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Decision Support Systems: Mcgraw-Hill/Irwin
Decision Support Systems: Mcgraw-Hill/Irwin
Decision Support Systems: Mcgraw-Hill/Irwin
McGraw-Hill/Irwin Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
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Learning Objectives
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Decision Support in Business
Companies
Companies invest
invest
in
in data-driven
data-driven Changing marketing conditions
decision
decision support
support
application
application Customer needs
frameworks
frameworks to to help
help
them
them respond
respond toto
Management information
Accomplished
Accomplished by by Decision support
several
several types
types of
of
Other information systems
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Case 1: Hillman Group, Avnet, Quaker Chemical
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Case Questions
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Case Questions
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Levels of Managerial Decision Making
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Information Quality
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Attributes of Information Quality
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Decision Structure
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Decision Support Systems
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Decision Support Trends
Personalized
Information
decision Modeling
retrieval
support
Data What-if
Reporting
warehousing scenarios
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Decision Support Trends
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Business Intelligence Applications
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Decision Support Systems
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DSS Components
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DSS Model Base
Model Base
– A software component
– Consists of models used in computational
and analytical routines
– Mathematically expresses relationships
among variables
Spreadsheet Examples
– Linear programming
– Multiple regression forecasting
– Capital budgeting present value
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Applications of Statistics and Modeling
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Management Information Systems
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Management Reporting Alternatives
Information is pushed to a
Push Reporting
networked computer
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Online Analytical Processing
OLAP
– Enables managers and analysts to examine
and manipulate large amounts of detailed and
consolidated data from many perspectives
– Done interactively, in real time, with rapid
response to queries
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Online Analytical Operations
Consolidation
Aggregation of data
Ex: sales office data, rolled up to the district level
Drill-Down
Display underlying detail data
Ex: sales figures by individual product
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Data Visualization Systems (DVS)
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Using Decision Support Systems
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Using Decision Support Systems
What-If
What-If Sensitivity
Sensitivity
Analysis
Analysis Analysis
Analysis
Goal-seeking
Goal-seeking Optimization
Optimization
Analysis
Analysis Analysis
Analysis
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Data Mining
Types of analysis
– Regression
– Decision tree
– Neural network
– Cluster detection
– Market basket analysis
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Analysis of Customer Demographics
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Market Basket Analysis
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Executive Information Systems (EIS)
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Features of an EIS
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Web-Based Executive Information System
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Enterprise Information Portals
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Enterprise Information Portal Components
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Enterprise Knowledge Portal
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Case 2: Goodyear, JEA, OSUMC, Monsanto
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Case Study Questions
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Artificial Intelligence (AI)
Computer
Engineering
science
AI is
a field of science
Mathematics and technology Biology
based on…
Linguistics Psychology
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Artificial Intelligence (AI)
Think
Feel See
Ultimate
goal for
computers
Talk Hear
Walk
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Attributes of Intelligent Behavior
Learn or
Use reason to
Think and reason understand from
solve problems
experience
Recognize Handle
Respond quickly
relative ambiguous,
and successfully
importance of incomplete,
to new situations
situation elements erroneous info
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Domains of Artificial Intelligence
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Expert Systems
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Components of an Expert System
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Methods of Knowledge Representation
Case-based
Frame-based
Object-based
Rule-based
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Expert System Application Categories
Decision Management
Diagnostic/Troubleshooting
Design/Configuration
Selection/Classification
Process Monitoring/Control
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Benefits of Expert Systems
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Limitations of Expert Systems
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Developing Expert Systems
Domain
Domain Expertise
Expertise Complexity
Complexity
Thedomain
The domainor
or Solutionsto
Solutions tothe
the Problem
Problem
subjectarea
subject areaof
of problemrequire
problem require solvingisis
solving
theproblem
the problemisis theefforts
the effortsof
ofan
an complex,and
complex, and
smalland
small andwell-
well- expert
expert requireslogical
requires logical
defined
defined inference
inference
processing
processing
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Developing Expert Systems
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Development Tool
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Knowledge Engineering
A knowledge engineer
– Works with experts to capture the knowledge
(facts and rules of thumb) they possess
– Builds the knowledge base, and if necessary,
the rest of the expert system
– Performs a role similar to that of systems
analysts in conventional information systems
development
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Neural Networks
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Example of Fuzzy Logic Rules and Query
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Genetic Algorithms
Uses
Uses Darwinian,
Darwinian, Stimulates
Stimulates anan
randomizing,
randomizing, and
and evolutionary
evolutionary process,
process,
other
other mathematical
mathematical yielding
yielding increasingly
increasingly
functions
functions better
better solutions
solutions
Especially
Especially useful
useful for
for Being
Being used
used to
to model
model aa
situations
situations in
in which
which variety
variety of
of scientific,
scientific,
thousands
thousands ofof solutions
solutions technical,
technical, and
and business
business
are
are possible
possible processes
processes
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Virtual Reality (VR)
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Typical VR Applications
Scientific
Entertainment
Current
Current experimentation
applications
applications
of
of virtual
virtual reality
reality
Employee Flight
training simulation
Product
demonstrations
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Intelligent Agents
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User Interface Agents
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Information Management Agents
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Case 3: Harrah’s, LendingTree, DeepGreen, Cisco
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Case 4: Harrah’s, LendingTree, DeepGreen, Cisco
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Case Study Questions
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