ECofINN Topic 2
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THE DECISION-MAKING PROCESS;
THE BASIC STEPS
Define the problem
Analyze it and evaluate options
Make the decision
Implement the decision
Review the decision
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CHARACTERISTICS OF INFORMATION FOR MANAGEMENT DECISION
strategic
tactical
operational |
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Mostly internal |
Internal & external |
External |
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information; |
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information; less detail, |
information in |
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detailed |
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more summary |
summary form |
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Inputs
Manager’s
Instruction
Procedures
Technical
Manuals
Options, i knowledge
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GETTING THE RIGHT INFORMATION TO MAKE DECISION
Output
Team |
Product or |
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service |
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Knowledge |
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and |
Solution to |
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experience |
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problem |
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FORMAL INFORMATION SYSTEMS FOR
MANAGEMENT SUPPORT
Management information systems (MIS)
Decision support systems (DSS)
Executive support systems (ESS)
Expert Systems (ES)
Knowledge Management Systems (KMS)
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MIS
MANAGEMENT INFORMATION SYSTEMS
Strategic |
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(top-level) |
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managers |
External |
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data |
Tactical (middle-level) 
managers
Operational (lower-
level) managers
MIS
TPS
Transaction Processing systems |
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TPS software |
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TPS stored data |
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DSS
DECISION SUPPORT SYSTEMS
DSS database
Users |
DSS |
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software |
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(decision makers) |
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DSS
model base
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Users (top-level managers)
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ESS - EXECUTIVE SUPPORT SYSTEMS (OR KNOWN AS EXECUTIVE INFORMATION SYSTEM)
External database MIS 
database 
Special database
ESS
software
Personal database
Electronic mailboxes
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OTHER SYSTEMS
Increasingly, managers are looking at more sophisticated methods such as Expert Systems that mimic the way a human would analyze a situation and recommend a particular course of action, and Knowledge Management systems that can organize, store and enable shared access to the collective knowledge of the organization.
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EXPERT SYSTEMS
ES is the software which
replicates experts-specialists knowledge for novices.
(A computer application that performs a task that would otherwise be performed by a human expert)
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MAIN BLOCKS OF ES
Knowledge base consists of sentences which define
knowledge with the use of super-high-level languages
which are called knowledge representation languages.
It is the kernel of the expert system.
Inference engine is a program which simulates the process of expert reasoning or decision making. Explanation subsystem makes ES transparent, so that user can always receive answer for questions:
HOW and WHY.
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