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Chapter 3 DECISION SUPPORT SYSTEMS CONCEPTS, METHODOLOGIES, AND TECHNOLOGIES:  AN OVERVIEW
Learning Objectives <ul><li>Understand possible decision support system (DSS) configurations </li></ul><ul><li>Understand ...
Learning Objectives <ul><li>Describe the components and structure of each DSS component: the data management subsystem, th...
Learning Objectives <ul><li>Explain the unique role of the user in DSS versus  management information systems (MIS) </li><...
DSS Configurations   <ul><li>Decision support can be provided in many different configurations </li></ul><ul><li>These con...
DSS Configurations <ul><li>These technologies are assembled from four basic components (each with several variations and a...
DSS Description   <ul><li>DSS application  </li></ul><ul><li>A DSS program built for a specific purpose (e.g., a schedulin...
DSS Description   <ul><li>A DSS supports all phases of decision making and may include a knowledge component </li></ul><ul...
DSS Characteristics  and Capabilities
DSS Description
DSS Characteristics  and Capabilities <ul><li>Business analytics </li></ul><ul><li>The application of models directly to b...
DSS Characteristics  and Capabilities <ul><li>Predictive analytics </li></ul><ul><li>A business analytical approach toward...
DSS Characteristics  and Capabilities <ul><li>The key characteristics and capabilities of DSS  </li></ul><ul><ul><li>Suppo...
DSS Characteristics  and Capabilities <ul><ul><li>Support for interdependent and/or sequential decisions  </li></ul></ul><...
DSS Characteristics  and Capabilities <ul><ul><li>User-friendliness, strong graphical capabilities, and a natural language...
DSS Characteristics  and Capabilities <ul><ul><li>Models are generally utilized to analyze decision-making situations  </l...
Components of DSS
Components of DSS <ul><li>Database management system (DBMS) </li></ul><ul><li>Software for establishing, updating, and que...
Components of DSS <ul><li>Model management subsystem   </li></ul><ul><ul><li>Model base management system (MBMS) </li></ul...
Components of DSS <ul><li>Knowledge-based management subsystem </li></ul><ul><ul><li>The knowledge-based management subsys...
Data Management Subsystem   <ul><li>The data management subsystem is composed of” </li></ul><ul><ul><li>DSS database </li>...
Data Management Subsystem
<ul><li>The Database </li></ul><ul><ul><li>Internal data  come mainly from the organization’s transaction processing syste...
Data Management Subsystem <ul><li>Data organization </li></ul><ul><li>Data extraction </li></ul><ul><li>The process of cap...
Data Management Subsystem <ul><li>Database management system (DBMS) </li></ul><ul><li>Software for establishing, updating,...
Data Management Subsystem <ul><li>Key database and database management system issues  </li></ul><ul><ul><li>Data quality <...
The Model Management Subsystem
<ul><li>Model base </li></ul><ul><li>A collection of preprogrammed quantitative models (e.g., statistical, financial, opti...
<ul><li>Four categories of models with the model base </li></ul><ul><ul><li>Strategic models  </li></ul></ul><ul><ul><li>T...
<ul><li>Strategic models  </li></ul><ul><li>Models that represent problems for the strategic level (i.e., executive level)...
<ul><li>Operational models  </li></ul><ul><li>Models that represent problems for the operational level of management </li>...
<ul><li>Model building blocks and routines </li></ul><ul><ul><li>Model building blocks </li></ul></ul><ul><ul><li>Preprogr...
<ul><li>Model base management system: MBMS software has four main functions  </li></ul><ul><ul><li>Model creation, using p...
<ul><li>Model directory  </li></ul><ul><ul><li>Model execution  is the process of controlling the actual running of the mo...
User Interface (Dialog) Subsystem <ul><li>User interface </li></ul><ul><li>The component of a computer system that allows ...
User Interface (Dialog) Subsystem <ul><li>The user interface process  </li></ul><ul><ul><li>Object  </li></ul></ul><ul><ul...
User Interface (Dialog) Subsystem
User Interface (Dialog) Subsystem <ul><li>DSS user interfaces  access is provided through Web browsers including: </li></u...
