Turban, Aronson, and Liang Decision Support Systems and Intelligent Systems, Seventh Edition Chapter 3 Decision Support Systems: An Overview © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-1 Decision Support Systems • Systems designed to support managerial decision-making in unstructured problems • More recently, emphasis has shifted to inputs from outputs • Mechanism for interaction between user and components • Usually built to support solution or evaluate opportunities © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-2 DSS • A DSS is a methodology that supports decision-making. • It is: – Flexible; – Adaptive; – Interactive; – GUI-based; – Iterative; and – Employs modeling. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-3 © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-4 Characteristics and Capabilities of DSS (Figure 3.1) 1. Provide support in semi-structured and unstructured situations, includes human judgment and computerized information 2. Support for various managerial levels 3. Support to individuals and groups 4. Support to interdependent and/or sequential decisions 5. Support all phases of the decision-making process 6. Support a variety of decision-making processes and styles (more) 5 Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition Copyright 2001, Prentice Hall, Upper Saddle River, NJ 7. Are adaptive 8. Have user friendly interfaces 9. Goal: improve effectiveness of decision making 10. The decision maker controls the decision-making process 11. End-users can build simple systems 12. Utilizes models for analysis 13. Provides access to a variety of data sources, formats, and types Decision makers can make better, more consistent decisions in a timely manner 6 Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition Copyright 2001, Prentice Hall, Upper Saddle River, NJ Business Intelligence • • • • Proactive(Down to business and positive ) Accelerates decision-making Increases information flows Components of proactive BI: – Real-time warehousing – Automatic learning © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-7 Components of DSS • Subsystems: – Data management • Managed by DBMS – Model management – User interface – Knowledge Management and organizational knowledge base © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-8 © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-9 Data Management Subsystem • Components: – Database – Database management system – Data directory – Query facility © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-10 © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-11 Database • Interrelated data extracted from various sources, stored for use by the organization, and queried – Internal data, usually from TPS – External data from government agencies, trade associations, market research firms, forecasting firms – Private data or guidelines used by decision-makers © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-12 Database Management System • • • • • • Extracts data Manages data and their relationships Updates (add, delete, edit, change) Retrieves data (accesses it) Queries and manipulates data Employs data dictionary © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-13 • What are the major functions(capabilities) of DBMS? Storage, retrieval, and control are the three basic functions. The DBMS manages the database: organize, extract/access, modify, delete, and catalogue data. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-14 Data Directory • Catalog of all data – Contains data definitions – Answers questions about the availability of data items – Source – Allows for additions, removals, and alterations © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-15 • Extraction ,Capture data from several sources, filter them, summarize, condense, and reorganize the data. • the function of a query facility is to Provides the basis for access to data. Accepts requests, checks for feasibility, provides answers. • the function of a directory is a catalog of all data in the database. It includes data definitions. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-16 Model Management Subsystem • Components: – Model base – Model base management system – Modeling language – Model execution, integration, and command processor © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-17 Models • Strategic models – support top management's strategic planning. For example, examination of acquisitions, diversifications, and mergers. • Tactical models support mainly middle management in resource allocation and in control. For example, make or buy decisions or devising a major promotion plan. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-18 • Operational – Supports daily activities • Analytical – Used to perform analysis of data © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-19 Model Base Management System • Functions: – Model creation – Model updates – Model data manipulation • Model directory: – Catalog of models – Definitions © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-20 Model Management Activities • Model execution – Controls running of model • Model command processor – Receives model instructions from user interface – Routes instructions to MBMS or module execution or integration functions • Model integration – Combines several models’ operations © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-21 User Interface System Data management and DBMS Knowledge-based system Model management and MBMS User Interface Management System (UIMS) Natural Language Processor Input Action Languages Based on Figure 3.6, Schematic View of the User Interface Users Output Display Language PC Display Printers, Plotters © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-22 User Interface Management System • GUI • Natural language processor • Interacts with model management and data management subsystems • Examples – Speech recognition – Display panel © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-23 • A user interface covers all aspects of the communications between a user and the MSS. Most of the power, flexibility, and ease-of-use characteristic of MSS are derived from this component. As it is the part of the system that the user sees, to him/her, it is the system. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-24 Knowledge-Based Management System • All decisions require reasoning • Reasoning : the process by which new information is obtained from existing data or information • Knowledge base is where the “knowledge” of the DSS is stored • Knowledge can be represented as simple if-then rules, heuristics, previous outcomes or information that may have been programmed into the DSS by the designer © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-25 DSS Hardware • De facto standard • Web server with DBMS: – Operates using browser – Data stored in variety of databases – Can be mainframe, server, workstation, or PC – Any network type – Access for mobile devices © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-26 DSS Classifications • GSS v. Individual DSS – Decisions made by entire group or by lone decision maker • Custom made v. vendor ready made – Generic DSS may be modified for use • Database, models, interface, support are built in • Addresses repeatable industry problems • Reduces costs © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-27 • • List the major components of DSS and briefly define each of them. The major components are: – – – – Data management; includes a database and its management system. Model management; includes models and their management system. Knowledge base; includes artificial intelligence enhancements to the other components. The user; he or she is the decision maker. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-28 • List and describe the major classes of DSS users. The major classes of DSS users are: Management (user, decision-maker) - looking for more user-friendly systems that can do more general analysis and aid in decision making. Staff (intermediaries) - are looking for more detailedoriented system and are willing to use more complex system. Staff acts as intermediary between MSS and manager. Different intermediaries: Staff assistants have specialized knowledge about management problems and some experience with the decision support technology. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-29 An expert tool user is skilled in the application of one or more types of specialized problem-solving tools. The expert tool user performs the tasks the problem solver does not have the technical skills to do. Business (system) analysts have a general knowledge of the application area, a formal business administration education, and considerable skill in DSS construction tools. Facilitator in GSS controls and coordinates the software of group DSS. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-30 • • • • What types of support are provided by DSS? DSS provides: In semistructured and unstructured situations Support by bringing human judgment and computerized information together. Support for various managerial levels, ranging from top executives to line managers. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-31 • Support to individuals as well as groups, since less structured problems sometimes require several individuals from different departments and organizational levels. • Support to several interdependent and or sequential decisions. • Support in all phases of the decisionmaking process: intelligence, design, choice, and implementation. © 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 3-32