The document discusses decision support systems and their components. It covers topics like decision structures, decision support trends, decision support system components, online analytical processing, geographic information systems, expert systems, and their applications. Key aspects of decision making like relevant information, types of decisions, and decision making structures are also explained.

1. UNIT VIII
Decision Support Systems in Business
By Dr. Dhobale J V
Associate Professor
School of Engineering & Technology
RNB Global University, Bikaner
RNB Global University, Bikaner. 1Course Code - 11010700

2. Objectives
 Decision .
 Decision Structure.
 Decision Support Trends.
 Decision Support System Components.
 Online Analytical Processing.
 Geographic information and data visualization.
 Expert Systems
 Expert Systems Benefits & Limitations
 Expert System Applications.
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3. Relevance of Information in Decision
Making
 Relevant information is essential to any
business decision, which in the hands of an
informed individual leads to better business
decisions.
 However, most organizations struggle with the
ability to provide decision-makers with the
important information that they need in a
timely manner.
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4. Relevance of Information in Decision
Making
 These Organizations struggle because they
either do not understand what relevant
information is needed and/or they do not know
how to obtain it efficiency.
 By defining analytics such as key performance
indicators (KPIs) or metrics and implementing
business intelligence technology, an
organization can overcome this.
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5. Relevance of Information in Decision
Making
 One of the values that reporting environments
such as an operational data store, a data
warehouse or data mart provides is timely,
relevant and accurate information.
 Information within these systems is stored at
both detailed and summarized levels which
facilitates the ability to perform research and
analysis.
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6. Relevance of Information in Decision
Making
 KPIs are significant predefined measures that
provide individuals with the information they
need to assess previous actions.
 KPIs allow individuals to focus on those areas
that require attention, thereby, managing their
time more efficiently.
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7. Relevance of Information in Decision
Making
 Defining and creating KPIs can be very
challenging because the individuals tasked
with creating them must understand the goals
of the organization, the business questions
that must be addressed and where to obtain
the data.
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8. Types of Decisions
 A decision is a choice made between 2 or
more available alternatives.
 Decision Making is the process of
choosing the best alternative for reaching
objectives.
 Managers make decisions affecting the
organization daily and communicate those
decisions to other organizational members.
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9. Types of Decisions
 Some decisions affect a large number of
organization members Ex. Cost or long term
decisions.
 Other decisions are fairly insignificant,
affecting only a small member of organization.
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10. Types of Decisions
 Basically there are two types of decisions :
1. Programmed Decisions:Programmed decisions
are routine and repetitive, and the organization
typically develops specific ways to handle them.
2. Non Programmed Decisions: Non programmed
decisions are typically one shot decisions that are
usually less structured than programmed decision.
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11. Types of Decisions
 Other than these there are below listed
Decisions types :
1. Routine and Strategic Decisions.
2. Tactical and operational Decisions.
3. Organizational and Personal Decisions.
4. Major and Minor Decisions.
5. Individual and Group Decisions.
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12. Structure of Decision Making
 Various Types of Decision Making Structures:
1. Committee Structure: with the intention of
reducing business risks by the involvement of
all the executives in the defining of strategies
and the approval of proposals, Committees,
Sub committees are framed and get involved
in decision making.
2. Organizational Structure: Share Holders, The
Board of Directors, Supported by Audit
Committee/Internal Auditors.
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13. Decision Support Systems
 Components of DSS:
 Database management Systems(DBMS).
 Model Management System.
 Support Tools.
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14. Decision Support Systems
 Classification of DSS:
 Text Oriented DSS.
 Database Oriented DSS.
 Spreadsheet Oriented DSS.
 Solver Oriented DSS.
 Rules Oriented DSS.
 Compound DSS.
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15. Decision Support Systems
 Types of DSS:
 Status Inquiry System: Daily schedule of
Jobs to machine.
 Data Analysis System: Inventory Analysis.
 Information Analysis System: Sales
Analysis.
 Accounting System: Accounts receivables.
 Model Based System: Optimization,
Transportation.
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16. Online Analytical Processing (OLAP)
 OLAP (online analytical processing) is
computer processing that enables a user
to easily and selectively extract and view
data from different points of view.
 OLAP allows users to analyze database
information from multiple database
systems at one time.
 OLAP data is stored in Multidimensional
databases.
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17. Online Analytical Processing (OLAP)
 Some popular OLAP server software
programs include:
Oracle Express Server
Hyperion Solutions Essbase
 OLAP is often used for data mining.
 OLAP products are typically designed for
multiple‐user environments, with the cost
of the software based on the number of
users.
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18. Online Analytical Processing (OLAP)
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19. Online Analytical Processing (OLAP)
 An OLAP Cube is a data structure that
allows fast analysis of data.
 The arrangement of data into cubes
overcomes a limitation of relational
databases.
 The OLAP cube consists of numeric
facts called measures which are
categorized by dimensions.
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20. Online Analytical Processing (OLAP)
 A multidimensional cube can combine
data from disparate data sources and
store the information in a fashion that is
logical for business users. 20RNB Global University, Bikaner.Course Code - 11010700

