Systems What is Business Intelligence? Business Intelligence is the processes, technologies, and tools that help us change data into information, information into knowledge and knowledge into plans that guide organization
Technologies for gathering, storing, analyzing and providing access to data to help enterprise users make better business Decisions What is Business Intelligence? (Contd.) It provide to access data for professionals and help them make better business decisions. The ability of depth analysis and data mining of detailed business data to provide real and significant information to users. The software allows users to access and review large amounts of complex data What is Business Intelligence? (Contd.) Business intelligence is complicated yet helpful applications. It include the ability to effectively act the exploitation of information and human resources. In this Business Intelligence environment one also needs to analyze and present right information, which enables them to take right action, or make right decisions.
Major Branches of AI (1) Perceptive system A system that approximates the way a human sees, hears, and feels objects Vision system Capture, store, and manipulate visual images and pictures Robotics Mechanical and computer devices that perform tedious tasks with high precision Expert system Stores knowledge and makes inferences Major Branches of AI (2) Learning system Computer changes how it functions or reacts to situations based on feedback Natural language processing Computers understand and react to statements and commands made in a natural language, such as English Neural network Computer system that can act like or simulate the functioning of the human brain Schematic Artificial intelligence Robotics Vision systems Learning systems Natural language processing Neural networks Expert systems
Artificial Intelligence (1) The branch of computer science concerned with making computers behave like humans. The term was coined in 1956 by John McCarthy at the Massachusetts Institute of Technology. Artificial intelligence includes games playing: programming computers to play games such as chess and checkers expert systems : programming computers to make decisions in real-life situations (for example, some expert systems help doctors diagnose diseases based on symptoms) natural language : programming computers to understand natural human languages Artificial Intelligence (2) neural networks : Systems that simulate intelligence by attempting to reproduce the types of physical connections that occur in animal brains robotics : programming computers to see and hear and react to other sensory stimuli
Currently, no computers exhibit full artificial intelligence (that is, are able to simulate human behavior). The greatest advances have occurred in the field of games playing. The best computer chess programs are now capable of beating humans. In May, 1997, an IBM super-computer called Deep Blue defeated world chess champion Artificial Intelligence (3) Gary Kasparov in a chess match.
In the area of robotics, computers are now widely used in assembly plants, but they are capable only of very limited tasks. Robots have great difficulty identifying objects based on appearance or feel, and they still move and handle objects clumsily.
Natural-language processing offers the greatest potential rewards because it would allow people to interact with computers without needing any specialized knowledge. You could simply walk up to a Artificial Intelligence (4) computer and talk to it. Unfortunately, programming computers to understand natural languages has proved to be more difficult than originally thought. Some rudimentary translation systems that translate from one human language to another are in existence, but they are not nearly as good as human translators. There are also voice recognition systems that can convert spoken sounds into written words, but they do not understand what they are writing; they simply take dictation. Even these systems are quite limited -- you must speak slowly and distinctly. Artificial Intelligence (5) In the early 1980s, expert systems were believed to represent the future of artificial intelligence and of computers in general. To date, however, they have not lived up to expectations. Many expert systems help human experts in such fields as medicine and engineering, but they are very expensive to produce and are helpful only in special situations.
Today, the hottest area of artificial intelligence is neural networks, which are proving successful in a number of disciplines such as voice recognition and natural-language processing. Artificial Intelligence (6) There are several programming languages that are known as AI languages because they are used almost exclusively for AI applications. The two most common are LISP and Prolog. Why BI?
What happened? What is happening? Why did it happen? What will happen? What do I want to happen? Past Present Future Why do we need BI? Business Intelligent implementation, businesses can make decisions and feel comfortable that they are provided with the proper tools and data needed to believe in their decisions.
Without correct BI solution even well planned and executed data warehouse architectures can fail.
BI is decision support system and database that can provide professional with the information they need to make the most effective decisions for their organization. Contd. It also provides data about the organizations details, such as customers , product, and services. When one action rapidly it take appropriate action or make the right decision business success is realized. Who uses Business Intelligence? BI having wide scope of data. Data can be demographic trends( info like personal details), product line profitability, fine tuning of pricing options, identifying of top customer and tracking product trends. Most organizations could benefit from Business intelligence software. It include restaurant chains, retails, or even professional sports teams. Contd. BI tool is not easily affordable therefore they are most commonly used in large corporations, rather than small business.
Business Intelligence tools provide significant value of considering benefit they will have to organization. The characteristics of a Business intelligence solution
Single point of access to information Timely answers to Business questions Using BI in all Departments of an organization
Early days system BI system Key Stages Benefits Improve Operational efficiency Eliminate report backlog and delays Find root causes and take action Negotiate better contracts with suppliers and customers Identify wasted resources and reduce inventory costs Sell information to customers, partners, and suppliers Leverage your investment in your ERP or data warehouse Improve strategies with better marketing analysis Give users the means to make better decisions Challenge assumptions with factual information
Limitations
Very high software cost. Expensive and time consuming training. A wide Variety of technology experts. Extensive system upgrade and maintenance. Movement of data between disparate data source. Queries done out of BI systems can be cumbersome and time-consuming to run for end users
Decision Support Systems Introduction Decision makers are faced with increasingly stressful environments highly competitive, fast-paced, near real-time, overloaded with information, data distributed throughout the enterprise, and multinational in scope. The combination of the Internet enabling speed and access, and the maturation of artificial intelligence techniques, has led to sophisticated aids to support decision making under these risky and uncertain conditions. These aids have the potential to improve decision making by suggesting solutions that are better than those made by the human alone. They are increasingly available in diverse fields from medical diagnosis to traffic control to engineering applications.
