Decision Support SystemsChapter 13

• What is Decision Support Systems (DSS)?

A computer based program for solving structured and semi-structured problems

• A DSS consists of :– Model base management system– Database management system– Dialog generation management system– Database– Model base

Decision Support Systems

• Solving structure problems– Person compared the problem with available

models– Person find match between model and problem– Person runs the model using available data and

gets solution– Person plays “what if” analysis– Person may use different models

Decision Support Systems

• Solving unstructured problem– Force fit the problem into one of the available

models– Solve problem regular way– What we do is turn an unstructured problem

into a structured problem– What to do when we fail?

Decision Support Systems

• Solving non structured problem– There are no known methods to solve

unstructured problems– Turn unstructured problem into semi-structured

problem– Turn semi-structured into structured problem– How to accomplish above steps?

Decision Support Systems

• Problem Solving– Define the problem usually as mathematical

model– Get relevant data– Suggest a possible solution– Run the model against the data

Evaluate results of proposed solutions

Decision Support Systems

• Problem Solving (...contd.)– Change model parameters to see how robust

your solution is– Change model to see how robust your solution

is

Decision Support Systems

• What is a good model?– Know how each input determines output– Know how each output depends on the inputs– For each output be able to work out the

necessary inputs– Model simplicity– Model understandability by manager

Decision Support Systems

• Model– Management science has many models:

• Statistical

• Mathematical

• Linear programming

• Integer programming

• Linear models

• Non-linear models

• Dynamic models

• Transportation models

Decision Support Systems

• Model– If all else fails use simulations– Waiting lines– Store clerk placement– Inventory control

Decision Support Systems

• Data– Transaction data– Corporate data– Environmental data– Economic data– Competitive data– Marketing data

• Data Warehouse– Integration of above data types

Decision Support Systems

• Problem with models– Lack of input data– Do not understand model output– Models age– Managers have no confidence in model– Model base lacks integration– Models are difficult to make– Input/Output relations complex

Decision Support Systems

• Case example– School districts needed a new bus schedule to

ensure district be racially balanced– A typical transportation model– Consultants worked out a new bus schedule

satisfying requirement– District rejected the model– District wanted to maintain old schedule but

want to back this up scientifically

Decision Support Systems

• Graphical functions– Time series– Scatter diagram– Bar/Pie charts– Geographic maps– Organizational charts– Event schedule

Decision Support Systems

• DSS history– DSS– GDSS– EIS– ESS

Decision Support Systems

• EIS/ESS presents executives with– Performance data– Internal data arising from communications– Environmental data

• EIS/ESS – helps executives to do their job– Adapted to executives tasks and management

style

Decision Support Systems

• How things get done wrong– No executive support– Lack of objectives– Lack of data– Lack of support staff– No thought about DSS future

Decision Support Systems

• Presentations– Tables– Graphics

• DSS development

• GDSS anonymity

• DSS generator

• Marketing case

• Minnesota case