6. dss


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6. dss

  1. 1. Decision Support Systems 10/06/11
  2. 2. The Manager’s Job & Decision Making <ul><li>Decision refers to a choice that individuals and group make among two or more alternatives. </li></ul><ul><li>Decision making is a systematic process composed of three major phases: intelligence, design and choice (Simon 1977). </li></ul>10/06/11
  3. 3. Simon’s model of decision making 10/06/11
  4. 4. Decision Making as a Component of Problem Solving 10/06/11 Intelligence Design Choice Implementation Monitoring Problem solving Decision making
  5. 5. Types of decisions <ul><li>Structured or programmed decisions : It is routine and repetitive and is made within the framework of organizational policies and rules. Such decisions are made by managers at comparatively lower levels where the factors affecting decision making are static and well-structured. </li></ul>10/06/11
  6. 6. Unstructured decision <ul><li>Also known as Non-programmed decisions , Is relevant for solving unique/unusual problems in which various alternatives cannot be decided in advance. They are novel and non-recurring and therefore readymade solutions are not available. They are usually taken by managers at higher levels in the organization. </li></ul>10/06/11
  7. 7. semi structured decision <ul><li>These decisions are partially programmable, but still requires human judgment. </li></ul><ul><li>Decisions of this type are characterized as having some agreement on the data, process, and/or evaluation to be used, but are also typified by efforts to retain some level of human judgment in the decision making process. </li></ul>10/06/11
  8. 8. MODERN CLASSIFICATION OF DSS <ul><li>Model-driven DSS </li></ul><ul><li>A model-driven DSS emphasizes access to and manipulation of financial, optimization and/or simulation models. </li></ul><ul><li>Data-driven DSS </li></ul><ul><li>In general, a data-driven DSS emphasizes access to and manipulation of a time-series of internal company data and sometimes external and real-time data. Simple file systems accessed by query and retrieval tools provide the most elementary level of functionality. </li></ul><ul><li>Communications-driven DSS </li></ul><ul><li>Communications-driven DSS use network and communications technologies to facilitate decision-relevant collaboration and communication. </li></ul>10/06/11
  9. 9. <ul><li>Document-driven DSS </li></ul><ul><li>A document-driven DSS uses computer storage and processing technologies to provide document retrieval and analysis. Large document databases may include scanned documents, hypertext documents, images, sounds and video. </li></ul><ul><li>Knowledge-driven DSS </li></ul><ul><li>Knowledge-driven DSS can suggest or recommend actions to managers. These DSS are person-computer systems with specialized problem-solving expertise. The &quot;expertise&quot; consists of knowledge about a particular domain, understanding of problems within that domain, and &quot;skill&quot; at solving some of these problems . </li></ul>10/06/11
  10. 10. Working Definition of DSS <ul><li>A DSS is an interactive, flexible, and adaptable CBIS, specially developed for supporting the solution of a non-structured management problem for improved decision making. It utilizes data, it provides easy user interface, and it allows for the decision maker’s own insights. </li></ul><ul><li>DSS may utilize models, is built by an interactive process (frequently by end-users), supports all the phases of the decision making, and may include a knowledge component. </li></ul>10/06/11
  11. 11. Problem Solving Factors <ul><li>Multiple decision objectives </li></ul><ul><li>Increased alternatives </li></ul><ul><li>Increased competition </li></ul><ul><li>The need for creativity </li></ul><ul><li>Social and political actions </li></ul><ul><li>International aspects </li></ul><ul><li>Technology </li></ul><ul><li>Time compression </li></ul>10/06/11
