Chapter 3
Decision Support Systems Concepts, Methodologies, and
Technologies: An Overview
1
Learning Objectives
!"#$%"%&'( decision support system (DSS)
configurations
45(6778(69:;<'$=:;8(=:!! DSS 69: BI
'@A!45(BCD!7A69:D=4'( DSS
45($A"#$'( DSS
=&6!8("=:E'( DSS DF
'(G"=:'!78( H '( DSS 69:!=&$
'@A!45('(G"=:'!'( DSS 69:I=(D=('(6789:'(G"=:'!
9845(J9=:!&$'A$7'=G$K778' DSS (69: DSS 78''A$7'=G$K7)
2
Learning Objectives
9845(!!'(JLM! DSS !$!=:!!D=D$NO<'=
&= (management information system)
'@A!45(P=G&6=G69:Q'R7G6=G6O97R'=G'( (hardware and software
platform) '( DSS
B$!EVMOW$ DSS
=<'(78( H '(! DSS $"XB!$
3
Opening Vignette:
[Decision Support System Cures for Health Care^
Company background: Avantas "#$!=AV%&=!='=!8 9B@G=
($OADL$G698"#$9AND;=!'B7D;==!DBEO (Health
industry) 9B@G=($(7$4LOW$5a$O<'8';A&J9%=9!<$
$69:8';A&="=:;&(&$=(A$$=::I&=B8($$%"
$O<a$D=4"=!"=B(%&'8(78'$<'(J8$=D=(BC8'(A=='(
O$($69:;;$&=78( H
4
Problem:
Avantas ($=8!=:!!I=(O!9;9;9O<'&==O=
(&$=O!9;&5a$ $D4$=CGcO:=<'( Avantas %&($=8!
JL'(O<'M8"=!"=B(=7&DA$'(O$($ 7'8(M8$ I"=6=
'( Planner Lab D=4=:!B45(7'(=O$($OA5a$$M8(=::9
"#$ M8$ M8(%;&=:!& ;A&'&(&$=O=&$=
O!9$I=(O!9 O=:$'7'(=$(O!97'(&L69JL"d
OA5a$69 (7'(=$(O!9OA5a$O=:$(O!9'L8(&
($O=:"d"#$%;&'& $=CM8$$a5("#$%"%&8 =&L69JL"d'
%8&O' &($a$7'(=$(O!95(OA5a$
5
=:!!I=(O!9%&OA=CO$($$"XB!$69:O=CG45(=:&!
7'(=$=8(OA7AO<'7=7=!<'!D"&;G;=<'$& H K7
O$($%8O' ('L8$=:&!7$Ae7A) M8(9$a:'L8"=:C7$&<'$
=%"45(DAa$DB&&<'$$ $$;8 "XF;$a:4L$A=:;G
$M8("9&<'$7B9O<';9$="=!"9$8'$$$$%:
OA5a$
6
Proposed solution:
JL=7&DA$K<' CFO ;;$=O!9=:&!DL( JL&=;$8($
69:gd=O=!B9 O7'(=D=(=<'(<'(8 H 5a$M($
Avantas %&M Excel O<'$D=(D4$=CG$MA( [What-if^
7
Opening Vignette:
[Decision Support System Cures for Health Care^
- Projected Vacancy Rate versus Desired Vacancy Rate
8
Opening Vignette:
- Projected Vacancy Rate vs. Desired Vacancy Rate "What-if" scenario with 6
additional RN recruiters
9
Opening Vignette:
- Demanded Hours versus Total Actual Hours versus Total Actual Hours with
New Hires
10
Results:
=:!!I=(O!9D=4M76!!D=('L9'( Planners Lab M
($69:M8$=(6J$69:=7&DA$
D$'8$OA7A$ white papers http://www.plannerslab.com/
;=<'
http://plannerslab.com/site/whitepapers.php?site=teradata&section=teaching
11
3.2) DSS Configurations
"XB!$$a DSS ;9=L"6!! (configuration) a($a5a$!
D4$=CG=7&DA$&$=!=A;= (management-decision situation)
I$I9cO:&$M$=;=D$!D$B$
DSS '(G"=:'!O<a$x$ 3 '(G"=:'! <':
1) 'L9 (Data)
2) 76!! (Model)
3) D8$M<'78'!JLM (User interface)
4) (+ (9<') '(G=L (Knowledge)
12
DSS Configurations
6789:'(G"=:'!$a$
6778($%" %"
69D=49<'M%&6!!
