Decision Support System
This presentation is the property of its rightful owner.
Sponsored Links
1 / 25

Decision Support System PowerPoint PPT Presentation


  • 57 Views
  • Uploaded on
  • Presentation posted in: General

Decision Support System. Rev: Feb, 2012 Euiho (David) Suh , Ph.D. POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: http://posmit.postech.ac.kr) Dept. of Industrial & Management Engineering POSTECH. Contents. Discussion Questions.

Download Presentation

Decision Support System

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Decision support system

Decision Support System

Rev: Feb, 2012

Euiho (David) Suh, Ph.D.

POSTECH Strategic Management of Information and Technology Laboratory

(POSMIT: http://posmit.postech.ac.kr)

Dept. of Industrial & Management EngineeringPOSTECH


Decision support system

Contents


Discussion questions

Discussion Questions

Explain the decision-making process of Simon

Why does a company need computerized support of managerial decision making?

What are two definitions of decision support system? With DSS, what advantages could the company obtain?

What are the differences between MIS and DSS? Explain them using your own words.

What are the four types of analytical modeling? Choose one and explain it with an example

Explain the background of BI’s emergence and compare BI with DSS

What is GDSS? How is it different from DSS?

In the case study, how did Interpark use DSS in the management?


Decision making

Decision Making

1. Decision Making

Decision Structure

Information Characteristics

Unstructured

Ad Hoc

Unscheduled

Summarized

Infrequent

Forward Looking

External

Wide Scope

Operational Management

Operating Managersand Self-Directed Teams

Tactical Management

Business Unit Managersand Self-Directed Teams

Strategic Management

Executives and Directors

Decisions

Information

Semistructured

Prespecified

Scheduled

Detailed

Frequent

Historical

Internal

Narrow Focus

Structured

  • Definition

    • Selecting the best solution from two or more alternatives

  • Levels of Managerial Decision Making


Types of problems and decision style

Types of Problems and Decision Style

1. Decision Making

Combinations of the type of problems and the levels of the management activities[Huff, 1985]


Decision making process simon 1977

Decision-making Process (Simon, 1977)

1. Decision Making

Feedback

Intelligence Phase

Design Phase

Choice Phase

  • Organization objectives

  • Search and scanning procedures

  • Data collection

  • Problem identification

  • Problem ownership

  • Problem classification

  • Problem statement

  • Formulate a model

  • Set criteria for choice

  • Search for alternatives

  • Predict and measure outcomes

  • Solution to the model

  • Sensitivity analysis

  • Selection of the best(good) alternative(s)

  • Plan for implementation

Implementationof solution

END

Satisfaction?

Yes

No


Difficulties in decision making

Difficulties in Decision-making

1. Decision Making

  • Rapidly increasing alternatives

    • Technology

    • Information system

    • Advanced search engines

    • Globalization

  • Uncertainty of the future

    • Government regulations

    • Need for compliance

    • Political instability

    • Terrorism, competition, changing consumer demands

  • Need to make rapid decisions

  • Increasing potential costs of trial-and-error learning


Definition of decision support system dss

Definition of Decision Support System (DSS)

2. Introduction to DSS

  • DSS as an Umbrella Term

    • Any computer-based information system that provide interactive information to support decision-making in an organization

      • e.g. an organization wide knowledge management system, a decision support system specific to an organizational function (marketing, finance, accounting, manufacturing, planning, SCM, etc.)

  • DSS as a Specific Application

    • An interactive, flexible, and adaptable computer-based applicationusing information and model specially developed for supporting the solution of a semi-structured management problem for improved decision making


Differences between dss and mis

Differences between DSS and MIS

2. Introduction to DSS


Structure of dss

Structure of DSS

2. Introduction to DSS

DBMS

MBMS

DGMS

User

  • Dialog-Data-Models DSS Frameworks

    • Dialog based management system (DGMS)

      • All the capabilities of the DSS must be articulated and implemented through dialog subsystem

    • Data based management system (DBMS)

      • Performing all data-related tasks(maintains, stores and retrieves data from the database, extracts data from various sources, …)

    • Models based management system (MBMS)

