To p ic 6 :

MANA G E R IA L
O RT S YS TE M S
SUPP
t h e r i n e U . M a li g , M B A
Pr e p a r e d by : M r s . C a
 Content
Content Content
• Geographic
• Decision Support Information
• Virtual Reality
System Systems
• Data Mining • Intelligence
• Knowledge
• Group Support System
Management
Systems • Artificial
Intelligence
 Learning Learning
OBJeCTIVEs Objectives
Identify the different Explain how managerial
managerial support support systems
systems provide support to the
manager or a small
group strategically and
tactically.
 Decision support systems

Designed to assist decision makers with

unstructured problems.
Usually interactive
Incorporates data and models
Data often comes from transaction processing
systems or data warehouse
 Decision support systems

Three major components:

Data management-select and handle appropriate
data
Model management-apply the appropriate model
Dialog management-facilitate user interface to
the DSS
 Decision support systems
Specific DSS – actual DSS applications that directly assist in decision
making.
DSS generator – a software package used to build a specific DSS
quickly and easily
Example: Microsoft Excel used to create

DSS Generator used to create --- DSS Model 1

DSS Model 2
DSS Model 3
DATA MINING-Employs different technologies to search for
(mine) “nuggets” of information from data stored in a data
warehouse
Decision
Techniques
Rule induction
Decision trees
Linear and logistic Statistical extraction
regression of if-then rules
Association rules for Nearest neighbor
finding patterns Genetic algorithms
Clustering for market
segmentation
 DATA mining-(OLAP)

• Essentially querying against a database

• Program extracts data from the database
and structures it by individual dimensions,
such as region or dealer
• OLAP described as human-driven, whereas
data mining is technique-driven
 data mining

• Oracle 10g Data Mining

• SAS Enterprise Miner
• XLMiner
• IBM Intelligent Miner Modeling
• Angoss Software's KnowledgeSEEKER, Knowledge
STUDIO, and StrategyBUILDER
 data mining

• MonkeyLearn - No-code text mining tools

• RapidMiner - Drag and drop workflows or data mining
in Python
• Oracle Data Mining - Predictive data mining models
• IBM SPSS Modeler - A predictive analytics platform for
data scientists
• Weka - Open-source software for data mining
 data mining
6. Knime - Pre-built components for data mining projects
7. H2O -Open-source library offering data mining in
8. Python Orange |-Open-source data mining toolbox
9. Apache Mahout | Ideal for complex and large-scale data
mining
10.SAS Enterprise Miner | Solve business problems with
data mining
 USES of data mining
Description
Application
Identify products and services that will most
appeal to existing customer segments and
Cross- develop ross-sell offers tailored to each segment
Predict which customers are likely to leave your
selling company and go to a competitor and target those
Customer Churn customers at highest risk

Identify customer characteristics associated with

Customer highest lieftime value and develop strategies to
retain these customers over the long term.
retention
 USES of data mining
Description
Application

Direct Identify which prospects should be included

in a mailing list to obtain the highest
Marketing response rate.
Identify which transactions are most likely to be
fraudulent based on purchase patterns and
Fraud trends
detection
Predict what each individual accessing a
Interactive marketing
web site most likely interested in seeing.
 USES of data mining
Description
Application
Market basket Understand what products or sevices are
commonly purchased together (Ex. Beer and
analysis Diapers) and develop appropriate marketing
strategies.
Segment existing customers and prospects into
Market appropriate groups for promotional and evaluation
purposes and determine how to approach each
Segmentatio segment for maximum results.
n
Identify specific patterns to predict when and
Payment or why customers default on payments
default analysis
 USES of data mining
Description
Application
Trend Investigate the difference between an
average purchase this month versus
analysis
last month and prior months
 data mining EXAMPLE
American Honda Motor Co.
• Uses SAS Data Mining to analyze warranty claims, call center
data, customer feedback, parts sales, and vehicle sales.
• Early warning system to find forestall problems
• allows analysts to zero in on a single performance issue.
• During development, analyst identified issues with three different
vehicle models and were able to resolve the problems quickly.
 GROUP SUPPORT SYSTEMS
• Type of DSS to support a group rather than an individual
• Specialized type of groupware
• Attempt to make group meetings more productive
• Now focus on supporting team in all its endeavors,
including “different time, different place” mode – virtual
teams
• Example of GSS software: GroupSystems
 GROUP SUPPORT SYSTEMS
• Traditional same-time, same-place meeting layout
 Geographic information systems

