DECISION SUPPORT SYSTEMS

1
DECISION SUPPORT SYSTEMS

• Concepts and Design

2
Description of DSS GDSS

• TIME FRAME
• UNSTRUCTURED PROBLEMS WHERE THE NEED IS FOR THE
  COMBINED PROCESSING OF DATA AND MANAGERIAL
  JUDGEMENT
• COMPLICATED PROBLEMS WITH MISSING OR UNCERTAIN
  DATA SOURCES WITH UNKNOWN VARIABLE RELATIONSHIPS

3
DEFINITION OF A DSS GDSS

• AN INTERACTIVE, FLEXIBLE COMPUTER BASED
  SYSTEM, CONSISTING OF RULES, MODELS, DATA, AND A
  USER FRIENDLY INTERFACE, COUPLED WITH THE USER'S
  OWN INSIGHTS AND VALUE STRUCTURE.

4
Payoff

• EXPANDS MANAGERIAL POWER EFFECTIVENESS
• FLEXIBILITY IN ANALYSIS
• USER FRIENDLY SYSTEMS

5
RELEVANCE TO MANAGERS

• DECISIONS MADE BY MANAGERS NOT BY MACHINES
• CAN USE O.R. MODELS TO ESTABLISH DECISION
  BOUNDARY
• BLEND OF HUMAN JUDGMENT AND STRUCTURE
• DSS IS USED TO SUPPORT SPECIFIC DECISIONS
• SOLUTIONS NOT IMPOSED (TWO DIRECTIONAL SEARCH)
• SEARCH IS FOR BEST PROCESS AND EFFECTIVE SOLUTION
  ( NOT FOR AN OPTIMUM!)

6
Applications

• LONG RANGE PLANNING
• WORK FORCE ALLOCATION
• LONG RANGE STAFFING
• ESTIMATING MATERIAL NEEDS
• INDUSTRIAL HAZARD ASSESSMENT
• ASSESSMENT OF THE NEED FOR INTELLIGENCE
• BUDGETING
• RESOURCE EXPLORATION PLANNING
• WAREHOUSE DISTRIBUTION AND STOCKING
• PATIENT BED OPERATING ROOM ASSIGNMENT
• ASSESSMENT OF THE IMPACT OF MARKET RESPONSE ON
  OPERATIONS OF THE FIRM

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OUTCOME OF USING A DSS

• A SET OF IMPLEMENTABLE DECISIONS WHICH SOLVE
  PROBLEMS THAT ARE NOT SUITED FOR OPERATIONS
  RESEARCH, TRANSACTIONS PROCESSING, OR MANAGEMENT
  INFORMATION SYSTEMS. A DSS SUPPORTS THE
  SOLUTION OF COMPLEX PROBLEMS THOROUGH THE USE OF
  SIMPLIFIED MODELS USER FRIENDLY SYSTEMS.

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INFORMATION SYSTEMS USE BY MANAGEMENT LEVEL

• 
  INFORMATION SYSTEMS
• LEVEL MIS DSS
  ES TPS
• _______________________________________________
• STRATEGIC y
  y y
• TACTICAL y
  y
• OPERATING y
  ?y ?y
• STAFF/MFG.
  y
• _______________________________________________

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INFORMATION SOURCES

• EXTERNAL SOURCES
• INTERNAL SOURCES

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INFORMATION SOURCES (CONT.)

• 
  MIS DSS ES TPS
• ORGANIZATIONAL DBs.
  
• INTERNAL STUDIES
• EXTERNAL SURVEYS
• INDUSTRY PUBLICATIONS
  
• GOVERNMENT PUBs.
  
• COMMERCIAL DBs.
  
• OPINIONS BY EXPERTS
  
• USER VALUES

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REASONS FOR USING DECISION SUPPORT SYSTEMS

• Instability
• Competition
• Difficulty in Tracking the Firm and the Market
• Lack of I/S Support
• Diverse Needs

12
WHY USE A DSS or GDSS? (Survey results)

• FACTORS CITED BY
  
• ACCURATE INFORMATION 67
• DSS VIEWED AS WINNER 44
• NEED FOR NEW INFORMATION 33
• MANAGEMENT WANTS DSS 22
• TIMELY RESULTS BY DSS 17
• COST OF INFO. REDUCED 6
• by HOGUE WATSON, 1983

13
Components of DSS and GDSS

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DSS GDSS DATABASE COMPONENTS

• INTERNAL DATA
• TRANSACTIONS DATA
• MANUFACTURING DATA
• PERSONNEL DATA
• HISTORICAL DATA
• FINANCIAL PERFORMANCE
• MARKETING EXPENDITURES AND PERFORMANCE DATA
• PAYROLL SUMMARIES

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DSS GDSS DATABASE COMPONENTS (contd)

• EXTERNAL DATA
• GOVERNMENT ECONOMIC DATA
• DATA BY COMMERCIAL DATA BASES
• EXPERT REPORTS
• INDUSTRY SECTOR DATA
• GOVERNMENT REGULATIONS
• TAX RATE SCHEDULES
• REGIONAL EMPLOYMENT DATA
• INTERNATIONAL DATA

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DSS GDSS DATABASE COMPONENTS (contd)

• PRIVATE DATA
• SPECIFIC PERSONAL DATA COLLECTED BY INDIVIDUAL
  DECISION MAKERS

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DSS MODEL BASE

• Specific Models
• General Modeling Tools
• Model Building Blocks

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DSS USER INTERFACE

• Model Base Management Tools
• Database Management Tools
• Report Module
• What If? Module

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DSS DIALOG MANAGEMENT
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DSS DIALOG MANAGEMENT(contd)
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DESIGNING DSS's

• DSS TECHNOLOGIES
• SYSTEM DEVELOPMENT LIFE CYCLE (SDLC) PROCESS
• PROTOTYPING
• DYNAMIC APPROACH

22
DSS TECHNOLOGIES

23
SDLC

• Preliminary Analysis
• Problem Statement
• Analysis
• Design
• Implementation
• Maintenance

24
PROROTYPING

• problem deffinition
• feasibility
• requirements
• build prototype refine
• evaluate expand
• document

25
DYNAMIC APPROACH

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DYNAMIC APPROACH (contd)

• ADVANTAGES
• CLOSE WORK BETWEEN ANALYST DECISION MAKER
• SHORT DEVELOPMENT TIME
• SHORT USER REACTION TIME
• FAST ACCESS TO RESULTS
• USER UNDERSTANDING OF THE DSS
• PERMANENT SYSTEM CORE TO BUILD UPON

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DYNAMIC APPROACH (contd)

• DISADVANTAGES
• LACK OF COMPLETE DOCUMENTATION
• MAY OMIT IMPORTANT ISSUES
• FEASIBILITY IS EASY TO VIOLATE
• EASY TO LOSE SIGHT OF OBJECTIVES

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End DSS GDSS