Mgt 20600:
IT Management & Applications
Decision Support Systems
Tuesday
April 18, 2006
Reminders
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Reading
– For today
 Fundamentals text, Chapter Six, Information and Decision Support
Systems
Homework
– Homework Five
 Decision Support Systems
 Due Friday, April 21st by 5pm
Exam 2
– Tuesday, April 25th
– 75 points
– Similar types of questions as on Exam 1
– Covers Telecom & Networks (Ch.4), Databases (Ch.3), MIS & Decision
Support Systems (Ch.6)
Next week: Exam 2
Decision Making as a
Component of Problem Solving
How Decision Making Relates to Problem
Solving
Decision Making as a
Component of Problem Solving
 Decision-making
phase: first part
of problem-solving process
– Intelligence stage: potential problems
or opportunities are identified and
defined
– Design stage: alternative solutions to
the problem are developed
– Choice stage: a course of action is
selected
Decision Making as a
Component of Problem Solving
 Problem
solving: a process that
goes beyond decision making to
include the implementation stage
 Implementation stage: a solution
is put into effect
 Monitoring stage: decision makers
evaluate the implementation
Programmed Versus
Nonprogrammed Decisions
 Programmed
decisions
– Decisions made using a rule, procedure,
or quantitative method
– Easy to computerize using traditional
information systems
– Example?
 Nonprogrammed
decisions
– Decision that deals with unusual or
exceptional situations
– Not easily quantifiable
– Example?
Optimization, Satisficing, and
Heuristic Approaches
Optimization model: a process that
finds the best solution, usually the one
that will best help the organization meet
its goals
 Satisficing model: a process that finds a
good—but not necessarily the best—
problem solution
 Heuristics: commonly accepted
guidelines or procedures that usually find
a good solution

An Overview of Decision
Support Systems
A
DSS is an organized collection of
people, procedures, software,
databases, and devices used to
support problem-specific decision
making and problem solving
 The focus of a DSS is on decisionmaking effectiveness when faced
with unstructured or semistructured
business problems
Capabilities of a Decision
Support System
 Support
all problem-solving phases
 Support different decision
frequencies
 Support different problem structures
 Support various decision-making
levels
Capabilities of a Decision
Support System (continued)
Decision-Making Level
A Comparison of DSS and MIS
Comparison of DSSs and MISs
A Comparison of DSS and MIS
(continued)
Comparison of DSSs and MISs
Components of a Decision
Support System
Conceptual Model of a DSS
Components of a Decision
Support System
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Database
External database access
Access to the Internet and corporate intranet,
networks, and other computer systems
Model base: provides decision makers access to
a variety of models and assists them in decision
making
Dialogue manager: allows decision makers to
easily access and manipulate the DSS and to use
common business terms and phrases
Intelligence Phase Support:
Excel and Access

Excel
– List capabilities: Sorting, filtering
– Pivot tables
– Charting
 Access
– Queries
– Reports
Design Phase Support: Excel
 Excel
– What if analysis
 Data
tables
 Scenario manager
Stages of the Decision Making
Process: Choice
 Selecting
a course of action
– Excel
 Solver
– Expert systems
 Intended
to perform at the level of a human
expert in a particular domain
– Decision Tree Analysis
 Add-in
to Excel that facilitates construction
of decision trees
Common Expert System
Architecture
User
Expert
Knowledge
User
Interface
Blackboard
Inference
Engine
Knowledge
Engineer
Knowledge
Base
User Environment
Development
Environment
Documented
Knowledge
Decision Tree Analysis Output
Group Support Systems
 Group
support system (GSS)
– Consists of most elements in a DSS,
plus software to provide effective
support in group decision making
– Also called group decision support
system or computerized collaborative
work system
Characteristics of a GSS That
Enhance Decision Making
 Special
design
 Ease of use
 Flexibility
 Decision-making support
 Anonymous input
 Reduction of negative group behavior
 Parallel communication
 Automated record keeping
GSS Software
 Often
called groupware or workgroup
software
 Helps with joint workgroup
scheduling, communication, and
management
 Examples: Lotus Notes, Microsoft’s
NetMeeting, Microsoft Exchange,
NetDocuments Enterprise, Collabra
Share, OpenMind, TeamWare
GSS Alternatives
GSS Alternatives
GSS Alternatives
The GSS Decision Room
Group Support System Example
 Meeting,
Brainstorming, and Decision
Making Tools for groups
Executive Support Systems
 Executive
support system (ESS):
specialized DSS that includes all
hardware, software, data,
procedures, and people used to
assist senior-level executives within
the organization
Executive Support Systems in
Perspective
 Tailored
to individual executives
 Easy to use
 Drill-down capable
 Support the need for external data
 Can help when uncertainty is high
 Future-oriented
 Linked to value-added processes
Capabilities of Executive
Support Systems
 Support
for defining an overall vision
 Support for strategic planning
 Support for strategic organizing and
staffing
 Support for strategic control
 Support for crisis management
Executive Support Systems
– Xcelsius
– Executive Dashboard
 Identify, track, trend, and correct problems
as managers evaluate the health of key
areas of their organization
 Identify operational efficiencies
 Proactively identify and apply corrective
measures
Executive Dashboard
Features
Dashboard Screen: The
dashboard page displays the
overall health of key performance
indicators. Each box represents a
key performance indicator (KPI)
and the health for corresponding
periods. The default executive
dashboard shown can be unique to
the individual logged in, or shared
by the entire organization.