Mgt 240 Lecture Decision Support Systems March 3, 2005

Miscellaneous Exam 2 Exam 2 Week after spring break Week after spring break Sample questions are available Sample questions are available Exam help session Monday, March 14 from 7- 9pm in L050 Exam help session Monday, March 14 from 7- 9pm in L050 Reading outlines available for material in text Reading outlines available for material in text Review slides! Review slides! Homework 4 Homework 4 Correct answer for relational table structure question Correct answer for relational table structure question Correct answer for relational table structure question Correct answer for relational table structure question

Reading Outlines Questions? Questions?

Decision Support Systems

Programmed versus Nonprogrammed Decisions Programmed decisions Programmed decisions Easy to computerize Easy to computerize Example? Example? Nonprogrammed decisions Nonprogrammed decisions Rules and relationships not defined Rules and relationships not defined Problem is not routine Problem is not routine Not easily quantifiable Not easily quantifiable Example? Example?

What is a DSS? A DSS is a computer-based tool, controlled by the end user, used to support and improve decision making in semi-structured and unstructured problem situations. A DSS is a computer-based tool, controlled by the end user, used to support and improve decision making in semi-structured and unstructured problem situations. The DSS helps to impose structure on the decision-making process, and helps to bring together human judgment and computerized information. The DSS helps to impose structure on the decision-making process, and helps to bring together human judgment and computerized information. The DSS supports but does not replace the role of the end user in the decision process. The DSS supports but does not replace the role of the end user in the decision process.

Components of a DSS Components of a DSS

Decision Making Stages

Stages of the Decision Making Process: Intelligence Problems or opportunities are identified or defined Problems or opportunities are identified or defined

Intelligence Phase DSS tools Excel Excel List capabilities: Sorting, filtering List capabilities: Sorting, filtering Pivot tables Pivot tables Charting Charting Gourmet1 Gourmet1 Gourmet1

Intelligence Phase DSS Tools Xcelsius Xcelsius Xcelsius Overview Overview Overview Executive Dashboard Executive Dashboard Executive Dashboard Executive Dashboard Identify, track, trend, and correct problems as managers evaluate the health of key areas of their organization Identify, track, trend, and correct problems as managers evaluate the health of key areas of their organization Identify operational efficiencies Identify operational efficiencies Proactively identify and apply corrective measures Proactively identify and apply corrective measures

Executive Dashboard Features Dashboard Screen: The dashboard page displays the overall health of key performance indicators. Each box represents a key performance indicator (KPI) and the health for corresponding periods. The default executive dashboard shown can be unique to the individual logged in, or shared by the entire organization.

Executive Dashboard Features View Screen: The View screen gives a snapshot picture of the key performance indicator (KPI). Charts display supporting data, while text details the criteria and justification for each KPI.

Executive Support Systems (ESS) in Perspective Tailored to individual executives Tailored to individual executives Easy to use Easy to use Drill down capabilities Drill down capabilities Support need for external data Support need for external data Can help when uncertainty is high Can help when uncertainty is high Future-oriented Future-oriented Linked to value-added processes Linked to value-added processes

Capabilities of an ESS Support for defining an overall vision Support for defining an overall vision Support for strategic planning Support for strategic planning Support for strategic organizing & staffing Support for strategic organizing & staffing Support for strategic control Support for strategic control Support for crisis management Support for crisis management

Stages of the Decision Making Process: Design Alternative solutions to the problem or opportunity are developed Alternative solutions to the problem or opportunity are developed

Design Phase DSS Tools Excel Excel What if analysis What if analysis Data tables Data tables Scenario manager Scenario manager Inn example Inn example Inn example Inn example Meeting, Brainstorming, and Decision Making Tools for groups Meeting, Brainstorming, and Decision Making Tools for groups Meeting, Brainstorming, and Decision Making Tools for groups Meeting, Brainstorming, and Decision Making Tools for groups

Characteristics of a GDSS Special design Special design Ease of use Ease of use Flexibility Flexibility Decision-making support Decision-making support Anonymous input Anonymous input Reduction of negative group behavior Reduction of negative group behavior Parallel communication Parallel communication Automated record keeping Automated record keeping

GDSS Alternatives

The GDSS Decision Room

Problem Solving or Choice Approaches Optimization: find the best solution Optimization: find the best solution Satisficing: find a good solution Satisficing: find a good solution Heuristics: rules of thumb Heuristics: rules of thumb

Optimization, Satisficing, and Heuristic Approaches

Stages of the Decision Making Process: Choice Selecting a course of action Selecting a course of action Excel Excel Solver Solver Sale example Sale example Sale example Sale example Expert systems Expert systems Intended to perform at the level of a human expert in a particular domain Intended to perform at the level of a human expert in a particular domain Decision Tree Analysis Decision Tree Analysis Decision ToolPak Decision ToolPak Decision ToolPak Decision ToolPak Add-in to Excel that facilitates construction of decision trees Add-in to Excel that facilitates construction of decision trees

Common Expert System Architecture User Knowledge Engineer User Interface Inference Engine Knowledge Base User Environment Development Environment Blackboard Documented Knowledge Expert Knowledge

Data Warehouses, Data Marts, and Data Mining Data Warehouse - a database that collects business information from many sources in the enterprise, covering all aspects of the company’s processes, products, and customers. Data Warehouse - a database that collects business information from many sources in the enterprise, covering all aspects of the company’s processes, products, and customers. Data Mart – a subset of a data warehouse. Data Mart – a subset of a data warehouse. Data Mining - an information analysis tool that involves the automated discovery of patterns and relationships in a data warehouse. Data Mining - an information analysis tool that involves the automated discovery of patterns and relationships in a data warehouse.

Elements of a Data Warehouse

Common Data Mining Applications Common Data Mining Applications

Comparison of OLAP and Data Mining