2. Preparing for the Future with Decision Support Systems Copyright © 2001 by Harcourt, Inc. All rights reserved

3. 2001 Preparing for the Future Transactions Data Decisions Remember the Past (organizational memory) Remember the Past (organizational memory) Preparing for the Future (decision support systems) Preparing for the Future (decision support systems) Handling the Present (transaction processing system Handling the Present (transaction processing system People and Technology People and Technology

4. 2001 D ecision S upport S ystems For “problem specific” decision Non-recurring decision “What-if” oriented –Interactive…run many scenarios Future oriented Source: TPS, MIS, External data Use statistical and modeling tools

5. 2001 TYPES OF DSS MODEL - DRIVEN Stand - Alone System To Perform “What - If” And Other Analyses DATA - DRIVEN Allows User To Extract & Analyze Useful Information In Large Databases DATA MINING Finding Hidden Patterns & Relationships In Large Databases, Inferring Rules To Predict Future Behavior *

6. 2001 Decision Making Process Define problem Gather information Identify alternatives Evaluate alternatives Select alternative Implement alternative Monitor results

7. 2001 Uses of Information in Decision Making

8. 2001 TYPES OF INFORMATION SYSTEMS SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN KIND OF SYSTEM GROUPS SERVED KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS STRATEGIC LEVEL SENIOR MANAGERS MANAGEMENT LEVEL MIDDLE MANAGERS LEVEL MIDDLE MANAGERS OPERATIONAL LEVEL KNOWLEDGE LEVEL KNOWLEDGE & DATA WORKERS RESOURCESMARKETING

9. 2001 Information-Based DSS Operational decisions Tactical decisions Strategic decisions

10. 2001 Information-Based DSS Legend Information Summaries Drill Down External Information Operational Level Tactical Level Strategic Level

11. 2001 Types of Reporting Scheduled –Historical –Generated or online –Periodic information Exception –If a condition occurs –Exceptional event (credit limit, password) On Demand –As needed –Current picture

12. 2001 Model-based DSS Interaction Database Data Management System Model Management System Model Base User Interface

13. 2001 Online Analytical Processing (OLAP) Software to extract and view data from various points of view –Time –Customers –Products Used with Data Warehousing Market Analysis Financial Forecasting

14. 2001 Multidimensional Database

15. 2001 Views of a Multidimensional Database

16. 2001 Data mining –Search for relationships, patterns of interest Neural networks –Trained to look for patterns if none known

17. 2001 Data Mining Approaches

18. 2001 Data Mining Process 1. Understand application 2. Select target data 3. Reduce number of variables 4. Select data mining approach 5. Mine data 6. Interpret results 7. Generate report

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