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c h a p t e r
13.1 © 2002 by Prentice Hall
13
DECISION SUPPORT
SYSTEM
G D S S
E S S (E I S)
LEARNING OBJECTIVES
• DIFFERENTIATE DECISION-
SUPPORT SYSTEMS (DSS) FROM
GROUP DECISION-SUPPORT
SYSTEMS (GDSS)
• DESCRIBE COMPONENTS OF DSS &
GDSS
*
13.2 © 2002 by Prentice Hall
LEARNING OBJECTIVES
• DEMONSTRATE HOW DSS & GDSS
ENHANCE DECISION-MAKING
• DESCRIBE CAPABILITIES OF
EXECUTIVE SUPPORT SYSTEMS
(ESS)
• ASSESS BENEFITS OF ESS
*
13.3 © 2002 by Prentice Hall
MANAGEMENT CHALLENGES
• DECISION-SUPPORT SYSTEMS
• GROUP DECISION-SUPPORT
SYSTEMS
• EXECUTIVE SUPPORT SYSTEMS
*
13.4 © 2002 by Prentice Hall
DECISION SUPPORT
SYSTEMS (DSS)
13.5 © 2002 by Prentice Hall
MANAGEMENT LEVEL COMPUTER
SYSTEM COMBINES DATA,
MODELS, USER - FRIENDLY
SOFTWARE FOR SEMISTRUCTURED
& UNSTRUCTURED DECISION
MAKING
*
• MODEL DRIVEN DSS: Uses models
for what-if and other analysis
• DATA-DRIVEN DSS: Allows
extraction, analysis of information
from databases
*
13.6 © 2002 by Prentice Hall
DECISION SUPPORT
SYSTEM
TPS
EXTERNAL
DATA
DSS DATA
BASE
DSS SOFTWARE SYSTEM
MODELS
OLAP TOOLS
DATAMINING TOOLS
USER
INTERFACE
USER
DECISION SUPPORT
SYSTEM
13.7 © 2002 by Prentice Hall
• 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
*
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
DECISION SUPPORT
SYSTEM
13.9 © 2002 by Prentice Hall
*
13.10 © 2002 by Prentice Hall
DECISION SUPPORT
SYSTEM
APPLICATIONS:
• SUPPLY CHAIN MANAGEMENT
• CUSTOMER RELATIONSHIP
MANAGEMENT
• SIMULATING BUSINESS
SCENARIOS
*
13.11 © 2002 by Prentice Hall
• 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
DECISION SUPPORT
SYSTEM
DECISION SUPPORT
SYSTEM
13.12 © 2002 by Prentice Hall
EXAMPLES:
• GENERAL ACCIDENT INSURANCE:
Customer buying patterns, fraud
detection
• BANK OF AMERICA: Customer
profiles
• FRITO-LAY: Price, advertising,
promotion selection
*
• BURLINGTON COAT FACTORY:
Store location, inventory mix
• KEYCORP: Targeting direct mail
marketing customers
• NATIONAL GYPSUM: Corporate
planning & forecasting
*
DECISION SUPPORT
SYSTEM
13.13 © 2002 by Prentice Hall
• SOUTHERN RAILWAY: Train
dispatching and routing
• TEXAS OIL & GAS: Evaluating
drilling sites
• UNITED AIRLINES: Flight
scheduling, passenger demand
forecasting
*
DECISION SUPPORT
SYSTEM
13.14 © 2002 by Prentice Hall
Comparison of DSSs and MISs
Principles of
13.15 © 2002 by Prentice Hall
Comparison of DSSs and MISs
Principles of
13.16 © 2002 by Prentice Hall
GROUP DECISION-SUPPORT SYSTEM
(GDSS)
INTERACTIVE COMPUTER-BASED
SYSTEM FACILITATES SOLUTION
OF UNSTRUCTURED PROBLEMS
BY DECISION MAKERS WORKING
AS GROUP
*
13.17 © 2002 by Prentice Hall
Group Decision Support System
Principles of
13.18 © 2002 by Prentice Hall
ALLOWS: Improved pre-planning
• Increased participation
• Open, collaborative atmosphere
• Idea generation free of criticism
• Evaluation objectivity
• Idea organization & evaluation
