Decision Support Systems Lecture I Introduction to Decision

Decision Support Systems Lecture I Introduction to Decision Support Systems Chattrakul Sombattheera 17/05/23 1

Agenda Case I (Toyota) Case II (US Federal Reserve) Decision Making Decision Support Systems 17/05/23 2

Decision Making Business Environment Factors – Markets: strong competition, global markets, market on Internet – Consumer demands: customization, quality, diversity, delivery – Technology: more innovations, more obsolescence rate, more information overload – Societal: more regulation and deregulation, more diversified workforce, more social responsibility. 17/05/23 3

Decision Making Business Pressure-Response-Support Model Organization Decisions and Business Environment Factors Globalization, consumer demands, government regulations, markets and competition 17/05/23 Response Strategy, partners’ collaboration, real-time Pressures response, agility, increased Opportunities productivity, new vendors, new business models, etc. Support Analysis, decisions, predictions Integrated computerized decision support Business Intelligence 4

Decision Making Process of Decision Making – Define the problem (i.e., a decision situation that may deal with some difficulty or with and opportunity). – Construct a model that describes the realworld problem. – Identify possible solutions to the modeled problem and evaluate the solutions. – Compare, choose, and recommend a potential solution to the problem. 17/05/23 5

Decision Support Systems Definition I (Keen and Scott-Morton): – Decision 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 semistructured problems. 17/05/23 6

Decision Support Systems High-level Architecture of DSS Models Data Knowledge User Interface 17/05/23 7

Decision Support Systems Multitiered architecture for incorporating optimization, simulation, and other models into web-based DSS Optimization/ simulation/ etc server Web browser Web server Application Server Data warehouse or lagacy DBMS Data server 17/05/23 8

Decision Support Systems Key characteristics and capabilities of DSS 1. Semistructured 2. Support 14. Stand alone, integration and web-based and Unstructured problems managers at all levels 4. Interdependent or sequential decisions 13. Data access 12. Modelling and analysis 3. Support individuals and groups 5. Support intelligence, design, choice, implementation DSS 11. Ease of development by end users 6. Support variety of decision processes and styles 10. Human controls the process 17/05/23 7. Adaptable and flexible 9. Effectiveness, not efficiency 8. Interactive ease of use 9

Decision Support Systems Components of DSS – Data Management Subsystems: include Database management system (DBMS) and dataware house – Model Management Subsystems: include financial, statistical, management science, or other quantitative models that provide the analytical capabilities (also called model base management system MDMS) – User Interface Subsystems: include graphical user interface (GUI) that allows users to communicate with the system. 17/05/23 10

Decision Support Systems Schematic View of DSS Other componentbased systems Data: external and internal Data management Internet, intranets, extranets Model management External models Knowledge-based subsystems User interface Organizational KB 17/05/23 Manager (user) 11

Decision Support Systems The Structure of the DMS Internal data sources External data sources Organizational knowledge base Finance Marketing Production Extraction Decision support database Query facility Data directory 17/05/23 Database management system Retrieval Inquiry Update Report generation Delete Personnel Other Private personal data Corporate data warehouse Interface management Model management Knowledge-based subsystem 12

Decision Support Systems The Structure of MMS Models (Model Base) Strategic, tactical, operational Statistical, financial, marketing, management science, accounting, engineering, etc. Model building block Model Base Management Modeling commands: creation Maintenance: update Database interface Modeling language Data management 17/05/23 Interface management Model Directory Model execution, integration, and command processor Knowledge-based subsystem 13

Decision Support Systems Schematic View of the User Interface Systems Data management and DBMS Knowledge-based subsystems Model management and MBMS User Interface management system (UIMS) Natural Language processor PC Display 17/05/23 Input Action language Output Display language Users Printers, plotters 14

Questions Question me. Question you. 17/05/23 15