Mgt 20600: IT Management & Applications Decision Support Systems Tuesday April 18, 2006

Reminders  Reading –For today  Fundamentals text, Chapter Six, Information and Decision Support Systems  Homework –Homework Five  Decision Support Systems  Due Friday, April 21 st by 5pm  Exam 2 –Tuesday, April 25 th –75 points –Similar types of questions as on Exam 1 –Covers Telecom & Networks (Ch.4), Databases (Ch.3), MIS & Decision Support Systems (Ch.6)  Next week: Exam 2

Decision Making as a Component of Problem Solving How Decision Making Relates to Problem Solving

Decision Making as a Component of Problem Solving  Decision-making phase: first part of problem-solving process –Intelligence stage: potential problems or opportunities are identified and defined –Design stage: alternative solutions to the problem are developed –Choice stage: a course of action is selected

Decision Making as a Component of Problem Solving  Problem solving: a process that goes beyond decision making to include the implementation stage  Implementation stage: a solution is put into effect  Monitoring stage: decision makers evaluate the implementation

Programmed Versus Nonprogrammed Decisions  Programmed decisions –Decisions made using a rule, procedure, or quantitative method –Easy to computerize using traditional information systems –Example?  Nonprogrammed decisions –Decision that deals with unusual or exceptional situations –Not easily quantifiable –Example?

Optimization, Satisficing, and Heuristic Approaches  Optimization model: a process that finds the best solution, usually the one that will best help the organization meet its goals  Satisficing model: a process that finds a good—but not necessarily the best— problem solution  Heuristics: commonly accepted guidelines or procedures that usually find a good solution

An Overview of Decision Support Systems  A DSS is an organized collection of people, procedures, software, databases, and devices used to support problem-specific decision making and problem solving  The focus of a DSS is on decision- making effectiveness when faced with unstructured or semistructured business problems

Capabilities of a Decision Support System Capabilities of a Decision Support System  Support all problem-solving phases  Support different decision frequencies  Support different problem structures  Support various decision-making levels

Capabilities of a Decision Support System (continued) Decision-Making Level

A Comparison of DSS and MIS Comparison of DSSs and MISs

A Comparison of DSS and MIS (continued) Comparison of DSSs and MISs

Components of a Decision Support System Conceptual Model of a DSS

Components of a Decision Support System  Database  External database access  Access to the Internet and corporate intranet, networks, and other computer systems  Model base: provides decision makers access to a variety of models and assists them in decision making  Dialogue manager: allows decision makers to easily access and manipulate the DSS and to use common business terms and phrases

Intelligence Phase Support: Excel and Access  Excel –List capabilities: Sorting, filtering –Pivot tables –Charting  Access –Queries –Reports

Design Phase Support: Excel  Excel –What if analysis  Data tables  Scenario manager

Stages of the Decision Making Process: Choice  Selecting a course of action –Excel  Solver –Expert systems  Intended to perform at the level of a human expert in a particular domain –Decision Tree Analysis  Add-in to Excel that facilitates construction of decision trees

Common Expert System Architecture User Knowledge Engineer User Interface Inference Engine Knowledge Base User Environment Development Environment Blackboard Documented Knowledge Expert Knowledge

Decision Tree Analysis Output

Group Support Systems  Group support system (GSS) –Consists of most elements in a DSS, plus software to provide effective support in group decision making –Also called group decision support system or computerized collaborative work system

Characteristics of a GSS That Enhance Decision Making  Special design  Ease of use  Flexibility  Decision-making support  Anonymous input  Reduction of negative group behavior  Parallel communication  Automated record keeping

GSS Software  Often called groupware or workgroup software  Helps with joint workgroup scheduling, communication, and management  Examples: Lotus Notes, Microsoft’s NetMeeting, Microsoft Exchange, NetDocuments Enterprise, Collabra Share, OpenMind, TeamWare

GSS Alternatives

The GSS Decision Room

Group Support System Example  Meeting, Brainstorming, and Decision Making Tools for groups Meeting, Brainstorming, and Decision Making Tools for groups Meeting, Brainstorming, and Decision Making Tools for groups

Executive Support Systems  Executive support system (ESS): specialized DSS that includes all hardware, software, data, procedures, and people used to assist senior-level executives within the organization

Executive Support Systems in Perspective  Tailored to individual executives  Easy to use  Drill-down capable  Support the need for external data  Can help when uncertainty is high  Future-oriented  Linked to value-added processes

Capabilities of Executive Support Systems  Support for defining an overall vision  Support for strategic planning  Support for strategic organizing and staffing  Support for strategic control  Support for crisis management

Executive Support Systems –Xcelsius Xcelsius –Executive Dashboard Executive DashboardExecutive Dashboard  Identify, track, trend, and correct problems as managers evaluate the health of key areas of their organization  Identify operational efficiencies  Proactively identify and apply corrective measures

Executive Dashboard Features 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.