  12. 12. Characteristics of a DSS <ul><li>Handles large amounts of data from different sources </li></ul><ul><li>Provides report and presentation flexibility </li></ul><ul><li>Offers both textual and graphical orientation </li></ul>10/06/11
  13. 13. Characteristics of a DSS <ul><li>Supports drill down analysis </li></ul><ul><li>Performs complex, sophisticated analysis and comparisons using advanced software packages </li></ul><ul><li>Supports optimization, satisficing, and heuristic approaches </li></ul>10/06/11
  14. 14. Solution Types <ul><li>Optimization model </li></ul><ul><ul><li>Finding the best solution </li></ul></ul><ul><li>Satisficing model </li></ul><ul><ul><li>Finding a good -- but not necessarily the best -- solution to a problem </li></ul></ul><ul><li>Heuristics </li></ul><ul><ul><li>Commonly accepted guidelines or procedures that usually find a good solution </li></ul></ul>10/06/11
  15. 15. Characteristics of a DSS <ul><li>Performs different types of analyses </li></ul><ul><ul><li>“ What-if” analysis </li></ul></ul><ul><ul><ul><li>Makes hypothetical changes to problem and observes impact on the results </li></ul></ul></ul><ul><ul><li>Simulation </li></ul></ul><ul><ul><ul><li>Duplicates features of a real system </li></ul></ul></ul><ul><ul><li>Goal-seeking analysis </li></ul></ul><ul><ul><ul><li>Determines problem data required for a given result </li></ul></ul></ul>10/06/11
  16. 16. Capabilities of a DSS <ul><li>Highly structured problems </li></ul><ul><ul><li>Straightforward problems, requiring known facts and relationships. </li></ul></ul><ul><li>Semi-structured or unstructured problems </li></ul><ul><ul><li>Complex problems wherein relationships among data are not always clear, the data may be in a variety of formats, and are often difficult to manipulate or obtain </li></ul></ul>10/06/11
  17. 17. <ul><li>Support for various managerial levels </li></ul><ul><li>Support to individuals and groups </li></ul><ul><li>Support to interdependent and/or sequential decisions </li></ul><ul><li>Support all phases of the decision-making process </li></ul><ul><li>Support a variety of decision-making processes and styles </li></ul>10/06/11
  18. 18. Decision Making Levels 10/06/11 Operational-level managers involved with daily decisions Strategic-level managers involved with long-term decisions Low High Decision Frequency Strategic Tactical Operational
  19. 19. Integration of TPS, MIS, and DSS <ul><li>In many organizations they are integrated through a common database </li></ul><ul><li>Separation of DSS transactions in the database from TPS and MIS transactions may be important for performance reasons </li></ul>10/06/11
  20. 20. Web-Based Decision Support Systems <ul><li>Web-based decision support systems </li></ul><ul><ul><li>Decision support system software provides business intelligence through web browser clients that access databases either through the Internet or a corporate intranet </li></ul></ul>10/06/11
  21. 21. Components of a DSS <ul><li>Model management software (MMS) </li></ul><ul><ul><li>Coordinates the use of models in the DSS </li></ul></ul><ul><li>Model base </li></ul><ul><ul><ul><li>Provides decision makers with access to a variety of models </li></ul></ul></ul><ul><li>DBMS </li></ul><ul><li>Dialogue manager </li></ul><ul><ul><li>Allows decision makers to easily access and manipulate the DSS </li></ul></ul>10/06/11
  22. 22. Database Model base External database access Access to the internet, networks, and other computer systems Dialogue manager DBMS MMS External databases 10/06/11
  23. 23. Model Base <ul><li>Model Base </li></ul><ul><ul><li>Provides decision makers with access to a variety of models and assists them in decision making </li></ul></ul><ul><li>Models </li></ul><ul><ul><li>Financial models </li></ul></ul><ul><ul><li>Statistical analysis models </li></ul></ul><ul><ul><li>Graphical models </li></ul></ul><ul><ul><li>Project management models </li></ul></ul>10/06/11
