Download Chapter 8 Constructing a Decision Support System and DSS

‫ندوة‬
‫الدعم المؤسسي والمعلوماتي‬
‫لعمل المراكز اإلستراتيجية في الحكومة‬
‫‪ 10-6‬فبراير ‪2005‬‬
‫إعداد‬
‫دكتور‪ /‬شريف عبد المجيد مازن‬
‫نائب مدير مركز الدراسات وتطوير نظم المعلومات‬
‫كلية الحاسبات والمعلومات‬
‫جامعة القاهرة‬
‫مقدمة عامة‬
Foundations
of Information Systems
in Business
Foundation Concepts

Fundamental behavioral, technical,
business, and managerial concepts about the
components and roles of information
systems.

Example: Basic information systems
concepts derived from general systems
theory
Business Applications

The major uses of information systems for the
operations, management, and competitive
advantage of the E-Business enterprise.

Includes electronic business, commerce,
collaboration, and decision making using the
Internet, intranets, and extranets.
Development Processes

How business professionals and information
specialists plan, develop, and implement
information systems to meet E-Business
opportunities using several strategic
planning and application development
approaches
Management Challenges

The challenges of effectively and ethically
managing E-business technologies,
strategies, and security at the end user,
enterprise, and global levels of a business

We will not be looking at this in-depth in
this course
Information Technologies

Major concepts, developments, and
management issues in information
technology

Hardware, software, networks, data
resource management, and Internet based
technologies
What is an Information System?

Simple Definition
It can be any organized combination of people,
hardware, software, communications networks
and data resources that collects, transforms, and
communicates information in an organization.
Diagram of a System
Environment
Feedback
Signals
Control
Signals
Control by
Management
Input of
Raw Materials
Manufacturing
Process
System Boundary
Other Systems
Feedback
Signals
Control
Signals
Output of
Finished Products
Components of an IS

Four major concepts
– People, hardware, software, data and networks
are the five basic resources of information
systems
– People resources include end users, IS
specialists, hardware resources consist of
machines and media, software resources
include both programs and procedures, data
resources can include data and knowledge
bases, and networks include communications
media and networks
Components of an IS

Four major concepts continued…
– Data resources are transformed by information
processing activities into a variety of
information products for end users
– Information processing consists of input,
processing, output, storage, and control
activities
Information System Resources
Information System Resources

People Resources
– End Users – the people who use an information system
or the information it produces. Ex: Accountants,
salespeople, customers
– IS Specialists – the people who develop and operate
information systems based on the requirements of end
users. Ex: programmers, analysts, system operators
Information System Resources

Hardware Resources
– Machines, such as computers and other
devices, and media, such as paper, disks
– Computer Systems such as the personal
computer (desktop), mainframe, or laptop
– Computer peripherals such as keyboard,
mouse, monitor, scanner, printer, disks
Information System Resources

Software Resources
– Programs – sets of operating instructions that
direct and control computer hardware
– Procedures – sets of information processing
instructions that people need
Information System Resources

Software Resources continued
– System Software – such as operating system
that supports the operations of a computer
system. Ex. Windows 98
– Application Software – programs that direct
processing for a particular use of computers by
end users. Ex. Excel
– Procedures – operating instructions for people
who will use an IS. Ex. Instructions for filling
out a form.
Information System Resources

Data Resources
– Types of data
• Text data
• Image data
• Audio data
– Data Storage
• Databases – hold processed and organized data
• Knowledge bases – hold knowledge in a variety of
forms such as facts, rules, and case examples of
successful business practices
Information System Resources

Data Resources continued…
– Data Vs. Information
• Data – raw facts or observations, objective
measurements of the characteristics of entities such
as people, places, things and events
• Information – data that has been converted to a
meaningful and useful context for specific end users.
Information System Resources
Data Resources continued…

–
Data is subjected to a value-added process
1. Its form is aggregated, manipulated and organized
2. Its content is analyzed and evaluated
3. It is placed in a proper context for a human user
–
Called data processing or information processing
Information System Resources

Data Resources continued…
Monthly Sales Report
for West Region
Sales Rep: Charles Mann
Emp No. 79154
Item
Qty Sold Price
TM Shoes 1200
$100
Information System Resources

