2. PRESENTATION
OVERVIEW
◊Decision Support Systems (DSS)
◊Group Decision Support Systems (GDSS)
◊Enterprise & Executive Decision Support
Systems
◊Knowledge Management, Knowledge
based Expert Systems
◊DSS Success Stories
3. 4-3
DECISIONS, DECISIONS,
DECISIONS
Phases of decision making
Intelligence – find or recognize a
problem, need, or opportunity
Design – consider possible ways of solving the
problem
Choice – weigh the merits of each solution
Implementation – carry out the solution
5. 4-5
TYPES OF DECISIONS
WE FACE
Structured decision – processing a
certain information in a specified way so
that you will always get the right answer
Non-structured decision – one for which
there may be several “right” answers,
without a sure way to get the right answer
7. 4-7
TYPES OF DECISIONS
WE FACE
Recurring decision –
one that happens repeatedly
Nonrecurring (ad hoc) decision –
one you make infrequently
8. 4-8
DECISION SUPPORT
SYSTEMS
Decision support system (DSS) – a highly
flexible and interactive system that is designed to
support decision making when the problem is not
structured.
“DSSs help you analyze, but you must know how
to solve the problem, and how to use the results
of the analysis.”
9. 4-9
COMPONENTS OF A DSS
Model management component –
consists of both the DSS models and the
model management system
Data management component – stores
and maintains the information that you
want your DSS to use
User interface management component
– allows you to communicate with the DSS
11. PRESENTATION
OVERVIEW
◊Decision Support Systems (DSS)
◊Group Decision Support Systems (GDSS)
◊Enterprise & Executive Decision Support
Systems
◊Knowledge Management, Knowledge
based Expert Systems
◊DSS Success Stories
12. GROUP DECISION
SUPPORT SYSTEM
Group Decision Support Systems
(GDSS) are a class of electronic meeting
systems, a collaboration technology
designed to support meetings and group
work .
“Group Support Systems has come to
mean computer software and hardware
used to support group functions and
processes.”
12
13. WHY USE GDSS?
High level managers can spend 80% of their time
making decisions in groups. Applied correctly, GDSS
can reduce this time, arriving at a better decision
faster.
GDSS provides the hardware, software, databases
and procedures for effective decision making.
13
15. COMPONENTS OF GDSS
Software
The software part may consist of the following
components: databases and database management
capabilities, user/system interface with multi-user
access, specific applications to facilitate group
decision-makers activities
Hardware
The hardware part may consist of the following
components: I/O devices, PCs
or workstations, individual monitors for each
participant or a public screen for group.
15
16. COMPONENTS OF GDSS
People
The people may include decision-making
participants and /or facilitator. A facilitator is a
person who directs the group through the planning
process.
Procedures
This refers to the methods that have been used in
holding meetings.
18. ADVANTAGES OF GDSS
Parallel Communication – eliminate
monopolizing providing increased participation,
better decisions
Automated record keeping – no need to take
notes, they’re automatically recorded
Ability for virtual meetings – only need
hardware, software and people connected
Portability - Can be set up to be portable…
laptop
Global Potential - People can be connected
across the world 18
19. DISADVANTAGES OF
GDSS
Cost –infrastructure costs to provide the
hardware and software/room/network
connectivity can be very expensive
Security – especially true when companies rent
the facilities for GDSS; also, the facilitator may be
a lower-level employee who may leak information
to peers
Technical Failure – power loss, loss of
connectivity, relies heavily on bandwidth and
LAN/WAN infrastructure – properly setup system
should minimize this risk
19
20. PRESENTATION
OVERVIEW
◊Decision Support Systems (DSS)
◊Group Decision Support Systems (GDSS)
◊Enterprise & Executive Decision Support
Systems
◊Knowledge Management, Knowledge
based Expert Systems
◊DSS Success Stories
21. ENTERPRISE &
EXECUTIVES SUPPORT
The growth of corporate
intranets, extranets and the Web
(internet) has accelerated the
development and use of
“executive class” information
delivery & decision support
software tools to virtually every
level of the organization.
