Presentation on theme: "Defining Decision Support System"— Presentation transcript:
1Defining Decision Support System The concept of a (DSS) is extremely broad and its definitions vary:It is "a computer-based system that aids the process of decision making, (Finlay, 1994)It is "an interactive, flexible, and adaptable computer-based IS - especially developed for supporting the solution of a non-structured management problem for improved decision making, (Turban, 1995)Defining DSS ….. (Contd…)“DSS couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions”, (Keen & Scott, 1978)DSS are "interactive computer-based systems that help decision makers utilize data and models to solve unstructured problems", (Sprague & Carlson, 1982),
2Defining DSS ….. (Contd…) “DSS couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions”, (Keen & Scott, 1978)DSS are "interactive computer-based systems that help decision makers utilize data and models to solve unstructured problems", (Sprague & Carlson, 1982),
3Defining DSS Architectures is extremely broad too: Sprague and Carlson (1982) identify three fundamental components of DSS(a) DBMS(b) Model-Base Management System (MBMS), and(c) the dialog generation & management system (DGMS)
4Power (2002), discussed building DSS in terms of 4 major components: a) the user interfaceb) the databasec) the model and analytical tools, andd) the DSS architecture and network.
5Marakas (1999) proposes a generalized architecture made of five distinct parts: (a) the data management system,(b) the model management system,(c) the knowledge engine,(d) the user interface, and(e) the user(s).
6But in this unit we define: DSS as a computer program application that analyzes business data and presents it so that users can make business decisions more easily.It is an "informational application" that collects the data in the course of normal business operation).
7Typical example a DSS might gather and present would be: Comparative sales figures between one week and the nextProjected revenue figures based on new product sales assumptions
8Furthermore DSS is:A computer based program for solving structured and semi-structured problemsA DSS consists of :Model base management systemDatabase management systemDialog generation management systemDatabaseModel base
9Decision Support Systems Solving structure problemsPerson compared the problem with available modelsPerson find match between model and problemPerson runs the model using available data and gets solutionPerson plays “what if” analysisPerson may use different models
10Decision Support Systems Solving unstructured problemForce fit the problem into one of the available modelsSolve problem regular wayWhat we do is turn an unstructured problem into a structured problemWhat to do when we fail?
11Decision Support Systems Solving non structured problemThere are no known methods to solve unstructured problemsTurn unstructured problem into semi-structured problemTurn semi-structured into structured problemHow to accomplish above steps?
12Decision Support Systems Problem SolvingDefine the problem usually as mathematical modelGet relevant dataSuggest a possible solutionRun the model against the dataEvaluate results of proposed solutions
13Decision Support Systems Problem Solving (...contd.)Change model parameters to see how robust your solution isChange model to see how robust your solution is
14Decision Support Systems What is a good model?Know how each input determines outputKnow how each output depends on the inputsFor each output be able to work out the necessary inputsModel simplicityModel understandability by manager
15Decision Support Systems ModelManagement science has many models:StatisticalMathematicalLinear programmingInteger programmingLinear modelsNon-linear modelsDynamic modelsTransportation models
16Decision Support Systems ModelIf all else fails use simulationsWaiting linesStore clerk placementInventory control
17Decision Support Systems DataTransaction dataCorporate dataEnvironmental dataEconomic dataCompetitive dataMarketing dataData WarehouseIntegration of above data types
18Decision Support Systems Problem with modelsLack of input dataDo not understand model outputModels ageManagers have no confidence in modelModel base lacks integrationModels are difficult to makeInput/Output relations complex
19Decision Support Systems Case exampleSchool districts needed a new bus schedule to ensure district be racially balancedA typical transportation modelConsultants worked out a new bus schedule satisfying requirementDistrict rejected the modelDistrict wanted to maintain old schedule but want to back this up scientifically
20Decision Support Systems Graphical functionsTime seriesScatter diagramBar/Pie chartsGeographic mapsOrganizational chartsEvent schedule
21Decision Support Systems DSS historyDSSGDSSEISESS
22Decision Support Systems EIS/ESS presents executives withPerformance dataInternal data arising from communicationsEnvironmental dataEIS/ESShelps executives to do their jobAdapted to executives tasks and management style
23Decision Support Systems How things get done wrongNo executive supportLack of objectivesLack of dataLack of support staffNo thought about DSS future
24Decision Support Systems PresentationsTablesGraphicsDSS developmentGDSS anonymityDSS generatorMarketing case
25How about Executive Information Systems, (EIS)? Def: (EIS) is a computer-based system intended to facilitate and support the information and decision making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organisation.
26EIS Def.… ContdIt is commonly considered as a specialized form of DSS. The emphasis of EIS in on graphical displays and easy-to-use user interfaces.EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables. So that they can monitor performance and identify opportunities and problems
27Can you see the difference between DSS and EIS? Do you know a software package which is appropriate for decision making?What package(s) do we have here at Goldsmith that can be used as a decision making tool?How do we decide what software package to use?How do we justify our choice?