Decision Support Systems
This detailed overview explores Decision Support Systems (DSS), their types, and components, emphasizing their role in semi-structured and unstructured decision-making processes. It discusses the distinction between structured and unstructured decisions, highlighting the capabilities of DSS tools, including "What if?" analysis. Key examples such as car selection and inventory replenishment illustrate practical applications of DSS. The overview also contrasts DSS with Expert Systems and Geographic Information Systems, showcasing their utility in various management functions like planning, organizing, and controlling.
Decision Support Systems
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Presentation Transcript
Decision Support Systems MGMT 661 - Summer 2012 Night #7, Part 2 somewhat based on Chapter 12
Types of Decisions refer back to "Types of Information" in Part #1 • Structured • routine (maybe even repetitive) • definite procedure • Unstructured • no agreed upon procedure
Decision Support Systems • supports semi-structured and unstructured problem analysis • probably overkill for structured problems • usually model driven • allows to ask "What if?"
Simple DSS Examples • Car Selection • how many miles do you drive? • preferred style? • do you have kids? • yaddayaddayadda • Inventory Replenishment • past usage (data from accounting database) • projected need (information from CRM) • delivery time (model from Supply Chain system) • "what if" we delay purchase two weeks?
DSS Components • Input • TPS Data • Other Internal Data • e.g. forecasts, reports, spreadsheet calculations • External Data • Model • Analysis Software • OLAP and data mining • Easy to Use Interface
DSS Models Decision Variables Mathematical Relationship Result Variables Uncontrollable Variables • Well Known Relationships • layout of production facility • Supply Chain • Organizational Chart • decision tables • spreadsheet calculations • Mathematical Models
DSS Caveats DSS improve effectiveness, not efficiency. Some people consider group communication tools to be a type of DSS. DSS v. Expert Systems A human queries a DSS, while an ES queries a human. A DSS assists in decision making, while an ES makes decisions. A DSS is for semi-structured problems, but an ES only works well in highly structured domains.
Geographic Information Systems special category of DSS combines large databases and maps Screenshot of ArcView www.ncddc.noaa.gov/technology/gis/view
Executive Support Systems textbook Figure 12-8 "Balanced Scorecard" info displayed as a "Dashboard" with drill down abilities for more detail key performance indicators balancedscorecard.org
Supporting the 5 Functions of Management Planning Organizing Coordinating Deciding Controlling • TPS • Customer Rel. Mgmt • Supply Chain Mgmt • Enterprise Knowledge Mgmt • Expert Systems • Decision Support Systems
Next Time: • Your presentations • How software gets built Paper Ideas from Tonight: • Survey of Commercial Executive Scorecard Systems • Survey of Commercial Enterprise Knowledge Management Systems • Two or Three cases of Successful Expert Systems used in Business • Cases of using GIS for Decision Support