Dss
- 1. c h a p t e r
13
DECISION SUPPORT
SYSTEM
GDSS
E S S (E I S)
13.1 © 2002 by Prentice Hall
- 2. LEARNING OBJECTIVES
• DIFFERENTIATE DECISION-
SUPPORT SYSTEMS (DSS) FROM
GROUP DECISION-SUPPORT
SYSTEMS (GDSS)
• DESCRIBE COMPONENTS OF DSS &
GDSS
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13.2 © 2002 by Prentice Hall
- 3. LEARNING OBJECTIVES
• DEMONSTRATE HOW DSS & GDSS
ENHANCE DECISION-MAKING
• DESCRIBE CAPABILITIES OF
EXECUTIVE SUPPORT SYSTEMS
(ESS)
• ASSESS BENEFITS OF ESS
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13.3 © 2002 by Prentice Hall
- 4. MANAGEMENT CHALLENGES
• DECISION-SUPPORT SYSTEMS
• GROUP DECISION-SUPPORT
SYSTEMS
• EXECUTIVE SUPPORT SYSTEMS
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13.4 © 2002 by Prentice Hall
- 5. DECISION SUPPORT
SYSTEMS (DSS)
MANAGEMENT LEVEL COMPUTER
SYSTEM COMBINES DATA,
MODELS, USER - FRIENDLY
SOFTWARE FOR SEMISTRUCTURED
& UNSTRUCTURED DECISION
MAKING
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13.5 © 2002 by Prentice Hall
- 6. DECISION SUPPORT
SYSTEM
• MODEL DRIVEN DSS: Uses models
for what-if and other analysis
• DATA-DRIVEN DSS: Allows
extraction, analysis of information
from databases
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13.6 © 2002 by Prentice Hall
- 7. DECISION SUPPORT
SYSTEM
DSS DATA EXTERNAL
TPS DATA
BASE
DSS SOFTWARE SYSTEM
MODELS
USER
INTERFACE OLAP TOOLS
DATAMINING TOOLS
USER
13.7 © 2002 by Prentice Hall
- 8. DECISION SUPPORT
SYSTEM
• TPS: Transaction processing system
• MODEL: Representation of a problem
• OLAP: On-line analytical processing
• USER INTERFACE: How user enters
problem & receives answers
• DSS DATABASE: Current data from
applications or groups
13.8 * © 2002 by Prentice Hall
- 9. DECISION SUPPORT
SYSTEM
• DATA MINING: Technology for
finding relationships in large data
bases for prediction
• DSS SOFTWARE SYSTEM: Tools for
data analysis
• SENSITIVITY ANALYSIS: “What-if”
questions about changes in model
factors
13.9 © 2002 by Prentice Hall
- 10. DECISION SUPPORT
SYSTEM
APPLICATIONS:
• SUPPLY CHAIN MANAGEMENT
• CUSTOMER RELATIONSHIP
MANAGEMENT
• SIMULATING BUSINESS
SCENARIOS
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13.10 © 2002 by Prentice Hall
- 11. DECISION SUPPORT
SYSTEM
• GEOGRAPHIC INFORMATION
SYSTEM (GIS): Software to display
digital maps
• WEB-BASED DSS: Available on
Internet for decisions, information,
software
• CUSTOMER DSS (CDSS): System
supports buying decisions of
customers
13.11 © 2002 by Prentice Hall
- 12. DECISION SUPPORT
SYSTEM
EXAMPLES:
• GENERAL ACCIDENT INSURANCE:
Customer buying patterns, fraud
detection
• BANK OF AMERICA: Customer
profiles
• FRITO-LAY: Price, advertising,
promotion selection
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13.12 © 2002 by Prentice Hall
- 13. DECISION SUPPORT
SYSTEM
• BURLINGTON COAT FACTORY:
Store location, inventory mix
• KEYCORP: Targeting direct mail
marketing customers
• NATIONAL GYPSUM: Corporate
planning & forecasting
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13.13 © 2002 by Prentice Hall
- 14. DECISION SUPPORT
SYSTEM
• SOUTHERN RAILWAY: Train
dispatching and routing
• TEXAS OIL & GAS: Evaluating
drilling sites
• UNITED AIRLINES: Flight
scheduling, passenger demand
forecasting
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13.14 © 2002 by Prentice Hall
