Decision Support Systems

1. Decision Support Systems Jeremy Leishman Brigham Young University

2. Decision Support Systems Presentation overview • What are Decision Support Systems? • Why Decision Support Systems? • Benefits of a DSS • Components of DSS • Examples of DSS

3. Decision Support Systems: • Interactive computer-based systems • Support decision-making activities • Aid users interpret raw data in a useful format • Special class of Information System • Typically used for strategic and tactical decisions facing upper management. • Developed for decisions that occur infrequently and carry high potential consequences

4. Decision Support System • The essential flow of information in a DSS.

5. Why Decision Support Systems? • Data is easily stored and retrieved. • Prioritize decisions. • Anticipate upcoming decisions. • Remember and evaluate past decisions. • Provide consistency to decision making. • Combines the expertise of human and computer decision making.

6. Humans and Decision Making • Usually based on intuition rather than complete rational processing. • Humans interpret identical data differently. • Use both quantitative and qualitative information. • Emotions play a role in decision making. • Flexible and adaptable. • Vary greatly based on levels of expertise.

7. Computers and Decision Making • Quickly sort, filter, and process large quantities of data. • Logical and predictable. • Ability to incorporate vast amount of inputs when making complex decisions. • Favor quantifiable variables. • Users need to be trained to use them. • Inflexible

8. Making Better Decisions • Combine strengths of human and computer decision making. • DSS’s support, not replace, managers. • Increase decision effectiveness not necessarily decision efficiency.

9. Varying degrees of Automation Low level of Automation Decision Support Systems can be used for: • Data retrieval and storage. • Report creation. • Estimate decision consequences. • Propose decisions. • Make decisions. High level of Automation

10. Benefits of computer-aided decision making • Computers are capable of incorporating more data when computing decisions. • Becomes more effective over time. • Automation of non-risk decisions enables managers to dedicate more time to complex decisions. • Complex decisions are made using human intuition as a well as automated optimization.

11. Anticipatory ManagementCompetitive advantages with Decision Support Systems • Scan and monitor competitors • Track industry trends • Forecast duration, direction, acceleration, and amplitude of trends or signals • Conduct vulnerability audits • Prioritize issues • Evaluate relative performance • Provide strategic recommendations

12. Situations were DSS can be used: • Inventory control • Sales forecasting • Cost-benefit analysis • Problem diagnosis • Option prioritization • Resource allocation • Business cycle control • Performance evaluation • Value analysis • Target marketing • Supply Chain integration • Customer tracking • Knowledge management

13. What about your organization? • What decisions do you make? • Can routine decisions benefit from more automation? • Are there large amounts of raw data stored that are impossible to sort through? • What information will help you make more effective decisions? • Can some decisions be completely automated?

14. Components of a DSS Three fundamental components • Database management system (DBMS) • Model-base management system (MBMS) • Dialog generation and management system (DGMS)

15. Database management system DBMS • Data storage • User access • Organizes data into types • Provides logical data structure • Lets user know the type of data that is available

16. Model-base management system MBMS • Transforms data from DBMS into useful information • Prepare information for decision making

17. Dialog generation and management system DGMS • User interface for DSS • How users extract desired information from DSS.

18. How DSS’s are being used Health care-- Diagnosing patients Automotive– Emissions testing

19. How DSS’s are being used Agriculture-- Crop yield Airline– Flight scheduling

20. Examples of Decision Support Systems • OutlookSoft • webFocus • SYBASE • ERGO • ERGOV • TESS

21. Conclusions • Decision Support Systems can help all types of organizations. • DSS’s use the advantages of computers and humans in decision making. • DSS’s should be customized to fit the specific needs of your organization.

22. Related Readings Druzdel, Marek J., Roger R. Flynn. “Decision Support Systems.” Encyclopedia of Library and Information Science. New York: Marcel Dekker, Inc., 2002. Cummings, M.L., S. Bruni. (2005) “Collaborative Human-Computer Decision Making in Network Centric Warfare.” Paper presented at the TTCP HUM TP7 Workshop on Aerospace Human Factors Issues in Network-Centric Warfare., Salisbury, UK. Sage, Andrew P. Decision Support Systems Engineering. New York: John Wiley & Sons, Inc., 1991 Holsapple, Clyde W., Andrew B. Whinston. Decision Support Systems – A Knowledge-Based Approach. New York: West Publishing Company, 1996 Holtzman, Samuel. Intelligent Decision Systems. Reading: Addison-Wesley, 1989.