Ebebe James Chibueze - Information Technology used in innovative systems

Ebebe James Chibueze advances in computer-based information technology in recent years have led to a wide variety of systems that managers are now using to make and implement decisions. By and large, these systems have been developed from scratch for specific purposes and differ significantly from standard electronic data processing systems.

Ebebe James Chibueze - Too often, unfortunately, managers have little say in the development of these decision support systems; at the same time, non-managers who do develop them have a limited view of how they can be used. In spite of these drawbacks, the author found that a number of the 56 systems he studied are successful. And the difference between success and failure is the extent to which managers can use the system to increase their effectiveness within their organizations. Thus, the author suggests that this is the criterion designers and managers should jointly ascribe to in exploiting the capabilities of today’s technologies.

What can managers realistically expect from computers other than a pile of reports a foot deep dumped on their desks every other week? Ebebe James Chibueze everyone knows, for instance, that computers are great at listing receivables. But what about all the promises and all the speculations over the past few decades about the role of the computer in management? While there have been advances in basic information retrieval, processing, and display technologies, my recent study of 56 computerized decision support systems confirms the common wisdom that very few management functions have actually been automated to date and all indications are that most cannot be.

Types of Decision Support Systems

Ebebe James Chibueze while there are many ways to categorize computer systems, a practical one is to compare them in terms of what the user does with them:

• Retrieves isolated data items.
• Uses as a mechanism for ad hoc analysis of data files.
• Obtains pre-specified aggregations of data in the form of standard reports.
• Estimates the consequences of proposed decisions.
• Proposes decisions.
• Makes decisions.

Incidentally, it is interesting to note that external consultants developed the systems cited in my second, fifth, and seventh examples, while those of the first, third, and sixth were the creations of people acting as internal entrepreneurs through staff roles; only the fourth system was developed on direct assignment by the user. This same pattern of initiation of innovative systems by people other than the users was present in many of the 56 systems.

1. Retrieval only—a shop floor information system.

2. Retrieval and analysis—a portfolio analysis system.

3. Multiple data bases plus analysis—sales information systems.

4. Evaluating decisions using an accounting model—a source-and-application-of-funds budget.

5. Evaluating decisions using a simulation model—a marketing decision system.

6. Proposing decisions—optimization of raw materials usage.

7. Making decisions—an insurance renewal rate system.