Reasons for the growth of decision- making information systems
People need to People must make People must techniques, such as
modeling and forecasting, to make good decisions People must the
corporate asset of organizational information
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Transaction Processing Systems C regarding business
transactions/activities. That data is stored in a database and then
mined/analyzed using one or more decision making techniques
Transactional Data being captured D and Inventory of the system
Items being and. Payments Uses : captures data at the point of
origin
Slide 4
The Organizational Pyramid and Information Needs As you move
from lower to upper levels in an organization, information needs
move from in nature to. Analytical information supports. Info also
becomes and more
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Different Decision Types Programmed Decisions (structured
decision) S relationships Quantifiable. Very easy to automate
(program) these types of decisions. Nonprogrammed Decisions
(nonstructured decision) Ill-structured situations with between
variables Not easily quantifiable in advance. No agreed-on decision
making method. There may be (although some answers could be better
than other answers).
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Most decisions that you make structured and nonstructured
(containing elements of both). Various forms of decision support
tend to be used when dealing with nonstructured aspects of a
decision. (DSS helps you) With artificial intelligence, the
decision making expertise is so that the AI system
Slide 7
Problem Solving Approaches Used by Computer-Aided Decision
Making Systems O: find the very best solution given the constraints
provided (aka the) S: find a, one that of your decision, without
necessarily being the best solution.
Slide 8
DECISION SUPPORT SYSTEM (DSS) Highly flexible and interactive
IT system that is designed to support decision making when the
problem is ( i.e. Nonprogrammed decision). are a common form of
decision support system (DSS)
Slide 9
Alliance between You and a DSS Decision support systems help
you, but you must know how to, and how to use the results of the
analysis A DSS in making a decision, as opposed to making the
decision for you. Power of a DSS is its ability to analyze
information and its ease of use.
Slide 10
QUANTITATIVE MODELS OFTEN USED BY A DSS Three quantitative ()
models often used by DSSs include: 1.S the study of the impact that
changes in one (or more) parts of the model have on other parts of
the model 2.W analysis checks the impact of a change in an
assumption on the proposed solution 3.G analysis finds the inputs
necessary to achieve a goal such as a desired level of output
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DSS Quantitative Model: What-if analysis: change and see what
on the model
Slide 12
DSS Quantitative Model: Goal-seeking analysis what must occur
in order to achieve the ?
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A DSS Can Help With Analysis Tasks Like Deciding where to spend
advertising dollars Analyzing sales trend information Analyzing
drug interactions Developing airline schedules Pricing products
Allocating limited investment dollars among several potential
projects. Budget setting.Inventory control. Cash flow forecasting.
Processing rules are. Human required.
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Applied Uses of a DSS
Slide 15
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YSYSTEMS are a form of DSS used by airlines to alter the price
of seats on available flights on a minute by minute basis,
comparing the number of seats sold to an estimate of what was
expected. If fewer seats have sold, more low-cost seats are made
available. If more seats have sold, less low-cost seats are made
available. Objective: have the
Slide 17
Airlines are using optimization software to save money on the
costs associated with each flight by reducing the number of miles
traveled, fuel used and/or overflight fees paid, with the system
also taking weather and wind speed & direction into
account.
Slide 18
GEOSPATIAL INFORMATION SYSTEMS (GIS) A Geospatial Information
System (GIS) is a specialized decision support system designed
specifically to Spatial information is that can be shown in, such
as roads, population distribution characteristics, sewer systems
and other utilities, income levels, health conditions, areas of
high or low crime, etc. The strength of a GIS is the ability to
with a mouse click.
Slide 19
ArcExplorer 2: showing features in San Diego (can find out more
info about an attraction by placing your mouse over it) Pg. 213:
Haag GIS used in the space shuttle Challenger investigation GIS
used in tree maintenance in Chattanooga GIS used in the 2001
Virginia highway sniper investigation. Pg. 188: Analyzing hurricane
destruction in Florida.
Slide 20
Businesses use GIS software to information,, and make
decisions. Can layer in info with a mouse click Marketing
applications
Slide 21
Westar Outage MapWestar Outage Map
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EXECUTIVE INFORMATION SYSTEMS Executive information system
(EIS) specialized DSSs designed for use by in order to make Most
EISs offering the following capabilities: Consolidation involves
the and features simple roll-ups to complex groupings of
interrelated information Drill-down enables users to get, and, of
information Slice-and-dice looks at information from
Slide 23
Digital Dashboards Digital dashboard from multiple components
and presents it in a unified display
