Week 4

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Week 4

• Decision Support System (DSS)/ Intelligent DSS

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Case Scenario
ABC Enterprise is a multinational company that
offers multimedia content services in several
regions in Asia. It has more than 2000 suppliers
serving 6 millions content subscribers. For a
company of this size, a major problem is to
maintain its efficient operation with minimum
costs. One problem that has caused trouble in the
companys information systems department is how
to maintain its more than 2000 suppliers. Every
year, they have to retain or hire new suppliers
from thousands of external application. The CEO
of the company, Mr. Ridzuan wishes that the
process of selecting supplier can be controlled
in order to maximize its return. Thus, Mr.
Ridzuan is thinking whether there is any system
that can be built to assist in making decision of
selecting new supplier based on criteria such as
technical expertise, job quality, costs etc.
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Concept of Decision Support Systems (DSS)
DSS are interactive computer-based systems, which
help decision makers utilize data and models to
solve unstructured problems (Scott Morton,
1971) Decision support systems couple the
intellectual resources of individuals with the
capabilities of the computer to improve the
quality of decisions. It is a computer-based
support system for management decision makers who
deal with semi-structured problems (Keen and
Scott Morton, 1978) DSS means different things
to different peopleThere is no universally
accepted definition of DSS
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DSS terms

• DSS is closely associated with the terms Online
  Analytical Processing (OLAP) and Data Warehousing
  (DW)
• OLAP refers to querying and accessing on-line
  database
• DW refers to specific technical architectures for
  storing and accessing large amounts of data

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Characteristics and Capabilities of DSS

• DSS
• Provide support in semi-structured and
  unstructured situations.
• Support for various managerial levels.
• Support all phases of the decision-making
  process.
• Goal is to improve the effectiveness of decision
  making.
• Decision makers can make better, more consistent
  decisions in a timely manner.

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DSS Components

• 1. Data Management Subsystem2. Model Management
  Subsystem3. Knowledge Management Subsystem4.
  User Interface Subsystem5. The User

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Data Management
Model Management
Other Systems
Knowledge Management
User Interface
User
DSS Architecture
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The Data Management Subsystem

• A data management system (DMS) is a computer
  program designed to manage a database (a large
  set of structured data), and run operations on
  the data requested by numerous clients. The DMS
  can be interconnected with the corporate data
  warehouse. Typical examples of DMS use include
  accounting, human resources and customer support
  systems.
•  Some of the capabilities of DMS in a DSS are
• Captures/extracts data for inclusion in a DSS
  database.
• Interrelates data from different sources.
• Performs complex data manipulation tasks based on
  user queries.

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Data in DSS
OLAP
K N O W L E D G E
DW
ERP
ETL
Reports
ODS
POS
Mining
Structured
Unstructured
Content Mgmt
Product specs, web docs, video files, ads, CAD,
RD docs, word processing docs, e-mail, project
plans, forms, audio files, brochures, manuals,
legal contracts, graphic designs
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The Model Management Subsystem

• The model base management system (MBMS) is a
  computer program that includes financial,
  statistical, management science or other
  quantitative models that provide the systems
  analytical capabilities and appropriate software
  management. Usually, the models are customized
  using modeling languages (programming tools).
• Some of the capabilities of MBMS in a DSS are
• Allows user to manipulate the models so they can
  conduct experiments and sensitivity analyses
  ranging from what-if to goal seeking.
• Catalogs and displays the directory of models for
  use by several individuals in the organization.

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Categories of Models

• Optimization
• get the highest level of goal attainment from a
  given set of resources.
• Heuristics
• "rules of thumb" to arrive at satisfactory
  solutions.
• Simulation
• predict behavior of a system over time.
• Sensitivity analysis
• change inputs or parameters and look at model
  results.
• 2 approaches
• What-if analysis forward solution approach.
• Goal seeking backward solution approach.

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The Knowledge Management Subsystem

• Many unstructured and even semi-structured
  problems are so complex that their solutions
  require expertise. This can be provided by an
  expert system or other intelligent system.
• Some of the capabilities of KMS in a DSS are
• Provides expertise in solving complex
  unstructured and semi-structured problems
• What models to use, how, and interpreting results
• Reasoning, handling uncertainty and learning from
  data
• Expertise provided by an expert system or other
  intelligent system (AI techniques)

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Example Knowledge Representation

• Production Rule (IF..THEN..ELSE) Examples
• IF your income is highTHEN your chance of being
  audited by the IRS is high.
• IF your income is highTHEN your chance of being
  audited by the IRS is highELSE your chance for
  being audited is lower.
• IF your income is high OR your deductions are
  unusualTHEN your chance of being audited by the
  IRS is highELSE your chance for being audited is
  low.

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The User Interface (Dialog) Subsystem

• User interface (of a computer program) refers to
  the graphical, textual and auditory information
  the program presents to the user, and the control
  sequences (such as keystrokes with the computer
  keyboard, movements of the computer mouse, and
  selections with the touch screen) the user
  employs to control the program.

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The User

• Managers
• Staff specialists
• Intermediary1.Staff assistant2.Business
  (system) analyst3.Group DSS Facilitator

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Distinguishing DSS from Management Science and
MIS

• DSS is a problem solving tool and is frequently
  used to address ad hoc and unexpected problems.
• DSS evolve as they develop.

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DSS Example

• Expert Choice
• http//www.l4networks.com/expchoice/ec_hr_mgmt_pre
  view.htm (HR Employee)
• http//www.l4networks.com/expchoice/ec_vendor_sel_
  preview.htm (Vendor Selection)
• ProAct
• http//www.cosmic-solutions.com/software/proact/sc
  reenshots/prodProf.htm (Product/Customer
  Profitability)

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Intelligence Density Dimension

• Response speed
• Flexibility
• Ease of use
• Computing resources