Network Resources
– Communication media – Twisted pair wire,
coaxial cable, fiber-optic cable and microwave,
cellular, and satellite technologies
– Network support – people and all of the
hardware, software, and data technologies that
directly support the operation and use of a
communication network.
Information System Activities

Input of Data Resources
– Data about business transactions and other
events must be captured and prepared for
processing
– Input typically takes the form of data entry
activities such as recording and editing
– End users typically enter data directly into a
computer system or record it on some physical
media such as a paper form
Information System Activities

Processing of Data into Information
– Data is subjected to processing activities such
as calculating, comparing, sorting, classifying
and summarizing
– This organizes, analyzes, and manipulated data,
turning it into information
– The quality of data stored in an information
system must be maintained by a continual
process of correcting and updating activities
Information System Activities

Output of Information Products
– The goal of information systems is the
production of appropriate information products
for end users
– Examples are messages, reports, forms and
graphic images which may be provided by
video displays, audio responses, paper
products, and multimedia
Information System Activities

Information Quality
– Information that is outdated, inaccurate, or hard
to understand is not meaningful, useful, or
valuable to end users
– Information products should have
characteristics, attributes, and qualities that
make the information more valuable to the end
users
– Information has three dimensions of time, form,
and content
Information System Activities

Information Quality continued..
Information System Activities

Storage of Data
Resources
– Data and information
are retained in an
organized manner for
later use
– Stored data is
commonly organized
into fields, records,
files, and databases
Name
Field
Payroll
Record
Payroll
File
Personnel
Database
Information System Activities

Control of System Performance
– An IS should produce feedback about its input,
processing, output, and usage activities
– This feedback must be monitored and evaluated to
determine if the system is meeting performance
standards
– Activities must be adjusted so that proper information
products are produced for end users
Roles of IS in Business
Support of
Strategic
Advantage
Support of
Business
Decision Making
Support of
Business Processes and Operations
History of Information Systems
1950-1960
1960-1970
Data
Processing
Management
Reporting
Electronic
Data
Processing
- TPS
Management
Information
Systems
1970-1980
Decision
Support
Decision
Support
Systems
- Ad hoc
Reports
1980-1990
1990-2000
Strategic &
End User
Electronic
Commerce
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
The E-Business Enterprise

E-Business
– The use of Internet technologies to internetwork and empower business processes,
electronic commerce, and enterprise
communication and collaboration within a
company and with its customers, suppliers, and
other business stakeholders.
The E-Business Enterprise

E-Business enterprises rely on information
technologies such as the Internet to:
– Reengineer and revitalize internal business
processes
– Implement electronic commerce systems
among businesses and their customers and
suppliers
– Promote enterprise collaboration among
business teams and workgroup
The E-Business Enterprise

Enterprise collaboration systems
– Involve the use of groupware tools to support
communication, coordination, and collaboration
among members of networked teams and
workgroups

Electronic Commerce
– The buying and selling, marketing and
servicing of products, services and information
over a variety of computer networks
The E-Business Enterprise

Types of networks
– The Internet
– Intranets – the network existing inside an
enterprise
– Extranets – networks existing between
enterprises
The Inter-networked Business
Extranets
The Internet
Suppliers and Other Business Partners
Company
Boundary
Procurement, Distribution, and Logistics
Engineering &
Research
Manufacturing
and
Production
Accounting,
Finance, and
Management
Intranets
Advertising
Sales
Customer Service
Extranets
Consumer and Business
Customers
Types of Information Systems
Information Systems
Operations
Management
Support
Support
Systems
Systems
Transaction
Process
Enterprise
Management
Decision
Executive
Processing
Control
Collaboration
Information
Support
Information
Systems
Systems
Systems
Systems
Systems
Systems
Operations Support Systems


Role is to efficiently process business transactions,
control industrial processes, support enterprise
communications and collaboration, and update
corporate databases
Examples
– Transaction Processing Systems – record and
process data from business transactions in one
of two ways – batch process and real-time
process
– Process Control Systems – monitor and
control physical processes such petroleum
refining
– Enterprise Collaboration Systems – enhance
team and workgroup communications and
productivity
Management Support Systems


