Transcript DSS

DECISION SUPPORT SYSTEMS
Lecture Notes
Dr. Ir. Sudaryanto, MSc.
[email protected]
[email protected]
Gunadarma University
Decision Support System
THE COCEPTUAL FOUNDATION FOR DECISION
SUPPORT SYSTEMS
Part 1
DSS: Past, Present, Future
Dr. Ir. Sudaryanto, MSc.
[email protected]
Ir. (IPB), MSc (AIT-Thailand), Dr. rer.pol. (Aachen-Germany)
Decision Support System
The Background
Shorter PLC
Global
Competition
Speed of
decision
DSS
Competitive
Intelligence
Complexity
Decision Support System
Managerial Functions & Roles
Decision Support System
Managerial Functions & Roles
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The Importance of knowledge
Decision Support System
Data
Decision Support System
Information
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Knowledge
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Decision Support System
Introduction
Evolution of Computer based application
• 1st generation
• Mainframe computers for transaction processing
• 2nd generation
• MIS :management reporting
• 3rd generation: DSS
• To help management to deal with semi structure
and unstructure decision making
• Full development during 1970s and 1980s
Decision Support System
Management Information Systems
Schedule reports for well define
Information needs
MIS
Demand reports for ad hoc
Information request
The ability to query a database
for specific data
The ultimate mission of information systems:
To improve the performance of information workers in organization
through the application of information technology
Decision Support System
DSS : The definition
Sprague, 1980:
• Computer based systems
• Help the decision maker
• Confront ill-structure problems
• Through direct interaction
• With data and analysis model
Scenario of problem solving using DSS
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Dichotomy of Information Work
Procedure -based
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High volume of transaction
Low cost/value per transaction
Well structure procedures
Output measures defined
Focus on process
Focus on efficiency
Handling of data
Predominantly clerical workers
Example: back office, payroll
processing
Goal -based
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Low volume of transaction
High value (cost) per transaction
ill structure procedures
Output measures less defined
Focus on problems and goals
Focus on effectiveness
Handling of concepts
Managers and profesionals
Example: loan department, planning
department
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The Data processing Evolution
Basic data
processing
File
management
• Stand alone EDP jobs
• Transaction processing
• Each program has its own files
• Data handling : sorting, classifying, summarizing
• Integrated EDP jobs for related function
• Sharing files across several program
• Develop software for handling files
DPEV
Data base
management
Query,
Report generation
• Software system for dealing with data separate from
Program
• MIS capability
• Reduction of program maintenance
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Addition of flexible report generator and query
Language
Decision Support System
Principles of DSS
• Conceptualization of DSS: DDM paradigm
• Three Components/ Sub system
• Dialog between the system and the user
• Data that support the system
• Model to provide analysis capabilities
• New technology continues to affect the dialog,
data and models
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The Components of a DSS
Model Base
Data Base
Transaction Data
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Other
Finance
internal
___________
data
Production
___________
Marketing
___________ Document
based
Personnel
data
______________
R&D
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Other
External
______________
data
Data Base
Management
System
Model Base
Management
System
Dialog Base
Management
System
___________
Strategic
Models
___________
Tactical
Models
___________
Operational
Models
___________
User
Model Buildings
Blocks and
Subroutines
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The Dialog Component
Knowledge
base
DSS
Action
language
•What the user knows about
• the decision
• how to use the DSS
•How to train user ?
• one to one tutorial
• classes /lectures
• programmed an computer
aided instruction
• command or sequence files
• instructions manual - online,
context specific
Presentation
language
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The Dialog Component
Knowledge
base
DSS
Action
language
•How to control DSS
• question - answer
• menu - driven / oriented
• command language
• input-output approach
• visual oriented interface - icon
• voice input
•Physical action
• Keyboard input
• touchscreen, mouse driven
Presentation
language
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The Dialog Component
Knowledge
base
DSS
Action
language
• Printed report
• Text
• Graphics
• Animation
• Voice output
Presentation
language
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Dialog Styles
Combination or set of option for implementing
the knowledge base, the action language and
the presentation language
Mouse
90
80
70
60
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Sales year
2002
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10
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Pull - down menu
move icons
Q1
Q2
Q3
Q4
Graphical presentation
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The Data Component
Data source
• Internal (within organization)
• easy to generate and manage
• External
• popular as “public data base”
• In context of DSS :as information source
• documents, concept, ideas, opinions
Internal
External
Traditional EDP/MIS
__________________
Data records, files
Public Data Base
__________________
Socio-economic data
Word processing
records management
____________________
records, opinions,
memos, estimate
Corporate
Library
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The Organizational option
Traditional application development group
Operation research/management Science group
DSS
Institutional
Support
Planing department / Staff analysis group
within a functional department
A stand alone, formally chartered DSS group
A DSS group within end user services
Information center
• Institutional support play a leading role in development and management of DSS system
• Support characteristics:
• Staff background
• Types of services
• DSS development methodology
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Development of DSS
Affecting factors
• PC revolution
• Increasing capability and reducing cost
of telecomunication
• Increasing availability of public data
• Growth of artificial intelligent techniques
• Increasing knowledge and computer literacy
• Availability of hardware and software
• Incereasing availability of mobile computing
and communication
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The Challenges
•Integrated architecture
•Connectivity
•LAN
•WAN
•Document data
•More intelligence
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DSS Levels
• Specific DSS
– Developed for supporting one particular type of
decision.
• DSS Generators
– Programs which decision makers and programmers
can use to quickly build a specific DSS application.
– Spreadsheets, IFPS, @RISK, etc.
• DSS Tools
– Languages, development tools, text editors, etc.,
which require more technical sophistication before
they can become specific DSS.
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DSS Types
• Permanent / Institutional DSS
– Developed for an on-going decision situation.
May be refined or updated as needed.
– For repetitive use (operation)
• Ad-Hoc DSS
– Built for one specific decision requiring immediate
support. Often rapidly assembled using DSS
generators & tools. May eventually result in
permanent DSS.
– usually for strategic planning
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DSS Benefits
Augment decision maker’s knowledge management
abilities
– Allow decision maker to solve larger and more
complex problems
– Make decision making faster and more reliable
– Stimulate decision maker’s thoughts about a
problem & reveal new ways of thinking
– Support decision maker’s decision/position with
computational evidence
– Organizational competitive advantage
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DSS Limitations
– DSS do not replace human creativity and experience
– DSS is constrained by the knowledge in its databases
– DSS is constrained by the models and processes in its
model base and programming
– DSS is limited by its computer platform
– Decision makers are required to communicate with
the DSS in its language or interface mode
– DSS are often narrow in their area of application
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END
Decision Support System