© Farhan Mir 2007 IMS MIS Development BBA-IT (Hons) 6 th Semester ( Decision Support Systems & Knowledge Management Systems ) By: Farhan Mir

© Farhan Mir © Farhan Mir

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MIS DevelopmentMIS Development

BBA-IT (Hons) 6BBA-IT (Hons) 6thth SemesterSemester((Decision Support Systems & Decision Support Systems & Knowledge Management Knowledge Management SystemsSystems))

By: Farhan Mir By: Farhan Mir


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Structured and Structured and Unstructured ProblemsUnstructured Problems


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MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS


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Decision Support SystemsDecision Support Systems

an information system

purpose to provide information for making informed decisions

interactive (needed for experimenting and prospecting)


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Decision Support Systems Decision Support Systems (DSSs)(DSSs)Decision support systems (DSSs) are computer-based information systems that combine models and data in an attempt to solve semistructured and some unstructured problems with extensive user involvement.


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Working DefinitionWorking Definition

A DSS is:computer basedcomputer based

model drivenmodel driven

management orientedmanagement oriented

addresses non-structured problemaddresses non-structured problem

adaptive to user’s insightsadaptive to user’s insights

supportive for a decisionsupportive for a decision


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DSSs (Continued)DSSs (Continued)

DSSs can examine numerous alternatives very quickly.DSSs can provide a systematic risk analysis.DSSs can be integrated with communications systems and databases.DSSs can be used to support group work.DSSs can perform these functions at relatively low cost.


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Characteristics and Characteristics and Capabilities of DSSsCapabilities of DSSs

Sensitivity analysis is the study of the impact that changes in one (or more) parts of a model have on other parts.What-if analysis is the study of the impact of a change in the assumptions (input data) on the proposed solution.Goal-seeking analysis is the study that attempts to find the value of the inputs necessary to achieve a desired level of output.


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DSS ComponentsDSS Components

Data

DataManagement

Some times (KM)

ModelManagement

DialogManagement

User (manager)


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Fundamental Questions Fundamental Questions Answered By DSSAnswered By DSSQuestion Type

What isWhat is

WhyWhy

What will beWhat will be

What ifWhat if

Which is best/good Which is best/good enoughenough

How answer is provided

raw dataraw data

analysisanalysis

representative representative modelsmodels

solutionssolutions

solution choicesolution choice


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DSSDSSDecision support systems couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions. It is a computer-based support system for management decision makers who deal with semi-structured problems.

— Keen and Scott-Morton, 1978


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DSSDSS

A DSS is:Flexible;Flexible;

Adaptive;Adaptive;

Interactive;Interactive;

GUI-based;GUI-based;

Iterative; andIterative; and

Employs modeling.Employs modeling.


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DSS ComponentsDSS Components

1. Data Management Subsystem (DMS)

2. Model Management Subsystem (MMS)

3. User Interface Subsystem (UIS)

4. Knowledge-based Management Subsystem (KMS)

5. The User


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User Interface Subsystem User Interface Subsystem (UIS)(UIS)

Covers all aspects of communication between a user and the DSS

It is the interface to the user and consists of a GUI that is typically displayed via a browser

Includes factors that deal with ease of use, accessibility, and human-machine interactions (which incorporate such things as Cognitive Style, Decision Style, and Display Preferences)

To most users, the user interface is the system


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DSS ProcessDSS Process


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Model Management Model Management Subsystem (MMS)Subsystem (MMS)

Model base – contains a model library which stores different classes of models based on criteria such as decision types, user types, etc.Model base management system (MBMS) – software to help create models, data manipulation in models, update models, and create new routines in modelsModeling language – for model building, could be text-based or graphicalModel directory – contains catalog of models, and model definitions (a range of models from Economics to Statistics like forecasting models)


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Knowledge-Based Knowledge-Based Management Subsystem Management Subsystem (KMS) (KMS) Is the intelligence component incorporated

into every subsystem of a DSS – thus, leading to intelligent DSS

Expert system or other intelligent systems provide the required expertise

Provides expertise for solving some or many aspects of complex unstructured and semi-structured problems

Provides knowledge that can enhance the operations of each subsystem of a DSS

All advanced DSS have KMS


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Group Decision Support Group Decision Support SystemsSystems

Group of managers could also use a DSS as well on a common task or issue

To facilitate this a GDSS (Group Decision Support System) application is provided to multiple users on various computer and on multiple networks

Is the requirement in the organization that believe in team-based working environment


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The UserThe User (i.e., manager or (i.e., manager or decision-maker)decision-maker)

Two major classes – managers (users or decision makers) and intermediaries

Managers – look for more user-friendly systems that can do more general analysis and aid in decision-making

Intermediaries – are specialist staff who are trained in detailed-oriented system and are willing to use more complex system. They act as an intermediary between the manager and DSS. Examples are: Staff assistant, Expert tool user, Business (system) analyst, and GSS facilitator


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Knowledge Knowledge Management Management SystemsSystems

(Overview)(Overview)


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What is Knowledge?What is Knowledge?

