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WEEK 3 - Overview of DSS

A decision support system (DSS) is a collection of tools to support decision making at different levels and frequencies. It supports problem solving phases like intelligence, design, and choice. DSS tools include databases, data mining, models, and group decision support systems. Group DSS (GDSS) facilitate group consensus and reduce negative behaviors. Executive support systems (ESS) are specialized DSS tailored to executives, supporting strategic planning, visioning, and crisis management.

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Hazina Ally
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44 views

WEEK 3 - Overview of DSS

A decision support system (DSS) is a collection of tools to support decision making at different levels and frequencies. It supports problem solving phases like intelligence, design, and choice. DSS tools include databases, data mining, models, and group decision support systems. Group DSS (GDSS) facilitate group consensus and reduce negative behaviors. Executive support systems (ESS) are specialized DSS tailored to executives, supporting strategic planning, visioning, and crisis management.

Uploaded by

Hazina Ally
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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An Overview of Decision

Support Systems
Capabilities of a Decision Support
System (1)

◼ Support for problem-solving phases


◼ Intelligence, design, choice, implementation,
monitoring
◼ Support for different decision frequencies
◼ Ad hoc DSS: Concerned with decisions that come up
once in every 5 years (e.x., where should a company
open a new distribution center?)
◼ Institutional DSS: Concerned with decisions that
repeat (e.x., what should the company invest in?
Capabilities of a Decision Support
System (2)
◼ Support for different problem structures
◼ Highly structured problems: Known facts and
relationships
◼ Semi-structured problems: Facts unknown or
ambiguous, relations vague
◼ E.x.Which person to hire for a position?
◼ Support for various decision-making levels
◼ Operational level: Daily decisions
◼ Tactical level: Planning and control
◼ Strategic level: Long-term decisions
Support for Various Decision-Making
Levels
Selected DSS Applications
Comparison of DSSs and MISs
Components of a DSS
Conceptual Model of a DSS
The Database

• Data in databases, data marts, warehouses


• Use data mining to help with the decisions
• Ex. Who should an airline target for flights from
Istanbul to Ankara?
The Model Base

• Decision makers perform quantitative analysis


on data
• Model base contains a list of models for
mathematical computations
• Model management system: Allows access to
such models
The Model Base
Group Decision Support
Systems
Configuration of a DSS
Characteristics of a GDSS (1)
◼ Special design:
◼ Effective communication
◼ Group decision making
◼ Ease of use
◼ Flexibility
◼ Accommodate different perspectives
◼ Anonymous input
◼ Individuals’ names are not exposed
◼ Parallel communication
◼
Characteristics of
Decision-making support
a GDSS (2)
◼ Delphi approach: Decision makers are scattered
around the globe
◼ Brainstorming: Say things as you think---think out
loud
◼ Group consensus approach: The group reaches a
unanimous decision (everybody agrees)
◼ Nominal group technique: Voting
◼ Reduction of negative group behavior
◼ A trained meeting facilitator to help with sidetracking
◼ Automated record keeping
Examples of GDSS Software
◼ Lotus Notes
◼ Store, manipulate, distribute memos
◼ Microsoft Exchange
◼ Keep individual schedules
◼ Decide on meeting times
◼ NetDocuments Enterprise
◼ Two people can review the same document
together
GDSS Alternatives
The GDSS Decision Room
Executive Support
Systems
The Layers of Executive Decision
Making
Executive Support Systems (ESS) in
Perspective
◼ Tailored to individual executives
◼ Not to managers in other levels
◼ Easy to use
◼ Drill down capabilities
◼ Support need for external data
◼ Can help when uncertainty is high
◼ Future-oriented
◼ Linked to value-added processes
Capabilities of an ESS (1)
◼ Support for defining an overall vision
◼ Organization’s product lines and services
◼ Support for strategic planning
◼ Predict future trends
◼ Analyze merger possibilities
◼ Support for strategic organizing & staffing
◼ Choice of departments
◼ Pay raises
Capabilities of an ESS (2)
◼ Support for strategic control
◼ Monitor and manage the overall organization
◼ Support for crisis management
◼ Put together a contingency plan
Summary
◼ Decision-making phase - includes intelligence, design,
and choice

◼ Problem solving - also includes implementation and


monitoring

◼ Decision approaches - optimization, satisficing, and


heuristic

◼ Management information system - an integrated


collection of people, procedures, databases, and devices
that provide managers and decision makers with
information to help achieve organizational goals
Summary
◼ Decision support system (DSS) - an organized
collection of people, procedures, software,
databases, and devices working to support
managerial decision making

◼ Group decision support system (GDSS) - also


called a computerized collaborative work system,
consists of most of the elements in a DSS, plus
software needed to provide effective support in
group decision-making settings

◼ Executive support systems (ESSs) - specialized


decision support systems designed to meet the needs
of senior management
Next Week
◼ DSS concepts, methodologies and
technologies

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