The document discusses decision support systems and business intelligence. It describes how business environments have become more complex, requiring faster and better decision-making supported by computerized systems. Business intelligence involves transforming raw data into useful information to enable strategic, tactical and operational insights. Decision support systems couple individual expertise with computer capabilities to improve decision quality for semi-structured problems.

1. Decision Support systems and
Business Intelligence

2. • Business environment is becoming more and
more complex and rapidly changing, making
decision making more difficult
• Must respond and adapt by making faster and
better decision.
• Intuition may not be enough, hence
computerised systems are required.

3. • "Business Intelligence is a set of methodologies,
processes, architectures, and technologies that
transform raw data into meaningful and useful
information used to enable more effective
strategic, tactical, and operational insights and
decision-making."[6]
• 1958 researcher conned this term intelligence,
IBMs hans peter Luhn "the ability to apprehend
the interrelationships of presented facts in such a
way as to guide action towards a desired goal."[4]

4. Car company case scenario
• car company fictitious case:
• car logistics
• problem:increasing costs
• increasing issues, delays , data entry errors. some
issues resolved with data analysis
• more managers could see problems of overbilling
and delays
• sample indicates: multiple things: flow of
information, fast decisions, vast amounts of data,
collaboration:

5. The Business Environment
• because of the modern factors, decision making is become complex requiring knowledge of
business, data, data representation; hence a computerized system is required.

6. Different actions taken by managers to counter
the pressure:
• Employee strategic planning
• Use new and innovative business models
• Restructure business processes
• Participate in business alliances
• Improve corporate information system
Continue…

7. • Improve partnership relationships
• Encourage innovation and creativity
• Improve customer service and relationships
• Move to electronic commerce(e-commerce)
• Move to make-to-order production and on-demand
manufacturing and services
• Use new IT to improve communication, data
access(discovery of information)
Continue…

8. • Respond quickly to competitor’s actions(e.g.
in pricing, promotion, new products and
services)
• Automate many tasks of white-collar
employees
• Automate certain decision processes,
especially those dealing with customers
• Improve decision making

9. Why we use computerized Decision
Support System
• Speedy computations
• Improved communication and collaboration
• Increased productivity of group members
• Improved data management
• Managing giant data warehouses
• Quality support
• Agility support
Continue….

10. • Overcoming cognitive limits in processing and
storing information
• Using the web
• Anywhere, anytime support

11. Decision Support Frameworks(gory
and scott morton[1971]

12. Simon’s Decision Making Process
• Decision making
process:
Intelligence(sear
ching for
conditions
•
Design
•
Choice
•
Implementation

13. Computerized Decision Support
• Computer support for Structured decision
-Automated Decision making(rule
based system, price determination; loan or
not, price optimsation)
• Computer support for unstructured decision
• Computer support for semi structured
problems

14. Automated Decision-Making
Framework

15. Decision Support System(DSS)
• “Decision support system 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”
-By Keen and Scott-Morton(1978)

16. Architecture of DSS
• Types of DSS
1.Model-oriented DSS
2.Data-oriented DSS
1 – model is quantitative
D- data oriented : adhoc
queries and reporting

17. Framework for Business
Intelligence(BI)
What is BI?
• An umbrella that combines architectures, tools,
database, analytical tools, applications and
methodologies.
• Content-free expression
• Objective:1.To enable interactive access to data
2.To enable manipulation of data
3.To give managers & analyst the ability
to conduct appropriate analysis.

18. The Architecture of BI

19. Components Of BI system
BI system has four major components:
• Data warehouse: Source data
• Business Analytics: a collection of tools for
manipulating, mining, and analyzing the data
in the data warehouse
• Business performance management: for
monitoring & analyzing performance
• User interface: Dashboard & other
information broadcasting tools

20. Benefits of BI
The major benefits of BI:
• Faster, more accurate reporting
• Improved decision making
• Improved customer service
• Increased revenue
Apart from these, there are several other like-
• Time saving
• Single version of the “truth”
• Better strategies and plans
• More efficient process
• Cost saving

21. Bperformance mgmt
• Adds management and feedback to core BI
• Top – bottm process
• Balanced scorecard and dashboards

22. Summary
• Similar architecture because BI evolved from DSS.
• DSS are constructed to directly support specific
decision making while BI are for indirect support.
• BI has an executive & strategic orientation while DSS is
oriented toward analyst.
• BI are constructed with commercially available tools &
components while DSS is constructing solutions to
unstructured problems.
• DSS were mostly in the academic world.BI were
developed by software companies.
• Many of the tools that BI uses are also considered DSS
tools.

23. Management Support System
• Combination of DSS and BI tools.
• Technology that supports managerial tasks in
general and decision making in particular.
• MSS use when the nature of the technology
involved is not clear, and use it interchangeably
with the combined term DSS/BI.
• Vendor names: Microstrategy, microsoft, IBM,
oracle, Hyperion, cognos, Business
objects,SAS,exsys,SAP

24. Work system view
• Remove systems from DSS
• Improve decision making
• Alter(2004)
Process, particpants,
info,tech,product,customers.infra,environmen
t,strategy

25. • Case study on microstrategy
• Microsoft BI offering