Chattrakul Sombattheera Decision Support Systems Lecture I Introduction to Decision Support Systems Chattrakul Sombattheera 17/09/61

Agenda Case I (Toyota) Case II (US Federal Reserve) Decision Making Decision Support Systems 17/09/61

Decision Making Business Environment Factors Markets: strong competition, global markets, market on Internet Consumer demands: customization, quality, diversity, delivery Technology: more innovations, more obsolescence rate, more information overload Societal: more regulation and deregulation, more diversified workforce, more social responsibility. 17/09/61

Decision Making Business Pressure-Response-Support Model Organization Response Decisions and Support Business Environment Factors Strategy, partners’ collaboration, real-time response, agility, increased productivity, new vendors, new business models, etc. Analysis, decisions, predictions Globalization, consumer demands, government regulations, markets and competition Pressures Integrated computerized decision support Business Intelligence Opportunities 17/09/61

Decision Making Process of Decision Making Define the problem (i.e., a decision situation that may deal with some difficulty or with and opportunity). Construct a model that describes the real-world problem. Identify possible solutions to the modeled problem and evaluate the solutions. Compare, choose, and recommend a potential solution to the problem. 17/09/61

Decision Support Systems Definition I (Keen and Scott-Morton): Decision support systems couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions. It is a computer based support system for management decision makers who deal with semistructured problems. 17/09/61

Decision Support Systems High-level Architecture of DSS Models Data Knowledge User Interface 17/09/61

Decision Support Systems Multitiered architecture for incorporating optimization, simulation, and other models into web-based DSS Optimization/ simulation/ etc server Web browser Application Server Data warehouse or lagacy DBMS Web server Data server 17/09/61

Decision Support Systems Key characteristics and capabilities of DSS 1. Semistructured and Unstructured problems 2. Support managers at all levels 14. Stand alone, integration and web-based 3. Support individuals and groups 4. Interdependent or sequential decisions 13. Data access 5. Support intelligence, design, choice, implementation 12. Modelling and analysis DSS 11. Ease of development by end users 6. Support variety of decision processes and styles 10. Human controls the process 7. Adaptable and flexible 9. Effectiveness, not efficiency 8. Interactive ease of use 17/09/61

Decision Support Systems Components of DSS Data Management Subsystems: include Database management system (DBMS) and dataware house Model Management Subsystems: include financial, statistical, management science, or other quantitative models that provide the analytical capabilities (also called model base management system MDMS) User Interface Subsystems: include graphical user interface (GUI) that allows users to communicate with the system. 17/09/61

Decision Support Systems Schematic View of DSS Other component-based systems Internet, intranets, extranets Data: external and internal Data management Model management External models Knowledge-based subsystems User interface Organizational KB Manager (user) 17/09/61

Decision Support Systems The Structure of the DMS Internal data sources External data sources Finance Marketing Production Personnel Other Private personal data Extraction Organizational knowledge base Corporate data warehouse Decision support database Query facility Interface management Database management system Retrieval Inquiry Update Report generation Delete Data directory Model management Knowledge-based subsystem 17/09/61

Decision Support Systems The Structure of MMS Models (Model Base) Strategic, tactical, operational Statistical, financial, marketing, management science, accounting, engineering, etc. Model building block Model Directory Model Base Management Modeling commands: creation Maintenance: update Database interface Modeling language Model execution, integration, and command processor Data management Interface management Knowledge-based subsystem 17/09/61

Decision Support Systems Schematic View of the User Interface Systems Data management and DBMS Knowledge-based subsystems Model management and MBMS User Interface management system (UIMS) Natural Language processor Input Action language Output Display language PC Display Printers, plotters 17/09/61 Users

Questions Question me. Question you. 17/09/61