1. Decision Support Systems
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Decision Support Systems

2. Types of Decisions/Problems
Structured or Programmed
Rules known
Steps known
No judgment or creativity
Unstructured or Nonprogrammed
Rules unknown
Steps unknown
Requires judgment &/or creativity
Semistructured or Semiprogrammed: Fall between structured & unstructured
DSS support semistructured & unstructured problem solving
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3. Consider Decision Making & Problem Solving as the Same (Figure 10.1)
Simon-Huber Model of Decision Making
Intelligence: Identify & define potential problems &/or opportunities
Design:Develop alternative solutions to the problem
Choice:Select a course of action
Implementation: Put choice into action
Monitoring: Feedback will affect previous stages in model
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4. Types of Solutions Optimization Satisficing Heuristics
Finding the best solution
Example in Fig. 10.3: Using Excel’s Solver
Satisficing
Finding a good -- but not necessarily the best -- solution to a problem
Most common in personal & professional lives
Heuristics
Commonly accepted guidelines or procedures
Usually find a good solution. (AKA “rules of thumb”)
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5. Factors to be Considered in Solving Problems
Multiple decision objectives
Increased alternatives
Increased competition
Need for creativity
Social & political actions (includes legal issues)
International issues
Technology
Time compression
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6. Characteristics of Most DSSs
Handle large amounts of data from different sources
Provide report & presentation flexibility
Provide both textual & graphical orientation
Provide drill down analysis
Perform complex, sophisticated analysis & comparisons using advanced software packages
What if analysis
Sensitivity analysis
Goal-seeking analysis
Simulation
Support optimization, satisficing, & heuristic approaches
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7. Capabilities of DSSs Support all stages of decision making model
Support different decision frequencies: One of a kind or Repetitive
Support all different problem structures
Support all decision making levels
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8. Comparison of TPS/MIS/DSS
Type of problem solved/decision to be made
Support given to users
Decision emphasis & approach
Type, speed, & output of system used
Development of system used
In most organizations, they are integrated through a common database.
DSS software can use Web technology to access databases through the Internet, intranet, or extranet.
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9. Components of a DSS (Figure 10.9)
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10. DSS Models Base
Model Base: Provides access to a variety of models to assist in decision making
Major Types of DSS Models
Financial
Statistical
Graphical
Project management
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11. Advantages & Disadvantages of Modeling
Less expensive than custom approaches or real systems.
Faster to construct than real systems
Less risky than real systems
Provide learning experience through trial and error
Future projections are possible
Can test assumptions
Disadvantages
Assumptions about reality may be incorrect
Accuracy of predications often unreliable
Requires abstract thinking
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12. Group Decision Support Systems: GDSS (Figure 10.12)
Contain most of the elements of DSS & additional software to provide effective support in group decision-making settings
Characteristics of Most GDSSs
Special design
Ease of use
Flexibility
Decision-making support
Delphi approach, brainstorming, group consensus (See Fig 10.13), nominal group technique (NGT)
Anonymous input
Reduction of negative group behavior
Parallel communication
Automated record keeping
Cost, control, complexity factors
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13. Components of a GDSS Same as DSS + Communication/networking capability
Special software (called groupware)
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14. GDSS Alternatives Matrix (Figure 10.15)
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15. Executive Support System
A specialized DSS that supports strategic-level decision making
Levels of Executive (Strategic) Decision Making
Board of directors
President / CEO
Functional area VPs & directors
Functional area managers
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16. Characteristics of ESS
Tailored to individual executives
Easy to use
Drill down capabilities
Can access external data
Can deal with a high degree of uncertainty
Future orientation
Linked with value-added business processes
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17. Capabilities of an ESS Support for defining overall vision
Support for strategic planning
Support for strategic organizing & staffing
Support for strategic control
Support for crisis management
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18. Chapter 10 Case Case 2, pp. 474-75: Motley Fools Web site
In addition to the end of case questions presented in the text, consider the following:
What functionality(ies) from Motley Fools would you consider especially useful for a DSS?
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