Focus on providing information and support for
effective decision making by management
Examples
– Management Information Systems – provide
information in forms of reports and displays to
managers and other professionals
– Decision Support Systems – giver direct
computer support during the decision making
process
– Executive Information Systems – provide
critical information from a wide variety of
internal and external sources in an easy to use
displays
Other Classifications

Expert Systems – provide export advice for
operational chores like equipment diagnostics

Knowledge Management Systems – support the
creation, organization, and distribution of business
knowledge to employees and managers

Functional Information Systems – focus on
operational and managerial applications in support
of basic business functions such as accounting

Strategic Information Systems – apply
information technology to a firm’s products,
services, or business practices to gain a
competitive advantage
Developing Information Systems

Development Cycle
Managerial Challenges of IT

Information systems and their technologies must
be managed to support the business strategies,
business processes, and organizational structures
and culture of an enterprise to increase its
customer and business value.
Managerial Challenges of IT
•IS Human Resources
•IS Development
•Business Strategies
•Business Processes
•Business Needs
•IT Infrastructure
•IS Performance
•Customer Relationships
•Business Partners
•Suppliers
•Business Customers
•Organization Structure
•and Culture
•User Acceptance
Ethical Considerations
Potential Risks?
Potential Laws?
Possible Responses?
Ethics and IT

Ethical Responsibilities
– What use of IT may be considered improper,
irresponsible, or harmful to other individuals or
society?
– How to protect yourself from computer crime?
– Use of Internet in the business environment?
The IS Function

A major functional area of business that is as
important to business success as the functions of
accounting, finance, operations management,
marketing, and human resource management

An important contributor to operational efficiency,
employee productivity and morale, and customer
service and satisfaction

A major source of information and support needed
to promote effective decision making by managers
and business professionals
The IS Function



A vital ingredient in developing competitive
products and services that give an
organization a strategic advantage in the
global marketplace
A dynamic, rewarding, and challenging
career opportunity for millions of men and
women
A key component of the resources,
infrastructure, and capabilities of today’s ebusiness enterprises
‫أنواع القرارات‬

Unstructured Decisions
– Non-routine decisions; there is no agreed-upon
procedure for making these decisions.

Structured Decisions
– Decisions that are routine, repetitive, and have a
definite procedure for handling them.

Semi-Structured Decisions
– Decisions where only part of the problem has a
clear-cut answer provided by an accepted
procedure.
‫أنواع نظم المعلومات‬







Transaction Processing Systems (TPS)
‫نظم معلومات تشغيل العمليات‬
Knowledge Work Systems (KWS)
‫نظم المعرفة‬
Office Automation Systems (OAS)
‫نظم ميكنة المكتب‬
Management Information Systems (MIS)
‫نظم المعلومات اإلدارية‬
Decision Support Systems (DSS)
‫نظم دعم اتخاذ القرار‬
Executive Support Systems (ESS)
‫نظم دعم المستوى التنفيذي‬
Expert Systems (ES)
– Replicates decision making process
‫النظم الخبيرة‬







Types of Information Systems
‫مستويات عملية اتخاذ القرار‬

Strategic Decision Making
– Determines the long-term objectives, resources, and
policies of an organization.

Decision Making for Management Control
– Concerned with how efficiently or effectively resources
are utilized and how well operational units are
performing.

Knowledge-Level Decision Making
– Evaluates new ideas for products, services, ways to
communicate new knowledge, and ways to distribute
information throughout the organization.

