Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Decision Support systems and 
Business Intelligence
• Business environment is becoming more and 
more complex and rapidly changing, making 
decision making more difficult 
• ...
• "Business Intelligence is a set of methodologies, 
processes, architectures, and technologies that 
transform raw data i...
Car company case scenario 
• car company fictitious case: 
• car logistics 
• problem:increasing costs 
• increasing issue...
The Business Environment 
• because of the modern factors, decision making is become complex requiring knowledge of 
busin...
Different actions taken by managers to counter 
the pressure: 
• Employee strategic planning 
• Use new and innovative bus...
• Improve partnership relationships 
• Encourage innovation and creativity 
• Improve customer service and relationships 
...
• Respond quickly to competitor’s actions(e.g. 
in pricing, promotion, new products and 
services) 
• Automate many tasks ...
Why we use computerized Decision 
Support System 
• Speedy computations 
• Improved communication and collaboration 
• Inc...
• Overcoming cognitive limits in processing and 
storing information 
• Using the web 
• Anywhere, anytime support
Decision Support Frameworks(gory 
and scott morton[1971]
Simon’s Decision Making Process 
• Decision making 
process: 
Intelligence(sear 
ching for 
conditions 
• 
Design 
• 
Choi...
Computerized Decision Support 
• Computer support for Structured decision 
-Automated Decision making(rule 
based system, ...
Automated Decision-Making 
Framework
Decision Support System(DSS) 
• “Decision support system couple the 
intellectual resources of individuals with the 
capab...
Architecture of DSS 
• Types of DSS 
1.Model-oriented DSS 
2.Data-oriented DSS 
1 – model is quantitative 
D- data oriente...
Framework for Business 
Intelligence(BI) 
What is BI? 
• An umbrella that combines architectures, tools, 
database, analyt...
The Architecture of BI
Components Of BI system 
BI system has four major components: 
• Data warehouse: Source data 
• Business Analytics: a coll...
Benefits of BI 
The major benefits of BI: 
• Faster, more accurate reporting 
• Improved decision making 
• Improved custo...
Bperformance mgmt 
• Adds management and feedback to core BI 
• Top – bottm process 
• Balanced scorecard and dashboards
Summary 
• Similar architecture because BI evolved from DSS. 
• DSS are constructed to directly support specific 
decision...
Management Support System 
• Combination of DSS and BI tools. 
• Technology that supports managerial tasks in 
general and...
Work system view 
• Remove systems from DSS 
• Improve decision making 
• Alter(2004) 
Process, particpants, 
info,tech,pr...
• Case study on microstrategy 
• Microsoft BI offering
Upcoming SlideShare
Loading in …5
×

Decision support systems and business intelligence

8,236 views

Published on

DSS and BI slides

Published in: Technology
  • Be the first to comment

Decision support systems and business intelligence

  1. 1. Decision Support systems and Business Intelligence
  2. 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. 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. 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. 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. 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. 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. 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. 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. 10. • Overcoming cognitive limits in processing and storing information • Using the web • Anywhere, anytime support
  11. 11. Decision Support Frameworks(gory and scott morton[1971]
  12. 12. Simon’s Decision Making Process • Decision making process: Intelligence(sear ching for conditions • Design • Choice • Implementation
  13. 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. 14. Automated Decision-Making Framework
  15. 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. 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. 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. 18. The Architecture of BI
  19. 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. 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. 21. Bperformance mgmt • Adds management and feedback to core BI • Top – bottm process • Balanced scorecard and dashboards
  22. 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. 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. 24. Work system view • Remove systems from DSS • Improve decision making • Alter(2004) Process, particpants, info,tech,product,customers.infra,environmen t,strategy
  25. 25. • Case study on microstrategy • Microsoft BI offering

×