Introduction to Introduction to Decision Support SystemsDecision Support Systems

Chapter ObjectivesChapter Objectives

What are Decision Support Systems What are Decision Support Systems (DSS) ?(DSS) ?

Characteristics of DSSCharacteristics of DSS

What are Expert Systems (ES) ?What are Expert Systems (ES) ?

Basic Ideas of ESBasic Ideas of ES

Why do we need DSS and ES ?Why do we need DSS and ES ?

Forming of Project TeamsForming of Project Teams

What are Decision Support Systems ?What are Decision Support Systems ?

computer-based support systems which computer-based support systems which help decision makers utilize help decision makers utilize datadata and and modelsmodels to solve to solve semi-structuredsemi-structured or or unstructuredunstructured problems problems

One way to try to understand the essence One way to try to understand the essence of Decision Support Systems is to look at of Decision Support Systems is to look at several definitions that have been put several definitions that have been put forth.forth.

DefinitionsDefinitions

Decision support implies the use of Decision support implies the use of computers to computers to

(i) assist managers in their decision (i) assist managers in their decision processes in semi-structured tasks; processes in semi-structured tasks;

(ii) support, rather than replace, (ii) support, rather than replace, managerial judgment; managerial judgment;

(iii) improve the effectiveness of (iii) improve the effectiveness of decision making rather than its decision making rather than its efficiency. [KEEN78}efficiency. [KEEN78}

Definitions Definitions cont …..cont …..

Information system featuring an Information system featuring an integrated system composed of decision integrated system composed of decision models, database, and decision maker models, database, and decision maker to support decision making. [SPRA79] to support decision making. [SPRA79]

A computer-based system that is used A computer-based system that is used on ongoing basis by managers on ongoing basis by managers themselves, or their immediate staffs, in themselves, or their immediate staffs, in direct support of managerial decision direct support of managerial decision making [KEEN79]making [KEEN79]

A set of computer based tools used by a A set of computer based tools used by a manager in connection with his or her manager in connection with his or her problem-solving and decision-making problem-solving and decision-making duties. [LEIG86]duties. [LEIG86]Decision support systems are used for Decision support systems are used for less structured problems, where the art less structured problems, where the art of management is blended with science. of management is blended with science. [KANT92][KANT92]… … a computer based information system a computer based information system that affects or is intended to affect how that affects or is intended to affect how people make decisions.people make decisions.

Definitions Definitions cont …..cont …..

A set of tools, data, models, and other A set of tools, data, models, and other resources that managers and analysts resources that managers and analysts use to understand, evaluate and solve use to understand, evaluate and solve problems … [in] unstructured problem problems … [in] unstructured problem domains. [KROE92].domains. [KROE92].An integrated set of computer tools that An integrated set of computer tools that allow a decision maker to interact allow a decision maker to interact directly with computers to create directly with computers to create information useful in making information useful in making unanticipated semistructured and unanticipated semistructured and unstructured decisions. [HICKS93] unstructured decisions. [HICKS93]

Definitions Definitions cont …..cont …..

Decision support systems are analytic models Decision support systems are analytic models used to increase managerial or professional used to increase managerial or professional decision making by bringing important data to decision making by bringing important data to view. [FREN96]view. [FREN96]

An organized collection of people, procedures, An organized collection of people, procedures, software, databases and devices used to software, databases and devices used to support problem-specific decision making . support problem-specific decision making . [STAI97][STAI97]

… … computer-based information systems computer-based information systems designed to help managers select one of many designed to help managers select one of many alternate solutions to a problem. [OZ98] alternate solutions to a problem. [OZ98]

Definitions Definitions cont …..cont …..

… … computer based-information computer based-information systems that provide interactive systems that provide interactive information support to managers information support to managers during the decision-making process. during the decision-making process. [OBRI99][OBRI99]

Definitions Definitions cont …..cont …..

Ralph Sprague in his pioneering work Ralph Sprague in his pioneering work defined DSS by observing DSS of his era defined DSS by observing DSS of his era that includes these four characteristics:that includes these four characteristics:

1. The tend to be aimed at the less well-1. The tend to be aimed at the less well-structured, underspecified problems structured, underspecified problems that upper level managers typically facethat upper level managers typically face

2. They attempt to combine the use of 2. They attempt to combine the use of models or analytic techniques with models or analytic techniques with traditional data access and retrieval traditional data access and retrieval functions.functions.

Definitions Definitions cont …..cont …..

3. They specifically focus on features 3. They specifically focus on features which make them easy to use by which make them easy to use by non-computer people in an non-computer people in an interactive mode.interactive mode.

4. They emphasize flexibility and 4. They emphasize flexibility and adaptability to accommodate adaptability to accommodate changes in the environment and the changes in the environment and the decision-making approach of the decision-making approach of the user.user.

Definitions Definitions cont …..cont …..

Decision-Making Levels of an OrganizationDecision-Making Levels of an Organization

Characteristics of DSSCharacteristics of DSS

information systems used for information systems used for supporting decision makingsupporting decision making

used by decision makers -- e.g., used by decision makers -- e.g., managers, knowledge workersmanagers, knowledge workers

support, BUT NOT REPLACE, peoplesupport, BUT NOT REPLACE, people

used when decision is “semi used when decision is “semi structured” or “unstructured”structured” or “unstructured”

incorporate database and modelsincorporate database and models

The definition that we will useThe definition that we will use

A decision support system is a A decision support system is a computer-based information system computer-based information system whose primary purpose is to provide whose primary purpose is to provide knowledge workers with information knowledge workers with information on which to base informed decisions.on which to base informed decisions.

Are Are informatiinformati

on on systemssystems

Used by Used by knowledgknowledge workerse workers

Used in Used in making making

decisionsdecisions

Support. Support. Don’t Don’t

replace replace peoplepeople

All DSS…All DSS…

And some DSS…And some DSS…

Used in semi-structured decisions Incorporate models

Incorporate a database

Fig 1-5 Seven Characteristics of DSS: Four are held in common and three Fig 1-5 Seven Characteristics of DSS: Four are held in common and three are optionalare optional

Benefits of DSSBenefits of DSS

improving personal efficiencyimproving personal efficiency

expediting problem solvingexpediting problem solving

facilitating interpersonal facilitating interpersonal communication communication

promoting learning or trainingpromoting learning or training

increasing organizational controlincreasing organizational control

How DSS Work?How DSS Work?

What are expert systems ?What are expert systems ?

a decision-making and/or problem-a decision-making and/or problem-solving package of computer hardware solving package of computer hardware and software that can reach and software that can reach a level of a level of performance comparableperformance comparable to (or even to (or even exceeding exceeding that of) a human expert in that of) a human expert in some some specializedspecialized and usually and usually narrownarrow problem area.problem area.

Basic Ideas of Expert Basic Ideas of Expert SystemsSystems

expertise is transferred from the expert expertise is transferred from the expert to the computerto the computer

users can call on the computer for users can call on the computer for specific advicespecific advice

the computer make inferences and the computer make inferences and arrive at a specific conclusionarrive at a specific conclusion

the computer advises the nonexperts the computer advises the nonexperts (i.e. users) and explains, if necessary, (i.e. users) and explains, if necessary, the logic behind the advicethe logic behind the advice

Why Do We Need DSS and ES ?Why Do We Need DSS and ES ?

managerial decision making becomes managerial decision making becomes more complexmore complex

increasing foreign and domestic increasing foreign and domestic competitioncompetition

changing environment/government changing environment/government policiespolicies

world “shrinking” and time “compressed”world “shrinking” and time “compressed”

technology advancementtechnology advancement