*
GDSS ENHANCED DECISION MAKING
13.19 © 2002 by Prentice Hall
ALLOWS: Setting priorities & decision
making
• Documentation of meetings
• Access to external information
• Preservation of organizational memory
*
GDSS ENHANCED
DECISION MAKING
13.20 © 2002 by Prentice Hall
TOOLS OF GDSS
• ELECTRONIC QUESTIONNAIRES
• ELECTRONIC BRAINSTORMING
• IDEA ORGANIZERS
• QUESTIONNAIRE TOOLS
• TOOLS FOR VOTING,
SETTING PRIORITIES
*
13.21 © 2002 by Prentice Hall
TOOLS OF GDSS
• STAKEHOLDER IDENTIFICATION &
ANALYSIS TOOLS
• POLICY FORMATION TOOLS
• GROUP DICTIONARIES
*
13.22 © 2002 by Prentice Hall
ELECTRONIC MEETING SYSTEM
(EMS)
COLLABORATIVE GDSS: Uses
information technology to make
group meetings more productive
facilitates communication decision
making
*
13.23 © 2002 by Prentice Hall
STRATEGIC INFORMATION SYSTEM
DESIGNED FOR UNSTRUCTURED
DECISION MAKING THROUGH
ADVANCED GRAPHICS AND
COMMUNICATIONS
*
EXECUTIVE
SUPPORT SYSTEMS (ESS)
13.24 © 2002 by Prentice Hall
EXECUTIVE
SUPPORT SYSTEMS
13.25 © 2002 by Prentice Hall
• 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
*
EXECUTIVE
SUPPORT SYSTEMS
13.26 © 2002 by Prentice Hall
BENEFITS:
• FLEXIBILITY
• ABILITY TO ANALYZE, COMPARE,
HIGHLIGHT TRENDS
• GRAPHICS HELP EXPLORE SITUATION
• MONITOR PERFORMANCE
• TIMELINESS, AVAILABILITY OF DATA
ALLOWS PROMPT ACTION
*
13.27 © 2002 by Prentice Hall
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
*
13.28 © 2002 by Prentice Hall
Principles of
•
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

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dss-110806075247-phpapp02.pptx

  • 1. c h a p t e r 13.1 © 2002 by Prentice Hall 13 DECISION SUPPORT SYSTEM G D S S E S S (E I S)
  • 2. LEARNING OBJECTIVES • DIFFERENTIATE DECISION- SUPPORT SYSTEMS (DSS) FROM GROUP DECISION-SUPPORT SYSTEMS (GDSS) • DESCRIBE COMPONENTS OF DSS & GDSS * 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 * 13.3 © 2002 by Prentice Hall
  • 4. MANAGEMENT CHALLENGES • DECISION-SUPPORT SYSTEMS • GROUP DECISION-SUPPORT SYSTEMS • EXECUTIVE SUPPORT SYSTEMS * 13.4 © 2002 by Prentice Hall
  • 5. DECISION SUPPORT SYSTEMS (DSS) 13.5 © 2002 by Prentice Hall MANAGEMENT LEVEL COMPUTER SYSTEM COMBINES DATA, MODELS, USER - FRIENDLY SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION MAKING *
  • 6. • MODEL DRIVEN DSS: Uses models for what-if and other analysis • DATA-DRIVEN DSS: Allows extraction, analysis of information from databases * 13.6 © 2002 by Prentice Hall DECISION SUPPORT SYSTEM
  • 7. TPS EXTERNAL DATA DSS DATA BASE DSS SOFTWARE SYSTEM MODELS OLAP TOOLS DATAMINING TOOLS USER INTERFACE USER DECISION SUPPORT SYSTEM 13.7 © 2002 by Prentice Hall
  • 8. • 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 * DECISION SUPPORT SYSTEM
  • 9. • 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 DECISION SUPPORT SYSTEM 13.9 © 2002 by Prentice Hall *
