Decision Support Systems Chapter 13 What is Decision

Decision Support Systems Chapter 13 • What is Decision Support Systems (DSS)? A computer based program for solving structured and semi-structured problems • A DSS consists of : – Model base management system – Database management system – Dialog generation management system – Database – Model base

Decision Support Systems • Solving structure problems – Person compared the problem with available models – Person find match between model and problem – Person runs the model using available data and gets solution – Person plays “what if” analysis – Person may use different models

Decision Support Systems • Solving unstructured problem – Force fit the problem into one of the available models – Solve problem regular way – What we do is turn an unstructured problem into a structured problem – What to do when we fail?

Decision Support Systems • Solving non structured problem – There are no known methods to solve unstructured problems – Turn unstructured problem into semi-structured problem – Turn semi-structured into structured problem – How to accomplish above steps?

Decision Support Systems • Problem Solving – Define the problem usually as mathematical model – Get relevant data – Suggest a possible solution – Run the model against the data Evaluate results of proposed solutions

Decision Support Systems • Problem Solving (. . . contd. ) – Change model parameters to see how robust your solution is – Change model to see how robust your solution is

Decision Support Systems • What is a good model? – Know how each input determines output – Know how each output depends on the inputs – For each output be able to work out the necessary inputs – Model simplicity – Model understandability by manager

Decision Support Systems • Model – Management science has many models: • • Statistical Mathematical Linear programming Integer programming Linear models Non-linear models Dynamic models Transportation models

Decision Support Systems • Model – If all else fails use simulations – Waiting lines – Store clerk placement – Inventory control

Decision Support Systems • Data – Transaction data – Corporate data – Environmental data – Economic data – Competitive data – Marketing data • Data Warehouse – Integration of above data types

Decision Support Systems • Problem with models – Lack of input data – Do not understand model output – Models age – Managers have no confidence in model – Model base lacks integration – Models are difficult to make – Input/Output relations complex

Decision Support Systems • Case example – School districts needed a new bus schedule to ensure district be racially balanced – A typical transportation model – Consultants worked out a new bus schedule satisfying requirement – District rejected the model – District wanted to maintain old schedule but want to back this up scientifically

Decision Support Systems • Graphical functions – Time series – Scatter diagram – Bar/Pie charts – Geographic maps – Organizational charts – Event schedule

Decision Support Systems • DSS history – DSS – GDSS – EIS – ESS

Decision Support Systems • EIS/ESS presents executives with – Performance data – Internal data arising from communications – Environmental data • EIS/ESS – helps executives to do their job – Adapted to executives tasks and management style

Decision Support Systems • How things get done wrong – No executive support – Lack of objectives – Lack of data – Lack of support staff – No thought about DSS future

Decision Support Systems • Presentations – Tables – Graphics • • • DSS development GDSS anonymity DSS generator Marketing case Minnesota case