User Interface (Dialog) Subsystem <ul><li>DSS developments   </li></ul><ul><ul><li>Parallel processing hardware and softwa...
User Interface (Dialog) Subsystem <ul><li>DSS developments  </li></ul><ul><ul><li>Parallel processing hardware and softwar...
User Interface (Dialog) Subsystem <ul><li>DSS developments  </li></ul><ul><ul><li>Artificial intelligence continues to mak...
User Interface (Dialog) Subsystem <ul><li>DSS developments  </li></ul><ul><ul><li>DSS is becoming more embedded in or link...
Knowledge-Based Management Subsystem   <ul><li>Advanced DSS are equipped with a component called a  knowledge-based manage...
The User   <ul><li>The person faced with a decision that an MSS is designed to support is called the  user , the  manager ...
The User   <ul><li>Intermediary  </li></ul><ul><li>A person who uses a computer to fulfill requests made by other people (...
The User   <ul><ul><li>Expert tool user </li></ul></ul><ul><ul><li>A person who is skilled in the application of one or mo...
DSS Hardware   <ul><li>Hardware affects the functionality and usability of the MSS </li></ul><ul><li>The choice of hardwar...
DSS Hardware   <ul><li>Portability has become critical for deploying decision-making capability in the field, especially f...
DSS Classifications   <ul><li>AIS SIGDSS classification for DSS  </li></ul><ul><ul><li>Communications-driven and group DSS...
DSS Classifications   <ul><li>Holsapple and Whinston’s classification  </li></ul><ul><ul><li>Text-oriented DSS </li></ul><...
DSS Classifications   <ul><li>Alter’s output classification  </li></ul><ul><ul><li>Data </li></ul></ul><ul><ul><ul><li>Fil...
DSS Classifications   <ul><li>Other DSS categories  </li></ul><ul><ul><li>Institutional DSS </li></ul></ul><ul><ul><li>A D...
DSS Classifications   <ul><li>Other DSS categories  </li></ul><ul><ul><li>Personal support  </li></ul></ul><ul><ul><li>Gro...
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DSS:Conceptos, metodologias y Tecnologias

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DSS:Conceptos, metodologias y Tecnologias

  1. 1. Chapter 3 DECISION SUPPORT SYSTEMS CONCEPTS, METHODOLOGIES, AND TECHNOLOGIES: AN OVERVIEW
  2. 2. Learning Objectives <ul><li>Understand possible decision support system (DSS) configurations </li></ul><ul><li>Understand the key differences and similarities between DSS and business intelligence (BI) systems </li></ul><ul><li>Describe DSS characteristics and capabilities </li></ul><ul><li>Understand the essential definition of DSS </li></ul><ul><li>Understand DSS components and how they integrate </li></ul>
  3. 3. Learning Objectives <ul><li>Describe the components and structure of each DSS component: the data management subsystem, the model management subsystem, the user interface (dialog) subsystem, the knowledge-based management subsystem, and the user </li></ul><ul><li>Explain Internet impacts on DSS and vice versa </li></ul>
  4. 4. Learning Objectives <ul><li>Explain the unique role of the user in DSS versus management information systems (MIS) </li></ul><ul><li>Describe DSS hardware and software platforms </li></ul><ul><li>Understand important DSS classifications </li></ul><ul><li>Become familiar with some DSS application areas and applications </li></ul><ul><li>Understand important, current DSS issues </li></ul>
  5. 5. DSS Configurations <ul><li>Decision support can be provided in many different configurations </li></ul><ul><li>These configurations depend on the nature of the management-decision situation and the specific technologies used for support </li></ul>
  6. 6. DSS Configurations <ul><li>These technologies are assembled from four basic components (each with several variations and are typically deployed over the Web) </li></ul><ul><ul><li>Data </li></ul></ul><ul><ul><li>Models </li></ul></ul><ul><ul><li>User interface </li></ul></ul><ul><ul><li>Knowledge (optional) </li></ul></ul>
  7. 7. DSS Description <ul><li>DSS application </li></ul><ul><li>A DSS program built for a specific purpose (e.g., a scheduling system for a specific company) </li></ul><ul><li>Business intelligence (BI) </li></ul><ul><li>A conceptual framework for decision support. It combines architecture, databases (or data warehouses), analytical tools, and applications </li></ul>
