Transcript Decision Support Systems

Decision Support
Systems
Julie Muller
Lizzy VanHorn
Michael Stocks
What is a DSS?
An information system that utilizes
analytical modeling and helps
executives make strategic decisions
DSS are user-driven and rely on the
knowledge possessed by its user
Structured or Unstructured?
Strategic or Operational?
Decision Structure
Information Characteristics
Unstructured
Strategic Management
Ad Hoc
Unscheduled
Summarized
Infrequent
Forward Looking
External
Wide Scope
Semi-structured
Tactical Management
Structured
Operational Management
Pre-specified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow Focus
Who in an organization do you
think would use a Decision
Support System??
Information Flow
Information
Exchange/
Communication
Enterprise Collaboration System
System
Information
Flow
Executives
Executive Information System
Managers
DSS
MIS
TPS
PCS
Operational Systems and Staff
Types of DSS

Model-driven

Data-driven

Communication-driven

Document-driven

Knowledge-driven
Why Use a DSS?
Linear Programming
Regression Analysis
Decision Trees
Forecasting
Content of Information?






Accurate
Complete
Economical
Flexible
Reliable
Relevant





Simple
Timely
Verifiable
Accessible
Secure
Most Important





Accurate
Complete
Flexible
Relevant
Timely
DSS Reporting is produced through
Analytical Modeling

Goal seeking

Sensitivity

What-If Scenarios

Optimization
Analytical Modeling
Type of
Modeling
Example
What-if
analysis
Goal-seeking
analysis
If we raised our advertising budget
by 15% of our employees, what
would happen to sales?
Continuously raise our advertising
budget by 1% to monitor its
relationship to sales
Increase our advertising budget
until sales reach $10 million
Optimization
analysis
What number of advertisements
maximizes our overall profit?
Sensitivity
analysis
Online Analytical Processing
(OLAP)
Client PCs
OLAP Server
Corporate
Databases
MultiDimensional
Database
RECALL:
What is the difference between an
MIS and a DSS?
MIS- Shows past and present, tells problem but does not give a
solution
DSS- Use forecasting and predictive models but human makes
the end decision
MIS



Provides information about the
performance of an organization
Contains information, but does not
help an executive determine the best
decision to make
Generic & periodic reports
DSS


Explores possible alternatives and
develops models to help predict
outcomes of situations.
Produces flexible, adaptive reports
generated through an interactive
interface.
• May only be generated once
• Customized, non-generic
Fair Isaac




Enterprise Decision Management
Business rules
Predictive models
Decision service
Normally total
$200,000 plus

Fair Isaac’s Success
• More than 5000
businesses in more than
80 countries
• 9 of the top 10
companies in the Fortune
500
• Multiple success stories
of big and small
companies