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Decision Support and Business

Intelligence Systems
(9th Ed., Prentice Hall)

Chapter 3:
Decision Support Systems
Concepts, Methodologies, and
Technologies: An Overview
Learning Objectives
Understand possible decision support system
(DSS) configurations
Understand the key differences and
similarities between DSS and BI systems
Describe DSS characteristics and capabilities
Understand important DSS classifications
Understand DSS components and how they
integrate

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Learning Objectives
Describe the components and structure of
each DSS component
Explain the unique role of the user in DSS
versus management information systems
Describe DSS hardware and software platforms
Become familiar with a DSS development
language
Understand current DSS issues

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DSS Configurations
Decision support can be provided in many
different configurations; depends on:
Nature of management-decision situation
specific technologies used for support
These technologies are assembled from
four basic components
1. Data
2. Model
3. User interface
4. (+ optional) Knowledge
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DSS Configurations
Each component
has several variations;
are typically deployed
online
Managed by a
commercially available
software
Manner of assembling
components
Typical types:
Model-oriented DSS
Data-oriented DSS
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A Web-Based DSS Architecture

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A Web-Based DSS Architecture
Processing is distributed over several
servers in solving analytical problems.
Web Browser: to run programs on
application server
Servers access data to construct one or
more models
Data may be provided by Data server that
optionally extracts data from data
warehouses or legacy mainframe system
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A Web-Based DSS Architecture
When user requires model to be optimized,
model populated with data sent to an
optimization server.
The Optimization server accesses additional
data from the data server (if needed),
solves problem, and provide the solution
directly to the users web browser.
Then reports are sent to manager by email
or web portal

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DSS Characteristics and Capabilities
DSS is not quite synonymous with BI
DSS are generally built to solve a specific
problem and include their own database(s)
BI applications focus on reporting and
identifying problems by scanning data
stored in data warehouses
Both systems generally include analytical
tools (BI called business analytics systems)
Although some may run locally as a
spreadsheet, both DSS and BI uses Web
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DSS Characteristics and Capabilities
Business analytics focus on the use of models
and data to improve an organization's
performance and/or competitive posture
Web analytics means using business analytics
on real-time Web information to assist in
decision making; often related to e-Commerce
Predictive analytics describes the business
analytics method of forecasting problems and
opportunities rather than simply reporting
them as they occur
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Key DSS Characteristics and
Capabilities

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DSS Characteristics
and Capabilities
The key characteristics and
capabilities of DSS
1. Support for decision makers, mainly in
semistructured and unstructured
situations, by bringing together human
judgment and computerized information
2. Support for all managerial levels, ranging
from top executives to line managers
3. Support for individuals as well as groups

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DSS Characteristics
and Capabilities
4. Support for interdependent and/or sequential
decisions
5. Support in all phases of the decision-making
process
6. Support for a variety of decision-making processes
and styles
7. DSS are flexible, so users can add, delete,
combine, change, or rearrange basic elements;
DSS can be readily modified to solve other, similar
problems
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DSS Characteristics
and Capabilities

8. User-friendliness, strong graphical capabilities,


and a natural language interactive human
machine interface can greatly increase the
effectiveness of DSS
9. Improved effectiveness of decision making
10. The decision maker has complete control over all
steps of the decision-making process in solving a
problem
11. End users are able to develop and modify simple
systems by themselves
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DSS Characteristics
and Capabilities
12. Models are generally utilized to analyze decision-
making situations
13. Access is provided to a variety of data sources,
formats, and types
14. Can be employed as a standalone tool used by
an individual decision maker in one location or
distributed throughout an organization and in
several organizations along the supply chain
15. Can be integrated with other DSS and/or
applications, and it can be distributed internally
and externally, using networking and Web
technologies
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DSS Classifications

AIS SIGDSS classification for DSS


Communications-driven and group DSS (GSS)
Data-driven DSS
Document-driven DSS
Knowledge-driven DSS, data mining, and
management ES applications
Model-driven DSS
Compound DSS

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DSS Classifications
Alter's Output Classification
Orientation Category Type of Operation
Data File drawer systems Access data items

Data analysis systems Ad hoc analysis of data files


Data or Analysis information Ad hoc analysis involving
models systems 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
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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 (wolframalpha.com)
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DSS Classifications
Other DSS Categories
Institutional and ad-hoc DSS
Personal, group, and organizational
support
Individual support system versus group
support system (GSS)
Custom-made systems versus ready-made
systems