21. OLAP Operations
 The user‐initiated process of navigating
by calling for page displays interactively,
through the specification of slices via
rotations and drill down/up is sometimes
called "slice and dice".
 Slice: A slice is a subset of a
multi‐dimensional array corresponding to
a single value for one or more members
of the dimensions not in the subset.
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22. OLAP Operations
 Dice: The dice operation is a slice on
more than two dimensions of a data
cube (or more than two consecutive
slices).
 Drill Down/Up: Drilling down or up is a
specific analytical technique whereby the
user navigates among levels of data
ranging from the most summarized (up)
to the most detailed (down).
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23. OLAP Operations
 Roll‐up: A roll‐up involves computing all
of the data relationships for one or more
dimensions. To do this, a computational
relationship or formula might be defined.
 Pivot: To change the dimensional
orientation of a report or page display.
 The output of an OLAP query is typically
displayed in a matrix (or pivot) format.
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24. Geographical Information System
 Geographic Information Systems (GIS)
Connects Geography with Data
 In a GIS, you connect data with
geography. You understand What
belongs where. Because you don’t fully
understand your data until you see how it
relates to other things.
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25. Geographical Information System
 Geographic Information Systems is a
computer-based tool that analyzes,
stores, manipulates and visualizes
geographic information on a map.
 These global issues require pervasive,
complex, location-based knowledge that
can only come from a GIS.
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26. Geographical Information System
 Geographic Information Systems really
comes down to just 4 simple
ideas: Create geographic
data. Manage it. Analyze it
and… Display it on a map.
 It’s REALLY hard to visualize the
locations of latitudes and longitudes
coordinates from a spreadsheet.
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27. Geographical Information System
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28. Geographical Information System
 But when you add these positions on a
map, it’s like magic to the reader.
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29. Geographical Information System
 Everyone knows that maps make
geographic information easier to
understand.
1. Hardware – Hardware ranges from
powerful servers to mobile phones. The
CPU is your workhorse. Data processing
is the name of the game. GIS analysts
often need dual monitors, boatloads of
storage and crisp graphic processing
cards.
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30. Geographical Information System
2. Software – The GIS software options
out there seem endless. From ArcGIS,
QGIS, GRASS GIS, SuperGIS, SAGA
GIS to JUMP GIS… The range of GIS
products to choose from can get a bit
“ridiculous” at times.
 Some of the largest problems of our
planet are best understood spatially –
climate change, natural disasters and
population dynamics.
30RNB Global University, Bikaner.Course Code - 11010700

31. Expert System
 Support professionals faced with
complex situations requiring expert
knowledge in a well-defined area.
 They represent human expertise also
called knowledge-based systems.
 A knowledge management system is just
extends the already existing systems by
assimilating more information.
31RNB Global University, Bikaner.Course Code - 11010700

32. Expert System
 Support professionals faced with
complex situations requiring expert
knowledge in a well-defined area.
 They represent human expertise also
called knowledge-based systems.
 A knowledge management system is just
extends the already existing systems by
assimilating more information.
32RNB Global University, Bikaner.Course Code - 11010700

33. Expert System
 What is Knowledge?:
 Personalized information .
 State of knowing and understanding.
 An object to be stored and manipulated.
 A process of applying expertise.
 A condition of access to information.
 Potential to influence action.
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34. Expert System
 Sources of Knowledge of an
Organization:
 Intranet .
 Data warehouses and knowledge
repositories.
 Decision support tools.
 Groupware for supporting collaboration.
 Networks of knowledge workers .
 Internal expertise.
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35. Expert System
 Knowledge Management: A knowledge
management system comprises a range
of practices used in an organization to
identify, create, represent, distribute, and
enable adoption to insight and
experience.
 Such insights and experience comprise
knowledge, either embodied in individual
or embedded in organizational
processes and practices.
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36. Expert System
 Levels of Knowledge Management:
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37. Expert System
 Activities in Knowledge Management:
 Start with the business problem and the
business value to be delivered first.
 Identify what kind of strategy to pursue to
deliver this value and address the KM
problem.
 Think about the system required from a
people and process point of view.
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38. Expert System
 Activities in Knowledge Management:
 Finally, think about what kind of technical
infrastructure are required to support the
people and processes.
 Implement system and processes with
appropriate change management and
iterative staged release.
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39. Process of Decision Making
 Decision Making process consists following
steps:
1. Identification of the purpose of the decision.
2. Information gathering.
3. Principles for judging the alternatives.
4. Brainstorm and analyse the different choices.
5. Evaluation of alternatives.
6. Select the best alternative.
7. Execute the decision.
8. Evaluate the results.
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40. Thank You!
RNB Global University, Bikaner. 40Course Code - 11010700