Measures of Dispersion and Variability: Range, QD, AD and SD
[2020] week09 a dss - ver01
1. D E C I S I O N S U P P O R T
S Y S T E M S
I N F O R M A T I O N S Y S T E M S C O N C E P T
( I S 1 8 4 1 0 2 )
F a l l S e m e s t e r 2 0 2 0 / 2 0 2 1
Anisah Herdiyanti, M.Sc, ITILF
anisah@is.its.ac.id
Management of Information Systems Laboratory
Department of Information Systems
2. S P E C I F I C L E A R N I N G O U T C O M E
Able to explore various roles of information systems in business
3. A G E N D A
• Opening: Decision Making and Problem Solving
• What: Overview of DSS
• Which: DSS vs MIS
• What: DSS Components
• Closing: Suggested materials for further discussion
5. D E C I S I O N M A K I N G A N D P R O B L E M
S O L V I N G
• In most cases, strategic planning and overall goals of the organization set
the course for decision making
• Information systems:
Assist with problem solving, helping people make better decisions and
save lives
6. H O W D E C I S I O N
M A K I N G
R E L A T E S T O
P R O B L E M
S O L V I N G
7. D E C I S I O N M A K I N G A S A C O M P O N E N T
O F P R O B L E M S O L V I N G ( 1 )
Decision-making phase:
• Intelligence stage:
Identify and define potential problems or opportunities
• Design stage:
Develop alternative solutions to the problem and evaluate their feasibility
• Choice stage:
Select a course of action
8. D E C I S I O N M A K I N G A S A C O M P O N E N T
O F P R O B L E M S O L V I N G ( 2 )
• Problem solving:
• Includes and goes beyond decision making
• Includes implementation stage
• Monitoring stage:
Decision makers evaluate the implementation
9. P R O G R A M M E D V S
N O N P R O G R A M M E D D E C I S I O N S
• Programmed decision:
• Made using a rule, procedure, or quantitative method
• Easy to computerize using traditional information systems
• Nonprogrammed decision:
• Decision that deals with unusual or exceptional situations
• Not easily quantifiable
10. O P T I M I Z A T I O N , S A T I S F I C I N G , A N D
H E U R I S T I C A P P R O A C H E S
• Optimization model:
Finds the best solution, usually the one that will best help the organization
meet its goals
• Satisficing model:
Finds a good, but not necessarily the best, problem solution
• Heuristics:
Commonly accepted guidelines or procedures that usually find a good
solution
11. T H E B E N E F I T S O F D E C I S I O N
S U P P O R T S Y S T E M S ( 1 )
• Decision support systems:
Performance is typically a function of decision quality and problem
complexity
• Problem complexity:
Depends on how hard the problem is to solve and implement
12. T H E B E N E F I T S O F D E C I S I O N
S U P P O R T S Y S T E M S ( 2 )
14. A N O V E R V I E W O F D E C I S I O N
S U P P O R T S Y S T E M S
• DSS:
• Organized collection of people, procedures, software, databases, and
devices used to help make decisions that solve problems
• Used at all levels
• Focus of a DSS:
Is on decision-making effectiveness regarding unstructured or
semistructured business problems
15. C A P A B I L I T I E S O F A D E C I S I O N
S U P P O R T S Y S T E M ( 1 )
• Support for problem-solving phases:
A specific DSS might support only one or a few phases
• Support for various decision frequencies:
• Ad hoc DSS is concerned with situations or decisions that come up
only a few times
• Institutional DSS handles situations or decisions that occur more than
once
16. C A P A B I L I T I E S O F A D E C I S I O N
S U P P O R T S Y S T E M ( 2 )
• Support for various problem structures:
• Highly structured problems are straightforward, requiring known facts
and relationships
• Semistructured or unstructured problems are more complex
• Support for various decision-making levels:
DSSs can provide help for managers at various levels within the
organization
17. C A P A B I L I T I E S O F A D E C I S I O N
S U P P O R T S Y S T E M ( 3 )
19. A C O M P A R I S O N O F D S S A N D M I S
DSS differs from an MIS in numerous ways, including:
• The type of problems solved
• The support given to users
• The decision emphasis and approach
• The type, speed, output, and development of the system used
22. C O M P O N E N T S O F A D E C I S I O N
S U P P O R T S Y S T E M
• At the core of a DSS are a database and a model base
• Dialogue manager:
Allows decision makers to easily access and manipulate the DSS and to
use common business terms and phrases
24. T H E D A T A B A S E
• Database management system:
• Allows managers and decision makers to perform qualitative analysis
on data stored in company’s databases, data warehouses, and data
marts
• Can also be used to connect to external databases
• Data-driven DSS:
Performs qualitative analysis based on the company’s databases
25. T H E M O D E L B A S E
• Model base:
Allows managers and decision makers to perform quantitative analysis
on both internal and external data
• Model-driven DSS:
Performs mathematical or quantitative analysis
• Model management software (MMS):
Coordinates the use of models in a DSS
27. T H E U S E R I N T E R F A C E O R
D I A L O G U E M A N A G E R
• Allows users to interact with the DSS to obtain information
• Assists with all aspects of communications between user and hardware
and software that constitute the DSS
29. R E C O M M E N D E D S O U R C E S O F
L E A R N I N G
• [ARTICLE] What We Miss When We Judge a Decision by the
Outcome
https://hbr.org/2016/09/what-we-miss-when-we-judge-a-
decision-by-the-outcome
• [VIDEO] Decision Support Systems - A-Z of business terminology
https://www.youtube.com/watch?v=lnAdueavPtQ
31. U S E F U L R E A D I N G S
• Information Concepts (pp. 418-439)
Ralph Stair, and George Reynolds. (2010). Part 3 : Business Information
Systems, Chapter 10: Information and Decision Support Systems
32.
33. C L A S S A C T I V I T I E S
• Read article related to e-commerce in the WEEK09 Readings available via
MyITS Classrom
• Highlight important words (keywords) from the articles, and search for
supporting definitions on the keywords – if the articles do not give a clear
definition that you are looking for
