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DECISION-MAKING SYSTEMS Decision Support Software.

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Presentation on theme: "DECISION-MAKING SYSTEMS Decision Support Software."— Presentation transcript:

1 DECISION-MAKING SYSTEMS Decision Support Software

2 Reasons for the growth of decision- making information systems People need to People must make People must techniques, such as modeling and forecasting, to make good decisions People must the corporate asset of organizational information

3 Transaction Processing Systems C regarding business transactions/activities. –That data is stored in a database and then mined/analyzed using one or more decision making techniques Transactional Data being captured –D and –Inventory of the system –Items being and. –Payments Uses : captures data at the point of origin

4 The Organizational Pyramid and Information Needs As you move from lower to upper levels in an organization, information needs move from in nature to. Analytical information supports. Info also becomes and more

5 Different Decision Types Programmed Decisions (structured decision) –S relationships –Quantifiable. –Very easy to automate (program) these types of decisions. Nonprogrammed Decisions (nonstructured decision) –Ill-structured situations with between variables –Not easily quantifiable in advance. No agreed-on decision making method. –There may be (although some answers could be better than other answers).

6 Most decisions that you make structured and nonstructured (containing elements of both). Various forms of decision support tend to be used when dealing with nonstructured aspects of a decision. (DSS helps you) With artificial intelligence, the decision making expertise is so that the AI system

7 Problem Solving Approaches Used by Computer-Aided Decision Making Systems O: find the very best solution given the constraints provided (aka the) S: find a, one that of your decision, without necessarily being the best solution.

8 DECISION SUPPORT SYSTEM (DSS) Highly flexible and interactive IT system that is designed to support decision making when the problem is ( i.e. Nonprogrammed decision). are a common form of decision support system (DSS)

9 Alliance between You and a DSS Decision support systems help you, but you must know how to, and how to use the results of the analysis –A DSS in making a decision, as opposed to making the decision for you. –Power of a DSS is its ability to analyze information and its ease of use.

10 QUANTITATIVE MODELS OFTEN USED BY A DSS Three quantitative () models often used by DSSs include: 1.S – the study of the impact that changes in one (or more) parts of the model have on other parts of the model 2.W analysis – checks the impact of a change in an assumption on the proposed solution 3.G analysis – finds the inputs necessary to achieve a goal such as a desired level of output

11 DSS Quantitative Model: What-if analysis: change and see what on the model

12 DSS Quantitative Model: Goal-seeking analysis what must occur in order to achieve the ?

13 A DSS Can Help With Analysis Tasks Like Deciding where to spend advertising dollars Analyzing sales trend information Analyzing drug interactions Developing airline schedules Pricing products Allocating limited investment dollars among several potential projects. Budget setting.Inventory control. Cash flow forecasting. Processing rules are. Human required.

14 Applied Uses of a DSS


16 YSYSTEMS are a form of DSS used by airlines to alter the price of seats on available flights on a minute by minute basis, comparing the number of seats sold to an estimate of what was expected. If fewer seats have sold, more low-cost seats are made available. If more seats have sold, less low-cost seats are made available. Objective: have the

17 Airlines are using optimization software to save money on the costs associated with each flight by reducing the number of miles traveled, fuel used and/or overflight fees paid, with the system also taking weather and wind speed & direction into account.

18 GEOSPATIAL INFORMATION SYSTEMS (GIS) A Geospatial Information System (GIS) is a specialized decision support system designed specifically to –Spatial information is that can be shown in, such as roads, population distribution characteristics, sewer systems and other utilities, income levels, health conditions, areas of high or low crime, etc. –The strength of a GIS is the ability to with a mouse click.

19 ArcExplorer 2: showing features in San Diego (can find out more info about an attraction by placing your mouse over it) Pg. 213: Haag –GIS used in the space shuttle Challenger investigation –GIS used in tree maintenance in Chattanooga –GIS used in the 2001 Virginia highway sniper investigation. Pg. 188: Analyzing hurricane destruction in Florida.

20 Businesses use GIS software to information,, and make decisions. Can layer in info with a mouse click Marketing applications

21 Westar Outage MapWestar Outage Map

22 EXECUTIVE INFORMATION SYSTEMS Executive information system (EIS) – specialized DSSs designed for use by in order to make Most EISs offering the following capabilities: –Consolidation – involves the and features simple roll-ups to complex groupings of interrelated information –Drill-down – enables users to get, and, of information –Slice-and-dice – looks at information from

23 Digital Dashboards Digital dashboard – from multiple components and presents it in a unified display


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