Decision Making for Operational Control
– Decides how to carry out the specific tasks set forth by
strategic and middle management and establishes
criteria for completion and resource allocation.
‫نظم معلومات تشغيل العمليات‬
Transaction Processing Systems

Operational level

Inputs: Transactions, Events

Processing: Updating

Outputs: Detailed reports

Users: Operations personnel

Example: Accounts payable, Payroll
‫نظم المعرفة‬
Knowledge Systems

Knowledge level
Inputs: Design specs

Processing: Modeling

Outputs: Designs, Graphics

Users: Technical staff (knowledge workers)

Example: Engineering workstation

‫نظم ميكنة المكتب‬
Office Automation Systems

Toward a “paperless” office

Redesign of work flow

Integrated software

Ergonomic design

Bright, cheerful work space

Users: data (clerical) workers

Example: document imaging system
‫نظم المعلومات اإلدارية‬
Management Information Systems
Management level
Supports structured & semi-structured
decisions.
Inputs: high volume data (e.g. from TPS)
Processing: simple models
Outputs: summary reports
Users: middle managers
Example: annual budgeting







‫نظم دعم اتخاذ القرار‬
Decision Support Systems
Management level
Supports semi-structured, unique, rapidly
changing, not easily specified decisions.
Inputs: Data from various sources (e.g., MIS,
TPS, KWS)
Processing: Interactive
Outputs: Decision analysis
Users: Professionals, staff
Example: Contract Cost Analysis







‫نظم دعم المستوى التنفيذي‬
Executive Support Systems
Strategic level
 Supports unstructured decisions.
 Inputs: Aggregate data (external, MIS, DSS)
 Processing: Interactive
 Outputs: Projections
 Users: Senior managers
 Example:
5 Year operating plan

‫العالقة بين نظم المعلومات المختلفة‬
ESS
MIS
KWS/
OAS
DSS
TPS
TPS is a major producer of information for other systems
‫التكامل بين كل من نظم تشغيل العمليات‬
‫ونظم المعلومات اإلدارية ونظم دعم اتخاذ القرار‬

In many organizations they are integrated
through a common database

Separation of DSS transactions in the
database from TPS and MIS transactions
may be important for performance reasons
‫مراحل عملية اتخاذ القرار‬

Intelligence
– Collects information to identify problems occurring in
the organization.

Design
– Designs possible alternative solutions to a problem.

Choice
– Selects among the various solution alternatives

Implementation
– Puts the decision into effect and reports on the progress
of the solution.
The Decision Making Process
Information Requirement and IS
Stage of Decision Making
Information Requirement Example IS
Intelligence
Exception reporting
MIS
Design
Simulation prototype
DSS, KWS
Choice
“What-if” simulation
DSS;
large models
Implementation
Graphics, charts
PC and
mainframe
decision aids
‫مهام نظم دعم اتخاذ القرار‬

Assist management decision making by
combining data, sophisticated analytical
tools and user friendly S/W into a single
powerful system.

Focus on a specific decision or classes of
decisions (e.g. evaluating, predicting),
whereas MIS focus on routine, general
control of the organization.
‫أنواع نظم دعم اتخاذ القرار‬

Model-Driven DSS (early DSS, 70s, 80s~)
– Stand-alone system based on a strong
theory/model to perform “what-if” and other
kinds of analysis.

Data-Driven DSS
– Allow users to extract and analyze useful info
buried in large databases.
– Data mining: Technology for finding hidden
patterns and relationships in large databases and
inferring rules from them to predict future
behavior; it provides insights into corporate data.
‫بعض األمثلة لنظم دعم اتخاذ القرار‬

Geographic Information Systems (GIS)
– A special DSS with S/W that can analyze and display data
for planning and decision making using digitized maps.
– Assemble, store and display geographically referenced info,
tying data to points, lines, and areas on a map.
– Can be used to calculate emergency response times to
natural disasters; help banks identify the best locations for
installing ATM terminals.
)2( ‫بعض األمثلة لنظم دعم اتخاذ القرار‬

Customer Decision Support System (CDSS)
– Recently being developed based on the Web.
– System to support the decision-making process
of an existing or potential customers.
– Developed to attract customers by providing
information and tools to assist their decision
making as they select products and services.
‫قدرات نظم دعم اتخاذ القرار‬

Supports
– Problem solving phases
– Different decision frequencies
Merge with
another
company?
How many
widgets
should I order?
low
high
Frequency
)2( ‫قدرات نظم دعم اتخاذ القرار‬

Highly structured problems
– Straightforward problems, requiring known
facts and relationships.