      • Containing the library of models and routines to maintain and manage them


Composition of dss

Composition of DSS

2. Introduction to DSS


Dss model

DSS Model

3. Development of DSS

Environment

Individual

problem

solver

Other

group

members

Mathematical

models

Report

writing

software

Groupware

Database

Decision

support

system

Environment

Data

Communication

Information


Four stage process for developing dss

Four-stage Process for developing DSS

3. Development of DSS

  • Decision support analysis

DSS software evaluation and selection

Prototype development

Operational deployment and support

  • Functional orientation

  • Operational training

  • Deployment

  • Maintenance

  • Structured interviews

  • Decision analysis

  • Data analysis

  • Technical analysis

  • Conceptual DSS orientation

  • Plans and prioritization

  • Identification of candidate vendors

  • Feature analysis

  • Benchmarks

  • External site surveys

  • Scoping of prototype

  • Project evaluation criteria

  • Detailed design

  • System construction

  • Testing

  • Demonstration

  • Evaluation


Types of analytical modeling

Types of Analytical Modeling

3. Development of DSS


Use of dss

Use of DSS

4. Use of DSS

  • DSS Applications

    • Corporate financial planning

    • Marketing analysis

    • Real estate investments

    • Mineralogical exploration

    • Transportation routing

    • Portfolio analysis

  • Reasons to use DSS

    • Speedy computations

    • Improved communication and collaboration

    • Increased productivity of group members

    • Improved data management

    • Overcoming cognitive limits

    • Quality support; agility support

    • Using Web; anywhere, anytime support


Evolution of dss into business intelligence

Evolution of DSS into Business Intelligence

4. Use of DSS

Web Technology

OLAP

Data Warehousing

Business Intelligence

Data Mining

Intelligent Systems

  • Change in the Use of DSS

    • Specialist → Managers → Whomever, Whenever, Wherever

  • Emergence of “Business Intelligence”


Business intelligence bi

Business Intelligence (BI)

5. BI

Data

Business Intelligence

ACTION

Information

Knowledge

Decisions

  • Definition

    • An umbrella term that combines architectures, tools, databases, analytical tools, applications, and methodologies

  • Objective

    • To enable easy access to data (and models) to provide business managers with the ability to conduct analysis


Dss and bi

DSS and BI

5. BI


Introduction to group decision support systems gdss

Introduction to Group Decision Support Systems (GDSS)

6. GDSS and Web DSS

  • Definition of GDSS

    • An interactive computer-based system that facilitates the solution of semi-structured and unstructured problems by a group of decision makers

  • Characteristics of GDSS

    • A Specially designed information system, not a configuration of already-existing system components

    • Supporting the process of group decision makers by providing automation of subprocesses, using information technology tools

    • Addressing one type of problem or a variety of group level organizational decisions

    • Encouraging generation of ideas, resolution of conflicts, and freedom of expression

    • Containing built-in mechanisms that discourage development of negative group behaviors, such as destructive conflict, miscommunication, and groupthink

  • c.f. Definition of Group Support System (GSS)

    • Any combination of hardware and software that supports the collaborative work of groups


Classification of gdss

Classification of GDSS

6. GDSS and Web DSS

Group size

Smaller

Larger

Face-to-face

Public Screen

Terminal

Terminal

Terminal

Terminal

Member proximity

Terminal

Terminal

Terminal

Terminal

Terminal

Terminal

Terminal

Terminal

Terminal

Terminal

Video Camera

Networking

Dispersed


Web dss

Web DSS

6. GDSS and Web DSS

Internet

Unified Protocol

Virtual enterprise

Distribution of Position

The problem that solution is impossible to traditional DSS occurs.

Department offering service without the substance

Overcome the regional limitation

The necessity that replaces the existent DSS in the Internet

  • Definition

    • Advanced DSS that supports CSCW (Computer Supported Cooperative Work) of individual or group decision-maker in web

    • DSS which have components of the Intelligence Agent and Internet, unlike an existent decision support system

  • Development cause of Web DSS


Dss gdss web dss

DSS & GDSS & Web DSS

6. GDSS and Web DSS


Problems facing dsss

Problems Facing DSSs

7. Limitation of DSS

  • Data capture and collection

    • How to capture and collect data

    • Non-compatibility of purchased DSSs with existing databases and computer networks

  • Data integrity and security

  • Unstructured problems

    • How to solve unstructured problems which are commonly faced by top executives

  • Management of DSSs

  • Cost-effectiveness

  • Standardization

  • Data are not independent of spreadsheets

    • Industrial standard for all spreadsheets


Case study

Case Study

8. Case Study


Reference

Reference

Euiho Suh, “DSS/EIS/DW/OLAP (PPT Slide)”, POSMIT Lab. (POSTECH Strategic Management of Information and Technology Laboratory)

O’Brien & Marakas, “Introduction to Information Systems – Fifteenth Edition”, McGraw – Hill, Chapter 9, pp. 349~403

Efraim Turban, RameshSharda, DursunDelen, “Decision Support and Business Intelligence systems – Ninth Edition”, Pearson, Chapter 1, pp.1~35

Efraim Turban, RameshSharda, DursunDelen, “Decision Support and Business Intelligence systems – Ninth Edition”, Pearson, Chapter 2, pp.36~69

Efraim Turban, RameshSharda, DursunDelen, “Decision Support and Business Intelligence systems – Ninth Edition”, Pearson, Chapter 10, pp.419~470

Yunmi Lee, “DSS & ES (PPT Slide)”, POSMIT Lab.(POSTECH Strategic Management of Information and Technology Laboratory)

M.C. ER, “Decision Support Systems: A Summary, Problems, and Future Trends”,Decision Support Systems 4 (1988) 355-363


  • Login