The document discusses different types of decision support systems: decision support systems (DSS) which help individual decision making, group decision support systems (GDSS) which support collaborative group decision making, and executive support systems (ESS) designed specifically for senior management decision making. Key components, tools, and benefits of each system are described.

1. c h a p t e r
13
DECISION SUPPORT
SYSTEM
GDSS
E S S (E I S)
13.1 © 2002 by Prentice Hall

2. LEARNING OBJECTIVES
• DIFFERENTIATE DECISION-
SUPPORT SYSTEMS (DSS) FROM
GROUP DECISION-SUPPORT
SYSTEMS (GDSS)
• DESCRIBE COMPONENTS OF DSS &
GDSS
*
13.2 © 2002 by Prentice Hall

3. LEARNING OBJECTIVES
• DEMONSTRATE HOW DSS & GDSS
ENHANCE DECISION-MAKING
• DESCRIBE CAPABILITIES OF
EXECUTIVE SUPPORT SYSTEMS
(ESS)
• ASSESS BENEFITS OF ESS
*
13.3 © 2002 by Prentice Hall

4. MANAGEMENT CHALLENGES
• DECISION-SUPPORT SYSTEMS
• GROUP DECISION-SUPPORT
SYSTEMS
• EXECUTIVE SUPPORT SYSTEMS
*
13.4 © 2002 by Prentice Hall

5. DECISION SUPPORT
SYSTEMS (DSS)
MANAGEMENT LEVEL COMPUTER
SYSTEM COMBINES DATA,
MODELS, USER - FRIENDLY
SOFTWARE FOR SEMISTRUCTURED
& UNSTRUCTURED DECISION
MAKING
*
13.5 © 2002 by Prentice Hall

6. DECISION SUPPORT
SYSTEM
• MODEL DRIVEN DSS: Uses models
for what-if and other analysis
• DATA-DRIVEN DSS: Allows
extraction, analysis of information
from databases
*
13.6 © 2002 by Prentice Hall

7. DECISION SUPPORT
SYSTEM
DSS DATA EXTERNAL
TPS DATA
BASE
DSS SOFTWARE SYSTEM
MODELS
USER
INTERFACE OLAP TOOLS
DATAMINING TOOLS
USER
13.7 © 2002 by Prentice Hall

8. DECISION SUPPORT
SYSTEM
• TPS: Transaction processing system
• MODEL: Representation of a problem
• OLAP: On-line analytical processing
• USER INTERFACE: How user enters
problem & receives answers
• DSS DATABASE: Current data from
applications or groups
13.8 * © 2002 by Prentice Hall

9. DECISION SUPPORT
SYSTEM
• DATA MINING: Technology for
finding relationships in large data
bases for prediction
• DSS SOFTWARE SYSTEM: Tools for
data analysis
• SENSITIVITY ANALYSIS: “What-if”
questions about changes in model
factors
13.9 © 2002 by Prentice Hall

10. DECISION SUPPORT
SYSTEM
APPLICATIONS:
• SUPPLY CHAIN MANAGEMENT
• CUSTOMER RELATIONSHIP
MANAGEMENT
• SIMULATING BUSINESS
SCENARIOS
*
13.10 © 2002 by Prentice Hall

11. DECISION SUPPORT
SYSTEM
• GEOGRAPHIC INFORMATION
SYSTEM (GIS): Software to display
digital maps
• WEB-BASED DSS: Available on
Internet for decisions, information,
software
• CUSTOMER DSS (CDSS): System
supports buying decisions of
customers
13.11 © 2002 by Prentice Hall

12. DECISION SUPPORT
SYSTEM
EXAMPLES:
• GENERAL ACCIDENT INSURANCE:
Customer buying patterns, fraud
detection
• BANK OF AMERICA: Customer
profiles
• FRITO-LAY: Price, advertising,
promotion selection
*
13.12 © 2002 by Prentice Hall

13. DECISION SUPPORT
SYSTEM
• BURLINGTON COAT FACTORY:
Store location, inventory mix
• KEYCORP: Targeting direct mail
marketing customers
• NATIONAL GYPSUM: Corporate
planning & forecasting
*
13.13 © 2002 by Prentice Hall

