Chapter 9 Decision Support Systems
Agenda DSS DSS Components Other Types of DSS Group DSS
DSS Sprague / Carlson: “Computer-based system that helps the decision maker confront ill-structured problems through direct interaction with data and analysis models.”
DSS Philosophy Aid decision maker –Not replace (ES) Decision maker remains in control Not always best decision Change / flexibility Quick response
DSS Characteristics Large amounts of data Different data sources Tailored to decision maker: –judgment –knowledge –intuition –style –personal traits
DSS Characteristics Graphically oriented Optimize / heuristics “What if”(sensitivity) analysis Goal-seeking analysis Unstructured problems
Agenda DSS DSS Components Other Types of DSS Group DSS
DSS Major Components Database DSS software Graphical interface Model base Decision maker
Model Base Financial Statistical Analysis Management Science –Operations research
Financial Models Cash Flow Return on investment Portfolio Analysis –Stock market –Advertising
Statistical Analysis Descriptive (summary) Trend projection Hypothesis testing Regression analysis
Management Science Inventory Queuing (Line) Network
Agenda DSS DSS Components Other Types of DSS Group DSS
Other Types of DSS Executive information System (EIS) –Timely information –Direct access by users Executive support system (ESS) –Analysis support –Communication –Office automation –Intelligence (automation)
Other Types of DSS Online analytical processing –Analytical tools –Database Simulation –Math models –Experiments under different circumstance Visual interactive model (VIM) Visual interactive simulation (VIS)
DSS Examples Kmart –Price evaluation Southern Railway –Train dispatching and forecasting Texas Oil & Gas –Potential drilling sites
Agenda DSS DSS Components Other Types of DSS Group DSS
Group Decision Support System (GDSS ) Interactive computer-based system facilitating solution of unstructured problems by a set of decision makers working together as a group.
GDSS Components Database Model base GDSS processor Groupware Dialogue manager Users
GDSS Benefits Group meeting efficiency Quality of decisions –Alternatives examined –Participation / contribution Those who would otherwise be silent –Better decision outcomes
Points to Remember DSS DSS Components Other Types of DSS Group DSS
Discussion Questions Does your organization use DSS? –How? –How could your organization use a DSS? –What problems do you see with DSS? GDSS is based on the assumption that anonymity is desired. How important is anonymity in groups? –at work? –in class?
Assignment Review chapters 7-9 Read chapter 10, chapters 2-3 (Morrison) Group assignment Research paper