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Decision Support and Decision Support and Business Intelligence Business Intelligence Systems Systems (9 (9 th th Ed., Prentice Hall) Ed., Prentice Hall) Chapter 3: Chapter 3: Decision Support Systems Decision Support Systems Concepts, Methodologies, Concepts, Methodologies, and Technologies: An and Technologies: An Overview Overview

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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

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Learning ObjectivesUnderstand possible decision support system (DSS) configurations Understand the key differences and similarities between DSS and BI systems Describe DSS characteristics and capabilities Understand the essential definition of DSS Understand important DSS classificationsUnderstand DSS components and how they integrate

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Learning ObjectivesDescribe the components and structure of each DSS componentExplain Internet impacts on DSS (and vice versa) Explain the unique role of the user in DSS versus management information systemsDescribe DSS hardware and software platforms Become familiar with a DSS development language Understand current DSS issues

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Opening Vignette:Decision Support System Cures for Health CareCompany backgroundProblemProposed solutionResultsAnswer and discuss the case questions

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    Opening Vignette:Decision Support System Cures for Health Care- Projected Vacancy Rate versus Desired Vacancy Rate

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Opening Vignette:- Projected Vacancy Rate vs. Desired Vacancy Rate "What-if" scenario with 6 additional RN recruiters

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Opening Vignette:- Demanded Hours versus Total Actual Hours versus Total Actual Hours with New Hires

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ConfigurationsMany configurations exist; based onmanagement-decision situation specific technologies used for supportDSS have three basic componentsData ModelUser interface(+ optional) Knowledge

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ConfigurationsEach component has several variations; are typically deployed onlineManaged by a commercial of custom softwareTypical types:Model-oriented DSSData-oriented DSS

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS DescriptionAn early definition of DSSA system intended to support managerial decision makers in semistructured and unstructured decision situationsmeant to be adjuncts to decision makers (extending their capabilities but not replacing their judgment)aimed at decisions that required judgment or at decisions that could not be completely supported by algorithmswould be computer based; operate interactively; and would have graphical output capabilities

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS DescriptionA DSS is typically built to support the solution of a certain problem (or to evaluate a specific opportunity). This is a key difference between DSS and BI applicationsBI systems monitor situations and identify problems and/or opportunities, using variety of analytic methodsThe user generally must identify whether a particular situation warrants attentionReporting/data warehouse plays a major role in BIDSS often has its own database and models

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS DescriptionDSS is an approach (or methodology) for supporting decision makinguses an interactive, flexible, adaptable computer-based information system (CBIS) developed (by end user) for supporting the solution to a specific nonstructured management problemuses data, model and knowledge along with a friendly (often graphical; Web-based) user interfaceincorporate the decision maker's own insightssupports all phases of decision making can be used by a single user or by many people

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A Web-Based DSS Architecture

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS Characteristics and CapabilitiesDSS is not quite synonymous with BIDSS 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 warehousesBoth systems generally include analytical tools (BI called business analytics systems)Although some may run locally as a spreadsheet, both DSS and BI uses Web

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS Characteristics and Capabilities

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS Characteristics and CapabilitiesBusiness analytics implies the use of models and data to improve an organization's performance and/or competitive postureWeb analytics implies using business analytics on real-time Web information to assist in decision making; often related to e-CommercePredictive analytics describes the business analytics method of forecasting problems and opportunities rather than simply reporting them as they occur

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ClassificationsOther DSS CategoriesInstitutional and ad-hoc DSSPersonal, group, and organizational supportIndividual support system versus group support system (GSS)Custom-made systems versus ready-made systems

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ClassificationsHolsapple and Whinston's ClassificationThe text-oriented DSSThe database-oriented DSS. The spreadsheet-oriented DSSThe solver-oriented DSSThe rule-oriented DSS (include most knowledge-driven DSS, data mining, management, and ES applications)The compound DSS

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ClassificationsAlter's Output Classification

