Decision Support Systems: Decision Support Systems

An Overview
• Decision Support Methodology
• Technology Components
• Development
Jason C.H. Chen, Ph.D.

Professor of MIS

School of Business Administration

Gonzaga University

Spokane, WA 99258

chen@jepson.gonzaga.edu
© Dr.Dr. Chen
Chen and Decision Support Systems and Intelligent 1 © Dr. Chen and Decision Support Systems and Intelligent 2
Systems, Efraim Turban and Jay E. Aronson © Systems, Efraim Turban and Jay E. Aronson

Decision Support Systems: DSS Configurations

An Overview
• Supports individuals and teams
• Capabilities • Used repeatedly and constantly
• Two major components: data and models
• Structure • Web-based
• Classifications • Uses subjective, personal, and objective data
• Has a simulation model
• Used in public and private sectors
• Has what-if and goal-seeking capabilities
• Uses quantitative and qualitative models

© Dr. Chen and Decision Support Systems and Intelligent 3 © Dr. Chen and Decision Support Systems and Intelligent 4
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

Working Definition of DSS DSS Definitions

• A DSS is an interactive, flexible, and adaptable CBIS, • Little (1970)

specially developed for supporting the solution of a “model-based set of procedures for processing
non-structured management problem for improved data and judgments to assist a manager in his
decision making. It utilizes data, it provides easy user decision making”
interface, and it allows for the decision maker’s own Assumption: that the system is computer-based
insights and extends the user’s capabilities.

• DSS may utilize models, is built by an interactive • Alter (1980)

process (frequently by end-users), supports all the
phases of the decision making, and may include a
knowledge component
© Dr. Chen and Decision Support Systems and Intelligent
Systems, Efraim Turban and Jay E. Aronson
Contrasts DSS with traditional EDP systems
• Central Issue in DSS
support and improvement of decision making
5 © Dr. Chen and Decision Support Systems and Intelligent 6
Systems, Efraim Turban and Jay E. Aronson

1
 Decisions in the E-Business
D SS ve rsu s E D P .

D im en sion DSS EDP Decision Characteristics

Planning and Control of Overall
Unstructured Organizational Direction by Top
U se Ac tiv e P a ss iv e Management
Strategic
Management
U ser L in e a n d s ta ff C le ric a l
m anagem ent Planning and

In
fo
Control of

ns
Semi-structured

rm
Organizational

io

at
Goal E ffe c t i v e n e s s M e c h a n ic a l Tactical Subunits by

ci s

io
e ffi c i e n c y Middle
Management

n
De
Management

T im e P resen t an d P ast
H o rizo n fu t u r e Structured
Operational Planning and Control of Day
Management to Day Operations by
O b je c t i v e F le x ib ility Co n siste n cy Supervisory Management
S o u r c e : A lte r [1 9 8 0 ].

© Dr. Chen and Decision Support Systems and Intelligent 7 © Dr. Chen and Decision Support Systems and Intelligent 8
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

Characteristics and Capabilities of DSS

Characteristics and Capabilities of DSS (conti.)

7. Are adaptive
1. Provide support in semi-structured and unstructured
8. Have user friendly interfaces
situations, includes human judgment and
computerized information 9. Goal: improve effectiveness of decision making
2. Support for various managerial levels 10. The decision maker controls the decision-making
process
3. Support to individuals and groups
11. End-users can build simple systems
4. Support to interdependent and/or sequential decisions
12. Utilizes models for analysis
5. Support all phases of the decision-making process
13. Provides access to a variety of data sources,
6. Support a variety of decision-making processes and
formats, and types
styles
(more) Decision makers can make better, more consistent
decisions in a timely manner
© Dr. Chen and Decision Support Systems and Intelligent 9 © Dr. Chen and Decision Support Systems and Intelligent 10
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

Figure: Components of the DSS

DSS Components The DSS

Model
1. Data (Base) Management Subsystem
Base
2. Model (Base) Management Subsystem
Data
3. Knowledge-based (Management) Subsystem Base

4. User Interface Subsystem (Dialogue)

5. The User DBMS MBMS
Software
System
DGMS

Task Environment
DBMS: DataBase Management Systems User
MBMS: ModelBase Management Systems
DGMS: DialoGue Management Systems
© Dr. Chen and Decision Support Systems and Intelligent 11 © Dr. Chen and Decision Support Systems and Intelligent 12
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

2
 The Data Management Subsystem Database Management Systems in DSS

• DBMS: Software program for entering (or adding)

• DSS database information into a database; updating, deleting,
• Database management system manipulating, storing, and retrieving information
• Data directory
• A DBMS + modeling language to develop DSS
• Query facility (SQL, QBE, QBF)

• DBMS to handle LARGE amounts of information

© Dr. Chen and Decision Support Systems and Intelligent 13 © Dr. Chen and Decision Support Systems and Intelligent 14
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

