Defining Decision Support System

1
Defining Decision Support System

• The concept of a (DSS) is extremely broad and its
  definitions vary
• It is "a computer-based system that aids the
  process of decision making, (Finlay, 1994)
• It is "an interactive, flexible, and adaptable
  computer-based IS - especially developed for
  supporting the solution of a non-structured
  management problem for improved decision making,
  (Turban, 1995)
• Defining DSS .. (Contd)
• DSS couple the intellectual resources of
  individuals with the capabilities of the computer
  to improve the quality of decisions, (Keen
  Scott, 1978)
• DSS are "interactive computer-based systems that
  help decision makers utilize data and models to
  solve unstructured problems", (Sprague Carlson,
  1982),

2
Defining DSS .. (Contd)

• DSS couple the intellectual resources of
  individuals with the capabilities of the computer
  to improve the quality of decisions, (Keen
  Scott, 1978)
• DSS are "interactive computer-based systems that
  help decision makers utilize data and models to
  solve unstructured problems", (Sprague Carlson,
  1982),

3
Defining DSS Architectures is extremely broad
too

• Sprague and Carlson (1982) identify three
  fundamental components of DSS
• (a) DBMS
• (b) Model-Base Management System (MBMS), and
• (c)     the dialog generation management system
  (DGMS)

4
Power (2002), discussed building DSS in terms of
4 major components

• a) the user interface
• b) the database
• c) the model and analytical tools, and
• d) the DSS architecture and network.

5
Marakas (1999) proposes a generalized
architecture made of five distinct parts

• (a)   the data management system,
• (b)    the model management system,
• (c)     the knowledge engine,
• (d)     the user interface, and
• (e)     the user(s).

6
But in this unit we define

• DSS as a computer program application that
  analyzes business data and presents it so that
  users can make business decisions more easily.
• It is an "informational application" that
  collects the data in the course of normal
  business operation).

7
Typical example a DSS might gather and present
would be

• Comparative sales figures between one week and
  the next
• Projected revenue figures based on new product
  sales assumptions

8
Furthermore DSS is

• A computer based program for solving structured
  and semi-structured problems
• A DSS consists of
• Model base management system
• Database management system
• Dialog generation management system
• Database
• Model base

9
Decision Support Systems

• Solving structure problems
• Person compared the problem with available models
• Person find match between model and problem
• Person runs the model using available data and
  gets solution
• Person plays what if analysis
• Person may use different models

10
Decision Support Systems

• Solving unstructured problem
• Force fit the problem into one of the available
  models
• Solve problem regular way
• What we do is turn an unstructured problem into a
  structured problem
• What to do when we fail?

11
Decision Support Systems

• Solving non structured problem
• There are no known methods to solve unstructured
  problems
• Turn unstructured problem into semi-structured
  problem
• Turn semi-structured into structured problem
• How to accomplish above steps?

12
Decision Support Systems

• Problem Solving
• Define the problem usually as mathematical model
• Get relevant data
• Suggest a possible solution
• Run the model against the data
• Evaluate results of proposed solutions

13
Decision Support Systems

• Problem Solving (...contd.)
• Change model parameters to see how robust your
  solution is
• Change model to see how robust your solution is

14
Decision Support Systems

• What is a good model?
• Know how each input determines output
• Know how each output depends on the inputs
• For each output be able to work out the necessary
  inputs
• Model simplicity
• Model understandability by manager

15
Decision Support Systems

• Model
• Management science has many models
• Statistical
• Mathematical
• Linear programming
• Integer programming
• Linear models
• Non-linear models
• Dynamic models
• Transportation models

16
Decision Support Systems

• Model
• If all else fails use simulations
• Waiting lines
• Store clerk placement
• Inventory control

17
Decision Support Systems

• Data
• Transaction data
• Corporate data
• Environmental data
• Economic data
• Competitive data
• Marketing data
• Data Warehouse
• Integration of above data types

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Decision Support Systems

• Problem with models
• Lack of input data
• Do not understand model output
• Models age
• Managers have no confidence in model
• Model base lacks integration
• Models are difficult to make
• Input/Output relations complex

19
Decision Support Systems

• Case example
• School districts needed a new bus schedule to
  ensure district be racially balanced
• A typical transportation model
• Consultants worked out a new bus schedule
  satisfying requirement
• District rejected the model
• District wanted to maintain old schedule but want
  to back this up scientifically

20
Decision Support Systems

• Graphical functions
• Time series
• Scatter diagram
• Bar/Pie charts
• Geographic maps
• Organizational charts
• Event schedule

21
Decision Support Systems

• DSS history
• DSS
• GDSS
• EIS
• ESS

22
Decision Support Systems

• EIS/ESS presents executives with
• Performance data
• Internal data arising from communications
• Environmental data
• EIS/ESS
• helps executives to do their job
• Adapted to executives tasks and management style

23
Decision Support Systems

• How things get done wrong
• No executive support
• Lack of objectives
• Lack of data
• Lack of support staff
• No thought about DSS future

24
Decision Support Systems

• Presentations
• Tables
• Graphics
• DSS development
• GDSS anonymity
• DSS generator
• Marketing case

25
How about Executive Information Systems, (EIS)?

• Def (EIS) is a computer-based system intended
  to facilitate and support the information and
  decision making needs of senior executives by
  providing easy access to both internal and
  external information relevant to meeting the
  strategic goals of the organisation.

26
EIS Def. Contd

• It is commonly considered as a specialized form
  of DSS. The emphasis of EIS in on graphical
  displays and easy-to-use user interfaces.
• EIS are enterprise-wide DSS that help top-level
  executives analyze, compare, and highlight trends
  in important variables. So that they can
  monitor performance and identify opportunities
  and problems

27
Can you see the difference between DSS and EIS?

• Do you know a software package which is
  appropriate for decision making?
• What package(s) do we have here at Goldsmith that
  can be used as a decision making tool?
• How do we decide what software package to use?
• How do we justify our choice?