Semi-structured or unstructured problems
– Complex problems wherein relationships
among data are not always clear, the data may
be in a variety of formats, and are often difficult
to manipulate or obtain.
‫خصائص نظم دعم اتخاذ القرار‬

Handles large amounts of data from different
sources

Provides report and presentation flexibility

Offers both textual and graphical orientation

Supports drill down analysis

Performs complex, sophisticated analysis and
comparisons using advanced software packages

Supports optimization, satisfying, and heuristic
approaches
)2( ‫خصائص نظم دعم اتخاذ القرار‬

Performs different types of analysis
– “What-if” analysis
• Makes hypothetical changes to problem and observes impact
on the results
– Simulation
• Duplicates features of a real system
– Goal-seeking analysis
• Determines problem data required for a given result
Solution Types

Optimization model
– Finding the best solution.

Satisfying model
– Finding a good - but not necessarily the best solution to a problem.

Heuristics
– Commonly accepted guidelines or procedures
that usually find a good solution.
Problem Solving Factors


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



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Multiple decision objectives
Increased alternatives
Increased competition
The need for creativity
Social and political actions
International aspects
Technology
Time compression
Goal Seeking Example

You know the desired result

You want to know the required input(s)

Example:
– Microsoft Excel’s “Goal Seek” and “Solver”
functions
Excel
demo
‫نظم دعم اتخاذ القرار على اإلنترنت‬

Web-based decision support systems
– DSS SW provides business intelligence through
web browser clients that access databases either
through the Internet or a corporate intranet.
‫مكونات نظم دعم اتخاذ القرار‬

Model Management Software (MMS)
– Coordinates the use of models in the DSS.

Model Base
– Provides decision makers with access to a variety of
models.

Dialogue Manager
– Allows decision makers to easily access and
manipulate the DSS.
Database
Model Base
DBMS
Access to the
Internet, Networks,
and other Computer
Systems
MMS
External Database
Access
Dialogue Manager
External
Databases
Model Base

Model Base
– Provides decision makers with access to a
variety of models and assists them in decision
making.

Models
– Financial models
– Statistical Analysis models
– Graphical models
– Project Management models
Advantages and Disadvantages
of Modeling
– Advantages
• Less expensive than custom approaches or real
systems.
• Faster to construct than real systems.
• Less risky than real systems.
• Provides learning experience (trial and error).
• Future projections are possible.
• Can test assumptions.
– Disadvantages
• Assumptions about reality may be incorrect.
• Accuracy of predications often unreliable.
• Requires abstract thinking.
Group Decision Support System

Group Decision Support System (GDSS)
– Contains most of the elements of DSS plus
software to provide effective support in group
decision-making settings.
Databases
Model base
GDSS processor
GDSS software
Access to the internet
and corporate intranet,
networks, and other
computer system
Dialogue
manager
External database
access
Users
External
databases
Executive Support System (ESS)

Characteristics
– A specialized DSS that
Board of directors
includes all the hardware,
software, data, procedures,
President
and people used to assist
senior-level executives within
Function area
vice presidents
the organization.
Function area
managers
Characteristics of ESSs

Tailored to individual executives

Easy to use

Drill down capabilities

Support the need for external data

Help with situations with high degree of
uncertainty

Futures orientation (predictions, forecasting)

Linked with value-added business processes
Capabilities of an ESS

Support for :– Defining overall vision
– Strategic planning
– Strategic organizing and staffing
– Strategic control
– Crisis management
Constructing, Implementing,
and Evaluating
a Decision Support System

DSS Development

DSS Implementation

DSS Evaluation

Planning for DSS
– BSP approaches
– CSF approaches

Developing a specific DSS
Step 1. Decide on development methodology
Step 2. Requirements analysis
Step 3. Logical design
Step 4. Construction
Step 5. Implementation
Make versus Buy

Alternatives
– Buy shrink-wrapped
– Customize a shrink-wrapped
– Build from specialized tools / generators
– Build “from scratch”
Step 1. DSS Development Approaches

SDLC

Evolutionary prototyping

Throwaway prototyping

End user development

Strengths and weaknesses
The System Development Life Cycle
(SDLC) Approach & DSS

Inappropriate for most DSS.

