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.