© Farhan Mir 2007 IMS MIS Development BBA-IT (Hons) 6 th Semester ( Decision Support Systems & Knowledge Management Systems ) By: Farhan Mir

© Farhan Mir 2007 IMS

© Farhan Mir 2007 IMS Structured and Unstructured Problems

© Farhan Mir 2007 IMS MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS

© Farhan Mir 2007 IMS Decision Support Systems an information system purpose to provide information for making informed decisions interactive (needed for experimenting and prospecting)

© Farhan Mir 2007 IMS Decision Support Systems (DSSs) Decision support systems (DSSs) are computer-based information systems that combine models and data in an attempt to solve semistructured and some unstructured problems with extensive user involvement.

© Farhan Mir 2007 IMS Working Definition A DSS is: computer based model driven management oriented addresses non-structured problem adaptive to user’s insights supportive for a decision

© Farhan Mir 2007 IMS DSSs (Continued) DSSs can examine numerous alternatives very quickly. DSSs can provide a systematic risk analysis. DSSs can be integrated with communications systems and databases. DSSs can be used to support group work. DSSs can perform these functions at relatively low cost.

© Farhan Mir 2007 IMS Characteristics and Capabilities of DSSs Sensitivity analysis is the study of the impact that changes in one (or more) parts of a model have on other parts. What-if analysis is the study of the impact of a change in the assumptions (input data) on the proposed solution. Goal-seeking analysis is the study that attempts to find the value of the inputs necessary to achieve a desired level of output.

© Farhan Mir 2007 IMS DSS Components Data Management Some times (KM) Model Management Dialog Management User (manager)

© Farhan Mir 2007 IMS Fundamental Questions Answered By DSS Question Type What is Why What will be What if Which is best/good enough How answer is provided raw data analysis representative models solutions solution choice

© Farhan Mir 2007 IMS DSS 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 semi-structured problems. — Keen and Scott-Morton, 1978

© Farhan Mir 2007 IMS DSS A DSS is:Flexible;Adaptive;Interactive;GUI-based; Iterative; and Employs modeling.

© Farhan Mir 2007 IMS DSS Components 1. Data Management Subsystem (DMS) 2. Model Management Subsystem (MMS) 3. User Interface Subsystem (UIS) 4. Knowledge-based Management Subsystem (KMS) 5. The User

© Farhan Mir 2007 IMS

© Farhan Mir 2007 IMS User Interface Subsystem (UIS) Covers all aspects of communication between a user and the DSS It is the interface to the user and consists of a GUI that is typically displayed via a browser Includes factors that deal with ease of use, accessibility, and human-machine interactions (which incorporate such things as Cognitive Style, Decision Style, and Display Preferences) To most users, the user interface is the system

© Farhan Mir 2007 IMS DSS Process

© Farhan Mir 2007 IMS Model Management Subsystem (MMS) Model base – contains a model library which stores different classes of models based on criteria such as decision types, user types, etc. Model base management system (MBMS) – software to help create models, data manipulation in models, update models, and create new routines in models Modeling language – for model building, could be text-based or graphical Model directory – contains catalog of models, and model definitions (a range of models from Economics to Statistics like forecasting models)

© Farhan Mir 2007 IMS Knowledge-Based Management Subsystem (KMS) Is the intelligence component incorporated into every subsystem of a DSS – thus, leading to intelligent DSS Expert system or other intelligent systems provide the required expertise Provides expertise for solving some or many aspects of complex unstructured and semi-structured problems Provides knowledge that can enhance the operations of each subsystem of a DSS All advanced DSS have KMS

© Farhan Mir 2007 IMS Group Decision Support Systems Group of managers could also use a DSS as well on a common task or issue To facilitate this a GDSS (Group Decision Support System) application is provided to multiple users on various computer and on multiple networks Is the requirement in the organization that believe in team-based working environment

© Farhan Mir 2007 IMS The User (i.e., manager or decision-maker) Two major classes – managers (users or decision makers) and intermediaries Managers – look for more user-friendly systems that can do more general analysis and aid in decision-making Intermediaries – are specialist staff who are trained in detailed-oriented system and are willing to use more complex system. They act as an intermediary between the manager and DSS. Examples are: Staff assistant, Expert tool user, Business (system) analyst, and GSS facilitator

© Farhan Mir 2007 IMS Knowledge Management Systems (Overview)

© Farhan Mir 2007 IMS What is Knowledge? Data – collection of unprocessed facts Information – organized or meaningful data Knowledge – information that is contextual, relevant, and actionable Strong experiential and reflective elements Good leverage and increasing returns Dynamic Evolves over time with experience Knowledge is also known as Intellectual Capital The primary difference between the terms information and knowledge is in the level of understanding of their underlying organizational data

© Farhan Mir 2007 IMS Two major types of Knowledge Explicit knowledge Deals with objective, rational, and technical knowledge Examples: policies, goals, strategies, papers, reports Structured knowledge that is easy to codify Easily manipulated, shared, taught or learned Tacit knowledge Unstructured knowledge – in the domain of subjective, cognitive, and experiential learning Highly personal, hard to formalize and document Cumulative store of the experiences, mental maps, insights, expertise, know-how, trade secrets, skills set, understanding, etc. Involves a lot of human interpretation

© Farhan Mir 2007 IMS What is Knowledge Management? Knowledge management (KM) is managing the organization’s knowledge (both explicit and tacit) through the process of creating, structuring, disseminating and applying knowledge to enhance organizational performance and create value KM requires a major transformation in organizational culture to create a desire to share Structuring enables problem-solving, dynamic learning, strategic planning, decision-making Leverage value of intellectual capital through reuse

© Farhan Mir 2007 IMS KM Objectives Create knowledge repositories Improve knowledge access Enhance the knowledge environment Manage knowledge as an asset

© Farhan Mir 2007 IMS Knowledge Management System (KMS) Knowledge management system (KMS) provides systematic and active management of ideas, information, and knowledge residing within organization’s employees Why KMS? Availability and use of technologies to manage knowledge Used with turnover, change, downsizing Provide consistent levels of service

© Farhan Mir 2007 IMS KM Initiatives Knowledge creation Generating new ideas, routines, insights Modes include socialization, externalization, internalization, combination Knowledge sharing Willing explanation to another directly or through an intermediary Knowledge seeking or elicitation Knowledge sourcing Knowledge use -- Leverage knowledge

© Farhan Mir 2007 IMS KM Cycle Creates knowledge through new ways of doing things Identifies and captures new knowledge Places knowledge into context so it is usable Stores knowledge in repository Reviews for accuracy and relevance Makes knowledge available at all times to anyone

© Farhan Mir 2007 IMS Components of KMS TechnologiesCommunication Access knowledge Communicates with othersCollaboration Perform groupwork Same place/different place Storage and retrieval Capture, storing, retrieval, and management of both explicit and tacit knowledge through collaborative systems

© Farhan Mir 2007 IMS User Interface (Software installed on each user’s PC) Knowledge-enabling applications ( customized applications, Expert Systems Knowledge Acquisition The Knowledge Base..... Databases Data warehousing (data cleansing, data mining) Groupware (document exchange, collaboration) Legacy applications (e.g., payroll) KMS Architecture User

© Farhan Mir 2007 IMS AI & Expert Systems One of the key promises of Knowledge Systems is that these could provide Artificial Intelligence (computer providing advice on problems like human intelligence) Expert System is the application software that utilizes the mechanism of human intelligence of reasoning and therefore could provide decision makers with advice they would receive from such human experts