- 17. GROUP DECISION-SUPPORT SYSTEM
(GDSS)
INTERACTIVE COMPUTER-BASED
SYSTEM FACILITATES SOLUTION
OF UNSTRUCTURED PROBLEMS
BY DECISION MAKERS WORKING
AS GROUP
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13.17 © 2002 by Prentice Hall
- 19. GDSS ENHANCED DECISION MAKING
ALLOWS: Improved pre-planning
• Increased participation
• Open, collaborative atmosphere
• Idea generation free of criticism
• Evaluation objectivity
• Idea organization & evaluation
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13.19 © 2002 by Prentice Hall
- 20. GDSS ENHANCED
DECISION MAKING
ALLOWS: Setting priorities & decision
making
• Documentation of meetings
• Access to external information
• Preservation of organizational memory
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13.20 © 2002 by Prentice Hall
- 21. TOOLS OF GDSS
• ELECTRONIC QUESTIONNAIRES
• ELECTRONIC BRAINSTORMING
• IDEA ORGANIZERS
• QUESTIONNAIRE TOOLS
• TOOLS FOR VOTING,
SETTING PRIORITIES
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13.21 © 2002 by Prentice Hall
- 22. TOOLS OF GDSS
• STAKEHOLDER IDENTIFICATION &
ANALYSIS TOOLS
• POLICY FORMATION TOOLS
• GROUP DICTIONARIES
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13.22 © 2002 by Prentice Hall
- 23. ELECTRONIC MEETING SYSTEM
(EMS)
COLLABORATIVE GDSS: Uses
information technology to make
group meetings more productive
facilitates communication decision
making
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13.23 © 2002 by Prentice Hall
- 24. EXECUTIVE
SUPPORT SYSTEMS (ESS)
STRATEGIC INFORMATION SYSTEM
DESIGNED FOR UNSTRUCTURED
DECISION MAKING THROUGH
ADVANCED GRAPHICS AND
COMMUNICATIONS
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13.24 © 2002 by Prentice Hall
- 25. EXECUTIVE
SUPPORT SYSTEMS
• DRILL DOWN: ability to move from
summary to lower levels of detail
• Designed for specific needs of CEO
• Extensive support staff
• Executive has 24 hour per day ability to
examine, control progress throughout
organization
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13.25 © 2002 by Prentice Hall
- 26. EXECUTIVE
SUPPORT SYSTEMS
BENEFITS:
• FLEXIBILITY
• ABILITY TO ANALYZE, COMPARE,
HIGHLIGHT TRENDS
• GRAPHICS HELP EXPLORE SITUATION
• MONITOR PERFORMANCE
• TIMELINESS, AVAILABILITY OF DATA
ALLOWS PROMPT ACTION
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13.26 © 2002 by Prentice Hall
- 27. EXECUTIVE
SUPPORT SYSTEMS
USES IN A DIGITAL FIRM:
• BUSINESS INTELLIGENCE: Info on
salespeople, distributors, retailers
• MONITORING BUSINESS PERFORMANCE:
Balanced scorecard shows perspectives
of customers, internal processes,
learning, growth
• ENTERPRISE WIDE REPORTING &
ANALYSIS
13.27 * © 2002 by Prentice Hall
- 28. Summary
• Decision support system (DSS) - an organized
collection of people, procedures, software,
databases, and devices working to support
managerial decision making
• Group decision support system (GDSS) - also called
a computerized collaborative work system, consists
of most of the elements in a DSS, plus software
needed to provide effective support in group
decision-making settings
• Executive support systems (ESSs) - specialized
decision support systems designed to meet the
needs of senior management
13.28 Principles of © 2002 by Prentice Hall
