Decision Support Systems

MGMT 661 - Summer 2012

Night #7, Part 2

somewhat based on Chapter 12

Types of Decisions

Structuredroutine (maybe even repetitive)definite procedure

Unstructuredno agreed upon procedure

refer back to "Types of Information"

in Part #1

Decision Support SystemsDecision Support Systems

supports semi-structured and unstructured problem analysis probably overkill for structured problems

usually model driven

allows to ask "What if?"

Simple DSS ExamplesSimple DSS Examples Car SelectionCar Selection

how many miles do you drive? preferred style? do you have kids? yadda yadda yadda

Inventory ReplenishmentInventory Replenishment past usage (data from accounting database) projected need (information from CRM) delivery time (model from Supply Chain system) "what if" we delay purchase two weeks?

DSS ComponentsDSS Components Input

TPS Data Other Internal Data

e.g. forecasts, reports, spreadsheet calculations

External Data

Model

Analysis Software OLAP and data mining Easy to Use Interface

DSS Models Well Known Relationships

layout of production facility Supply Chain Organizational Chart decision tables spreadsheet calculations

Mathematical Models

Decision Variables

Uncontrollable Variables

Mathematical Relationship

Result Variables

DSS CaveatsDSS improve effectiveness, not efficiency.

Some people consider group communication tools to be a type of DSS.

DSS v. Expert SystemsA human queries a DSS, while an ES queries a human.

A DSS assists in decision making, while an ES makes decisions.

A DSS is for semi-structured problems, but an ES only works well in highly structured domains.

Geographic Information SystemsGeographic Information Systems

special category of DSS

combines large databases and maps

www.ncddc.noaa.gov/technology/gis/viewScreenshot of ArcView

Executive Support SystemsExecutive Support Systems "Balanced Scorecard"

info displayed as a "Dashboard" with drill down abilities for more detail

key performance indicators

balancedscorecard.org

textbook Figure 12-8

dashboardspy.com

Supporting the 5 Functions of Management

TPS

Customer Rel. Mgmt

Supply Chain Mgmt

Enterprise Knowledge Mgmt

Expert Systems

Decision Support Systems

1. Planning

2. Organizing

3. Coordinating

4. Deciding

5. Controlling

Next TimeNext Time: Your presentationsYour presentations How software gets built

Paper Ideas from Tonight: Survey of Commercial Executive Scorecard Systems Survey of Commercial Enterprise Knowledge

Management Systems Two or Three cases of Successful Expert Systems

used in Business Cases of using GIS for Decision Support