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Overall Capabilities of DSS
Easy access to data/models/knowledge
Proper management of organizational
experiences and knowledge
Easy to use, adaptive and flexible GUI
Timely, correct, concise, consistent
support for decision making
Support for all who needs it, where
and when he/she needs it
- See Table 3.2 for a complete list...
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DSS Components and Web Impacts
Impacts of Web to DSS
Data management via Web servers
Easy access to variety of models, tools
Consistent user interface (browsers)
Deployment to PDAs, cell phones, etc.
DSS impact on Web
Intelligent e-Business/e-Commerce
Better management of Web resources and
security, (see Table 3.3 for more)
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Components of DSS

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Components of DSS
Data Management Subsystem
Includes the database that contains the data
Database management system (DBMS)
Can be connected to a data warehouse
Model Management Subsystem
Model base management system (MBMS)
Software for establishing, updating, combining, and so
on (e.g., managing) a DSS model base
User Interface Subsystem
Communicate and command the DSS
Knowledgebase Management Subsystem
support any of the other subsystems or act as an
independent component
Organizational knowledge base
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DSS Components
Data Management Subsystem

Composed of the
following
elements
DSS database

DBMS

Data directory

Query facility

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Data Management Subsystem
The Database
A database is a collection of interrelated data ,
organised to meet the needs and structure of an
organization that can be used by one person for
more than one application.
Data in a DSS database are extracted from:
Internal data come mainly from the organizations
transaction processing system
External data include industry data, market research data,
census data, regional employment data, government
regulations, tax rate schedules, and national economic data
Private data can include guidelines used by specific
decision makers and assessments of specific data and/or
situations
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Data Management Subsystem

Data organization
Data extraction

The process of capturing data from several


sources, synthesizing them, summarizing
them, determining which of them are
relevant, and organizing them, resulting in
their effective integration.

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Data Management Subsystem

Database management system (DBMS)


Software for establishing, updating, and querying
(e.g., managing) a database
Query Facility
The (database) mechanism that accepts requests for
data, accesses them, manipulates them, and queries
them
Directory
A catalog of all the data in a database or all the
models in a model base
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Key Data and Database Management
Issues
Data quality
Garbage in/garbage out" (GIGO)
Data integration
Creating a single version of the truth
Scalability
Data Security

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10 Key Ingredients of Data
(Information) Quality Management
1. Data quality is a business problem, not only
a systems problem
2. Focus on information about customers and
suppliers, not just data
3. Focus on all components of data: definition,
content, and presentation
4. Implement data/information quality
management processes, not just software to
handle them
5. Measure data accuracy as well as validity
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10 Key Ingredients of Data
(Information) Quality Management
6. Measure real costs (not just the percentage)
of poor quality data/information
7. Emphasize process improvement/preventive
maintenance, not just data cleansing
8. Improve processes (and hence data quality)
at the source
9. Educate managers about the impacts of
poor data quality and how to improve it
10. Actively transform the culture to one that
values data quality
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DSS Components
Model Management Subsystem

Model base
MBMS
Modeling
language
Model directory
Model execution,
integration, and
command
processor

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The Model Management Subsystem

Model base
A collection of preprogrammed quantitative models (e.g.,
statistical, financial, optimization) organized as a single
unit.
Contain routine and special statistical, financial,
forecasting, management science and other quantitative
model that provide the analysis capabilities in DSS.
Four categories of models with the model base
Strategic models

Tactical models

Operational models

Analytical models
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The Model Management Subsystem
Strategic models
Models that represent problems for the strategic
level (i.e., executive level) of management
Tactical models
Models that represent problems for the tactical level
(i.e., midlevel) of management
Operational models
Models that represent problems for the operational
level of management
Analytical models
Mathematical models into which data are loaded for
analysis

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The Model Management Subsystem

Model building blocks and routines


Model building blocks
Preprogrammed software elements that can be
used to build computerized models. For example,
a random-number generator can be employed in
the construction of a simulation model
Model components for building DSS
Modeling tools

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The Model Management Subsystem

Model base management system: MBMS


software has four main functions
Model creation, using programming languages,
DSS tools and/or subroutines, and other building
blocks
Generation of new routines and reports
Model updating and changing
Model data manipulation

