DSS Concepts

8/3/2019 DSS Concepts

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Basic Concepts of Decision

Support Systems


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DecisionSupportSystems

Is it morningor evening?


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Concepts from: A Framework forManagement Information Systems

byG. Anthony Gorry and Michael S. Scott

MortonSloan Management Review, 1971

Credited with coining the termdecision support system

The most cited article ever

published in Sloan ManagementReview


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Stages of Decision Making

(From Herbert Simon) Intelligence (in the military sense of gathering

information)

Design (Identifying the alternatives,structuring how the decision will be made) Choice (Picking an alternative or making the

judgment)

[Implementation

later added by otherauthors] [Evaluation]


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Structured vs UnstructuredDecision Stages

Each stage can be Structured (automated) orUnstructured

Structured means that there is an algorithm,

mathematical formula, or decision rule toaccomplish the entire stage. The algorithm canbe implemented manually or it can becomputerized, but the steps are so detailed thatno little or no human judgment would beneeded.

Any decision stage that is not structured isunstructured


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Structured, Semi-structured, andunstructured decisions

In a structured decision all three stagesare structured

In a non-structured decision all threestages are unstructured

A semi-structured decision is one in whichpart, but not all, of the decision isstructured.


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Key point:

The realm of Decision Support Systemsis Semi-Structured and unstructuredDecisionsthe type of decisions that

can benefit from decision support butthe human decision maker is stillinvolved.


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GSMs Framework

Managerial Activity (Anthony)

Decisiontype(Simon

Operationalcontrol

Manage-ment

control

Strategicplanning

Structured

Semi-structured

Unstructured


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Some Organizing Frameworks

and Examples of DSS


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Alter (1977, 1980)

Category Example Features Capability focuses on

File Drawer Equipment monitoring Simple query and reporting Looking up data

Data Analysis Budget analysis,variance monitoring

Many data warehouse apps. Looking up data and having itaggregated in some useful way

Analysis info. Sys. Sales forecastingbased on marketingdata

DB + small models Mathematical model (e.g.,regression)

Accounting andfinancial

Estimating effect ofdecisions on financial

statements

What if Letting you change inputs to seethe effect on outputs

Representationalmodels

Risk analysis,production planning

simulations Decision maker providingassumptions to system, systemgenerating a distribution of inputs,then generating a distribution ofoutputs

Optimization models Truck route planning,material usage

Algorithms generate optimalsolutions subject to constraints

Decision maker suppliesassumptions and systemgenerates best outcome

Suggestion models Credit scoring Structured processing steps DSS makes recommendation, butdecision maker has final say


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Text oriented DSS

DB-orientedSpreadsheet orientedSolver orientedRule oriented

Holsapple and Whinston (1996)Five types of DSS


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Hackathorn and Keen (1981)

Personal DSS

Group DSS

Organizational DSS


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Specific problem/organizationversus

general DSS generator

Can yousay

VISICALC?


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General Categories of DSS (FromPower, Chapter 1)

Data driven

Model driven

Knowledge driven Document driven

Communications driven and group DSS

Function specific or general DSS Web Based

}I squeezed

Alter to these3!


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DSS categorized by type of task(Jones)

Choice (pick one of several alternatives) Judgment (assessment or prediction) Ranking

More complex problem (has multiple, ofteninterrelated, parts) Diagnosis or scientific discovery (hypothesis

generation and testing) Pattern identification, sense-making Your fave?


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Source Power, Page 17, Figure 1.1

ExternalData

InternalData

DatabaseComponent

User Interface

Component

ModelComponent

CommunicationsComponent

Users

The Components of DSS


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DSS Classification Viewed fromthree Directions

Decision

Task Technology

DecisionMaker(s)

Documents

DSS Concepts