''$%9$G 69;"#$
Q'R7G6=GcO:9L (custom
software) O<'
6!8(( H 6!!%"%&"#$:
Model-oriented DSS
Data-oriented DSS
13
3.3) DSS Description
$A'( DSS $D6= H :
=:!!''6!!;D$!D$B$JL=7&DA$!=!=A;=$
D4$=CG6!!5(I=(D=(69:%8"#$I=(D=(
;45(="#$=<'(M8;!JL=7&DA$ (=D=4'(
O678%8M=9<'6$)
B8("%"=7&DA$7'(=9<';=<'$C:7&DA$%8D=4;
69D=KI&'N=D$!D$B$'('9'=A@5 (algorithm)
7'('N'OA7'=G =&$A$($6!!=7'!I7!JLM 69:
D=4$=;'7GOB7''"#$=L"=R€
14
DSS Description
I&%"69 DSS D=(O<'M8;9<'$=<'(7'!'("XF;6$8$'$
(certain problem) (;=<' O<'"=:A$I'DcO::( (specific opportunity)) $
<'6778(;9=:;8( DSS 69: BI applications
=:!! BI MO<'g&LD4$=CG78( H 69:!8(Ma"XF; 69:/;=<' I'D J8$
(=M==A@=A=:;G;9;9 (variety of analytic methods)
I&%"JLM($7'(!8(Ma45(D4$=CGOANV''Q5(7'(;D$
==($/9('L94<'"#$DA(!!;9$ BI
DSS :x$'L969:76!!78( H "#$'($'(
15
DSS Description
DSS <' 6$( (;=<' ==A@) D;=!D$!D$B$==7&DA$
$M$MA(=:!!D=D$N'OA7'=G=8 (computer-based
information system (CBIS)) Q5(;="=!6%%&(8 98'(7
69:=7'!I7!JLM
4LOW$ (I&7'(='(JLM) D;=!D$!D$B$$=;7'!
;68"XF;&$=&=%8"#$I=(D=(cO::(
"#$A7=78'JLM$=M'L9 76!!69:x$=L (M=L"EO 69:'N
K!)
'L9MA(95'(JL7&DA$%&4L=!='%&
D$!D$B$B H RD'(==7&DA$
D=4M%&$&;=<';9$
16
A Web-Based DSS Architecture
17
3.4) DSS Characteristics and Capabilities
DSS :;%88';<'$! BI
I&%"69 DSS 4LD=(5a$O<'6"XF;:(69:x$'L9'(
$='L8$769
=$ BI M($:$$%"==($69:=!8(Ma"XF;78( H J8$
(=D6$'L94LK!%$9('L9
I&%"69 a(D'(=:!!:=<'(<'&$=A=:;G (analytical tools)
='L8& (BI called business analytics systems)
68!(7:($$6!! Local ;<'$ spreadsheet 678D8$69a(
DSS 69: BI KMK!
18
DSS Characteristics and Capabilities
DSS Characteristics and Capabilities
=A=:;G(@B=A (Business analytics) ;45(=M76!!69:'L9O<'
"=!"=B("=:DA@AEO'('(G= 69:/;=<' 8';A&%&"=!$=
68($
=A=:;GI&'NK! (Web analytics) ;45( =M=A=:;G(@B=A
6!!9=A( (real-time) D=D$N%&='NK!4L$M8$=
=7&DA$ O!;K$!8' H K:DO$@G! e-Commerce
=A=:;GMA($ (Predictive analytics) "#$='@A!"XF;/I'D
(&$=O=CGI&==A@'(=A=:;G(@B=A 6$:"#$=
=($(8 H 7$A&5a$
20
AIS SIGDSS Classification
DSS :&6!8("=:E%&&($a
1) Communications ‚ driven and group DSS (GSS)
2) Data ‚ driven DSS
3) Document ‚ driven DSS
4) Knowledge ‚ driven DSS, data mining and management ES applications
5) Model ‚ driven DSS
4= 2 "=:E;=<'8&$ =8 Compound DSS
21
DSS Classifications
Holsapple and Whinston's Classification
1) The text-oriented DSS
2) The database-oriented DSS.
