Decision Support System DECISION SUPPORT SYSTEMS Lecture Notes Dr. Ir. Sudaryanto, MSc. Gunadarma University

Decision Support System THE COCEPTUAL FOUNDATION FOR DECISION SUPPORT SYSTEMS Part 1 DSS: Past, Present, Future Dr. Ir. Sudaryanto, MSc. Ir. (IPB), MSc (AIT-Thailand), Dr. rer.pol. (Aachen-Germany)

Decision Support System The Background Complexity Shorter PLC Global Competition Speed of decision DSS Competitive Intelligence

Decision Support System Managerial Functions & Roles

Decision Support System Managerial Functions & Roles

Decision Support System The The Importance of knowledge

Decision Support System Data

Decision Support System Information

Knowledge

Decision Support System

Introduction Evolution of Computer based application 1 st generation Mainframe computers for transaction processing 2 nd generation MIS :management reporting 3 rd generation: DSS To help management to deal with semi structure and unstructure decision making Full development during 1970s and 1980s

Decision Support System Management Information Systems Schedule reports for well define Information needs Demand reports for ad hoc Information request The ability to query a database for specific data MIS The ultimate mission of information systems: To improve the performance of information workers in organization through the application of information technology

Decision Support System DSS : The definition Sprague, 1980: Computer based systems Help the decision maker Confront ill-structure problems Through direct interaction With data and analysis model Scenario of problem solving using DSS

Decision Support System Dichotomy of Information Work High volume of transaction Low cost/value per transaction Well structure procedures Output measures defined Focus on process Focus on efficiency Handling of data Predominantly clerical workers Example: back office, payroll processing Low volume of transaction High value (cost) per transaction ill structure procedures Output measures less defined Focus on problems and goals Focus on effectiveness Handling of concepts Managers and profesionals Example: loan department, planning department Procedure -based Goal -based

Decision Support System The Data processing Evolution Basic data processing File management Query, Report generation Stand alone EDP jobs Transaction processing Each program has its own files Data handling : sorting, classifying, summarizing DPEV Addition of flexible report generator and query Language Integrated EDP jobs for related function Sharing files across several program Develop software for handling files Data base management Software system for dealing with data separate from Program MIS capability Reduction of program maintenance

Decision Support System Conceptualization of DSS: DDM paradigm Three Components/ Sub system Dialog between the system and the user Data that support the system Model to provide analysis capabilities New technology continues to affect the dialog, data and models Principles of DSS

Decision Support System The Components of a DSS ___________ Strategic Models ___________ Tactical Models ___________ Operational Models ___________ Model Buildings Blocks and Subroutines Model Base Data Base Management System Model Base Management System User ___________ Finance ___________ Production ___________ Marketing ___________ Personnel ______________ R&D ______________ Other ______________ Other internal data External data Document based data Data Base Transaction Data Dialog Base Management System

Decision Support System The Dialog Component Knowledge base Action language Presentation language What the user knows about the decision how to use the DSS How to train user ? one to one tutorial classes /lectures programmed an computer aided instruction command or sequence files instructions manual - online, context specific DSS

Decision Support System The Dialog Component Knowledge base Action language Presentation language How to control DSS question - answer menu - driven / oriented command language input-output approach visual oriented interface - icon voice input Physical action Keyboard input touchscreen, mouse driven DSS

Decision Support System The Dialog Component Knowledge base Action language Presentation language DSS Printed report Text Graphics Animation Voice output

Decision Support System Dialog Styles Combination or set of option for implementing the knowledge base, the action language and the presentation language Mouse Pull - down menu move icons Graphical presentation

Decision Support System The Data Component Data source Traditional EDP/MIS __________________ Data records, files Public Data Base __________________ Socio-economic data Corporate Library Word processing records management ____________________ records, opinions, memos, estimate Internal External Record base Document base Internal (within organization) easy to generate and manage External popular as “public data base” In context of DSS :as information source documents, concept, ideas, opinions

Decision Support System The Organizational option Traditional application development group Operation research/management Science group A stand alone, formally chartered DSS group Planing department / Staff analysis group within a functional department A DSS group within end user services Information center Institutional support play a leading role in development and management of DSS system Support characteristics: Staff background Types of services DSS development methodology DSS Institutional Support

Decision Support System Development of DSS Affecting factors PC revolution Increasing capability and reducing cost of telecomunication Increasing availability of public data Growth of artificial intelligent techniques Increasing knowledge and computer literacy Availability of hardware and software Incereasing availability of mobile computing and communication

Decision Support System The Challenges Integrated architecture Connectivity LAN WAN Document data More intelligence

26 Specific DSS – Developed for supporting one particular type of decision. DSS Generators – Programs which decision makers and programmers can use to quickly build a specific DSS application. – Spreadsheets, etc. DSS Tools – Languages, development tools, text editors, etc., which require more technical sophistication before they can become specific DSS. DSS Levels

27 Permanent / Institutional DSS – Developed for an on-going decision situation. May be refined or updated as needed. – For repetitive use (operation) Ad-Hoc DSS – Built for one specific decision requiring immediate support. Often rapidly assembled using DSS generators & tools. May eventually result in permanent DSS. – usually for strategic planning DSS Types

28 – Augment decision maker’s knowledge management abilities – Allow decision maker to solve larger and more complex problems – Make decision making faster and more reliable – Stimulate decision maker’s thoughts about a problem & reveal new ways of thinking – Support decision maker’s decision/position with computational evidence – Organizational competitive advantage DSS Benefits

29 – DSS do not replace human creativity and experience – DSS is constrained by the knowledge in its databases – DSS is constrained by the models and processes in its model base and programming – DSS is limited by its computer platform – Decision makers are required to communicate with the DSS in its language or interface mode – DSS are often narrow in their area of application DSS Limitations

Decision Support System END