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Chapter 12 Enhancing Decision Making 509

For making unstructured decisions, middle managers and analysts will use decision-support systems (DSS)
with powerful analytics and modeling tools, including spreadsheets and pivot tables. Senior executives
making unstructured decisions use dashboards and visual interfaces displaying key performance information
affecting the overall profitability, success, and strategy of the firm. The balanced scorecard and business
performance management are two methodologies used in designing executive support systems (ESS).

5. What is the role of information systems in helping people working in a group make decisions more efficiently?
Group decision-support systems (GDSS) help people working together in a group arrive at decisions more
efficiently. GDSS feature special conference room facilities where participants contribute their ideas using
networked computers and software tools for organizing ideas, gathering information, making and setting
priorities, and documenting meeting sessions.

Key Terms

Balanced scorecard method, 504 Implementation, 488
Behavioral models, 488 Informational role, 489
Business performance management Intelligence, 488
(BPM), 505 Interpersonal role, 489
Choice, 488 Key performance indicators (KPIs), 504
Classical model of management, 488 Managerial roles, 489
Data visualization, 499 Pivot table, 502
Decisional role, 489 Predictive analytics, 497
Design, 488 Semistructured decisions, 486
Drill-down, 505 Sensitivity analysis, 502
Geographic information systems (GIS), 499 Structured decisions, 486
Group decision-support systems (GDSS), 505 Unstructured decisions, 486

Review Questions

1. What are the different types of decisions and how • List and describe the analytic functionalities
does the decision-making process work? provided by BI systems.
• List and describe the different levels of • Compare two different management strategies
decision making and decision-making for developing BI and BA capabilities.
constituencies in organizations. Explain how
4. How do different decision-making constituencies
their decision-making requirements differ.
in an organization use business intelligence?
• Distinguish between an unstructured,
• List each of the major decision-making
semistructured, and structured decision.
constituencies in an organization and describe
• List and describe the stages in decision the types of decisions each makes.
making.
• Describe how MIS, DSS, or ESS provide
2. How do information systems support the activi- decision support for each of these groups.
ties of managers and management decision • Define and describe the balanced scorecard
making? method and business performance
• Compare the descriptions of managerial management.
behavior in the classical and behavioral models.
5. What is the role of information systems in
• Identify the specific managerial roles that can helping people working in a group make
be supported by information systems. decisions more efficiently?
3. How do business intelligence and business • Define a group decision-support system
analytics support decision making? (GDSS) and explain how it differs from a DSS.
• Define and describe business intelligence and • Explain how a GDSS works and how it provides
business analytics. value for a business.
• List and describe the elements of a business
intelligence environment.

MIS_13_Ch_12 global.indd 509 1/17/2013 2:30:35 PM