1. Chattrakul Sombattheera
Decision Support Systems Lecture I Introduction to Decision Support Systems
Chattrakul Sombattheera
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2. Agenda Case I (Toyota) Case II (US Federal Reserve) Decision Making
Decision Support Systems
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3. Decision Making Business Environment Factors
Markets: strong competition, global markets, market on Internet
Consumer demands: customization, quality, diversity, delivery
Technology: more innovations, more obsolescence rate, more information overload
Societal: more regulation and deregulation, more diversified workforce, more social responsibility.
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4. Decision Making Business Pressure-Response-Support Model
Organization Response
Decisions and Support
Business Environment Factors
Strategy, partners’ collaboration, real-time response, agility, increased productivity, new vendors, new business models, etc.
Analysis, decisions, predictions
Globalization, consumer demands, government regulations, markets and competition
Pressures
Integrated computerized decision support
Business Intelligence
Opportunities
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5. Decision Making Process of Decision Making
Define the problem (i.e., a decision situation that may deal with some difficulty or with and opportunity).
Construct a model that describes the real-world problem.
Identify possible solutions to the modeled problem and evaluate the solutions.
Compare, choose, and recommend a potential solution to the problem.
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6. Decision Support Systems
Definition I (Keen and Scott-Morton):
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 semistructured problems.
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7. Decision Support Systems
High-level Architecture of DSS
Models
Data
Knowledge
User Interface
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8. Decision Support Systems
Multitiered architecture for incorporating optimization, simulation, and other models into web-based DSS
Optimization/
simulation/ etc server
Web browser
Application
Server
Data warehouse or lagacy DBMS
Web server
Data server
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9. Decision Support Systems
Key characteristics and capabilities of DSS
1. Semistructured and Unstructured problems
2. Support managers at all levels
14. Stand alone, integration and web-based
3. Support individuals and groups
4. Interdependent or sequential decisions
13. Data access
5. Support intelligence, design, choice, implementation
12. Modelling and analysis
DSS
11. Ease of development by end users
6. Support variety of decision processes and styles
10. Human controls the process
7. Adaptable and flexible
9. Effectiveness, not efficiency
8. Interactive ease of use
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10. Decision Support Systems
Components of DSS
Data Management Subsystems: include Database management system (DBMS) and dataware house
Model Management Subsystems: include financial, statistical, management science, or other quantitative models that provide the analytical capabilities (also called model base management system MDMS)
User Interface Subsystems: include graphical user interface (GUI) that allows users to communicate with the system.
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11. Decision Support Systems
Schematic View of DSS
Other component-based systems
Internet, intranets,
extranets
Data: external and internal
Data management
Model management
External models
Knowledge-based subsystems
User interface
Organizational KB
Manager (user)
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12. Decision Support Systems
The Structure of the DMS
Internal data sources
External data sources
Finance
Marketing
Production
Personnel
Other
Private personal data
Extraction
Organizational knowledge base
Corporate data warehouse
Decision support database
Query facility
Interface management
Database management system
Retrieval
Inquiry
Update
Report generation
Delete
Data directory
Model management
Knowledge-based subsystem
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13. Decision Support Systems
The Structure of MMS
Models (Model Base)
Strategic, tactical, operational
Statistical, financial, marketing, management science, accounting, engineering, etc.
Model building block
Model Directory
Model Base Management
Modeling commands: creation
Maintenance: update
Database interface
Modeling language
Model execution, integration, and command processor
Data management
Interface management
Knowledge-based subsystem
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14. Decision Support Systems
Schematic View of the User Interface Systems
Data management and DBMS
Knowledge-based subsystems
Model management and MBMS
User Interface management system (UIMS)
Natural Language processor
Input
Action language
Output
Display language
PC Display
Printers, plotters
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Users

15. Questions
Question me.
Question you.
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