  8. 8. DSS Description <ul><li>A DSS supports all phases of decision making and may include a knowledge component </li></ul><ul><li>A DSS can be used by a single user on a PC or can be Web-based for use by many people at several locations </li></ul>
  9. 9. DSS Characteristics and Capabilities
  10. 10. DSS Description
  11. 11. DSS Characteristics and Capabilities <ul><li>Business analytics </li></ul><ul><li>The application of models directly to business data. Business analytics involves using DSS tools, especially models, in assisting decision makers. It is essentially OLAP/DSS. See also business intelligence (BI). </li></ul>
  12. 12. DSS Characteristics and Capabilities <ul><li>Predictive analytics </li></ul><ul><li>A business analytical approach toward forecasting (e.g., demand, problems, opportunities) that is used instead of simply reporting data as they occur </li></ul>
  13. 13. DSS Characteristics and Capabilities <ul><li>The key characteristics and capabilities of DSS </li></ul><ul><ul><li>Support for decision makers, mainly in semistructured and unstructured situations, by bringing together human judgment and computerized information </li></ul></ul><ul><ul><li>Support for all managerial levels, ranging from top executives to line managers </li></ul></ul><ul><ul><li>Support for individuals as well as groups </li></ul></ul>
  14. 14. DSS Characteristics and Capabilities <ul><ul><li>Support for interdependent and/or sequential decisions </li></ul></ul><ul><ul><li>Support in all phases of the decision-making process </li></ul></ul><ul><ul><li>Support for a variety of decision-making processes and styles </li></ul></ul><ul><ul><li>DSS are flexible, so users can add, delete, combine, change, or rearrange basic elements; DSS can be readily modified to solve other, similar problems </li></ul></ul>
  15. 15. DSS Characteristics and Capabilities <ul><ul><li>User-friendliness, strong graphical capabilities, and a natural language interactive human–machine interface can greatly increase the effectiveness of DSS </li></ul></ul><ul><ul><li>Improved effectiveness of decision making </li></ul></ul><ul><ul><li>The decision maker has complete control over all steps of the decision-making process in solving a problem </li></ul></ul><ul><ul><li>End users are able to develop and modify simple systems by themselves </li></ul></ul>
  16. 16. DSS Characteristics and Capabilities <ul><ul><li>Models are generally utilized to analyze decision-making situations </li></ul></ul><ul><ul><li>Access is provided to a variety of data sources, formats, and types </li></ul></ul><ul><ul><li>Can be employed as a standalone tool used by an individual decision maker in one location or distributed throughout an organization and in several organizations along the supply chain </li></ul></ul><ul><ul><li>Can be integrated with other DSS and/or applications, and it can be distributed internally and externally, using networking and Web technologies </li></ul></ul>
  17. 17. Components of DSS
  18. 18. Components of DSS <ul><li>Database management system (DBMS) </li></ul><ul><li>Software for establishing, updating, and querying (e.g., managing) a database </li></ul><ul><li>Data warehouse </li></ul><ul><li>A physical repository where relational data are organized to provide clean, enterprise-wide data in a standardized format </li></ul><ul><li>Database </li></ul><ul><li>The organizing of files into related units that are then viewed as a single storage concept. The data in the database are generally made available to a wide range of users </li></ul>
  19. 19. Components of DSS <ul><li>Model management subsystem </li></ul><ul><ul><li>Model base management system (MBMS) </li></ul></ul><ul><ul><li>Software for establishing, updating, combining, and so on (e.g., managing) a DSS model base </li></ul></ul><ul><li>User interface </li></ul><ul><li>The component of a computer system that allows bidirectional communication between the system and its user </li></ul>
