This document discusses decision support systems and business intelligence. It describes how the modern business environment requires computerized systems to help with complex decision making. Business intelligence transforms raw data into useful information through methodologies, processes and technologies. Decision support systems couple individual expertise with computer capabilities to improve decision quality for semi-structured problems. Both systems use similar architectures of data warehouses, analytics, and user interfaces to enable analysis and informed decisions.

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
be<er
decision.
• Intui?on
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
informa?on
used
to
enable
more
effec?ve
strategic,
tac?cal,
and
opera?onal
insights
and
decision-­‐making."[6]
• 1958
researcher
conned
this
term
intelligence,
IBMs
hans
peter
Luhn
"the
ability
to
apprehend
the
interrela?onships
of
presented
facts
in
such
a
way
as
to
guide
ac?on
towards
a
desired
goal."[4]

4. Car
company
case
scenario
• car
company
fic??ous
case:
•
car
logis?cs
• 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:
mul?ple
things:
flow
of
informa?on,
fast
decisions,
vast
amounts
of
data,
collabora?on:

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

6. Different
ac;ons
taken
by
managers
to
counter
the
pressure:
• Employee
strategic
planning
• Use
new
and
innova?ve
business
models
• Restructure
business
processes
• Par?cipate
in
business
alliances
• Improve
corporate
informa?on
system
Con?nue…

7. • Improve
partnership
rela?onships
• Encourage
innova?on
and
crea?vity
• Improve
customer
service
and
rela?onships
• Move
to
electronic
commerce(e-­‐commerce)
• Move
to
make-­‐to-­‐order
produc?on
and
on-­‐
demand
manufacturing
and
services
• Use
new
IT
to
improve
communica?on,
data
access(discovery
of
informa?on)
Con?nue…

8. • Respond
quickly
to
compe?tor’s
ac?ons(e.g.
in
pricing,
promo?on,
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
computa?ons
• Improved
communica?on
and
collabora?on
• Increased
produc?vity
of
group
members
• Improved
data
management
• Managing
giant
data
warehouses
• Quality
support
• Agility
support
Con?nue….

10. • Overcoming
cogni?ve
limits
in
processing
and
storing
informa?on
• Using
the
web
• Anywhere,
any?me
support

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

12. Simon’s
Decision
Making
Process
• Decision
making
process:
Intelligence
(searching
for
condi?ons
•
Design
•
Choice
•
Implementa?on

13. Computerized
Decision
Support
• Computer
support
for
Structured
decision
-­‐Automated
Decision
making(rule
based
system,
price
determina?on;
loan
or
not,
price
op?msa?on)
• 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
capabili?es
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
Sco<-­‐Morton(1978)

16. Architecture
of
DSS
• Types
of
DSS
1.Model-­‐oriented
DSS
2.Data-­‐oriented
DSS
1
–
model
is
quan?ta?ve
D-­‐
data
oriented
:
adhoc
queries
and
repor?ng

17. Framework
for
Business
Intelligence
(BI)
What
is
BI?
• An
umbrella
that
combines
architectures,
tools,
database,
analy?cal
tools,
applica?ons
and
methodologies.
• Content-­‐free
expression
• Objec?ve:1.To
enable
interac?ve
access
to
data
2.To
enable
manipula?on
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
Analy2cs:
a
collec?on
of
tools
for
manipula?ng,
mining,
and
analyzing
the
data
in
the
data
warehouse
• Business
performance
management:
for
monitoring
&
analyzing
performance
• User
interface:
Dashboard
&
other
informa?on
broadcas?ng
tools

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

21. Bperformance
mgmt
• Adds
management
and
feedback
to
core
BI
• Top
–
bo<m
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
execu?ve
&
strategic
orienta?on
while
DSS
is
oriented
toward
analyst.
• BI
are
constructed
with
commercially
available
tools
&
components
while
DSS
is
construc?ng
solu?ons
to
unstructured
problems.
• DSS
were
mostly
in
the
academic
world.BI
were
developed
by
solware
companies.
• Many
of
the
tools
that
BI
uses
are
also
considered
DSS
tools.

23. Management
Support
System
• Combina?on
of
DSS
and
BI
tools.
• Technology
that
supports
managerial
tasks
in
general
and
decision
making
in
par?cular.
• 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,
microsol,
IBM,
oracle,
Hyperion,
cognos,
Business
objects,SAS,exsys,SAP

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

25. • Case
study
on
microstrategy
• Microsol
BI
offering