This document discusses decision support and knowledge based systems. It provides an overview of key topics including decision support systems (DSS), group decision support systems (GDSS), enterprise and executive decision support systems, knowledge management and expert systems. It describes the components, advantages and disadvantages of these systems. It also discusses how DSS and knowledge based systems have been successfully implemented by organizations like Fair Isaac Corporation to support decision making.

1. DECISION
SUPPORT AND
KNOWLEDGE
BASED SYSTEMS
Information
Systems
Presentation
Group-5

2. PRESENTATION
OVERVIEW
◊Decision Support Systems (DSS)
◊Group Decision Support Systems (GDSS)
◊Enterprise & Executive Decision Support
Systems
◊Knowledge Management, Knowledge
based Expert Systems
◊DSS Success Stories

3. 4-3
DECISIONS, DECISIONS,
DECISIONS
Phases of decision making
 Intelligence – find or recognize a
problem, need, or opportunity
 Design – consider possible ways of solving the
problem
 Choice – weigh the merits of each solution
 Implementation – carry out the solution

4. 4-4
FOUR PHASES OF
DECISION MAKING

5. 4-5
TYPES OF DECISIONS
WE FACE
Structured decision – processing a
certain information in a specified way so
that you will always get the right answer
Non-structured decision – one for which
there may be several “right” answers,
without a sure way to get the right answer

6. 4-6
EXAMPLE- WHAT JOB DO
I TAKE?

7. 4-7
TYPES OF DECISIONS
WE FACE
Recurring decision –
 one that happens repeatedly
Nonrecurring (ad hoc) decision –
 one you make infrequently

8. 4-8
DECISION SUPPORT
SYSTEMS
 Decision support system (DSS) – a highly
flexible and interactive system that is designed to
support decision making when the problem is not
structured.
“DSSs help you analyze, but you must know how
to solve the problem, and how to use the results
of the analysis.”

9. 4-9
COMPONENTS OF A DSS
Model management component –
consists of both the DSS models and the
model management system
Data management component – stores
and maintains the information that you
want your DSS to use
User interface management component
– allows you to communicate with the DSS

10. 4-10
COMPONENTS OF A DSS

11. PRESENTATION
OVERVIEW
◊Decision Support Systems (DSS)
◊Group Decision Support Systems (GDSS)
◊Enterprise & Executive Decision Support
Systems
◊Knowledge Management, Knowledge
based Expert Systems
◊DSS Success Stories

12. GROUP DECISION
SUPPORT SYSTEM
 Group Decision Support Systems
(GDSS) are a class of electronic meeting
systems, a collaboration technology
designed to support meetings and group
work .
“Group Support Systems has come to
mean computer software and hardware
used to support group functions and
processes.”
12

13. WHY USE GDSS?
High level managers can spend 80% of their time
making decisions in groups. Applied correctly, GDSS
can reduce this time, arriving at a better decision
faster.
GDSS provides the hardware, software, databases
and procedures for effective decision making.
13

14. GDSS TIME/PLACE
ENVIRONMENT
Same-Time
Same-Place
(Most widely used GDSS-
computers with projectors, voting
tools)
Same-Time
Different-Place
(team room, tools, audio
conferencing, screen sharing, chat)
Different-Time
Same-Place
(audio/video conferencing,
document sharing)
Different-Time
Different-Place
(voice mail, email, bulletin boards)
14

15. COMPONENTS OF GDSS
 Software
The software part may consist of the following
components: databases and database management
capabilities, user/system interface with multi-user
access, specific applications to facilitate group
decision-makers activities
 Hardware
The hardware part may consist of the following
components: I/O devices, PCs
or workstations, individual monitors for each
participant or a public screen for group.
15

16. COMPONENTS OF GDSS
 People
The people may include decision-making
participants and /or facilitator. A facilitator is a
person who directs the group through the planning
process.
 Procedures
This refers to the methods that have been used in
holding meetings.

17. GDSS MODEL
17

18. ADVANTAGES OF GDSS
Parallel Communication – eliminate
monopolizing providing increased participation,
better decisions
Automated record keeping – no need to take
notes, they’re automatically recorded
Ability for virtual meetings – only need
hardware, software and people connected
Portability - Can be set up to be portable…
laptop
Global Potential - People can be connected
across the world 18

19. DISADVANTAGES OF
GDSS
Cost –infrastructure costs to provide the
hardware and software/room/network
connectivity can be very expensive
Security – especially true when companies rent
the facilities for GDSS; also, the facilitator may be
a lower-level employee who may leak information
to peers
Technical Failure – power loss, loss of
connectivity, relies heavily on bandwidth and
LAN/WAN infrastructure – properly setup system
should minimize this risk
19

20. PRESENTATION
OVERVIEW
◊Decision Support Systems (DSS)
◊Group Decision Support Systems (GDSS)
◊Enterprise & Executive Decision Support
Systems
◊Knowledge Management, Knowledge
based Expert Systems
◊DSS Success Stories

21. ENTERPRISE &
EXECUTIVES SUPPORT
The growth of corporate
intranets, extranets and the Web
(internet) has accelerated the
development and use of
“executive class” information
delivery & decision support
software tools to virtually every
level of the organization.

