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Chapter 1 • An Overview of Business Intelligence, Analytics, and Decision Support 41

social media platforms, and analytical tools has enabled a much higher level of information
systems support for managers. In the next sections we study a historical classification of
decision support tasks. This leads us to be introduced to decision support systems. We will
then study an overview of technologies that have been broadly referred to as business intel-
ligence. From there we will broaden our horizons to introduce various types of analytics.

sectiOn 1.4 revieW QuestiOns
1. What are some of the key system-oriented trends that have fostered IS-supported
decision making to a new level?
2. List some capabilities of information systems that can facilitate managerial decision
making.
3. How can a computer help overcome the cognitive limits of humans?

1.5 an early FrameWork For Computerized
deCision support
An early framework for computerized decision support includes several major concepts
that are used in forthcoming sections and chapters of this book. Gorry and Scott-Morton
created and used this framework in the early 1970s, and the framework then evolved into
a new technology called DSS.

the gorry and scott-morton Classical Framework
Gorry and Scott-Morton (1971) proposed a framework that is a 3-by-3 matrix, as shown in
Figure 1.2. The two dimensions are the degree of structuredness and the types of control.

Type of Control

Operational Managerial Strategic
Type of Decision Control Control Planning
1 2 3
Accounts receivable Budget analysis Financial management
Structured Accounts payable Short-term forecasting Investment portfolio
Order entry Personnel reports Warehouse location
Make-or-buy Distribution systems
4 5 6
Production scheduling Credit evaluation Building a new plant
Inventory control Budget preparation Mergers & acquisitions
Semistructured Plant layout New product planning
Project scheduling Compensation planning
Reward system design Quality assurance
Inventory HR policies
categorization Inventory planning
7 8 9
Buying software Negotiating R & D planning
Unstructured Approving loans Recruiting an executive New tech development
Operating a help desk Buying hardware Social responsibility
Selecting a cover for Lobbying planning
a magazine

Figure 1.2 Decision Support Frameworks.

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