Mgt 20600: IT Management & Applications Decision Support Systems Tuesday April 18, 2006.
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Mgt 20600: Mgt 20600: IT Management & ApplicationsIT Management & Applications
Decision Support SystemsDecision Support Systems
TuesdayTuesday
April 18, 2006April 18, 2006
RemindersReminders ReadingReading
– For todayFor today Fundamentals text, Chapter Six, Information and Decision Support Fundamentals text, Chapter Six, Information and Decision Support
SystemsSystems HomeworkHomework
– Homework FiveHomework Five Decision Support SystemsDecision Support Systems Due Friday, April 21Due Friday, April 21stst by 5pm by 5pm
Exam 2Exam 2– Tuesday, April 25Tuesday, April 25thth
– 75 points75 points– Similar types of questions as on Exam 1Similar types of questions as on Exam 1– Covers Telecom & Networks (Ch.4), Databases (Ch.3), MIS & Decision Covers Telecom & Networks (Ch.4), Databases (Ch.3), MIS & Decision
Support Systems (Ch.6)Support Systems (Ch.6)
Next week: Exam 2Next week: Exam 2
Decision Making as a Decision Making as a Component of Problem Solving Component of Problem Solving
How Decision Making Relates to Problem SolvingHow Decision Making Relates to Problem Solving
Decision Making as a Decision Making as a Component of Problem SolvingComponent of Problem Solving
Decision-making phase: Decision-making phase: first part first part of problem-solving processof problem-solving process– Intelligence stage: Intelligence stage: potential problems potential problems
or opportunities are identified and or opportunities are identified and defineddefined
– Design stage: Design stage: alternative solutions to alternative solutions to the problem are developedthe problem are developed
– Choice stage: Choice stage: a course of action is a course of action is selectedselected
Decision Making as a Decision Making as a Component of Problem SolvingComponent of Problem Solving
Problem solving: Problem solving: a process that a process that goes beyond decision making to goes beyond decision making to include the implementation stageinclude the implementation stage
Implementation stage: Implementation stage: a solution a solution is put into effectis put into effect
Monitoring stage: Monitoring stage: decision makers decision makers evaluate the implementationevaluate the implementation
Programmed Versus Programmed Versus Nonprogrammed DecisionsNonprogrammed Decisions
Programmed decisionsProgrammed decisions– Decisions made using a rule, procedure, or Decisions made using a rule, procedure, or
quantitative methodquantitative method– Easy to computerize using traditional information Easy to computerize using traditional information
systemssystems– Example?Example?
Nonprogrammed decisionsNonprogrammed decisions– Decision that deals with unusual or exceptional Decision that deals with unusual or exceptional
situationssituations– Not easily quantifiableNot easily quantifiable– Example?Example?
Optimization, Satisficing, and Optimization, Satisficing, and Heuristic ApproachesHeuristic Approaches
Optimization model: Optimization model: a process that finds a process that finds the best solution, usually the one that will the best solution, usually the one that will best help the organization meet its goalsbest help the organization meet its goals
Satisficing model: Satisficing model: a process that finds a a process that finds a good—but not necessarily the best—good—but not necessarily the best—problem solutionproblem solution
Heuristics: Heuristics: commonly accepted commonly accepted guidelines or procedures that usually find guidelines or procedures that usually find a good solutiona good solution
An Overview of Decision An Overview of Decision Support SystemsSupport Systems
A DSS is an organized collection of A DSS is an organized collection of people, procedures, software, people, procedures, software, databases, and devices used to databases, and devices used to support problem-specific decision support problem-specific decision making and problem solvingmaking and problem solving
The focus of a DSS is on decision-The focus of a DSS is on decision-making effectiveness when faced making effectiveness when faced with unstructured or semistructured with unstructured or semistructured business problemsbusiness problems
Capabilities of a Decision Capabilities of a Decision Support SystemSupport System
Support all problem-solving phasesSupport all problem-solving phases Support different decision Support different decision
frequenciesfrequencies Support different problem structuresSupport different problem structures Support various decision-making Support various decision-making
levels levels
Capabilities of a Decision Capabilities of a Decision Support System (continued)Support System (continued)
Decision-Making LevelDecision-Making Level
A Comparison of DSS and MISA Comparison of DSS and MIS
Comparison of DSSs and MISsComparison of DSSs and MISs
A Comparison of DSS and MIS A Comparison of DSS and MIS (continued)(continued)
Comparison of DSSs and MISsComparison of DSSs and MISs
Components of a Decision Components of a Decision Support SystemSupport System
Conceptual Model of a DSSConceptual Model of a DSS
Components of a Decision Components of a Decision Support SystemSupport System
DatabaseDatabase External database accessExternal database access Access to the Internet and corporate intranet, Access to the Internet and corporate intranet,
