Decision Support Systems MGMT 661 Summer 2012 Night

Decision Support Systems MGMT 661 - Summer 2012 Night #7, Part 2 somewhat based on Chapter 12

Types of Decisions n Structured ¨ routine (maybe even repetitive) ¨ definite procedure n Unstructured ¨ no agreed upon procedure refer back to "Types of Information" in Part #1

Decision Support Systems n supports semi-structured and unstructured problem analysis ¨ probably overkill for structured problems n usually model driven n allows to ask "What if? "

Simple DSS Examples n Car Selection ¨ how many miles do you drive? ¨ preferred style? ¨ do you have kids? ¨ yadda n Inventory Replenishment ¨ past usage (data from accounting database) ¨ projected need (information from CRM) ¨ delivery time (model from Supply Chain system) ¨ "what if" we delay purchase two weeks?

DSS Components n Input ¨ TPS Data ¨ Other Internal Data n e. g. forecasts, reports, spreadsheet calculations ¨ External Data n Model n Analysis Software ¨ OLAP and data mining ¨ Easy to Use Interface

DSS Models n Well Known Relationships ¨ layout of production facility ¨ Supply Chain ¨ Organizational Chart ¨ decision tables ¨ spreadsheet calculations n Mathematical Models Decision Variables Uncontrollable Variables Mathematical Relationship Result Variables

DSS Caveats n DSS improve effectiveness, not efficiency. n Some people consider group communication tools to be a type of DSS v. Expert Systems n A human queries a DSS, while an ES queries a human. n A DSS assists in decision making, while an ES makes decisions. n A DSS is for semi-structured problems, but an ES only works well in highly structured domains.

Geographic Information Systems n special category of DSS n combines large databases and maps Screenshot of Arc. View www. ncddc. noaa. gov/technology/gis/view

Executive Support Systems n "Balanced Scorecard" n info displayed as a "Dashboard" with drill down abilities for more detail n key performance indicators textbook Figure 12 -8 balancedscorecard. org

dashboardspy. com

Supporting the 5 Functions of Management 1. Planning v TPS 2. Organizing v Customer 3. Coordinating v Supply 4. Deciding 5. Controlling Rel. Mgmt Chain Mgmt v Enterprise Knowledge Mgmt v Expert Systems v Decision Systems Support

Next Time: Ø Your presentations Ø How software gets built Paper Ideas from Tonight: Survey of Commercial Executive Scorecard Systems Ø Survey of Commercial Enterprise Knowledge Management Systems Ø Two or Three cases of Successful Expert Systems used in Business Ø Cases of using GIS for Decision Support Ø