• Systems based on manipulation of relationships in space

that use geographic data
• Early GIS users:
-Natural resource management
-Public administration
-NASA and the military
-Urban plannin-Forestry
-Map makers
 Geographic information systems

• Businesses are increasing their usage of geographic

technologies
• Business uses:
-Determining site locations
-Market analysis and planning
-Logistics and routing
-Environmental engineering
-Geographic pattern analysis
Geographic information systems
 Geographic information systems

What’s behind geographic technologies?

Approaches to representing spatial data:
• Raster-based GISs – rely on dividing space into
small, uniform cells (rasters) in a grid
• Vector-based GISs – associate features in the
landscape with a point, line, or polygon
• Coverage model – different layers represent
similar types of geographic features in the same
area and are stacked on top of one another
Questions Answered by Geographic Analysis

• What is adjacent to this feature?

• Which site is the nearest one, or how many are within a
certain distance?
• What is contained within this area, or how manay are
contained within this area?
• Which features does this element cross, or how may
paths are available?
• What could be seen from this location?
 Geographic information System

Issues for information systems organizations

• Thanks to maturity of GIS tools, organizations can acquire off-
the-shelf technologies
• Managing technology options now less of a challenge than
managing spatial data
-Base maps, zip code maps, street networks, and advertising media
market maps should be bought
-Other data are spread throughout the organization in internal
databases
 Geographic information System

GIS vendors
Environmental Systems Research Institute (ESRI)
MapInfo
Autodesk
Tactician
Intergraph Corp.
 executive information System

Executive information system (EIS)

• Hands-on tool that focuses, filters, and organizes
information so that an executive can make more
effective use of it
• Data come from
-Filtered and summarized transaction data
-Competitive information, assessments and insights
 executive information System

• Delivers online current information about

business conditions in aggregate form
• Easily accessible to senior executives and other
managers
• Designed to be used without intermediary
assistance
• Uses state-of-the-art graphics, communications
and data storage methods
 executive information System

• User base for EISs has expanded to encompass all

levels of management… new label is performance
management (PM) software
• Focus on competitive information has also lead to
the term business intelligence system
 Knowledge management System

• Set of practical and action-oriented management

practices
• Involves strategies and processes of identifying,
creating, capturing, organizing, transferring, and
leveraging knowledge to help compete
• Relies on recognizing knowledge held by individuals
and the firm
 Knowledge management Systems

• System for managing organizational knowledge

• Technology or vehicle that facilitates the sharing and
transferring of knowledge so that valuable knowledge
can be reused
• Enables people and organizations to enhance learning,
improve performance, and produce long-term
competitive advantage
 Knowledge management Systems

May have little formal management and control

• Communities of practice (COP): individuals with similar
interests
• COP KMS provides members with vehicle to exchange
ideas, tips, and other knowledge
• Members are responsible for validating and structuring
knowledge
May have extensive management and control
• KM team to oversee process of validating knowledge
• Team provides structure, organization, and packaging for
how knowledge is presented to users
 Knowledge management Systems

KMS Initiatives Within a Pharmaceutical Firm

• Corporate KMS
=KM team formed to develop organization-wide KMS
=Coordinators within communities of practice
responsible for overseeing knowledge in the community
=Portal software provides tools, including discussion
forums
=Any member of the community can post a question or
tip
 Knowledge management Systems

KMS Initiatives Within a Pharmaceutical Firm

• Field sales KMS
=Another KM team formed to build both content and
structure of KMS for field sales
=Taxonomy developed so that knowledge would be
organized separately
=KM team formats documents and enters into KMS
=Tips and advice required to go through validation and
approval process first
 Knowledge management Systems

