Week 11: Chapter 9 - Managerial Support Systems

1. The decision process proposed by Simon composed of three major phases: intelligence, design, and choice.


The intelligence phase involves managers examining a situation and identifying and defining the problem.


In the design phase, decision makers construct a model that simplifies the problem. The model is constructed by making assumptions that simplify reality and by expressing the relationships among all relevant variables.


The choice phase involves selecting a solution that is tested “on paper”.


2. Managers need IT support to make good decisions with valid and relevant information.


3. The decision matrix consists of nine cells that comprises of three primary classes of problem structure and three broad categories of the nature of decisions.Lower-level managers usually perform the structured and operational control-oriented tasks (cells 1, 2 and 4). The tasks in cells 3. 5,and 7 are usually the responsibility of middle managers and professional staff. The remaining cells 6, 8, and 9 refer to the tasks normally undertaken by senior executives.


4. Data mining involves searching for valuable business information in a large database, data warehouse, or data mart. It performs two basic functions: predicting trends and behaviours and identifying previously unknown patterns. Data mining addresses why it is happening and provides predictions of what will happen in the future.


5. A digital dashboard provides rapid access to timely information and direct access to management reports. It is very user friendly and is supported by graphics. Most importantly it allows managers to examine exception reports and drill-down reports.