Business Analytics Decisions

1. Topics
• Types of Decision
• Decision Making Process
• Decision Support System

2. Types of Decisions
Programmed and Non-Programmed Decisions
Major and Minor Decisions
Routine and Strategic Decisions
Organizational and Personal Decisions
Individual and Group Decisions
Policy and Operation Decisions and
Long-Term Departmental and Non-Economic
Decisions.

3. Decision making process
•What is the decision making process?
•Steps in Decision-Making Process

4. Decision making process(contd)
•Types of decision-making models
Rational decision making models
Intuitive decision making models
Creative decision making model

5. Decision Support Systems
•What is Decision Support System (DSS)?
•Decision Structure
•Decision Support System Characteristics
•Components of DSS
•Classification of DSS
•Benefits of DSS

6. What is Decision Support System?
An interactive, flexible
computerized information
system that enables
managers to obtain and
manipulate information as
they are making decisions.

7. Decision Structure
•Structured Decisions – situations where the
procedures to follow when a decision is
needed can be specified in advance
•Unstructured Decisions – decision situations
where it is not possible to specify in advance
most of the decision procedures to follow
•Semi structured Decisions - decision
procedures that can be prespecified, but not
enough to lead to a definite recommended
decision

8. Levels of Management in Decision
Making
Strategic management
Executives develop organizational goals,
strategies, policies, and objectives
As part of a strategic planning process
Tactical management
Managers and business professionals in
self-directed teams
Develop short- and medium-range plans,
schedules and budgets
Specify the policies, procedures and
business objectives for their subunits

9. Levels of Management in Decision
Making(Contd)
•Operational management
•Managers or members of self-directed
teams
•Develop short-range plans such as weekly
production schedules

10. Information required at different management
levels

11. DSS System Characteristics
Characteristics
of a
DSS System
Interactive
Flexible
Discovery-Oriented
Accessible

12. COMPONENTS OF DSS
TPS
EXTERNAL
DATA
DSS DATA
BASE
DSS SOFTWARE SYSTEM
MODELS
OLAP TOOLS
DATAMINING TOOLS
USER
INTERFACE
USER

13. Classification of DSS
•Model-driven DSS
•Communication-driven DSS
•Data-driven DSS
•Document-driven DSS
•Knowledge-driven DSS

14. Model-driven DSS
•A model-driven DSS emphasizes access to
and manipulation of a statistical, financial,
optimization, or simulation model.
•Model-driven DSS use data and parameters
provided by users to assist decision makers
in analyzing a situation; they are not
necessarily data-intensive.

15. Communication-driven DSS
•A communication-driven DSS supports
more than one person working on a
shared task

16. Data-driven DSS
•A data-driven DSS or data-oriented DSS
emphasizes access to and manipulation of a
time series of internal company data and,
sometimes, external data

17. Document-driven DSS
•A document-driven DSS manages, retrieves,
and manipulates unstructured information in
a variety of electronic formats.

18. Knowledge-driven DSS
•A knowledge-driven DSS provides
specialized problem-solving expertise
stored as facts, rules, procedures, or in
similar structures

19. Benefits of DSS
Improves personal efficiency
Accelerate problem solving
Facilitates interpersonal communication
Promotes learning or training
Increases organizational control
Generates new evidence in support of a decision
Creates a competitive advantage over competition
Reveals new approaches to thinking about the
problem space