KMS success
• Supply-side (i.e., knowledge contribution)
=Leadership commitment
=Manager and peer support for KM initiatives
=Knowledge quality control
• Demand-side (i.e., knowledge reuse)
=Incentives and reward systems
=Relevance of knowledge
=Ease of using the KMS
=Satisfaction with the use of the KMS
 Knowledge management Systems

KMS success
• Social capital
=Motivation to participate
=Cognitive capability to understand and apply
the knowledge
=Strong relationships among individuals
 artificial intelligence

• The study of how to make computers do things that are

currently done better by people
• Six areas of AI research:
-Natural languages: systems that translate ordinary human
instructions into a language that computers can understand and
execute
-Robotics: machines that accomplish coordinated physical
tasks like humans do
-Perceptive systems: machines possessing a visual and/or aural
perceptual ability that affects their physical behavior
 artificial intelligence

• Six areas of AI research

-Genetic programming: problems are divided into segments, and
solutions to these segments are linked together to breed new
solutions
-Expert systems
-Neural networks

These two systems are most relevant for managerial support

 expert systems

Attempt to capture the expertise of humans in a computer

program
Knowledge engineer:
-A specially trained systems analyst who works closely
with one or more experts in the area of study
-Learns from experts how they make decisions
-Loads decision information from experts (“rules”) into
module called knowledge base
 expert systems

MAJOR COMPONENTS OF AN EXPERT SYSTEM:

• Knowledge base: contains the inference rules that
are followed in decision making and the parameters,
or facts, relevant to the decision
• Inference engine: a logical framework that
automatically executes a line of reasoning when
supplied with the inference rules and parameters
involved in the decision
• User interface: the module used by the end user
 expert systems

Obtaining an expert system

• Buy a fully developed system created for a specific
application
• Develop using a purchased expert system shell
(basic framework) and user-friendly special
language
• Have knowledge engineers custom build using
special-purpose language (such as Prolog or Lisp)
 expert systems
Examples of Expert Systems

Stanford University's MYCIN Diagnoses and prescribes treatment for meningitis and blood
diesease

AT&Ts ACE Diagnoses mechanical problems in diesel locomotives

Market Surveillance Locates faults in telephone cables

FAST Used by banking industry for credit analysis

IDP Goal Advisor Assist in setting short-and long-range employee career goals

Nestle Foods Provides employees information pension fund status

USDA's EXNUT Helps peanut fatmers manage irrigated peanut product

 neural networks

• Designed to tease out meaningful patterns from vast amounts of data

that humans would find difficult to analyze without computer support
• Process:
1. Program given set of data
2. Program analyzed data, works out correlations, selects variables to
create patterns
3.Pattern used to predict outcomes, then results compared to known
results
4. Program changes pattern by adjusting variable weights or variables
themselves
5. Repeats process over and over to adjust pattern
6. When no further adjustment possible, ready to be used to make
predictions for future cases
 uses of neural networks

Categorization Predictive/Forecasting

Credit rating and risk assessment Share price forecast

Insurance risk evaluation Commodity price forecast

Fraud Detection Economic indicator predictions

Insider trading detection Process control

Direct mail profiling Weather predictions

Machinery defect diagnosis Future drug performance

Character recognition

Medical diagnosis Production requirements

bacteria identificiation
 virtual reality

• Use of a computer-based system to create an

environment that seems real to one or more of the
human senses
• Non-entertainment uses of VR:
-Training
-Design
-Marketing
 EXAMPLE: virtual reality

US Army to train tank cred

Training Amoco for training its drivers
Duracell for training factory workers on using
new equipment

Design of automobiles
Design
Walk-through of air conditioning/furnace units

Interactive 3-D images of products

Marketing
Virtual tours used by real estate companies or
resort hotels
EXAMPLE: virtual reality
 END OF
DISCUSSION
THANK YOU!