Users and Managers may not understand
their information and modeling needs.

Use in conjunction with Throwaway
prototyping.
Prototyping

Process of building a "quick and dirty"
version of an Information System
– Evolutionary Prototyping
Evolutionary Steps
1.Identify user's information and operating
requirements in a "quick and dirty" manner.
2.Develop a working prototype that performs
only the most important function
3.Test and evaluate (By User and Builder).
4.Redefine information needs and improve
the system.
The Primary Features of Prototyping
1.Learning is explicitly integrated into the
design process
2.Short intervals between iterations
3.User involvement is very important (Joint
Application Development (JAD) method)
4.Initial prototype must be low cost
5.Prototyping essentially bypasses the lifecycle stage of information requirements
definition
Advantages of Prototyping

Short development time

Short user reaction time (feedback from
user)

Improved users' understanding of the
system, its information needs, and its
capabilities.

Low cost
Disadvantages and Limitations
– Gains might be lost through cycles
User-Developed DSS advantages
End-user development means the development
and use of computer-based information
systems by people outside the formal IS areas.
1. Short delivery time
2. Eliminate extensive and formal user
requirements specifications
3. Reduce some DSS implementation
problems
4. Low cost
User-Developed DSS Risks
1. Poor Quality
2. Quality Risks
–
Substandard or inappropriate tools and facilities
–
Development process risks
–
Data management risks
3. Increased Security Risks
4. Problems from Lack of Documentation
5. Problems from Maintenance Procedures
Issues in reducing
End-User Computing Risks

Error detection

Use of auditing techniques

Training and Support

Determine the proper amount of controls

Investigate the reasons for the errors

Solutions
Step 2. Requirements Analysis


Goal: To understand how DM conceptualizes,
analyses, and communicates problems.
Direct methods
– Interviews, group meetings, JAD

Indirect methods
– Observation, temporary job assignments,
questionnaires, document review, software review

Addressing compiled knowledge
– Protocol analysis
– Card sorting, multidimensional scaling
Categorization of DSS Software

Specific DSS
• The application doing the decision support.

DSS generator
• “Package” that provides capabilities to build Specific
DSS
– special purpose languages, such as IFPS

DSS tools
• tools that facilitate development of a specific DSS or
DSS generator
• 3 GLs – 4GLs

Now all with Web Hooks and easy GUI interfaces
Selection of DSS Development Tools

Determine & contact key participants

Elicit requirements / functionality

Compose requirements into a RFP

Distribute RFPs to potential vendors

Collect and summarize RFP data

Select RFP short list

Set short list interviews and demos; references

Select Vendor

Negotiate contract
Complexity
of the Software Selection Process
1.DSS information requirement and outputs
are not completely known
2.Hundreds of software packages
3.Software packages evolve very rapidly
4.Frequent price changes
5.Several people involved
6.One language for several DSS? Tool
requirements may change
7.Dozens of criteria, some intangible, some
conflict
8.Technical, functional, end-user, and
managerial issues
9.Published evaluations are subjective and
superficial
10.Trade off between open and closed
environments
Step 5. Implementation as Change

From development to production
–
–
–
–
–
–

technology acquisition
port to production platform
database conversion
system conversion strategy
user access, training, & ongoing support
documentation & maintenance
From implementation to institutionalization
– existence does not guarantee use
– use does not guarantee success
Implementation CSFs

User involvement

Management commitment

Design quality

Performance level

Project management

System institutionalization
Evaluating DSS Success
• Technical quality
–
–
–
–
Response time
Throughput
Reliability
Data integrity
• Requirements
coverage
– Does what it’s
supposed to do
• Use & usability
–
–
–
–
Number of users
Frequency of use
User-friendliness
Accessibility
• Economic benefits
– Cost of decision
– Benefits of improved
decision-making
• the problems of measurement and quantification
Benefits of DSS Usage
• More effective decision making
– faster assimilation of information and/or
identification of problems
– exploration of more alternatives
– visual comparison of alternative
consequences/outcomes
– environment of collaboration
• More efficient decision making
– reduce the length of the decision cycle
– reduce the cost of the decision
Benefits of DSS Usage (2)