3) The spreadsheet-oriented DSS
4) The solver-oriented DSS
5) The rule-oriented DSS (include most knowledge-driven DSS, data mining,
management, and ES applications)
6) The compound DSS
22
DSS Classifications
Alter's Output Classification
Orientation Category
Type of Operation
Data
Access data items
File drawer systems
Data analysis systems Ad hoc analysis of data files
Data or
models
Analysis information
systems
Ad hoc analysis involving
multiple databases and small
models
Models
Accounting models
Standard calculations that
estimate future results on the
basis of accounting definitions
Optimization models
Calculating an optimal solution to
a combinatorial problem
23
DSS Classifications
Other DSS Categories
Institutional and ad-hoc DSS (&L=$;$4&%")
;=D$!D$B$cO:!B9 "#$9B8 69:a('(G=
"#$=:!!D$!D$B$cO:$ ! =:!!D$!D$B$"#$9B8 (group support
system (GSS))
=:!!D=(5a$cO: (Custom-made systems) ! =:!!D=(5a$
O='M($ (ready-made systems)
'8$OA7A7=( 3.1
24
! "#!$
Institutional DSS
"#$ DSS M$'(G='L879'&969:M"#$"=: =D$!D$B$(&$
=(A$O<' update 'L8D' :MM87&DA$(&$"XF;A&5a$!8' H
A&5a$6!!Qa H
Ad hoc DSS
"#$ DSS M!"XF;cO::( %8A&5a$!8' H 69:%8Qa6!!
Personal support
Group support
Organizational support
25
3.6) Components of DSS
Components of DSS
=:!!8'$=&='L9 (Data Management Subsystem)
=45( x$'L9'L9K!'L8
=:!!&=x$'L9 (Database management system (DBMS))
D=4M<'78'!9('L9 (data warehouse)
=:!!8'$=&=76!! (Model Management Subsystem)
=:!!&=x$76!! (Model base management system (MBMS))
=:!!8'M<'78'!JLM (User Interface Subsystem)
=:!!8'$=&=!x$=L (Knowledgebase Management) Subsystem
x$=L'('(G= (Organizational knowledge base)
27
Overall Capabilities of DSS
(8$78'=45( 'L9/76!!/=L
=&==L69:"=:D!=CG'('(G='8(4L7'(
(8$=M, "=!6%%& (adaptive) 69: flexible GUI
;=D$!D$B$$=7&DA$$MA(4L7'( 68 (
(consistent) 4L9
Support for all who needs it, where and when he/she needs it
'8$OA7A$7=( 3.2
28
DSS Components and Web Impacts
J9=:!K!78' DSS
=&='L9J8$( Web servers
45(76!! =<'(<';9;9%&(8
Consistent user interface (browsers)
"=!M%"DL8 PDA , cell phones, etc. €
J9=:!'( DSS 78' Web
Intelligent e-Business/e-Commerce
Better management of Web resources and security, €
'8$OA7A$7=( 3.3
29
3.7) DSS Components: Data Management Subsystem
Data Management
Subsystem "=:'!&:
DSS database
DBMS
Data directory
Query facility
Data Management Subsystem
The Database
Internal data ;9 H 69 =:!!"=:9J9(@B==='('(G=
(organization‰s transaction processing system)
External data "=:'!& 'L9'B7D;== 'L9=A79& 'L9
"=:M= 'L9=(($$ELAE78( H ';$&=x!9 '7=EV
'L9N=VxA'(M7A "#$7$
Private data "=:'!& L8<'4LMI&JL=7&DA$cO:$ 69:=
7="=:A$'L969:/;=<'D4$=CGcO:
Data organization
31
Data Management Subsystem
Data extraction
=:!$=$=!'L9 (capturing data) ;9 H 6;98( =D(=:;G =D=B"=!= =66:8D8$%;$DO$@G!D8$& 69:&;"#$
;&;L8 8';A&J99O@GD=4$%"!=%&'8("=:DA@AEO
Database management system (DBMS)
Q'R7G6=GMD;=! =D=(x$'L9 ="=!"=B(;$D 69:=D<!$
'L9 (querying) (M8$ =&= "#$7$)
Query Facility
The (database) mechanism that accepts requests for data, accesses them, manipulates
them, and queries them
Directory
32
A catalog of all the data in a database or all the models in a model base
Data Management Subsystem
=<'(;9 H '(x$'L969:=:!!&=!x$'L9 (database management