22. ENTERPRISE &
DECISION MAKING
 DSS to provide enterprise-wide support
 Executives
 Many decision makers in different locations

23. EXECUTIVE DECISIONS:
STRATEGIC
Strategic Level
Inputs: Aggregate data
Processing: Interactive
Outputs: Projections
Users: Senior managers

24. EXECUTIVE DECISIONS:
STRATEGIC
5-year sales trend
forecasting
5-year operating
plan
5-year budget
forecasting
Profit planning

25. EXECUTIVE SUPPORT
SYSTEMS
Specialized decision support systems
designed to meet the needs of senior
management
ESS are enterprise-wide DSS that help
top-level executives
analyze, compare, and highlight trends in
important variables so that they can
monitor performance and identify
opportunities and problems

26. PERSPECTIVES OF
EXECUTIVE SUPPORT
SYSTEMS
 Tailored to individual executives
Not to managers in other levels
 Easy to use
 Drill down capabilities
 Support need for external data
 Can help when uncertainty is high
 Future-oriented, ties CEO to all levels
 Linked to value-added processes

27. CAPABILITIES OF
EXECUTIVE SUPPORT
SYSTEMS
Support for defining an overall vision
Organization’s product lines and services
Support for strategic planning
Predict future trends
Analyze merger possibilities
Support for strategic organizing &
staffing
Choice of departments
Pay raises

28. CAPABILITIES OF
EXECUTIVE SUPPORT
SYSTEMS CONT..
Support for strategic control
Monitor and manage the overall
organization
Support for crisis management
Put together a contingency plan

29. PRESENTATION
OVERVIEW
◊Decision Support Systems (DSS)
◊Group Decision Support Systems (GDSS)
◊Enterprise & Executive Decision Support
Systems
◊Knowledge Management, Knowledge
based Expert Systems
◊DSS Success Stories

30. KNOWLEDGE
Data
Information
Knowledge
Intelligence
Codifiable, explicit
Easily transferable
Human, judgmental
Contextual, tacit
Transfer needs learning

31. DATA, INFORMATION &
KNOWLEDGE

32. DATA, INFORMATION AND
KNOWLEDGE
 Data
refers to isolated facts such as individual
measurement
No meaning on their own
 Information
fact about situation, person, events
 Knowledge
experience

33. KNOWLEDGE
MANAGEMENT
 Knowledge management (KM) comprises a range
of strategies and practices used in an organisation
to identify, create, represent, distribute, and enable
adoption of insights and experiences
 KM is a process that helps organizations identify,
select, organize, disseminate, and transfer
important information and expertise that are part of
the organization’s memory.
 KM is the process of systematically and actively
managing and leveraging stores of knowledge in an
organization

34. EXPERT SYSTEM
Expert system are the system designed
to solve complex problem by reasoning
like as an expert
 Expert Systems Application Areas in Action
1.Medical Diagnosis
2.Telephone Network Maintenance
3.Detection of Common Metals

35. EXPERT SYSTEM
ARCHITECTURE
The typical architecture of an expert system is
often described as follows-
user
interface
inference
engine
knowledge
base

36. EXPERT SYSTEMS:
CHARACTERISTICS
Like a human expert, an expert system is expected
to
 Be specialist : know facts and procedural rules
 Use heuristics : interpolate from known facts
 Justify its conclusions : to establish credibility
and confidence. The user can ask:
 Be able to learn : be able to absorb new
knowledge and apply it estimate the reliability of its
answer.

37. DSS SUCCESS STORIES-
FAIR ISAAC
CORPORATION (FICO)
Enterprise Decision Management
Enterprise Fraud Protection
Big Data Analytics
Connected Decisions
Mobile Dialogues
Normally total
$200,000 plus
www.fico.co
m

38. FICO’S SUCCESS
 More than 5000
businesses in more
than 80 countries
 9 of the top 10
companies in the
Fortune 500
 Multiple success stories
of big and small
companies

39. Thank
You!
Questions & Answers Session