Data – collection of unprocessed facts

Information – organized or meaningful data

Knowledge – information that is contextual, relevant, and actionable

Strong experiential and reflective elementsStrong experiential and reflective elements

Good leverage and increasing returnsGood leverage and increasing returns

DynamicDynamic

Evolves over time with experienceEvolves over time with experience

Knowledge is also known as Intellectual Capital

The primary difference between the terms information and knowledge is in the level of understanding of their underlying organizational data


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Two major types of Two major types of KnowledgeKnowledge

Explicit knowledgeDeals with objective, rational, and technical Deals with objective, rational, and technical knowledgeknowledge

Examples: policies, goals, strategies, papers, Examples: policies, goals, strategies, papers, reportsreports

Structured knowledge that is easy to codify Structured knowledge that is easy to codify

Easily manipulated, shared, taught or learnedEasily manipulated, shared, taught or learned

Tacit knowledgeUnstructured knowledge – in the domain of Unstructured knowledge – in the domain of subjective, cognitive, and experiential learningsubjective, cognitive, and experiential learning

Highly personal, hard to formalize and documentHighly personal, hard to formalize and document

Cumulative store of the experiences, mental Cumulative store of the experiences, mental maps, insights, expertise, know-how, trade maps, insights, expertise, know-how, trade secrets, skills set, understanding, etc.secrets, skills set, understanding, etc.

Involves a lot of human interpretationInvolves a lot of human interpretation


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What is Knowledge What is Knowledge Management?Management?

Knowledge management (KM) is managing the organization’s knowledge (both explicit and tacit) through the process of creating, structuring, disseminating and applying knowledge to enhance organizational performance and create value

KM requires a major transformation in organizational culture to create a desire to share

Structuring enables problem-solving, dynamic learning, strategic planning, decision-making

Leverage value of intellectual capital through reuse


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KM ObjectivesKM Objectives

Create knowledge repositories

Improve knowledge access

Enhance the knowledge environment

Manage knowledge as an asset


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Knowledge Management Knowledge Management System (KMS)System (KMS)

Knowledge management system (KMS) provides systematic and active management of ideas, information, and knowledge residing within organization’s employees

Why KMS?

Availability and use of technologies to manage Availability and use of technologies to manage knowledgeknowledge

Used with turnover, change, downsizingUsed with turnover, change, downsizing

Provide consistent levels of serviceProvide consistent levels of service


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KM InitiativesKM Initiatives

Knowledge creation

Generating new ideas, routines, insightsGenerating new ideas, routines, insights

Modes include socialization, externalization, Modes include socialization, externalization, internalization, combinationinternalization, combination

Knowledge sharing

Willing explanation to another directly or Willing explanation to another directly or through an intermediary through an intermediary

Knowledge seeking or elicitation

Knowledge sourcingKnowledge sourcing

Knowledge use

-- Leverage knowledge


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KM CycleKM CycleCreates knowledge through new ways of doing things

Identifies and captures new knowledge

Places knowledge into context so it is usable

Stores knowledge in repository

Reviews for accuracy and relevance

Makes knowledge available at all times to anyone


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Components of KMSComponents of KMSTechnologies

CommunicationCommunicationAccess knowledgeCommunicates with others

CollaborationCollaborationPerform groupworkSame place/different place

Storage and retrievalStorage and retrievalCapture, storing, retrieval, and management of both explicit and tacit knowledge through collaborative systems


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User Interface(Software installed on each user’s PC)

Knowledge-enabling applications(customized applications, Expert Systems

Knowledge Acquisition

The Knowledge Base

. . . . .

Databases Data warehousing(data cleansing,

data mining)

Groupware(document exchange,

collaboration)

Legacy applications(e.g., payroll)

KMS ArchitectureKMS Architecture

User


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AI & Expert AI & Expert SystemsSystems

One of the key promises of Knowledge Systems is that these could provide Artificial Intelligence (computer providing advice on problems like human intelligence)

Expert SystemExpert System is the is the application software that utilizes application software that utilizes the mechanism of human the mechanism of human intelligence of reasoning and intelligence of reasoning and therefore could provide decision therefore could provide decision makers with advice they would makers with advice they would receive from such human expertsreceive from such human experts

Documents

© Farhan Mir 2007 IMS MIS Development BBA-IT (Hons) 6 th Semester ( Decision Support Systems & Knowledge Management Systems ) By: Farhan Mir