Mgt 240 LectureMgt 240 Lecture

Decision Support SystemsDecision Support Systems

March 3, 2005March 3, 2005

MiscellaneousMiscellaneous Exam 2Exam 2

Week after spring breakWeek after spring break Sample questions are availableSample questions are available Exam help session Monday, March 14 from 7-Exam help session Monday, March 14 from 7-

9pm in L0509pm in L050 Reading outlines available for material in Reading outlines available for material in

texttext Review slides!Review slides!

Homework 4Homework 4 Correct answer for relational table structure Correct answer for relational table structure

questionquestion

Reading OutlinesReading Outlines

Questions?Questions?

Decision Support SystemsDecision Support Systems

Programmed versus Programmed versus Nonprogrammed DecisionsNonprogrammed Decisions

Programmed decisionsProgrammed decisions Easy to computerizeEasy to computerize Example?Example?

Nonprogrammed decisionsNonprogrammed decisions Rules and relationships not definedRules and relationships not defined Problem is not routineProblem is not routine Not easily quantifiableNot easily quantifiable Example?Example?

What is a DSS?What is a DSS? A DSS is a computer-based tool, controlled A DSS is a computer-based tool, controlled

by the end user, used to support and by the end user, used to support and improve decision making in semi-structured improve decision making in semi-structured and unstructured problem situations. and unstructured problem situations.

The DSS helps to impose structure on the The DSS helps to impose structure on the decision-making process, and helps to bring decision-making process, and helps to bring together human judgment and computerized together human judgment and computerized information.information.

The DSS supports but does not replace the The DSS supports but does not replace the role of the end user in the decisionrole of the end user in the decision process. process.

Components of a DSSComponents of a DSS

Decision Making StagesDecision Making Stages

Stages of the Decision Making Stages of the Decision Making Process: Process: Intelligence Intelligence

Problems or opportunities are Problems or opportunities are identified or definedidentified or defined

Intelligence Phase DSS toolsIntelligence Phase DSS tools

ExcelExcel List capabilities: Sorting, filteringList capabilities: Sorting, filtering Pivot tablesPivot tables ChartingCharting Gourmet1Gourmet1

Intelligence Phase DSS Intelligence Phase DSS ToolsTools

XcelsiusXcelsius OverviewOverview

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 efficiencies Proactively 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.

Executive Dashboard Executive Dashboard FeaturesFeatures

View Screen: The View screen gives a snapshot picture of the key performance indicator (KPI). Charts display supporting data, while text details the criteria and justification for each KPI.

Executive Support Systems (ESS) Executive Support Systems (ESS) in Perspectivein Perspective

Tailored to individual executivesTailored to individual executives Easy to useEasy to use Drill down capabilitiesDrill down capabilities Support need for external dataSupport 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 an ESSCapabilities of an ESS

Support for defining an overall visionSupport for defining an overall vision Support for strategic planningSupport for strategic planning Support for strategic organizing & staffingSupport for strategic organizing & staffing Support for strategic controlSupport for strategic control Support for crisis managementSupport for crisis management

Stages of the Decision Making Stages of the Decision Making Process: Process: DesignDesign

Alternative solutions to the problem Alternative solutions to the problem or opportunity are developedor opportunity are developed

Design Phase DSS ToolsDesign Phase DSS Tools

ExcelExcel What if analysisWhat if analysis

Data tablesData tables Scenario managerScenario manager

Inn exampleInn example Meeting, Brainstorming, and DecisionMeeting, Brainstorming, and Decision

Making Tools for groups Making Tools for groups

Characteristics of a GDSSCharacteristics of a GDSS

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

GDSS AlternativesGDSS Alternatives

The GDSS Decision RoomThe GDSS Decision Room

Problem Solving or Choice Problem Solving or Choice ApproachesApproaches

Optimization:Optimization: find the best solution find the best solution Satisficing:Satisficing: find a good solution find a good solution Heuristics:Heuristics: rules of thumb rules of thumb

Optimization, Satisficing, and Optimization, Satisficing, and Heuristic ApproachesHeuristic Approaches

Stages of the Decision Making Stages of the Decision Making Process: ChoiceProcess: Choice

Selecting a course of actionSelecting a course of action ExcelExcel

SolverSolver Sale exampleSale example

Expert systemsExpert systems Intended to perform at the level of a human expert in Intended to perform at the level of a human expert in

a particular domaina particular domain Decision Tree AnalysisDecision Tree Analysis

Decision Decision ToolPakToolPak Add-in to Excel that facilitates construction of decision treesAdd-in to Excel that facilitates construction of decision trees

Common Expert System Common Expert System ArchitectureArchitecture

User

Knowledge Engineer

UserInterface

Inference Engine

Knowledge Base

User Environment Development Environment

Blackboard

DocumentedKnowledge

ExpertKnowledge

Data Warehouses, Data Marts, Data Warehouses, Data Marts, and Data Miningand Data Mining

Data WarehouseData Warehouse - a database that collects - a database that collects business information from many sources in the business information from many sources in the enterprise, covering all aspects of the company’s enterprise, covering all aspects of the company’s processes, products, and customers.processes, products, and customers.

Data MartData Mart – a subset of a data warehouse. – a subset of a data warehouse.

Data MiningData Mining - an information analysis tool that - an information analysis tool that involves the automated discovery of patterns and involves the automated discovery of patterns and relationships in a data warehouse. relationships in a data warehouse.

Elements of a Data WarehouseElements of a Data Warehouse

Common Data Mining ApplicationsCommon Data Mining Applications

Comparison of OLAP and Data Comparison of OLAP and Data MiningMining