Introduction to Decision Support Systems

Chapter Objectives
What are Decision Support Systems (DSS) ? Characteristics of DSS What are Expert Systems (ES) ? Basic Ideas of ES Why do we need DSS and ES ? Forming of Project Teams

What are Decision Support Systems ?

computer-based support systems which help decision makers utilize data and models to solve semistructured or unstructured problems One way to try to understand the essence of Decision Support Systems is to look at several definitions that have been put

Definitions
Decision support implies the use of computers to (i) assist managers in their decision processes in semi-structured tasks; (ii) support, rather than replace, managerial judgment; (iii) improve the effectiveness of decision making rather than its efficiency. [KEEN78}

Definitions cont ..
Information system featuring an integrated system composed of decision models, database, and decision maker to support decision making. [SPRA79] A computer-based system that is used on ongoing basis by managers themselves, or their immediate staffs, in direct support of managerial decision making

Definitions cont ..
A set of computer based tools used by a manager in connection with his or her problem-solving and decisionmaking duties. [LEIG86] Decision support systems are used for less structured problems, where the art of management is blended with science. [KANT92] a computer based information system that affects or is intended to affect how people make decisions.

Definitions cont ..
A set of tools, data, models, and other resources that managers and analysts use to understand, evaluate and solve problems [in] unstructured problem domains. [KROE92]. An integrated set of computer tools that allow a decision maker to interact directly with computers to create information useful in making unanticipated semistructured and

Definitions cont ..
Decision support systems are analytic models used to increase managerial or professional decision making by bringing important data to view. [FREN96] An organized collection of people, procedures, software, databases and devices used to support problem-specific decision making . [STAI97] computer-based information systems designed to help managers select one of many alternate solutions to a problem.

Definitions cont ..
computer based-information systems that provide interactive information support to managers during the decision-making process. [OBRI99]

Definitions cont ..
Ralph Sprague in his pioneering work defined DSS by observing DSS of his era that includes these four characteristics: 1. The tend to be aimed at the less well-structured, underspecified problems that upper level managers typically face 2. They attempt to combine the use of models or analytic techniques with traditional data access and retrieval

Definitions cont ..
3. They specifically focus on features which make them easy to use by non-computer people in an interactive mode. 4. They emphasize flexibility and adaptability to accommodate changes in the environment and the decision-making approach of the user.

Decision-Making Levels of an Organization

Characteristics of DSS
information systems used for supporting decision making used by decision makers -- e.g., managers, knowledge workers support, BUT NOT REPLACE, people used when decision is semi structured or unstructured

incorporate database and models

The definition that we will use

A decision support system is a computer-based information system whose primary purpose is to provide knowledge workers with information on which to base informed decisions.

All DSS
Are Used by Used in informati knowledg making on e workers decisions systems Support. Dont replace people

And some DSS

Used in semi-structured decisions

Incorporate models

Incorporate a database

Fig 1-5 Seven Characteristics of DSS: Four are held in common and three are optional

Benefits of DSS
improving personal efficiency
expediting problem solving facilitating interpersonal communication promoting learning or training

increasing organizational control

How DSS Work?

What are expert systems ?

a decision-making and/or problemsolving package of computer hardware and software that can reach a level of performance comparable to (or even exceeding that of) a human expert in some specialized and usually narrow problem area.

Basic Ideas of Expert Systems

expertise is transferred from the expert to the computer users can call on the computer for specific advice the computer make inferences and arrive at a specific conclusion the computer advises the nonexperts (i.e. users) and explains, if necessary, the logic behind the advice

Why Do We Need DSS and ES ?

managerial decision making becomes more complex increasing foreign and domestic competition changing environment/government policies world shrinking and time compressed technology advancement