Chapter 9 Decision Support Systems Agenda DSS Components

Chapter 9 Decision Support Systems

Agenda • • 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 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 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 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 Components Other Types of DSS Group DSS

Discussion Questions • Does your organization use DSS? – 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