14. DECISION SUPPORT
SYSTEM
• SOUTHERN RAILWAY: Train
dispatching and routing
• TEXAS OIL & GAS: Evaluating
drilling sites
• UNITED AIRLINES: Flight
scheduling, passenger demand
forecasting
*
13.14 © 2002 by Prentice Hall

15. Comparison of DSSs and MISs
13.15 Principles of © 2002 by Prentice Hall

16. Comparison of DSSs and MISs
13.16 Principles of © 2002 by Prentice Hall

17. GROUP DECISION-SUPPORT SYSTEM
(GDSS)
INTERACTIVE COMPUTER-BASED
SYSTEM FACILITATES SOLUTION
OF UNSTRUCTURED PROBLEMS
BY DECISION MAKERS WORKING
AS GROUP
*
13.17 © 2002 by Prentice Hall

18. Group Decision Support System
13.18 Principles of © 2002 by Prentice Hall

19. GDSS ENHANCED DECISION MAKING
ALLOWS: Improved pre-planning
• Increased participation
• Open, collaborative atmosphere
• Idea generation free of criticism
• Evaluation objectivity
• Idea organization & evaluation
*
13.19 © 2002 by Prentice Hall

20. GDSS ENHANCED
DECISION MAKING
ALLOWS: Setting priorities & decision
making
• Documentation of meetings
• Access to external information
• Preservation of organizational memory
*
13.20 © 2002 by Prentice Hall

21. TOOLS OF GDSS
• ELECTRONIC QUESTIONNAIRES
• ELECTRONIC BRAINSTORMING
• IDEA ORGANIZERS
• QUESTIONNAIRE TOOLS
• TOOLS FOR VOTING,
SETTING PRIORITIES
*
13.21 © 2002 by Prentice Hall

22. TOOLS OF GDSS
• STAKEHOLDER IDENTIFICATION &
ANALYSIS TOOLS
• POLICY FORMATION TOOLS
• GROUP DICTIONARIES
*
13.22 © 2002 by Prentice Hall

23. ELECTRONIC MEETING SYSTEM
(EMS)
COLLABORATIVE GDSS: Uses
information technology to make
group meetings more productive
facilitates communication decision
making
*
13.23 © 2002 by Prentice Hall

24. EXECUTIVE
SUPPORT SYSTEMS (ESS)
STRATEGIC INFORMATION SYSTEM
DESIGNED FOR UNSTRUCTURED
DECISION MAKING THROUGH
ADVANCED GRAPHICS AND
COMMUNICATIONS
*
13.24 © 2002 by Prentice Hall

25. EXECUTIVE
SUPPORT SYSTEMS
• DRILL DOWN: ability to move from
summary to lower levels of detail
• Designed for specific needs of CEO
• Extensive support staff
• Executive has 24 hour per day ability to
examine, control progress throughout
organization
*
13.25 © 2002 by Prentice Hall

26. EXECUTIVE
SUPPORT SYSTEMS
BENEFITS:
• FLEXIBILITY
• ABILITY TO ANALYZE, COMPARE,
HIGHLIGHT TRENDS
• GRAPHICS HELP EXPLORE SITUATION
• MONITOR PERFORMANCE
• TIMELINESS, AVAILABILITY OF DATA
ALLOWS PROMPT ACTION
*
13.26 © 2002 by Prentice Hall

27. EXECUTIVE
SUPPORT SYSTEMS
USES IN A DIGITAL FIRM:
• BUSINESS INTELLIGENCE: Info on
salespeople, distributors, retailers
• MONITORING BUSINESS PERFORMANCE:
Balanced scorecard shows perspectives
of customers, internal processes,
learning, growth
• ENTERPRISE WIDE REPORTING &
ANALYSIS
13.27 * © 2002 by Prentice Hall

28. Summary
• Decision support system (DSS) - an organized
collection of people, procedures, software,
databases, and devices working to support
managerial decision making
• Group decision support system (GDSS) - also called
a computerized collaborative work system, consists
of most of the elements in a DSS, plus software
needed to provide effective support in group
decision-making settings
• Executive support systems (ESSs) - specialized
decision support systems designed to meet the
needs of senior management
13.28 Principles of © 2002 by Prentice Hall