22. ENTERPRISE &
DECISION MAKING
DSS to provide enterprise-wide support
Executives
Many decision makers in different locations
25. EXECUTIVE SUPPORT
SYSTEMS
Specialized decision support systems
designed to meet the needs of senior
management
ESS are enterprise-wide DSS that help
top-level executives
analyze, compare, and highlight trends in
important variables so that they can
monitor performance and identify
opportunities and problems
26. PERSPECTIVES OF
EXECUTIVE SUPPORT
SYSTEMS
Tailored to individual executives
Not to managers in other levels
Easy to use
Drill down capabilities
Support need for external data
Can help when uncertainty is high
Future-oriented, ties CEO to all levels
Linked to value-added processes
27. CAPABILITIES OF
EXECUTIVE SUPPORT
SYSTEMS
Support for defining an overall vision
Organization’s product lines and services
Support for strategic planning
Predict future trends
Analyze merger possibilities
Support for strategic organizing &
staffing
Choice of departments
Pay raises
28. CAPABILITIES OF
EXECUTIVE SUPPORT
SYSTEMS CONT..
Support for strategic control
Monitor and manage the overall
organization
Support for crisis management
Put together a contingency plan
29. PRESENTATION
OVERVIEW
◊Decision Support Systems (DSS)
◊Group Decision Support Systems (GDSS)
◊Enterprise & Executive Decision Support
Systems
◊Knowledge Management, Knowledge
based Expert Systems
◊DSS Success Stories
32. DATA, INFORMATION AND
KNOWLEDGE
Data
refers to isolated facts such as individual
measurement
No meaning on their own
Information
fact about situation, person, events
Knowledge
experience
33. KNOWLEDGE
MANAGEMENT
Knowledge management (KM) comprises a range
of strategies and practices used in an organisation
to identify, create, represent, distribute, and enable
adoption of insights and experiences
KM is a process that helps organizations identify,
select, organize, disseminate, and transfer
important information and expertise that are part of
the organization’s memory.
KM is the process of systematically and actively
managing and leveraging stores of knowledge in an
organization
34. EXPERT SYSTEM
Expert system are the system designed
to solve complex problem by reasoning
like as an expert
Expert Systems Application Areas in Action
1.Medical Diagnosis
2.Telephone Network Maintenance
3.Detection of Common Metals
36. EXPERT SYSTEMS:
CHARACTERISTICS
Like a human expert, an expert system is expected
to
Be specialist : know facts and procedural rules
Use heuristics : interpolate from known facts
Justify its conclusions : to establish credibility
and confidence. The user can ask:
Be able to learn : be able to absorb new
knowledge and apply it estimate the reliability of its
answer.
37. DSS SUCCESS STORIES-
FAIR ISAAC
CORPORATION (FICO)
Enterprise Decision Management
Enterprise Fraud Protection
Big Data Analytics
Connected Decisions
Mobile Dialogues
Normally total
$200,000 plus
www.fico.co
m
38. FICO’S SUCCESS
More than 5000
businesses in more
than 80 countries
9 of the top 10
companies in the
Fortune 500
Multiple success stories
of big and small
companies
Structured decisionsInvolve situations where the procedures to be followed can be specified in advanceUnstructured decisionsInvolve situations where it is not possible to specify most of the decision procedures in advanceSemistructured decisions Some decision procedures can be specified in advance, but not enough to lead to a definite recommended decision
Drill down caps- Executives and managers view increasingly specific information by drilling down through multiple levels of detail. Point-and- select operation and windows of choices instantly move users to additional detail, saving valuable time and effort.
Although executive support systems have much in common with decision support systems, they have important differences. Generally, a DSS provides a number of modeling tools and is designed to help a user answer a question. Executive support systems allow executives to ask the right questions. An ESS is interactive and helps an executive focus, filter and organize data and information.Unlike a DSS, an ESS is usually customized for a specific individual. Content and format can both be customized.Since executives are typically busy, an ESS must be easy to learn and to use – or it won’t be used.
Most executive support systems are designed to give the user a top-down view of business processes and allow him to drill down to greater levels of detail. This capability, as well as access to external databases and to DSS modeling tools, allows top-level managers to work on long term, strategic issues that affect the whole company.
Most executive support systems are designed to give the user a top-down view of business processes and allow him to drill down to greater levels of detail. This capability, as well as access to external databases and to DSS modeling tools, allows top-level managers to work on long term, strategic issues that affect the whole company.