Turban, Aronson,

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Turban, Aronson, Liang
Decision Support Systems and
Intelligent Systems, 7th Edition
Chapter 3 Decision Support Systems
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Learning Objectives

• Learn characteristics and capabilities of DSS
• Understand DSS configurations and components
• Describe structure of DSS components
• Understand the role of the user in DSS

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Southwest Airlines Flies in the Face of
Competition Through DSS (Vignette)

• See textbook p.101
• Successfully integrates DSS applications
• Ties ERP applications to OLAP, allowing retrieval
  of financial data
• Allows access to both financial and operational
  data

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Decision Support Systems (DSS)

• Decision Support Systems (DSS) are designed to
  support managerial decision-making in
  unstructured problems
• A DSS is
• Flexible
• Adaptive
• Interactive
• GUI-based
• Iterative
• Employs modeling

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Business Intelligence (BI)

• Proactive
• Accelerates decision-making
• Increases information flows
• Components of Business Intelligence (BI)
• Real-time warehousing
• Exception and anomaly detection
• Proactive alerting and follow-up workflows
• Automatic learning and refinement

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Components of DSS

• Subsystems
• Database management system (DBMS)
• Model base management system (MBMS)
• User interface
• (Optional) Knowledge base / integration with KMS
  and Expert Systems

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Components of DSS
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Data Management Subsystem

• Components
• Database
• Database management system
• Data directory
• Query facility

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Data Management Subsystem
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Database

• Inter-related data extracted from various
  sources, stored for use by the organisation, and
  queried
• Internal data, usually from TPS
• External data from government agencies, trade
  associations, market research firms, forecasting
  firms etc.
• Private data or guidelines used by decision-makers

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Database Management System

• Extracts data
• Manages data and their relationships
• Updates (add, delete, edit, change)
• Retrieves data
• Queries and manipulates data
• Employs data dictionary (can be complex!)

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Data Dictionary

• A directory / catalogue of all data within the
  enterprise
• Contains data definitions
• Answers questions about the availability of data
  items
• Source
• Meaning
• Allows for additions, removals, and alterations

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Model Management Subsystem

• Components
• Model base management system
• Modeling language
• Model directory
• Model execution, integration, and command
  processor

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Some Types of Models

• Strategic
• Supports top management decisions
• Tactical
• Used primarily by middle management to allocate
  resources
• Operational
• Supports daily activities
• Analytical
• Used to perform analysis of data

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Model Base Management System

• Functions
• Model creation and updates
• Model data manipulation
• Generation of new routines
• Model directory
• Catalog of models
• Definitions
• May be driven by object-oriented database system

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DSS User Interface
Knowledge-based system
Data management and DBMS
Model management and MBMS
User Interface Management System (UIMS)
Natural Language Processor
Input Action Languages
Output Display Language
PC Display
Based on Figure 3.6, Schematic View of the User
Interface
Users
Printers, Plotters
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DSS User Interface

• GUI
• Natural language processor
• Interacts with model management and data
  management subsystems
• Examples
• Speech recognition
• Display panel
• Tactile interfaces
• Gesture interface

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Some DSS Classifications

• Group DSS -v- Individual DSS
• Decisions made by entire group or by lone
  decision maker
• Custom made -v- Vendor ready made
• Generic DSS may be modified for use
• Database, models, interface, support are built in
• Addresses repeatable industry problems
• Reduces costs
• Open source solutions also available

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Web and DSS

• Data collection
• Communication and collaboration
• Download capabilities
• Run on Web servers
• Simplifies integration problems
• Increased usability features
• Applets and plug-ins for advanced visualisation

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Capabilities of DSS
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DSS Examples

• American Airlines Pricing decisions and choosing
  routes
• First United Bank Corp. Evaluating investments
• IBM Determining routing for repair people
• National Gypsum Corporate planning and
  forecasting
• Southern Railway Dispatching and routing trains
• Texas Oil and Gas Evaluating potential drill
  sites
• Wells Fargo Bank Planning post merger operations
• Zale Corporation Evaluating potential retailing
  sites

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Group Decision Support Systems (GDSS)

• Computer-based system that supports groups of
  people engaged in a common task (or goal) and
  that provides an interface to a shared
  environment
• Used in problem solving
• Improved communications
• Improved discussion focus
• Less wasted time
• Related areas
• Electronic meeting system (EMS)
• Computer-supported cooperative work (CSCW)
• Group support system (GSS)
• Groupware

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GDSS Environments

• Synchronous exchange
• Members meet at same time
• Committee meeting is an example
• Asynchronous exchange
• Members meet at different times
• E-mail is an example
• More balanced participation

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Some Types of GDSS

• Decision rooms
• Small groups face-to-face
• Parallel communication
• Anonymity
• Local area decision network
• Members interact using a LAN
• Legislative session
• Large group interaction
• Computer-mediated conference
• Permits large, geographically dispersed group
  interaction

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GDSS Group Size / Proximity Matrix
GROUP SIZE
Larger
Smaller
Face-to- face
Decision Room
Legislative Session
MEMBER PROXIMITY
Local Area Decision Network
Computer- Mediated Conference
Dispersed
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In-Class Exercise (45 mins)

• If possible, adjourn to a computer suite to
  facilitate Internet-based research
• You have been elected as an independent candidate
  to your local county council. At the next meeting
  of councillors, you need to arrive at decisions
  on the following matters
• 10m has been made available for roadworks. On
  what projects should it be spent?
• Planning applications are being decided upon
  (commercial, single-unit housing, and housing
  estates). Which applications should be granted?
• Working in groups of 3-4, choose one of the above
  decisions. Imagine that DSS technology is
  available (Time allowed 15-20 minutes)
• What types of data / information do you require?
  (e.g. internal / external, textual / visual,
  records documents, etc.) What technologies
  might be used to store, query and retrieve that
  data?
• What types of models might you use to arrive at /
  justify a decision? (e.g. budgeting / financial
  planning, forecasting, simulations, etc.)
• What kinds of user interfaces would be most
  useful in accessing / retrieving data, reports,
  etc.? (e.g. ad hoc database queries, visual
  representations, GIS)
• Required
• Each group to give a brief (5-7 minutes)
  presentation of their ideas
• Each group to submit roughwork notes (include
  names of team members)