Decision Support Systems Julie Muller Lizzy VanHorn Michael Stocks

What is a DSS? An information system that utilizes analytical modeling and helps executives make strategic decisions DSS are user-driven and rely on the knowledge possessed by its user DSS are user-driven and rely on the knowledge possessed by its user

Structured or Unstructured? S trategic or Operational?

Strategic Management Tactical Management Operational Management Decision Structure Information Characteristics Unstructured Semi-structured Structured Ad Hoc Unscheduled Summarized Infrequent Forward Looking External Wide Scope Pre-specified Scheduled Detailed Frequent Historical Internal Narrow Focus

Who in an organization do you think would use a Decision Support System??

Information Flow Executive Information System ExecutivesMISTPS PCS Operational Systems and Staff DSS Managers Enterprise Collaboration System System Information Flow Information Exchange/ Communication

Types of DSS Model-driven Model-driven Data-driven Data-driven Communication-driven Communication-driven Document-driven Document-driven Knowledge-driven Knowledge-driven

Why Use a DSS? Linear Programming Linear Programming Regression Analysis Decision Trees Forecasting

Content of Information? Accurate Accurate Complete Complete Economical Economical Flexible Flexible Reliable Reliable Relevant Relevant Simple Simple Timely Timely Verifiable Verifiable Accessible Accessible Secure Secure

Most Important Accurate Accurate Complete Complete Flexible Flexible Relevant Relevant Timely Timely

DSS Reporting is produced through Analytical Modeling Goal seeking Goal seeking Sensitivity Sensitivity What-If Scenarios What-If Scenarios Optimization Optimization

Analytical Modeling Type of Modeling Example What-if analysis If we raised our advertising budget by 15% of our employees, what would happen to sales? Sensitivity analysis Continuously raise our advertising budget by 1% to monitor its relationship to sales Goal-seeking analysis Increase our advertising budget until sales reach $10 million Optimization analysis What number of advertisements maximizes our overall profit?

Online Analytical Processing (OLAP) Corporate Databases Multi- Dimensional Database Client PCsOLAP Server

RECALL: What is the difference between an MIS and a DSS? MIS- Shows past and present, tells problem but does not give a solution DSS- Use forecasting and predictive models but human makes the end decision

MIS Provides information about the performance of an organization Provides information about the performance of an organization Contains information, but does not help an executive determine the best decision to make Contains information, but does not help an executive determine the best decision to make Generic & periodic reports Generic & periodic reports

DSS Explores possible alternatives and develops models to help predict outcomes of situations. Explores possible alternatives and develops models to help predict outcomes of situations. Produces flexible, adaptive reports generated through an interactive interface. Produces flexible, adaptive reports generated through an interactive interface. May only be generated onceMay only be generated once Customized, non-genericCustomized, non-generic

Fair Isaac Enterprise Decision Management Enterprise Decision Management Business rules Business rules Predictive models Predictive models Decision service Decision service Normally total Normally total $200,000 plus

Fair Isaac’s Success More than 5000 businesses in more than 80 countries 9 of the top 10 companies in the Fortune 500 Multiple success stories of big and small companies