system)
Data quality
Data integration
Scalability
Data security
33
Database Management Subsystem: Key Data Issues
BCEO'('L9 (Data quality)
[Garbage in/garbage out" (GIGO)
=!='L9 (Data integration)
[Creating a single version of the truth^
D=4"=!D&D8$%& (Scalability)
"9'&E'('L9 (Data Security)
%85a$!9 (Timeliness)
D!L=CG (Completeness)
34
10 Key Ingredients of Data (Information) Quality Management
1) BCEO'('L9 %8M868"XF;'(=:!! 678$"#$"XF;(@B=A&
2) IRDD=D$N!9L69:QOO9''=G %8M8'(688"#$'L98$a$
3) IRD%"B H '(G"=:'!'('L9 M8$ $A $<a';(;) 69:=
$D$'
4) OA=C45(=$=:!$==&=BCEO'(D=D$N/'L9%"M($
AM8'(678O(Q'R7G6=G%"&=!'L9
5) &68$$'('L9O='!"#$;7B"#$J9 (validity)
6) &7$B$=A( (real cost) (%8M868"'=GQK$7G) '(BCEO68 (poor quality)'(
'L9/D=D$N
35
10 Key Ingredients of Data (Information) Quality Management
7) B8($$="=!"=B(=:!$=/=!=B(=VMA("'($ %8M868'L9;
4L7'(8$a$ (data cleansing)
8) "=!"=B(=:!$= (69:=;'L9BCEO) 6;98('L97$(
9) ;=N5V68JL&=!J9=:!'$A&BCEO68 H '('L969:
:="=!"=B(%&'8(%=
10) 8';A&="9$J8$W$@=='('(G=6!!&A H %"DL8W$@==;
BC868BCEO'('L9
36
3.8) DSS Components
Model Management Subsystem
Model base
MBMS
Modeling language
Model directory
Model execution,
integration, and
command processor
37
DSS Components
Model Management Subsystem
-!./0#122 (Model base)
==!=76!!MA("=AC&7=%69 (preprogrammed quantitative
models) (M8$ statistical, financial, optimization) 69&;&;L8;="#$;$8
&$ (single unit)
"=:E'(76!! (Model Types) 4 "=:E
76!!MA(9B@G (Strategic models)
76!!MA(B@A@ (Tactical models)
76!!MA("ŽA!7A= (Operational models)
76!!MA(A=:;G (Analytic models)
38
Strategic models
76!!M6$"XF;D;=!=&=$=:&!9B@G (M8$ executive level)
Tactical models
76!!M6$"XF;D;=!=&=$=:&!B@A@ (M8$ midlevel)
Operational models
76!!M6$"XF;D;=!=&=$=:&!"ŽA!7A (M8$ operational level)
Analytical models
76!!(CA7ND7=GQ5(7'(D8'L9%"<'=A=:;G
39
23456789:;<=><!?/0#122 (Model building blocks)
'(G"=:'!'(Q'R7G6=GI"=6=%69 (Preprogrammed software
elements) Q5(4LMD=(76!!('OA7'=G (computerized models)
7'8(M8$ =D=(796!!DB8 (random-number generator) $MD=(
76!!O<'=9'(
A">B95?$B5789A689 #602/0#122 (Modeling tools)
40
DSS Components
Model Management Subsystem
The four (4) functions
1) =D=(76!!, =MEV$=I"=6= =<'(<''( DSS 69:/;=<'
I"=6=8' (routine) 78( H 69:!9K'D=(5a$
2) =D=(I"=6=8';8 H 69: =($78( H
3) ="9$6"9(69:"=!"=B(76!!;$D
4) ="=:9'L9'(76!! (Model data manipulation)
=&;&;L8'(76!! (Model directory)
=M($76!! (Model execution), =!=69:=D(= (command)
41
Model directory
Model execution is the process of controlling the actual running of the model
Model integration involves combining the operations of several models when
needed
A model command processor is used to accept and interpret modeling
instructions from the user interface component and route them to the MBMS,
model execution, or integration functions
42
3.9) DSS Components
User Interface (Dialog) Subsystem
Interface
Application interface
User Interface
Graphical User Interface
(GUI)
DSS User Interface
Portal
Graphical icons
Dashboard
Color coding
Interfacing with PDAs, cell phones,
etc.
43
User Interface (Dialog) Subsystem
User interface
'(G"=:'!'(=:!!'OA7'=G';=D<'D=6!!D'((=:;8(
=:!!!JLM
User interface management system (UIMS)
'(G"=:'!'( DSS &==7'!I7a(;9=:;8(JLM!=:!!
