Data gathered on scope Constraints identified Design phase Alternatives identified and assessed Choice Selection of an alternative Implementation Testing the selected alternative.

9. Typical Inputs and Outputs Inputs: Information from the TPS Outputs: hard and softcopy reports Scheduled reports On-demand reports Key-indicator ( business fundamentals ) Exception reports

10. MIS Support to Decision Making Process

11. Functional Perspectives of MIS Financial MIS Will integrate information from multiple sources Functions Costing P&L reporting Auditing Funds management

12. Functional Perspectives of MIS Manufacturing Design and Engineering Master Production Scheduling Inventory Control Materials Planning Manufacturing and Process Control Quality Control

13. Functional Perspectives of MIS Marketing Market research Web-based market research Pricing

14. Functional Perspectives of MIS Transportation and Logistics Route and schedule optimization Human Resources Accounting

15. Systems for Supporting Decisions Management information systems (MIS) Decision-support systems (DSS) Executive support systems (ESS) Group-decision support systems (GDSS) Intelligent techniques

16. Management Information Systems (MIS) Help managers monitor and control a business Produce regular reports on performance, such as monthly or annual sales Sometimes highlight exceptional conditions Reports often available online

17. Decision Support Systems (DSS) Support semi-structured and unstructured problem analysis Characteristics Data from multiple sources internal and external to organization Presentation flexibility Simulation and what-if capability Support for multiple decision approaches Statistical analysis

18. Components of DSS DSS database DSS software system Models Sensitivity analysis DSS user interface Examples of DSS DSS for pricing decisions in FMCG & Pharma Companies. DSS for customer relationship management in Banks

19. Group Decision-Support Systems (GDSS) Very interesting field How can information technology improve how decisions are made by groups? Interactive, computer-based systems that facilitates solving of unstructured problems by a set of decision makers Used in conference rooms with special hardware and software Support increased meeting sizes with increased productivity

20. Applications Where time is critical Where participants are geographically dispersed Where authority obstructs communication Military Business Government Group Decision-Support Systems (GDSS)

21. Common characteristics Meeting moderation/facilitation Signed and anonymous comments Structured deliberations Presentation period Comment period Automated collation of comments “Voting” Face-to-face and remote Group Decision-Support Systems (GDSS)

22. Executive Information Systems What information does a chief executive of board member require ? High level with drill down Key business and industry data Structured and unstructured information Structured: orders Unstructured: Industry newsfeed Graphical

23. Executive Information Systems Give senior executives a picture of the overall performance of an organization Enable an executive to zoom in on details or zoom out for a broader view Drill down capability Digital dashboard

24. Intelligent Systems for Decision Support Artificial intelligence (AI) Expert systems Case-based reasoning Intelligent agents

25. Intelligent Agents in P&G’s Supply Chain Network Intelligent agents are helping Procter & Gamble shorten the replenishment cycles for products, such as a box of Tide.