Transcript Lecture I Introduction to Decision Support Systems

Decision Support Systems
Lecture I
Introduction to Decision Support
Systems
Chattrakul Sombattheera
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Agenda
•
•
•
•
Case I (Toyota)
Case II (US Federal Reserve)
Decision Making
Decision Support Systems
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Decision Making
• Business Environment Factors
– Markets: strong competition, global markets,
market on Internet
– Consumer demands: customization, quality,
diversity, delivery
– Technology: more innovations, more
obsolescence rate, more information overload
– Societal: more regulation and deregulation,
more diversified workforce, more social
responsibility.
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Decision Making
• Business Pressure-Response-Support
Model
Organization
Decisions and
Business
Environment
Factors
Globalization,
consumer
demands,
government
regulations,
markets and
competition
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Response
Strategy,
partners’
collaboration,
real-time
Pressures
response,
agility,
Opportunities increased
productivity,
new vendors,
new business
models, etc.
Support
Analysis,
decisions,
predictions
•Integrated
computerized
decision
support
•Business
Intelligence
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Decision Making
• Process of Decision Making
– Define the problem (i.e., a decision situation
that may deal with some difficulty or with and
opportunity).
– Construct a model that describes the realworld problem.
– Identify possible solutions to the modeled
problem and evaluate the solutions.
– Compare, choose, and recommend a
potential solution to the problem.
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Decision Support Systems
• Definition I (Keen and Scott-Morton):
– Decision support systems couple the
intellectual resources of individuals with the
capabilities of the computer to improve the
quality of decisions. It is a computer based
support system for management decision
makers who deal with semistructured
problems.
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Decision Support Systems
• High-level Architecture of DSS
Models
Data
Knowledge
User Interface
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Decision Support Systems
• Multitiered architecture for incorporating
optimization, simulation, and other models
into web-based DSS
Optimization/
simulation/ etc
server
Web browser
Web server
Application
Server
Data
warehouse or
lagacy DBMS
Data
server
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Decision Support Systems
• Key characteristics and capabilities of
DSS
1. Semistructured
2. Support
14. Stand alone,
integration and
web-based
and Unstructured
problems
managers
at all levels
4. Interdependent or
sequential decisions
13. Data access
12. Modelling and
analysis
3. Support individuals
and groups
5. Support intelligence,
design, choice,
implementation
DSS
11. Ease of
development by end
users
6. Support variety of
decision processes and
styles
10. Human controls
the process
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7. Adaptable and
flexible
9. Effectiveness,
not efficiency
8. Interactive
ease of use
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Decision Support Systems
• Components of DSS
– Data Management Subsystems: include Database
management system (DBMS) and dataware house
– Model Management Subsystems: include financial,
statistical, management science, or other quantitative
models that provide the analytical capabilities (also
called model base management system MDMS)
– User Interface Subsystems: include graphical user
interface (GUI) that allows users to communicate with
the system.
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Decision Support Systems
• Schematic View of DSS
Other componentbased systems
Data:
external
and
internal
Data
management
Internet, intranets,
extranets
Model
management
External
models
Knowledge-based
subsystems
User interface
Organizational
KB
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Manager
(user)
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Decision Support Systems
• The Structure of the DMS
Internal data sources
External
data sources
Organizational
knowledge base
Finance
Marketing
Production
Extraction
Decision support
database
Query facility
Data directory
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Database
management system
•Retrieval
•Inquiry
•Update
•Report generation
•Delete
Personnel
Other
Private personal data
Corporate data
warehouse
Interface
management
Model management
Knowledge-based
subsystem
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Decision Support Systems
• The Structure of MMS
Models (Model Base)
•Strategic, tactical, operational
•Statistical, financial, marketing,
management science, accounting,
engineering, etc.
•Model building block
Model Base Management
•Modeling commands: creation
•Maintenance: update
•Database interface
•Modeling language
Data
management
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Interface
management
Model
Directory
Model execution,
integration, and command
processor
Knowledge-based
subsystem
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Decision Support Systems
• Schematic View of the User Interface
Systems
Data management
and DBMS
Knowledge-based
subsystems
Model management
and MBMS
User Interface management
system (UIMS)
Natural Language
processor
PC Display
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Input
Action
language
Output
Display
language
Users
Printers, plotters
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Questions
• Question me.
• Question you.
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