DSS Database Issues

• Data warehouse
• Data mining
• Special independent DSS databases
DSS In Focus 3.2: The Capabilities of DBMS in a DSS
• Captures/extracts data for inclusion in a DSS database
• Extraction of data from internal, external, and private
• Updates (adds, deletes, edits, changes) data records and files sources
• Interrelates data from different sources
• Web browser data access
• Retrieves data from the database for queries and reports
• Provides comprehensive data security (protection from unauthorized access, recovery • Web database servers
capabilities, etc.)
• Handles personal and unofficial data so that users can experiment with alternative • Multimedia databases
solutions based on their own judgment
• Performs complex data manipulation tasks based on queries
• Special GSS databases (like Lotus Notes / Domino
• Tracks data use within the DSS Server)
• Manages data through a data dictionary
• Online Analytical Processing (OLAP)
• Object-oriented databases
• Commercial database management systems (DBMS)
© Dr. Chen and Decision Support Systems and Intelligent 15 © Dr. Chen and Decision Support Systems and Intelligent 16
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

Model Management Issues

The Model Management Subsystem

• Analog of the database management subsystem • Model level: Strategic, managerial (tactical), and
• Model base operational
• Model base management system
• Modeling language • Modeling languages
• Model directory
• Model execution, integration, and command • Lack of standard MBMS activities.
processor
• Use of AI and fuzzy logic in MBMS
(explanation facility)

© Dr. Chen and Decision Support Systems and Intelligent 17 © Dr. Chen and Decision Support Systems and Intelligent 18
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

3
 The Knowledge Based (Management)
Subsystem The User Interface (Dialog) Subsystem

• Provides expertise in solving complex • Includes all communication between a user and
unstructured and semi-structured problems the MSS
• Expertise provided by an expert system or other • Graphical user interfaces (GUI)
intelligent system • Voice recognition and speech synthesis possible
• Advanced DSS have a knowledge based
(management) component • To most users, the user interface is the system
• Leads to intelligent DSS (because the entire system is totally
• Example: Data mining transparent to the user)

© Dr. Chen and Decision Support Systems and Intelligent 19 © Dr. Chen and Decision Support Systems and Intelligent 20
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

The User DSS Hardware

Evolved with computer hardware and software
Different usage patterns for the user, the
technologies
manager, or the decision maker

Major Hardware Options

• Managers
• Mainframe
• Staff specialists
• Workstation
• Intermediaries
1. Staff assistant • Personal computer
2. Expert tool user • Web server system
3. Business (system) analyst – Internet
4. GSS Facilitator – Intranets
– Extranets

© Dr. Chen and Decision Support Systems and Intelligent 21 © Dr. Chen and Decision Support Systems and Intelligent 22
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

Distinguishing DSS from

Management Science and DBMS DSS Classifications

Alter’s Output Classification (1980)

• DSS is a problem-solving tool and is • Degree of action implication of system outputs
frequently used to address ad hoc and (supporting decision) (Table 3.3)
unexpected problems
• Different than DBMS • Holsapple and Whinston’s Classification
• DSS evolve as they develop 1. Text-oriented DSS
2. Database-oriented DSS
3. Spreadsheet-oriented DSS
4. Solver-oriented DSS
5. Rule-oriented DSS
6. Compound DSS
7. Modeling language-based DSS (IFPS, System W)
© Dr. Chen and Decision Support Systems and Intelligent 23 © Dr. Chen and Decision Support Systems and Intelligent 24
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

4
 Enterprise Information Portals and DSS
Intelligent DSS Categories
Internet Intranet Extranet
• Descriptive
• Procedural Enterprise Information Portal Gateway
• Reasoning Enterprise Information Portal User Interface

• Linguistic DSS
Search
Search Data
Data Knowledge
Knowledge
• Presentation OLAP
OLAP
Agents
Agents Mining
Mining What-If Models Management
Management
Sensitivity Models
• Assimilative Goal-Seeking Models
Optimization Models

Database Management Functions

Other
Data Operational Analytical Knowledge
Business
Mart Database Applications Database Base

© Dr. Chen and Decision Support Systems and Intelligent 25 © Dr. Chen and Decision Support Systems and Intelligent 26
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson

Decision by Objectives
co
nf
li ui t
ion Summary
ct int

Logic
tr • Fundamentals of DSS
s is ad
aly eo
f
An fs

• Components of DSS
Objectives/
Finance H.R. Technology Marketing
Perspectives
• Major capabilities of the DSS components
Measurement

Alternatives
• Major DSS categories

Justifiable Recommendation Well Established Process

Improved Communication Best Overall Alternative
© Dr. Chen and Decision Support Systems and Intelligent 27 © Dr. Chen and Decision Support Systems and Intelligent 28
Systems, Efraim Turban and Jay E. Aronson Systems, Efraim Turban and Jay E. Aronson