Decision Support System

Outline
Introduction to DSS; DSS components; Using DSS in What-if-Analysis; Sensitivity Analysis; Goal-Seeking Analysis;

Optimization Analysis;
Executive Information system; Knowledge Management systems;

Developing Expert Systems;

Intelligent Agent.
2 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

DSS Definition A DSS is a computer based problem solving system that assists choice between alternatives in complex and controversial domains.
3 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

DSS Definition
A DSS provides structured presentation problem context, and tools for the
design,

evaluation,
selection

of alternatives

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Decision Support Systems

Decision support systems (DSS)
Offer potential to assist in solving both semi-

structured and unstructured problems

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Decision Making as a Component of Problem Solving

Intelligence
Decision making

Design Problem solving

Choice

Implementation

Monitoring
6 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Solution Types
Optimization model
Finding the best solution

Satisficing model
Finding a good -- but not necessarily the best --

solution to a problem
Heuristics
Commonly accepted guidelines or procedures that

usually find a good solution

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Problem Solving Factors

Multiple decision objectives

Increased alternatives
Increased competition The need for creativity

Social and political actions

International aspects Technology

Time compression

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Characteristics of a DSS

Handles large amounts of data from different sources Provides report and presentation flexibility Offers both textual and graphical orientation Supports drill down analysis Performs complex, sophisticated analysis and comparisons using advanced software packages Supports optimization and heuristic approaches Performs different types of analyses
What-if analysis Makes hypothetical changes to problem and observes impact on the results Simulation Duplicates features of a real system Goal-seeking analysis Determines problem data required for a given result
9 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

e-Business Decision Support Applications

Supply Chain Management Customer Relationship Management

Enterprise Performance Monitoring Situation: What-if Scenario Analysis

EmployeeManager/ Customer/Partner

Knowledge/Innovation Management

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Decisions in the e-Business

Decision Characteristics
Unstructured Strategic Management

Semi-structured
Tactical Management

Structured

Operational Management

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Management Information System Reports

Periodic Scheduled Reports

Exception Reports

Major Management Information Systems Reports

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Demand Reports and Responses

Push Reports

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Online Analytical Processing

Data is retrieved from corporate databases and staged in an OLAP multi-dimensional database

Client PC
OLAP Server

Corporate Databases

Web-enabled OLAP Software

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Multidimensional database

Operational DB Data Marts Data Warehouse

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Decision Support Systems

What If-Analysis

Sensitivity Analysis

Important Decision Support Systems Analytical Models

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Goal-Seeking Analysis

Optimization Analysis

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Enterprise Information Portals and DSS

Internet
Intranet

Extranet

Enterprise Information Portal Gateway

Enterprise Information Portal User Interface DSS

Search Agents

OLAP

Data Mining

What-If Models Sensitivity Models Goal-Seeking Models Optimization Models

Knowledge Management

Database Management Functions

Data Mart
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Operational Database

Other Business Applications

Analytical Database

Knowledge Base

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Components of a DSS
Database Model base
DBMS MMS

Access to the internet, networks, and other computer systems

External database access

External databases

Dialogue manager 16 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Components of a DSS
Model management software (MMS)
Coordinates the use of models in the DSS

Model base
Provides decision makers with access to a variety

of models Models
Financial models Statistical analysis models Graphical models Project management models

Dialogue manager
Allows decision makers to easily access and

manipulate the DSS

17 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Four types of analytical What-if analysis modeling to variables, or relationships among End user makes changes

variables, and observes the resulting changes in the values of other variables
Sensitivity analysis A special case of what-if analysis The value of only one variable is changed repeatedly, and the resulting changes on other variables are observed Typically used when there is uncertainty about the assumptions made in estimating the value of certain key variables Goal-seeking analysis Instead of observing how changes in a variable affect other variables, goal-seeking sets a target value (a goal) for a variable, then repeatedly changes other variables until the target value is achieved Optimization analysis A more complex extension of goal-seeking The goal is to find the optimum Nidhi Gautam Prabhakar, Assistant Professor value for one or more target variables, given Chandigarh UIAMS, Panjab Universitycertain constraints