networks, and other computer systemsnetworks, and other computer systems Model base: Model base: provides decision makers access to provides decision makers access to
a variety of models and assists them in decision a variety of models and assists them in decision makingmaking
Dialogue manager: Dialogue manager: allows decision makers to allows decision makers to easily access and manipulate the DSS and to use easily access and manipulate the DSS and to use common business terms and phrasescommon business terms and phrases
Intelligence Phase Support: Intelligence Phase Support: Excel and AccessExcel and Access
ExcelExcel– List capabilities: Sorting, filteringList capabilities: Sorting, filtering– Pivot tablesPivot tables– ChartingCharting
AccessAccess– QueriesQueries– ReportsReports
Design Phase Support: ExcelDesign Phase Support: Excel
ExcelExcel– What if analysisWhat if analysis
Data tablesData tablesScenario managerScenario manager
Stages of the Decision Making Stages of the Decision Making Process: ChoiceProcess: Choice
Selecting a course of actionSelecting a course of action– ExcelExcel
SolverSolver
– Expert systemsExpert systems Intended to perform at the level of a human Intended to perform at the level of a human
expert in a particular domainexpert in a particular domain
– Decision Tree AnalysisDecision Tree AnalysisAdd-in to Excel that facilitates construction Add-in to Excel that facilitates construction
of decision treesof decision trees
Common Expert System Common Expert System ArchitectureArchitectureUser
Knowledge Engineer
UserInterface
Inference Engine
Knowledge Base
User Environment Development Environment
Blackboard
DocumentedKnowledge
ExpertKnowledge
Decision Tree Analysis OutputDecision Tree Analysis Output
Group Support SystemsGroup Support Systems
Group support system (GSS)Group support system (GSS)– Consists of most elements in a DSS, plus Consists of most elements in a DSS, plus
software to provide effective support in software to provide effective support in group decision makinggroup decision making
– Also called group decision support Also called group decision support system or computerized collaborative system or computerized collaborative work systemwork system
Characteristics of a GSS That Characteristics of a GSS That Enhance Decision MakingEnhance Decision Making
Special designSpecial design Ease of useEase of use FlexibilityFlexibility Decision-making supportDecision-making support Anonymous inputAnonymous input Reduction of negative group behaviorReduction of negative group behavior Parallel communicationParallel communication Automated record keepingAutomated record keeping
GSS SoftwareGSS Software Often called groupware or workgroup Often called groupware or workgroup
softwaresoftware Helps with joint workgroup Helps with joint workgroup
scheduling, communication, and scheduling, communication, and managementmanagement
Examples: Lotus Notes, Microsoft’s Examples: Lotus Notes, Microsoft’s NetMeeting, Microsoft Exchange, NetMeeting, Microsoft Exchange, NetDocuments Enterprise, Collabra NetDocuments Enterprise, Collabra Share, OpenMind, TeamWareShare, OpenMind, TeamWare
GSS AlternativesGSS Alternatives
GSS AlternativesGSS Alternatives
GSS AlternativesGSS Alternatives
The GSS Decision RoomThe GSS Decision Room
Group Support System ExampleGroup Support System Example
Meeting, Brainstorming, and DecisionMeeting, Brainstorming, and Decision Making Tools for groups Making Tools for groups
Executive Support SystemsExecutive Support Systems
Executive support system (ESS): Executive support system (ESS): specialized DSS that includes all specialized DSS that includes all hardware, software, data, hardware, software, data, procedures, and people used to procedures, and people used to assist senior-level executives within assist senior-level executives within the organizationthe organization
Executive Support Systems in Executive Support Systems in PerspectivePerspective
Tailored to individual executivesTailored to individual executives Easy to useEasy to use Drill-down capableDrill-down capable Support the need for external dataSupport the need for external data Can help when uncertainty is highCan help when uncertainty is high Future-orientedFuture-oriented Linked to value-added processesLinked to value-added processes
Capabilities of Executive Capabilities of Executive Support SystemsSupport Systems
Support for defining an overall visionSupport for defining an overall vision Support for strategic planningSupport for strategic planning Support for strategic organizing and Support for strategic organizing and
staffingstaffing Support for strategic controlSupport for strategic control Support for crisis managementSupport for crisis management
Executive Support SystemsExecutive Support Systems
– XcelsiusXcelsius– Executive DashboardExecutive Dashboard
Identify, track, trend, and correct problems Identify, track, trend, and correct problems as managers evaluate the health of key as managers evaluate the health of key areas of their organizationareas of their organization
Identify operational efficienciesIdentify operational efficienciesProactively identify and apply corrective Proactively identify and apply corrective
measuresmeasures
Executive Dashboard Executive Dashboard FeaturesFeatures
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.
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