  • 10. 13.10 © 2002 by Prentice Hall DECISION SUPPORT SYSTEM APPLICATIONS: • SUPPLY CHAIN MANAGEMENT • CUSTOMER RELATIONSHIP MANAGEMENT • SIMULATING BUSINESS SCENARIOS *
  • 11. 13.11 © 2002 by Prentice Hall • 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 DECISION SUPPORT SYSTEM
  • 12. DECISION SUPPORT SYSTEM 13.12 © 2002 by Prentice Hall EXAMPLES: • GENERAL ACCIDENT INSURANCE: Customer buying patterns, fraud detection • BANK OF AMERICA: Customer profiles • FRITO-LAY: Price, advertising, promotion selection *
  • 13. • BURLINGTON COAT FACTORY: Store location, inventory mix • KEYCORP: Targeting direct mail marketing customers • NATIONAL GYPSUM: Corporate planning & forecasting * DECISION SUPPORT SYSTEM 13.13 © 2002 by Prentice Hall
  • 14. • SOUTHERN RAILWAY: Train dispatching and routing • TEXAS OIL & GAS: Evaluating drilling sites • UNITED AIRLINES: Flight scheduling, passenger demand forecasting * DECISION SUPPORT SYSTEM 13.14 © 2002 by Prentice Hall
  • 15. Comparison of DSSs and MISs Principles of 13.15 © 2002 by Prentice Hall
  • 16. Comparison of DSSs and MISs Principles of 13.16 © 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 * 13.17 © 2002 by Prentice Hall
  • 18. Group Decision Support System Principles of 13.18 © 2002 by Prentice Hall
  • 19. ALLOWS: Improved pre-planning • Increased participation • Open, collaborative atmosphere • Idea generation free of criticism • Evaluation objectivity • Idea organization & evaluation * GDSS ENHANCED DECISION MAKING 13.19 © 2002 by Prentice Hall
  • 20. ALLOWS: Setting priorities & decision making • Documentation of meetings • Access to external information • Preservation of organizational memory * GDSS ENHANCED DECISION MAKING 13.20 © 2002 by Prentice Hall
  • 21. TOOLS OF GDSS • ELECTRONIC QUESTIONNAIRES • ELECTRONIC BRAINSTORMING • IDEA ORGANIZERS • QUESTIONNAIRE TOOLS • TOOLS FOR VOTING, SETTING PRIORITIES * 13.21 © 2002 by Prentice Hall
  • 22. TOOLS OF GDSS • STAKEHOLDER IDENTIFICATION & ANALYSIS TOOLS • POLICY FORMATION TOOLS • GROUP DICTIONARIES * 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 * 13.23 © 2002 by Prentice Hall
  • 24. STRATEGIC INFORMATION SYSTEM DESIGNED FOR UNSTRUCTURED DECISION MAKING THROUGH ADVANCED GRAPHICS AND COMMUNICATIONS * EXECUTIVE SUPPORT SYSTEMS (ESS) 13.24 © 2002 by Prentice Hall
  • 25. EXECUTIVE SUPPORT SYSTEMS 13.25 © 2002 by Prentice Hall • 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 *
  • 26. EXECUTIVE SUPPORT SYSTEMS 13.26 © 2002 by Prentice Hall BENEFITS: • FLEXIBILITY • ABILITY TO ANALYZE, COMPARE, HIGHLIGHT TRENDS • GRAPHICS HELP EXPLORE SITUATION • MONITOR PERFORMANCE • TIMELINESS, AVAILABILITY OF DATA ALLOWS PROMPT ACTION *
  • 27. 13.27 © 2002 by Prentice Hall 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 *
  • 28. 13.28 © 2002 by Prentice Hall Principles of • 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