  20. 20. Components of DSS <ul><li>Knowledge-based management subsystem </li></ul><ul><ul><li>The knowledge-based management subsystem can support any of the other subsystems or act as an independent component </li></ul></ul><ul><ul><li>Organizational knowledge base </li></ul></ul><ul><ul><ul><li>An organization’s knowledge repository </li></ul></ul></ul>
  21. 21. Data Management Subsystem <ul><li>The data management subsystem is composed of” </li></ul><ul><ul><li>DSS database </li></ul></ul><ul><ul><li>DBMS </li></ul></ul><ul><ul><li>Data directory </li></ul></ul><ul><ul><li>Query facility </li></ul></ul>
  22. 22. Data Management Subsystem
  23. 23. <ul><li>The Database </li></ul><ul><ul><li>Internal data come mainly from the organization’s transaction processing system </li></ul></ul><ul><ul><li>External data include industry data, market research data, census data, regional employment data, government regulations, tax rate schedules, and national economic data </li></ul></ul><ul><ul><li>Private data can include guidelines used by specific decision makers and assessments of specific data and/or situations </li></ul></ul>Data Management Subsystem
  24. 24. Data Management Subsystem <ul><li>Data organization </li></ul><ul><li>Data extraction </li></ul><ul><li>The process of capturing data from several sources, synthesizing them, summarizing them, determining which of them are relevant, and organizing them, resulting in their effective integration </li></ul>
  25. 25. Data Management Subsystem <ul><li>Database management system (DBMS) </li></ul><ul><li>Software for establishing, updating, and querying (e.g., managing) a database </li></ul><ul><li>Query Facility </li></ul><ul><li>The (database) mechanism that accepts requests for data, accesses them, manipulates them, and queries them </li></ul><ul><li>Directory </li></ul><ul><li>A catalog of all the data in a database or all the models in a model base </li></ul>
  26. 26. Data Management Subsystem <ul><li>Key database and database management system issues </li></ul><ul><ul><li>Data quality </li></ul></ul><ul><ul><li>Data integration </li></ul></ul><ul><ul><li>Scalability </li></ul></ul><ul><ul><li>Data security </li></ul></ul>
  27. 27. The Model Management Subsystem
  28. 28. <ul><li>Model base </li></ul><ul><li>A collection of preprogrammed quantitative models (e.g., statistical, financial, optimization) organized as a single unit </li></ul>The Model Management Subsystem
  29. 29. <ul><li>Four categories of models with the model base </li></ul><ul><ul><li>Strategic models </li></ul></ul><ul><ul><li>Tactical models </li></ul></ul><ul><ul><li>Operational models </li></ul></ul><ul><ul><li>Analytical models </li></ul></ul>The Model Management Subsystem
  30. 30. <ul><li>Strategic models </li></ul><ul><li>Models that represent problems for the strategic level (i.e., executive level) of management </li></ul><ul><li>Tactical models </li></ul><ul><li>Models that represent problems for the tactical level (i.e., midlevel) of management </li></ul>The Model Management Subsystem
  31. 31. <ul><li>Operational models </li></ul><ul><li>Models that represent problems for the operational level of management </li></ul><ul><li>Analytical models </li></ul><ul><li>Mathematical models into which data are loaded for analysis </li></ul>The Model Management Subsystem
  32. 32. <ul><li>Model building blocks and routines </li></ul><ul><ul><li>Model building blocks </li></ul></ul><ul><ul><li>Preprogrammed software elements that can be used to build computerized models. For example, a random-number generator can be employed in the construction of a simulation model </li></ul></ul><ul><li>Model components for building DSS </li></ul><ul><li>Modeling tools </li></ul>The Model Management Subsystem
  33. 33. <ul><li>Model base management system: MBMS software has four main functions </li></ul><ul><ul><li>Model creation, using programming languages, DSS tools and/or subroutines, and other building blocks </li></ul></ul><ul><ul><li>Generation of new routines and reports </li></ul></ul><ul><ul><li>Model updating and changing </li></ul></ul><ul><ul><li>Model data manipulation </li></ul></ul>The Model Management Subsystem
