1. Decision Support and Geographic Information Systems
Chapter 12
Decision Support and Geographic Information Systems

2. Learning Objectives When you finish this chapter, you will:
Understand the steps followed in decision making.
Recognize the difference between structured and unstructured decision making.
Know the typical software components that decision support systems comprise.
Be able to distinguish between the main types of decision support systems.

3. Decision Making in Business
Organization’s success depends largely on quality of managers’ decisions
When decisions involve large amounts of information and processing, computer-based systems can make the process effective and efficient

4. The Decision-Making Process
Decisions are more difficult when more than one alternative seems reasonable
One researcher described decision making as a three-phase process
Intelligence
Design
Choice

5. The Decision-Making Process
Figure 12.1 The three phases of decision making

6. Structured and Unstructured Problems
Proven set of steps for solution
Algorithm
Unstructured Problems
Multiple potential solution
Semistructured Problems
Neither fully structured nor totally unstructured

7. Structured and Unstructured Problems
Figure 12.2 Business problems vary from structured to unstructured. Many fall between the two extremes and are considered semistructured.

8. Structured and Unstructured Problems
Managers and Semistructured Problems
Most common type of problem for managers

9. Structured and Unstructured Problems

10. Decision-Support System Components
Decision Support Systems (DSS)
Computer-based information systems that help managers select one of many solutions
Automates some of decision-making process
Sophisticated and fast analysis
Used at all management levels

11. Decision-Support System Components
Three Major Components
Data management module
Model management module
Dialog management module
Together, DSS modules:
Help enter request conveniently
Search vast amounts of data
Use data in desired models
Present results in readable manner

12. Decision-Support System Components

13. Decision-Support System Components
The Data Management Module
Gives user access to databases
Usually linked to external databases

14. Decision-Support System Components
The Model Management Module
Collection of models the DSS draws on to assist in decision making
Linear regression model

15. Decision-Support System Components
Figure 12.5 A linear regression model for predicting sales volume as a function of dollars spent on advertising

16. Decision-Support System Components
The Dialog Module
Interface between user and other modules
Prompts user to select a model
Allows database access and data selection
Lets user enter/change parameters
Displays analysis results
Textual, tabular, and graphical displays

17. Decision-Support System Components

18. Types of Decision-Support Systems
Personal Decision-Support Systems
Serve individual users in daily decision making
Run on personal computers
Single model for data processing

19. Types of Decision-Support Systems

20. Types of Decision-Support Systems

21. Types of Decision-Support Systems
Group-Decision Support Systems
Promote brainstorming and group decision making
Located in conference room or on networked computers
Weigh votes to overcome impasses

22. Types of Decision-Support Systems
Figure 12.8 A GDSS Room

23. Sensitivity Analysis
Tests degree to which result is affected by change in parameters
What-if analysis
Can change multiple parameters at once

24. Executive Information Systems (EIS)
Alleviate information overload for executives
Select most relevant data for analysis
Drilling down
Consolidate and summarize data
Display data graphically

25. Executive Information Systems
An effective EIS has the following features:
An easy-to-use and easy-to-learn graphical user interface
On-request “drill-down” capability
On-demand financial and other ratios, and other indicators
Easy-to-use but sophisticated tools to allow navigation in databases and data warehouses

26. Executive Information Systems
An effective EIS…(continued)
Statistical analysis tools
The ability to respond to ad hoc queries and sensitivity analyses
Access to external data pools
The ability to solve diverse business problems

27. Developing Decision-Support Systems
When Should a DSS Be Built?
What is the type problem and how structured is it?
Are the required data available in databases and data warehouses?
How often do managers encounter the problem?
Who will use the system?
Can the prospective users spare adequate time for the development process?

28. The Electronic Spreadsheet: A DSS Tool
Provide two facilities for building DSS
Preprogrammed functions
Ability to use IF-THEN statements
Most widely used tool
Inexperienced users can use to develop DSSs

29. Geographic Information Systems (GIS)
Decision aid for map-related decisions
Typical GIS contains
Database of quantitative and qualitative data
Database of maps
Program to display information on maps

30. Ethical and Societal Issues Decisions by Machines
Automated decisions can affect individuals.
Mortgage companies, credit card companies, employers, banks, etc.
European Protection
“Automated Individual Decisions” Directive

31. Ethical and Societal Issues Decisions by Machines
Who Needs Protection
Determining creditworthiness
Efficient
Effective
Hidden Injustice
Mistakes on records
Decisions final