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The Model Management Subsystem
Model directory
Catalog of all model and other software in the model base.
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
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DSS Components
User Interface (Dialog) Subsystem

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User Interface (Dialog) Subsystem
User interface
The component of a computer system that cover communication
between the system/DSS/ any MSS and its user.
Management of the user interface subsystem
User interface management system (UIMS)

The user interface system is managed by software called


UIMS
The user interface process
Users interact with computer via action language processed by
the UIMS
It enables to interact with DM and MM subsystem

In advance system, user interface component includes,

Natural language processor

Use object ( button) through GUI

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User Interface (Dialog) Subsystem

DSS user interfaces


DSS access is provided through web browsers
(portal and dashboard) including:
Portable devices
Input through SMS
iPhones Application
Voice input and output
Personal Music player
Direct sensing devices
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User Interface (Dialog) Subsystem
DSS user interfaces
Voice recognition, gesture interpretation,
automated input (e.g., RFID chips, sensor
networks), virtual reality, artificial intelligence,
telepresence
IBMs WebSphere portal
Correlate.com
Ananova.com
http://www.sitepal.com/
Naturalreaders.com
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DSS Components
Future/current DSS Developments
Hardware enhancements
Smaller, faster, cheaper,
Software/hardware advancements
data warehousing, data mining, OLAP,
Web technologies, integration and
dissemination technologies (XML, Web
services, SOA, grid computing, cloud
computing, )
Integration of AI -> smart systems
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DSS Components
Future/current DSS Developments
Improved Web tools, parallel processing
to improve scalability, better search
engines as one manifestation of
improved AI, ready-made DSS solutions
for specific market segments, increased
integration with diverse components
such as GIS

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Next generation of input devices
iPhones multitouch interface
Microsoft surface
Gaming device ( W9ii game platform)
Microsofts Xbox360 and Sonys PSP3
Form of mind-reading platform
Emotives game controller

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DSS Components
Knowledgebase Management SubSystem
Supply the required expertise for solving some aspects
of the problem and provide knowledge that can
enhance the operation of other DSS components
Incorporation of intelligence and expertise
Knowledge components:
Expert systems,
Knowledge management systems,
Neural networks,
Intelligent agents,
Fuzzy logic,
Case-based reasoning systems, and so on
Often used to better manage the other DSS
components
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DSS User
One faced with a decision that an MSS is
designed to support
Manager, decision maker, problem solver,
The users differ greatly from each other
Different organizational positions they occupy;
cognitive preferences/abilities; the ways of
arriving at a decision (i.e., decision styles)
User = Individual versus Group
Human intellect/ Intellectual capability

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DSS User
MSS has two broad classes of users:
managers and staff specialists
Staff specialists use the system much more
frequently than manager and tend to be
more detail-oriented
Staff analysts are often intermediaries

between managers and the MSS

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DSS User
Intermediary
A person who uses a computer to fulfill
requests made by other people (e.g., a
financial analyst who uses a computer to
answer questions for top management).
Types:
Staff assistant
An individual who acts as an assistant to a
manager
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DSS User
Expert tool user
A person who is skilled in the application of one
or more types of specialized problem-solving tools
Business (system) analysts
An individual whose job is to analyze business
processes and the support they receive (or need)
from information technology
Facilitators (in a GSS)
A person who plans, organizes, and electronically
controls a group in a collaborative computing
environment
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DSS Hardware
Hardware affects the functionality and usability of
the MSS
The choice of hardware can be made before, during,
or after the design of the MSS software
Major hardware options:
Organizations servers
Mainframe computers with legacy DBMS,
Workstations
Personal computers
Client/server systems
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DSS Hardware
Portability has become critical for deploying
decision-making capability in the field,
especially for salespersons and technicians
The power and capabilities of the World Wide
Web have a dramatic impact on DSS
Communication and collaboration
Download DSS software
Use DSS applications provided by the company
Buy online from application service providers
(ASPs)
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Additional resources
http://www.oddcast.com/home/demos/tts/tts
_example.php
http://sheepridge.pandorabots.com/pandora/
talk?botid=fef38cb4de345ab1&skin=iframe-
voice
http://www.sitepal.com/
http://www.blackboard.com/
Microsoft data analyzer
Temtecs Executive viewer

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