44
User Interface (Dialog) Subsystem
=:!$==M<'78'!JLM:
#0/EF (Object)
$ D4$ ;=<' DA('( =!= "=:9 ;=<' &K! D=D$N'%
Graphical user interface (GUI)
An interactive, user-friendly interface in which, by using icons and similar
objects, the user can control communication with a computer
45
User Interface (Dialog) Subsystem
DSS user interfaces D=445(J8$( Web browsers =a(:
'A$OB769:'7GOB7MD(
Portable devices
Direct sensing devices
DSS developments
I$I9'(Q'R7G6=G69:P=G&6=G="=:9J96!!$$ (Parallel
processing) $A$M6"XF;$=<'( scalability issue
=M Web-based DSS ;M(85a$ =4L9($=$MM8
7&DA$!D=D$N69:6!! model-driven DSS ;JLMM($%&
77'(= 6J8$( mobile devices K7
46
User Interface (Dialog) Subsystem
Artificial intelligence 4L$M"=!"=B( DSS '8(78'$<'(
=<'(<'$; (search engine) ;=K5a$ c9&5a$
Intelligent agents %&=!="=!"=B($=M<'78'!&$'<$ H M8$ direct
natural language processing 69: creating facial gestures
=OW$ DSS solution $MA( ready-made (;=<' near-ready-made) D;=!
specific market segments OA5a$
DSS 9"#$DA(gX(7'L8$ (;=<'M<'78'!) EIS a(;9
="=!"=B( GSS O<';=D$!D$B$==8<'$($$=:&!
enterprise
Different types of DSS components are being integrated more frequently
47
3.10) DSS Components
Knowledgebase Management System
=!='( intelligence 69: expertise
'(G"=:'!&$=L (Knowledge components):
=:!!JLM$F= (Expert systems),
=:!!=&==L (Knowledge management systems),
I=(8"=:D (Neural networks),
'8$7GMFc9& (Intelligent agents), (76$=&$A$=c9&)
RXQQ9'A (Fuzzy logic), (7==ND7=G9B=<')
=:!!;;7BJ9&=CN5V (Case-based reasoning systems), 69:'<$ H
Often used to better manage the other DSS components
48
DSS Components
Future/current DSS Developments
P=G&6=G%&=!="=!"=B(;&5a$
$&9K9( =K5a$ =4L9( €
Q'R7G6=G/P=G&6=G%&=!="=!"=B(;&5a$
=9('L9 =;<'('L9 OLAP I$I9'(K! =!=
69:I$I9M=:'L9 (M8$ XML, Web services, SOA, grid
computing, cloud computing, €)
=!=! AI -> =:!!'c=A: (smart system)
49
3.11) DSS User
=K7JMAF!=7&DA$Q5( MSS 4L''6!!;D$!D$B$
JL&= JL=7&DA$ $6"XF; €
JLM6778($
76;$8(($$'(G=6778($%"7;$ 6778($(
A&/D=4 6$(&A$%"DL8=7&DA$ (D%79G$=
7&DA$)
JLM = !B9 ;=<' 9B8
JL&= ;=<' O$($$DJLM$F= [staff assistants, expert tool
users, business (system) analysts, facilitators (in a GSS)]
50
3.12) DSS Hardware
I&%" MSS :($'L8!$P=G&6=G7=x$ (standard hardware)
D=4M mainframe computers =8! legacy DBMS, workstations, personal
computers ;=<' client/server systems
"XB!$$a$M$MA( distributed/integrated, loosely-coupled Web-based
systems
D=4&;%&
A single vendor
Many vendors (best-of-breed)
51
3.13) A DSS Modeling Language
Planners Lab (plannerslab.com)
Generating Assumptions
52
A DSS Modeling Language
Planners Lab (plannerslab.com)
Creating a new model
53
A DSS Modeling Language
Planners Lab (plannerslab.com)
54
A DSS Modeling Language
Planners Lab (plannerslab.com)
55
A DSS Modeling Language
Planners Lab (plannerslab.com)
56
A DSS Modeling Language
Planners Lab (plannerslab.com)
57
A DSS Modeling Language
Planners Lab (plannerslab.com)
58
A DSS Modeling Language
Planners Lab (plannerslab.com)
59
A DSS Modeling Language
Planners Lab (plannerslab.com)
60
A DSS Modeling Language
Planners Lab (plannerslab.com)
61
A DSS Modeling Language
Planners Lab (plannerslab.com)
62
A DSS Modeling Language
Planners Lab (plannerslab.com)
63
A DSS Modeling Language
Planners Lab (plannerslab.com)
64
A DSS Modeling Language
Planners Lab (plannerslab.com)
65
!;'
4“=!€€.
66