Better communication & collaboration
among decision makers
– shared information and shared model
– implicit assumptions made explicit

Improved learning process for users
– offset cognitive limitations of decision makers;
focus on higher-level thinking
– provide environment for utilizing knowledge
– provide environment for acquiring experience
Drawbacks to DSS Usage

overemphasize on (rational) decision
making
– versus social, intuitive, and personalized
approaches to reaching resolution

assumption of relevance
– DSS must address most relevant aspects of
decision-making
Drawbacks to DSS Usage

Unintended transfer of power
– from decision-maker to DSS
– between decision makers

Obscuring responsibility
– DSS as independent entity that must be “right”
– tendency to trust DSS and its designers
E-Business Decision Support
Decisions in the E-Business
Decision Characteristics
Unstructured
Strategic
Management
Semi-structured
Tactical
Management
Structured
Operational
Management
MIS Reports
Periodic Scheduled
Reports
Exception Reports
Demand Reports
Major
and Responses
Management
Information
Systems Reports
Push Reports
Online Analytical Processing
Data is retrieved from corporate databases
and staged in an OLAP multi-dimensional
database
Corporate
Databases
Client PC
OLAP
Server
Web-enabled OLAP
Software
Multi•Operational DB
dimensional •Data Marts
database •Data Warehouse
Decision Support Systems
What If-Analysis
Sensitivity Analysis
Important
Goal-Seeking Analysis
Decision
Support
Systems
Optimization Analysis
Analytical Models
Enterprise Information Portals & DSS
Internet
Extranet
Intranet
Enterprise Information Portal Gateway
Enterprise Information Portal User Interface
Search
Agents
OLAP
Data
Mining
DSS
What-If Models
Sensitivity Models
Goal-Seeking Models
Optimization Models
Knowledge
Management
Database Management Functions
Data
Mart
Operational
Database
Other
Business
Applications
Analytical
Database
Knowledge
Base
Artificial Intelligence Applications
Artificial
Intelligence
Cognitive
Science
Applications
•Expert Systems
•Fuzzy Logic
•Genetic Algorithms
•Neural Networks
Robotics
Applications
Natural
Interface
Applications
•Visual Perceptions
•Locomotion
•Navigation
•Tactility
•Natural Language
•Speech Recognition
•Multisensory Interface
•Virtual Reality
AI Application Areas in Business
Neural Networks
Fuzzy Logic Systems
Genetic Algorithms
Virtual Reality
AI Application
Areas in
Business
Intelligent Agents
Expert Systems
Components of Expert Systems
The Expert System
Expert
Advice
User
User
Interface
Programs
Inference
Engine
Program
Knowledge
Base
Workstation
Expert System Development
Knowledge
Engineering
Knowledge
Acquisition
Program
Workstation
Expert and/or
Knowledge Engineer
Expert System Applications
Decision Management
Diagnostic/Troubleshooting
Maintenance/Scheduling
Design/Configuration
Major
Application
Categories
of Expert Systems
Selection/Classification
Process Monitoring/Control
Summary

DSS in business are changing. The growth of
corporate intranets, extranets, and other web
technologies have increased the demand for a
variety of personalized, proactive, web-enabled
analytical techniques to support DSS.

Information systems must support a variety of
management decision-making levels and
decisions. These include the three levels of
management activity: strategic, tactical, and
operational.
Summary (cont)

Online analytical processing is used to analyze
complex relationships among large amounts of
data stored in multidimensional databases. Data
mining analyzes large stores of historical data
contained in data warehouses.

Decision support systems are interactive
computer-based information systems that use DSS
software and a model base to provide information
to support semi-structured and unstructured
decision making.
Summary (cont)

The major application domains in artificial
intelligence include a variety of applications
in cognitive sciences, robotics, and natural
interfaces.

Major AI application areas include:
–
–
–
–
–
Neural Networks
Fuzzy Logic
Genetic Algorithms
Virtual Reality
Intelligent Agents
References

Efraim Turban & Jay E. Aronson
“ Decision Support Systems and Intelligent
Systems “
Prentice Hall, Upper Saddle River, NJ (1998)