  34. 34. <ul><li>Model directory </li></ul><ul><ul><li>Model execution is the process of controlling the actual running of the model </li></ul></ul><ul><ul><li>Model integration involves combining the operations of several models when needed </li></ul></ul><ul><ul><li>A model command processor is used to accept and interpret modeling instructions from the user interface component and route them to the MBMS, model execution, or integration functions </li></ul></ul>The Model Management Subsystem
  35. 35. User Interface (Dialog) Subsystem <ul><li>User interface </li></ul><ul><li>The component of a computer system that allows bidirectional communication between the system and its user. </li></ul><ul><li>User interface management system (UIMS) </li></ul><ul><li>The DSS component that handles all interaction between users and the system </li></ul>
  36. 36. User Interface (Dialog) Subsystem <ul><li>The user interface process </li></ul><ul><ul><li>Object </li></ul></ul><ul><ul><li>A person, place, or thing about which information is collected, processed, or stored </li></ul></ul><ul><ul><li>Graphical user interface (GUI) </li></ul></ul><ul><ul><li>An interactive, user-friendly interface in which, by using icons and similar objects, the user can control communication with a computer </li></ul></ul>
  37. 37. User Interface (Dialog) Subsystem
  38. 38. User Interface (Dialog) Subsystem <ul><li>DSS user interfaces access is provided through Web browsers including: </li></ul><ul><ul><li>Voice input and output </li></ul></ul><ul><ul><li>Portable devices </li></ul></ul><ul><ul><li>Direct sensing devices </li></ul></ul>
  39. 39. User Interface (Dialog) Subsystem <ul><li>DSS developments </li></ul><ul><ul><li>Parallel processing hardware and software technologies have made major inroads in solving the scalability issue </li></ul></ul><ul><ul><li>Web-based DSS have made it easier and less costly to make decision-relevant information and model-driven DSS available to users in geographically distributed locations, especially through mobile devices </li></ul></ul>
  40. 40. User Interface (Dialog) Subsystem <ul><li>DSS developments </li></ul><ul><ul><li>Parallel processing hardware and software technologies have made major inroads in solving the scalability issue </li></ul></ul><ul><ul><li>Web-based DSS have made it easier and less costly to make decision-relevant information and model-driven DSS available to users in geographically distributed locations, especially through mobile devices </li></ul></ul>
  41. 41. User Interface (Dialog) Subsystem <ul><li>DSS developments </li></ul><ul><ul><li>Artificial intelligence continues to make inroads in improving DSS </li></ul></ul><ul><ul><ul><li>Faster, intelligent search engines </li></ul></ul></ul><ul><ul><ul><li>Intelligent agents promise to improve the interface in areas such as direct natural language processing and creating facial gestures </li></ul></ul></ul><ul><ul><li>The development of ready-made (or near-ready-made) DSS solutions for specific market segments has been increasing </li></ul></ul>
  42. 42. User Interface (Dialog) Subsystem <ul><li>DSS developments </li></ul><ul><ul><li>DSS is becoming more embedded in or linked to most EIS </li></ul></ul><ul><ul><li>GSS improvements support collaboration at the enterprise level </li></ul></ul><ul><ul><li>Different types of DSS components are being integrated more frequently </li></ul></ul>
  43. 43. Knowledge-Based Management Subsystem <ul><li>Advanced DSS are equipped with a component called a knowledge-based management subsystem that can supply the required expertise for solving some aspects of the problem and provide knowledge that can enhance the operation of other DSS components </li></ul>
  44. 44. The User <ul><li>The person faced with a decision that an MSS is designed to support is called the user , the manager , or the decision maker </li></ul><ul><li>MSS has two broad classes of users: managers and staff specialists </li></ul><ul><ul><li>Staff specialists use the system much more frequently than manager and tend to be more detail-oriented </li></ul></ul><ul><ul><li>Staff analysts are often intermediaries between managers and the MSS </li></ul></ul>
