1Fundamentals of Information Systems, Third EditionPrinciples and Learning Objectives Good decision-making and problem-solving skills are the key to developing effective information and decision support systems. Define the stages of decision making. Discuss the importance of implementation and monitoring in problem solving.2Fundamentals of Information Systems, Third EditionPrinciples and Learning Objectives (continued) The management information system (MIS) must provide the right information to the right person in the right fashion at the right time. Explain the uses of MISs and describe their inputs and outputs. Discuss information systems in the functional areas of business organizations.3Fundamentals of Information Systems, Third EditionPrinciples and Learning Objectives (continued) Decision support systems (DSSs) are used when the problems are unstructured. List and discuss important characteristics of DSSs that give them the potential to be effective management support tools. Identify and describe the basic components of a DSS.4Fundamentals of Information Systems, Third EditionPrinciples and Learning Objectives (continued) Specialized support systems, such as group support systems (GSSs) and executive support systems (ESSs), use the overall approach of a DSS in situations such as group and executive decision making. State the goals of a GSS and identify the characteristics that distinguish it from a DSS. Identify the fundamental uses of an ESS and list the characteristics of such a system.5Fundamentals of Information Systems, Third EditionDecision Making and Problem Solving: Decision Making as a Component of Problem Solving Decision-making phase: first part of problem- solving process Intelligence stage: potential problems or opportunities are identified and defined Design stage: alternative solutions to the problem are developed Choice stage: a course of action is selected6Fundamentals of Information Systems, Third EditionDecision Making as a Component of Problem Solving (continued)Figure 6.1: How Decision Making Relates to Problem Solving7Fundamentals of Information Systems, Third EditionDecision Making as a Component of Problem Solving (continued) Problem solving: a process that goes beyond decision making to include the implementation stage Implementation stage: a solution is put into effect Monitoring stage: decision makers evaluate the implementation8Fundamentals of Information Systems, Third EditionProgrammed Versus Nonprogrammed Decisions Programmed decisions Decisions made using a rule, procedure, or quantitative method Easy to computerize using traditional information systems9Fundamentals of Information Systems, Third EditionProgrammed Versus Nonprogrammed Decisions (continued) Nonprogrammed decisions Decision that deals with unusual or exceptional situations Not easily quantifiable10Fundamentals of Information Systems, Third EditionOptimization, Satisficing, and Heuristic Approaches Optimization model: a process that finds the best solution, usually the one that will best help the organization meet its goals Satisficing model: a process that finds a goodbut not necessarily the bestproblem solution Heuristics: commonly accepted guidelines or procedures that usually find a good solution11Fundamentals of Information Systems, Third EditionAn Overview of Management Information Systems: Management Information Systems in Perspective A management information system (MIS) provides managers with information that supports effective decision making and provides feedback on daily operations The use of MISs spans all levels of management12Fundamentals of Information Systems, Third EditionManagement Information Systems in Perspective (continued)Figure 6.3: Sources of Managerial Information 13Fundamentals of Information Systems, Third EditionInputs to a Management Information System Internal data sources TPSs and ERP systems and related databases; data warehouses and data marts; specific functional areas throughout the firm External data sources Customers, suppliers, competitors, and stockholders, whose data is not already captured by the TPS; the Internet; extranets14Fundamentals of Information Systems, Third EditionOutputs of a Management Information System Scheduled report: produced periodically, or on a schedule Key-indicator report: summary of the previous days critical activities Demand report: developed to give certain information at someones request Exception report: automatically produced when a situation is unusual or requires management action Drill-down report: provides increasingly detailed data about a situation15Fundamentals of Information Systems, Third EditionFunctional Aspects of the MIS Most organizations are structured along functional lines or areas The MIS can be divided along functional lines to produce reports tailored to individual functions16Fundamental