Decision Support Systems - Chapter 3: Decision Support Systems: An Overview

Chapter 3Decision Support Systems:An OverviewDecision Support Systems1© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangOutline1.Decision Support Systems.2.Characteristics and capabilities of DSS.3. DSS components.4. Data Management Subsystem.5. Model Management Subsystem.6. User Interface system7. Knowledge-based Management System8. DSS Hardware.9. DSS classification.2© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang1.Decision Support SystemsSystems designed to support managerial decision-making in unstructured problemsMore recently, emphasis has shifted to inputs from outputsMechanism for interaction between user and componentsUsually built to support solution or evaluate opportunities3© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangDSSA DSS is a methodology that supports decision-making.It is:Flexible;Adaptive;Interactive;GUI-based;Iterative; andEmploys modeling.4© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang2. Characteristics and capabilities of DSSBecause there is no consensus on exactly what a DSS is, there is no agreement on standard characteristics and capabilities of DSS.The term “business intelligence” is synonymous with DSSThe list in the following figure is an ideal set.5© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang6© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangBusiness IntelligenceProactive BI focusses on accelerating decision-makingIncreases information flowsFive components of proactive BI:Real-time warehousingException and anomaly detectionProactive alerting with automatic recipient determinationSeamless follow-through workflowAutomatic learning and refinement7© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang3. Components of DSSSubsystems:Data management Managed by DBMSModel management Managed by MBMSUser interfaceKnowledge Management and organizational knowledge base8© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang9© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang4.Data Management SubsystemComponents:DatabaseDatabase management systemData directoryQuery facility10© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang11© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangDatabaseA database is a collection of interrelated data extracted from various sources, stored for use by the organization, and queried.The data from the DSS database are extracted from: Internal data, usually from TPSExternal data from government agencies, trade associations, market research firms, forecasting firmsPrivate data or guidelines used by decision-makers12© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangDatabase Management SystemExtracts data Manages data and their relationshipsUpdates (add, delete, edit, change)Retrieves data (accesses it)Queries and manipulates dataEmploys data dictionary13© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangData DirectoryCatalog of all dataContains data definitionsAnswers questions about the availability of data itemsSourceMeaningAllows for additions, removals, and alterations14© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang5.Model Management SubsystemModel management subsystem of a DSS consists of the components:Model baseModel base management systemModeling languageModel directoryModel execution, integration, and command processor15© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangThe structure of the model management subsystem16© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangCategory of ModelsStrategicSupports top management decisionsTacticalUsed primarily by middle management to allocate resourcesOperationalSupports daily activitiesAnalyticalUsed to perform analysis of data17© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangModel Base Management SystemFunctions:Model creationModel updatesModel data manipulationGeneration of new routinesModel directory:Catalog of modelsDefinitions18© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangModel Management ActivitiesModel executionControls running of modelModel command processorReceives model instructions from user interface Routes instructions to MBMS or module execution or integration functionsModel integrationCombines the operations of several models19© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang6.User Interface SystemKnowledge-based systemData management and DBMSModel management and MBMSUser Interface Management System (UIMS)Natural Language ProcessorInputActionLanguagesOutputDisplayLanguage UsersPrinters, PlottersPC DisplayBased on Figure 3.6, Schematic View of the User Interface20© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangUser Interface Management SystemGUINatural language processorInteracts with model management and data management subsystemsExamplesSpeech recognitionDisplay panelTactile interfacesGesture interface21© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang7.Knowledge-Base Management System Many unstructured/semistructured problems need expertise (knowledge) for their solutions.Such expertise can be provided by some knowledge engineers who interview the domain experts and gather the information necessary for the knowledge-base.More advanced DSSs are equipped with a component called knowledge base management subsystem.This subsystem can achieve complex problem solving and it can enhance operations of other components.The knowledge base is where the “knowledge” of the DSS is stored. By knowledge, we mean the rules, heuristics, constraints, previous outcomes and any other “knowledge” that may have been programmed into the DSS.22© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangKnowledge retrievalOnce we have the knowledge stored in the knowledge base, we need a method of getting them out in an organized fashion. The inference engine (IE) is that part of the knowledge base that facilitates this process.The IE is the module that activates all the domain knowledge that has been gathered and performs inferencing (reasoning) to work toward a solution or conclusion.23© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang8. DSS HardwareDe facto standard Web server with DBMS:Operates using browserData stored in variety of databasesCan be mainframe, server, workstation, or PC Any network typeAccess for mobile devices24© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang9.DSS ClassificationsAlterExtent to which outputs can directly support or determine the decisionData-oriented or model-orientedHolsapple and WhinstonText-oriented, database-oriented, spreadsheet-oriented, solver-oriented, rule-oriented, or compoundIntelligent DSSKnowledge-based DSS, rule-oriented DSS25© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangNotes on Solver-oriented DSSA solver is an algorithm or procedure written as a program for performing certain computation for solving a particular problem type.EX: linear regression routine, linear programming routine.Solver can be written in a programming languages such as C++, Java.DSS builder can incorporate the solver in creating the DSS application.26© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang(ad hoc analysis)27© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangOther DSS ClassificationsDonovan and MadnickInstitutional (Problems of recurring nature)Ad hoc (Problems that are not anticipated or are not repetitive)Hackathorn and KeenPersonal support, Group support, or organizational support28© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangDSS ClassificationsGroup SS v. Individual DSSDecisions made by entire group or by lone decision makerCustom-made v. vendor-ready-madeGeneric DSS may be modified for useDatabase, models, interface, support are built inAddresses repeatable industry problemsReduces costs29© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and LiangWeb and DSSThe web can be used for data collectionThe Web can be used for communications and collaborationsThe Web can be used to download DSS software.Database vendors provide Web capabilities by running directly on Web serversSimplifies integration problemsIncreased usability features30© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang31© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang