Chapter 8 Models and Decision Support The Strategic Management of Information Technology
Chapter 8 Models and Decision Support The Strategic Management of Information Technology
Transaction Processing System Input Process Output Software Design Systems Development Communication Information
Transaction Processing System Input Process Output Information Communication Systems Development Software Design
Mode Specific Way of Looking at the World specific and concrete mathematical equations subjective descriptions financial models consumer models management models Assist in Understanding more complex Issues enable comparison between model and actual results Some Processes Defy Modeling Too much variability or complexity
Model Specific Way of Looking at the World – specific and concrete – mathematical equations – subjective descriptions – financial models – consumer models – management models Assist in Understanding More Complex Issues – enable comparison between model and actual results Some Processes Defy Modeling – Too much variability or complexity
Uses of models Optimization Prediction Description Simulation
Uses of Models Optimization Prediction Description Simulation
Dangers of Models Number of alternatives Expense Time Difficulty to Mirror Reality
Dangers of Models Number of Alternatives Expense Time Difficulty to Mirror Reality
Biases in Decision-Making Acquisition(input) Processing Output Feedback
Biases in Decision-Making Acquisition (input) Processing Output Feedback
Re-Engineering Analyze and Model the Entire Company Make Major Changes to the Operation of the business Small Changes over Time can actually cause a business to be misaligned with its Target
Re-Engineering Analyze and Model the Entire Company Make Major Changes to the Operation of the Business Small Changes over Time can Actually cause a business to be misaligned with its Target
Object-Oriented Models Specify Attributes and Functions of Each Object Add New attributes to portray actual movement Capacity Time Required to Complete a Job Cost Physical objects Customer Order Entry Department Inventory Shipping Data objects Purchase Orders Routing Slips Parts Lists Shipping Schedules Invoices
Object-Oriented Models Specify Attributes and Functions of Each Object – Add New Attributes to Portray Actual Movement Capacity Time Required to Complete a Job Cost Physical Objects – Customer – Order Entry Department – Inventory – Shipping Data Objects – Purchase Orders – Routing Slips – Parts Lists – Shipping Schedules – Invoices
Operations Problems Operations Problems Well-Defined, Easy to Solve Transaction Processing Systems Collect the data Decision Affects Business for a day or Two
Operations Problems Operations Problems – Well-Defined, Easy to Solve – Transaction Processing Systems Collect the Data – Decision Affects Business for a Day or Two
Decision Support Systems Database Collects Model Evaluates Model should directly Access Database Different Brands of software are Used for Each Component Output Produces Graphs
Decision Support Systems Database – Collects Model – Evaluates – Model should Directly Access Database – Different Brands of Software are Used for Each Component Output – Produces – Graphs