DSS DesignDSS Design

MTIS ApproachMTIS Approach Management concept

Obtaining results through people Obtaining results through information systems

Steering activities:

activities that change the existing ways of delivering goods and services, or create new ones.

Types of DSS

Data oriented (data analysis models) model oriented (if-then models) data and model oriented (complex models)

If-Then ModelsIf-Then Models DSS analysis

Influence diagram requisite variety application

DSS design variables -for-manipulation dialog decision tree diagram DSS generator-specific

implementation principle

Influence Diagram AnalysisInfluence Diagram AnalysisA. Prepare a problem narrative

B. Classify variables

1. Decision variables : under control of decision-maker2. Outcome variables : results, measure of performance3. Exogenous/assumptions : affect but are not affected4. Intermediary variables : necessary to link other variables

C. Draw influence diagram

Decision variables

Exogenous and Intermediary variables

Outcome variables

Influences

D. Derive equations for modeling the problem

Classification of VariablesClassification of Variables

Decision variables Intermediate variablesSales Price VolumeInvestment Net Sales Unit Cost

Direct Costs Outcome variables Mfg Overhead

Net After Tax Cost of SalesRate of Return Depreciation Gross Profit

Exogenous/Assumption Admin ExpensesMarket Growth Net Before TaxTax Rate

Influence DiagramInfluence Diagram

Equations for Sales Price and Equations for Sales Price and Investment DecisionsInvestment Decisions

Volume = 15,000 * (1+Mkt Growth) - 6,666 * Sales PriceUnit Cost = 1.3 - .00009 * InvestmentNet Sales = Sales Price * VolumeDirect Costs = Unit Cost * VolumeMfg Overhead = .1 * Net SalesCost of Sales = Mfg Overhead + Direct CostsGross Profit = Net Sales - Cost of SalesDepreciation = Function(Investment)Admin Expenses = .04 * Net SalesNet Before Tax = Gross Profit - Admin Expenses - DepreciationNet After Tax = (1-Tax Rate) * Net Before TaxRate of Return = Function( Net After Tax, Depreciation,

Investment)

Dialog Decision Tree DiagramDialog Decision Tree Diagram

Implementation PrincipleImplementation Principle

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one spreadsheet many spreadsheets

many spreadsheets

Diagonal Serial

3-D

cell addresses macros

3-D cell addresses