  24. 24. Ingredients for DSS Success or Failure <ul><li>For DSS Success </li></ul><ul><ul><li>Management Support </li></ul></ul><ul><ul><li>Users Involved in Design & Development </li></ul></ul><ul><ul><li>Early Benefits Shown </li></ul></ul><ul><li>For DSS Failure </li></ul><ul><ul><li>Lack of Management Support </li></ul></ul><ul><ul><li>Users Ignored in Design & Development </li></ul></ul><ul><ul><li>No Early Benefits Shown </li></ul></ul>10/06/11
  25. 25. DSS Software <ul><li>The Brain </li></ul><ul><li>Analytica </li></ul><ul><li>Decision Explorer </li></ul><ul><li>DSS Vendor List </li></ul><ul><li>Integrated Decision Support Corporation </li></ul><ul><li>Load Planner For Advanced Logistics Management </li></ul><ul><li>Management Sciences Associates </li></ul><ul><li>Meetings Works </li></ul><ul><li>IBM Rational </li></ul><ul><li>SAP's BI Solution </li></ul><ul><li>SAP's Business Objects </li></ul><ul><li>SAS – Analytics </li></ul><ul><li>SAS Business Intelligence </li></ul><ul><li>PlanningDSS.COM </li></ul><ul><li>Spreadsheet Spatial Decision Support System (SDSS) </li></ul><ul><li>ThinkTank </li></ul>10/06/11
  26. 26. Group Decision Support System <ul><li>Group Decision Support System (GDSS) </li></ul><ul><ul><li>Contains most of the elements of DSS plus software to provide effective support in group decision-making settings </li></ul></ul>10/06/11
  27. 27. Databases Model base GDSS processor GDSS software Dialogue manager External database access Users Access to the internet and corporate intranet, networks, and other computer system External databases 10/06/11
  28. 28. Characteristics of a GDSS <ul><li>Special design </li></ul><ul><li>Ease of use </li></ul><ul><li>Flexibility </li></ul><ul><li>Decision-making support </li></ul><ul><ul><li>Delphi approach (decision makers are geographically dispersed) </li></ul></ul><ul><ul><li>Brainstorming </li></ul></ul><ul><ul><li>Group consensus </li></ul></ul><ul><ul><li>Nominal group technique </li></ul></ul>10/06/11
  29. 29. Characteristics of a GDSS <ul><li>Anonymous input </li></ul><ul><li>Reduction of negative group behaviour </li></ul><ul><li>Parallel communication </li></ul><ul><li>Automated record keeping </li></ul><ul><li>Cost, control, complexity factors </li></ul>10/06/11
  30. 30. Group Results Matrix 10/06/11
  31. 31. Components of a GDSS and GDSS Software <ul><li>Database </li></ul><ul><li>Model base </li></ul><ul><li>Dialogue manager </li></ul><ul><li>Communication capability </li></ul><ul><li>Special software (also called GroupWare) </li></ul><ul><li>E.g., Lotus Notes </li></ul><ul><ul><li>people located around the world work on the same project, documents, and files, efficiently and at the same time </li></ul></ul>10/06/11
  32. 32. GDSS Alternatives 10/06/11 Local area decision network Wide area decision network Decision room Teleconferencing Location of group members close distant high low Decision frequency
  33. 33. Decision Room <ul><li>Decision Room </li></ul><ul><ul><li>For decision makers located in the same geographic area or building </li></ul></ul><ul><ul><li>Use of computing devices, special software, networking capabilities, display equipment, and a session leader </li></ul></ul><ul><ul><li>Collect, coordinate, and feed back organized information to help a group make a decision </li></ul></ul><ul><ul><li>Combines face-to-face verbal interaction with technology-aided formalization </li></ul></ul>10/06/11
  34. 34. 10/06/11
  35. 35. Wide Area Decision Network <ul><li>Characteristics </li></ul><ul><ul><li>Location of group members is distant </li></ul></ul><ul><ul><li>Decision frequency is high </li></ul></ul><ul><ul><li>Virtual workgroups </li></ul></ul><ul><ul><ul><li>Groups of workers located around the world working on common problems via a GDSS </li></ul></ul></ul>10/06/11