  45. 45. The User <ul><li>Intermediary </li></ul><ul><li>A person who uses a computer to fulfill requests made by other people (e.g., a financial analyst who uses a computer to answer questions for top management) </li></ul><ul><ul><li>Staff assistant </li></ul></ul><ul><ul><li>An individual who acts as an assistant to a manager </li></ul></ul>
  46. 46. The User <ul><ul><li>Expert tool user </li></ul></ul><ul><ul><li>A person who is skilled in the application of one or more types of specialized problem-solving tools </li></ul></ul><ul><ul><li>Business (system) analysts </li></ul></ul><ul><ul><li>An individual whose job is to analyze business processes and the support they receive (or need) from information technology </li></ul></ul><ul><ul><li>Facilitators (in a GSS) </li></ul></ul><ul><ul><li>A person who plans, organizes, and electronically controls a group in a collaborative computing environment </li></ul></ul>
  47. 47. DSS Hardware <ul><li>Hardware affects the functionality and usability of the MSS </li></ul><ul><li>The choice of hardware can be made before, during, or after the design of the MSS software </li></ul><ul><li>Major hardware options: </li></ul><ul><ul><li>Organization’s servers </li></ul></ul><ul><ul><li>Mainframe computers with legacy DBMS, </li></ul></ul><ul><ul><li>Workstations </li></ul></ul><ul><ul><li>Personal computers </li></ul></ul><ul><ul><li>Client/server systems </li></ul></ul>
  48. 48. DSS Hardware <ul><li>Portability has become critical for deploying decision-making capability in the field, especially for salespersons and technicians </li></ul><ul><li>The power and capabilities of the World Wide Web have a dramatic impact on DSS </li></ul><ul><ul><li>Communication and collaboration </li></ul></ul><ul><ul><li>Download DSS software </li></ul></ul><ul><ul><li>Use DSS applications provided by the company </li></ul></ul><ul><ul><li>Buy online from application service providers (ASPs) </li></ul></ul>
  49. 49. DSS Classifications <ul><li>AIS SIGDSS classification for DSS </li></ul><ul><ul><li>Communications-driven and group DSS (GSS) </li></ul></ul><ul><ul><li>Data-driven DSS </li></ul></ul><ul><ul><li>Document-driven DSS </li></ul></ul><ul><ul><li>Knowledge-driven DSS, data mining, and management ES applications </li></ul></ul><ul><ul><li>Model-driven DSS </li></ul></ul><ul><ul><li>Compound DSS </li></ul></ul>
  50. 50. DSS Classifications <ul><li>Holsapple and Whinston’s classification </li></ul><ul><ul><li>Text-oriented DSS </li></ul></ul><ul><ul><li>Database-oriented DSS </li></ul></ul><ul><ul><li>Spreadsheet-oriented DSS </li></ul></ul><ul><ul><li>Solver-oriented DSS </li></ul></ul><ul><ul><li>Rule-oriented DSS </li></ul></ul>
  51. 51. DSS Classifications <ul><li>Alter’s output classification </li></ul><ul><ul><li>Data </li></ul></ul><ul><ul><ul><li>File drawer systems </li></ul></ul></ul><ul><ul><ul><li>Data analysis systems </li></ul></ul></ul><ul><ul><li>Data or models </li></ul></ul><ul><ul><ul><li>Analysis information systems </li></ul></ul></ul><ul><ul><li>Models </li></ul></ul><ul><ul><ul><li>Accounting models </li></ul></ul></ul><ul><ul><ul><li>Representational models </li></ul></ul></ul><ul><ul><ul><li>Optimization models </li></ul></ul></ul><ul><ul><ul><li>Suggestion models </li></ul></ul></ul>
  52. 52. DSS Classifications <ul><li>Other DSS categories </li></ul><ul><ul><li>Institutional DSS </li></ul></ul><ul><ul><li>A DSS that is a permanent fixture in an organization and has continuing financial support. It deals with decisions of a recurring nature </li></ul></ul><ul><ul><li>Ad hoc DSS </li></ul></ul><ul><ul><li>A DSS that deals with specific problems that are usually neither anticipated nor recurring </li></ul></ul>
  53. 53. DSS Classifications <ul><li>Other DSS categories </li></ul><ul><ul><li>Personal support </li></ul></ul><ul><ul><li>Group support </li></ul></ul><ul><ul><li>Organizational support </li></ul></ul><ul><ul><li>Group support system (GSS) </li></ul></ul><ul><ul><li>Information systems, specifically DSS, that support the collaborative work of groups </li></ul></ul><ul><li>Custom-made systems versus ready-made systems </li></ul>

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