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Decision Support System ICS425

Decision Support System ICS425. Bachelor of Science (Computer Information System) Faculty of Science Payap University. By Nonpiya Satitporn. Core textbook: Daniel J. Power , Decision Support Systems: Concept and Resources for Managers , Greenwood Press Other recommended textbook:

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Decision Support System ICS425

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  1. Decision Support SystemICS425 Bachelor of Science (Computer Information System) Faculty of Science Payap University By Nonpiya Satitporn

  2. Core textbook: Daniel J. Power, Decision Support Systems: Concept and Resources for Managers, Greenwood Press Other recommended textbook: Paul N. Finlay, Introduction Decision Support Systems, NCC Education Services

  3. Lesson Objectives Look into: • the concept and application of DSS • how DSS solve the business problems in different situation • DSS characteristics and processes • Models for analysis in decision-making process • Characteristics of information needed in decision-making process

  4. Decision-making in your daily life !!

  5. What is DSS? “information systems at the organization’s management level that combine data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision-making” (Laudon K.C. & Laudon P. L., 2006)

  6. Other definitions… “ A business information system designed to assist in decision making where the decision process is relatively unstructured and only part of the information needed is structured in advance” (Senn J. A., 2004)

  7. A brief history of DSSs Evolution of DSS Concepts 1960s 1970s 1908s 1990s MIS and BrandAid Key Books Business Structured Reports Intelligence Interactive Systems MDS GDSS Data Research Warehouse Theory Development EIS Data mining Expert Systems OLAP Portals

  8. Characteristics of DSS There are 3 major characteristics: • DSS are designed specifically to facilitate decision processes • DSS should support rather than automate decision making • DSS should be able to respond quickly to the changing needs of decision makers

  9. So.. What are the components of DSS?

  10. Components of DSS… The main components of DSS; 1. DSS database 2. DSS software system 3. DSS user interface Other components: data mining, other analytical tools.

  11. Overview of DSS Note: TPS= Transaction Processing System OLAP= Online Analytical Processing

  12. DSS database: a collection of current or historical data from a number of applications or group • DSS software system: contains the software tools that are used for analysis • DSS user interface: permits easy interaction between users of the system and the DSS software tools e.g. Web-based interface

  13. Types of Decision • Structured decisions:A decision in which all steps are well structured • Unstructured decisions:A decision in which none of the steps are structured • Semi-structured decisions:A decision in which some steps are structured and some unstructured

  14. Decision characteristics in various levels of management in the firm Decision Characteristics unstructured Senior Management semi-structured Middle Management Operation Management structured Individual Employees & Teams

  15. Structured, semi-structured and unstructured decision taken by various levels of management Level of Management Decision type Top Middle First line Structured Semi-structured Unstructured Warehouse location Budgeting Payroll preparation Takeovers and Sales Purchasing decisions mergers forecasting Steps to increase Employee Customer waiting market share motivation lines

  16. Examples of DSS Organization DSS Application General Accident Insurance Customer buying patterns and fraud detection Frito-Lay, Inc Price, advertising, and promotion selection United Airlines Flight scheduling and passenger demand forecasting U.S. Department of Defense contract analysis Defense

  17. Chapter Conclusion “DSS is one of the systems that are designed to help users make better business decisions & make more business intelligence system” “DSS works with specialized systems for management decision making that focus on the specific needs of managers & employees”

  18. Conclusion remarks… • What is DSS? • History of DSS • Components of DSS • Types of decisions • Decision types in various levels of management

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