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ClassificationsHolsapple and Whinston's ClassificationThe text-oriented DSSThe database-oriented DSSThe spreadsheet-oriented DSSThe solver-oriented DSSThe rule-oriented DSS (include most knowledge-driven DSS, data mining, management, and ES applications)The compound DSS

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Components of DSS

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Components of DSSData Management SubsystemIncludes the database that contains the dataDatabase management system (DBMS)Can be connected to a data warehouseModel Management SubsystemModel base management system (MBMS)User Interface SubsystemKnowledgebase Management SubsystemOrganizational knowledge base

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Overall Capabilities of DSSEasy access to data/models/knowledgeProper management of organizational experiences and knowledge Easy to use, adaptive and flexible GUI Timely, correct, concise, consistent support for decision makingSupport for all who needs it, where and when he/she needs it- See Table 3.2 for a complete list...

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS Components and Web ImpactsImpacts of Web to DSSData management via Web serversEasy access to variety of models, toolsConsistent user interface (browsers)Deployment to PDAs, cell phones, etc. DSS impact on WebIntelligent e-Business/e-CommerceBetter management of Web resources and security, (see Table 3.3 for more)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ComponentsData Management SubsystemDSS database DBMS Data directory Query facility

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    Database Management SubsystemKey Data IssuesData qualityGarbage in/garbage out" (GIGO) Data integrationCreating a single version of the truthScalabilityData SecurityTimelinessCompleteness,

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    10 Key Ingredients of Data (Information) Quality ManagementData quality is a business problem, not only a systems problemFocus on information about customers and suppliers, not just dataFocus on all components of data: definition, content, and presentationImplement data/information quality management processes, not just software to handle themMeasure data accuracy as well as validity

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    10 Key Ingredients of Data (Information) Quality ManagementMeasure real costs (not just the percentage) of poor quality data/informationEmphasize process improvement/preventive maintenance, not just data cleansingImprove processes (and hence data quality) at the sourceEducate managers about the impacts of poor data quality and how to improve itActively transform the culture to one that values data quality

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ComponentsModel Management SubsystemModel base MBMS Modeling language Model directory Model execution, integration, and command processor

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ComponentsModel Management SubsystemModel base (= database ?)Model TypesStrategic modelsTactical modelsOperational modelsAnalytic modelsModel building blocksModeling tools

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS Components Model Management SubsystemThe four (4) functionsModel 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 Model directoryModel execution, integration and command

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ComponentsUser Interface (Dialog) SubsystemInterfaceApplication interfaceUser InterfaceGraphical User Interface (GUI)DSS User InterfacePortalGraphical iconsDashboardColor codingInterfacing with PDAs, cell phones, etc.

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS Components Knowledgebase Management SystemIncorporation of intelligence and expertiseKnowledge 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

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS ComponentsFuture/current DSS DevelopmentsHardware enhancementsSmaller, faster, cheaper, Software/hardware advancementsdata warehousing, data mining, OLAP, Web technologies, integration and dissemination technologies (XML, Web services, SOA, grid computing, cloud computing, )Integration of AI -> smart systems

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS UserOne faced with a decision that an MSS is designed to support Manager, decision maker, problem solver, The users differ greatly from each otherDifferent organizational positions they occupy; cognitive preferences/abilities; the ways of arriving at a decision (i.e., decision styles)User = Individual versus GroupManagers versus Staff Specialists [staff assistants, expert tool users, business (system) analysts, facilitators (in a GSS)]

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    DSS HardwareTypically, MSS run on standard hardwareCan be composed of mainframe computers with legacy DBMS, workstations, personal computers, or client/server systemsNowadays, usually implemented as a distributed/integrated, loosely-coupled Web-based systemsCan be acquired fromA single vendorMany vendors (best-of-breed)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)Generating Assumptions

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)Creating a new model

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    A DSS Modeling LanguagePlanners Lab (plannerslab.com)

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    End of the Chapter

    Questions / Comments

    Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3-*

    All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

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