1. Decision Support Systems Chapter 13 What is Decision Support Systems (DSS)? A computer based program for solving structured and semi-structured problems A DSS consists of : –Model base management system –Database management system –Dialog generation management system –Database –Model base

2. Decision Support Systems Solving structure problems –Person compared the problem with available models –Person find match between model and problem –Person runs the model using available data and gets solution –Person plays “what if” analysis –Person may use different models

3. Decision Support Systems Solving unstructured problem –Force fit the problem into one of the available models –Solve problem regular way –What we do is turn an unstructured problem into a structured problem –What to do when we fail?

4. Decision Support Systems Solving non structured problem –There are no known methods to solve unstructured problems –Turn unstructured problem into semi-structured problem –Turn semi-structured into structured problem –How to accomplish above steps?

5. Decision Support Systems Problem Solving –Define the problem usually as mathematical model –Get relevant data –Suggest a possible solution –Run the model against the data Evaluate results of proposed solutions

6. Decision Support Systems Problem Solving (...contd.) –Change model parameters to see how robust your solution is –Change model to see how robust your solution is

7. Decision Support Systems What is a good model? –Know how each input determines output –Know how each output depends on the inputs –For each output be able to work out the necessary inputs –Model simplicity –Model understandability by manager

8. Decision Support Systems Model –Management science has many models: Statistical Mathematical Linear programming Integer programming Linear models Non-linear models Dynamic models Transportation models

9. Decision Support Systems Model –If all else fails use simulations –Waiting lines –Store clerk placement –Inventory control

10. Decision Support Systems Data –Transaction data –Corporate data –Environmental data –Economic data –Competitive data –Marketing data Data Warehouse –Integration of above data types

11. Decision Support Systems Problem with models –Lack of input data –Do not understand model output –Models age –Managers have no confidence in model –Model base lacks integration –Models are difficult to make –Input/Output relations complex

12. Decision Support Systems Case example –School districts needed a new bus schedule to ensure district be racially balanced –A typical transportation model –Consultants worked out a new bus schedule satisfying requirement –District rejected the model –District wanted to maintain old schedule but want to back this up scientifically

13. Decision Support Systems Graphical functions –Time series –Scatter diagram –Bar/Pie charts –Geographic maps –Organizational charts –Event schedule

14. Decision Support Systems DSS history –DSS –GDSS –EIS –ESS

15. Decision Support Systems EIS/ESS presents executives with –Performance data –Internal data arising from communications –Environmental data EIS/ESS –helps executives to do their job –Adapted to executives tasks and management style

16. Decision Support Systems How things get done wrong –No executive support –Lack of objectives –Lack of data –Lack of support staff – No thought about DSS future

17. Decision Support Systems Presentations –Tables –Graphics DSS development GDSS anonymity DSS generator Marketing case Minnesota case