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Executive Support System

Characteristics
A specialized DSS that includes all

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the hardware, software, data, procedures, and people used to assist senior-level executives within the organization Combine many features of MIS and DSS Provide top executives with immediate and easy access to information About the factors that are critical to accomplishing an organizations strategic objectives (Critical success factors) So popular, expanded to managers, analysts and other knowledge Nidhi Gautam Prabhakar, Assistant Professor workers UIAMS, Panjab University Chandigarh

Board of directors

President

Function area vice presidents

Function area managers

Characteristics of ESSs
Tailored to individual executives

Easy to use
Drill down capabilities Support the need for external data

Help with situations with high degree of

uncertainty Futures orientation (predictions, forecasting) Linked with value-added business processes
Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

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Capabilities of an ESS
Support for
defining overall vision strategic planning strategic organizing and staffing strategic control

crisis management

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Knowledge Management Systems

The use of information technology to help gather,

organize, and share business knowledge within an organization

Enterprise Knowledge Portals
EIPs that are the entry to corporate intranets that serve

as knowledge management systems

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Expert Systems
ES
A knowledge-based information system (KBIS) that

uses its knowledge about a specific, complex application to act as an expert consultant to end users
KBIS is a system that adds a knowledge base to the

other components on an IS

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Expert Systems
A knowledge-based information system that

uses its knowledge about a specific, complex application area to act as an expert consultant
Provides

answers to questions in a very specific problem area

Must be able to explain reasoning process and

conclusions to the user

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

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Expert Systems
Components
Knowledge base

Software resources Knowledge base Contains o Facts about a specific subject area o Heuristics that express the reasoning procedures of an expert on the subject Contains an inference engine and other programs for refining knowledge and communicating o Inference engine processes the knowledge, and makes associations and inferences o User interface programs, including an explanation program, allows communication with user
25 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Components of Expert Systems

The Expert System
Expert Advice

User Interface Programs

Inference Engine Program

Knowledge Base

User

Workstation

Expert System Development

Knowledge Engineering

Knowledge Acquisition Program Workstation

26 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh Expert and/or Knowledge Engineer

Developing Expert Systems

Begin with an expert system shell Add the knowledge base

Built by a knowledge engineer

Works with experts to capture their

knowledge Works with domain experts to build the expert system

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

The Value of Expert Systems

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Benefits and Limitations of Expert Systems

Benefits Can outperform a single human expert in many problem situations Helps preserve and reproduce knowledge of experts Limitations Limited focus, inability to learn, maintenance problems, developmental costs

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Expert System Applications

Decision Management
Diagnostic/Troubleshooting

Maintenance/Scheduling

Design/Configuration

Major Application Categories of Expert Systems

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Selection/Classification

Process Monitoring/Control

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Attributes of Intelligent Behavior

Think and reason Use reason to solve problems Learn or understand from experience Acquire and apply knowledge Exhibit creativity and imagination Deal with complex or perplexing situations Respond quickly and successfully to new situations. Recognize the relative importance of elements in a situation Handle ambiguous, incomplete,or erroneous information

Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

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Artificial Intelligence Applications

Artificial Intelligence

Cognitive Science Applications

Robotics Applications

Natural Interface Applications

Expert Systems Fuzzy Logic Genetic Algorithms Neural Networks

Visual Perceptions Locomotion Navigation Tactility

Natural Language Speech Recognition Multisensory Interface Virtual Reality

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

AI Application Areas in Business

Neural Networks Fuzzy Logic Systems

Genetic Algorithms
Virtual Reality AI Application Areas in Business Intelligent Agents Expert Systems
35 Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Intelligent Agents
A software surrogate for an end user or a process

that fulfills a stated need or activity Uses built-in and learned knowledge base about a person or process to make decisions and accomplish tasks

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Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

Intelligent Agents
Interface Tutors Search Agents

Presentation Agents

User Interface Agents

Information Management Agents

Information Brokers

Network Navigation Agents Information Filters

RolePlaying Agents
Nidhi Gautam Prabhakar, Assistant Professor UIAMS, Panjab University Chandigarh

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