Decision Support System A Decision Support System (DSS) is an interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions. Decision Support System is a general term for any computer application that enhances a person or groups ability to make decisions. Also, Decision Support Systems refers to an academic field of research that involves designing and studying Decision Support Systems in their context of use. A brief history Academic Researchers from many disciplines has been studying DSS for approximately 40 years. According to Keen and Scott Morton (1978), the concept of decision support has evolved from two main areas of research: the theoretical studies of organizational decision making done at the Carnegie Institute of Technology during the late 1950s and early 1960s, and the technical work on interactive computer systems, mainly carried out at the Massachusetts Institute of Technology in the 1960s. It is considered that the concept of DSS became an area of research of its own in the middle of the 1970s, before gaining in intensity during the 1980s. A brief history In the middle and late 1980s, Executive Information Systems (EIS), group decision support systems (GDSS), and organizational decision support systems (ODSS) evolved from the single user and model-oriented DSS. Beginning in about 1990, data warehousing and on-line analytical processing (OLAP) began broadening the realm of DSS. As the turn of the millennium approached, new Web-based analytical applications were introduced.
History of DSS Goal: Use best parts of IS, OR/MS, AI & cognitive science to support more effective decision Why DSS? Increasing complexity of decisions Technology Information: Data, data everywhere, and not the time to think! Number and complexity of options Pace of change Increasing availability of computerized support Inexpensive high-powered computing Better software More efficient software development process Increasing usability of computers Perceived benefits
decision quality improved communication cost reduction increased productivity time savings improved customer and employee satisfaction
Spreadsheet-based decision support systems A DSS is made up of a model (or models), a source of data, and a user interface. When a model is implemented in Excel, it is possible to use Visual Basic for Applications (VBA) to make the system more efficient by automating interactive tasks that users would otherwise have to repeat routinely. VBA can also make the system more powerful by extending the functionality of a spreadsheet model and by customizing its use. A Hypothetical Decision Making Example A third world country is going to build a railway system to connect a potential inland industrial area and a good agricultural area with a port. An international development agency recommended that the iron in the area should be mined and refined locally and melt using industries which has to be established. The refined iron is possibly exported to Germany and Japan for car industry. For success of project it requires supply of skilled labor. To overcome this problem a training center has to be established to train workers by the time plant gets ready. The development agency also recommends the fertile land in the area should be prepared for intensive farming to provide food for the consumption of the people working in the industry. The railway should link the industrial area, farm and port. Issues dealt with Is the route optimum? Are all likely users connected? What are the possible routes? Growth of traffic: To what extent does development of railway depends on development of port, new town, airport, industrial area and agricultural area? Competition: To what extent would development of an improved road would eliminate the need for railway? Engineering problems: How much electricity is needed for electrical train? Supply problem: Where will supply of equipment and constructors sought from? Operational problem: With inadequate supply of local skilled workers where will operating team be obtained from? Will foreign operating contactors be used? Time Scale: When to start the project and when it will be finished? Cost: What will the total cost of project be? Infrastructure: Will services available include: telephone, fire, water, radio communication, hospitals, hotels and housing? Essential steps in the process of making a decision Step 1 Concept of Project is Identified Project assessment. Taking account of all issues involved Operation Starts Project Goes to Detail Specification For Tender Tender Accepted. Construction Starts Step 2 Step 3 Step 4 Step 5 Decision To Proceed Decision To Abandon Decision To Proceed Decision To Abandon Decision To Proceed Decision To Abandon Decision To Proceed Decision To Abandon Decision To Proceed Decision To Abandon Step 1 The conceptual need for a project arise mainly as a result of an basement of future requirements. It may be made by a team of experts. Typically a conceptual study will identify the technical solution required, the economic merits, and acceptability of project in socio political terms. It may require discussion with financial institutions wither or not they will provide necessary funds. Step 2 Assuming the decision has been made to develop the project further then a detailed assessment will have to be made of all technical, economic and socio-political factors. The details may be quantitative and based on subjective knowledge. A major decision making is about novelty of project. A project may technically be novel ( making a new airplane ). The project may employ an established technology in novel environment ( using electrical train in third world country). In this step the degree of uncertainty associated with each factor will begin to emerge. An understanding of uncertainty associated with any proposal is essential for a feasible decision making. Step 3 If the outcome of step 2 is to proceed the project, then a tender specification has to be prepared. It should define, exactly what work the tender is required to do. Ideally it has to define every thing that has to be done. The magnitude of uncertainty associated with this stage is a reason for possible variations in cost and duration of projects. Before a tender specification is issued it is prudent to confirm that the project is acceptable to regulatory authorities and that the adequate finance is available. The financer need to be convinced that the project is viable, that the proposer is sound and has the experience and capability to derive the project to a successful conclusion. Step 4 ,5 Step 4 The first action is to decide if one of the tender should be accepted. The tenderer should have the appropriate experience, capability and adequate financial resources. Step 5 Assuming all steps completed satisfactorily, a decision has to be taken to start the project. Even if the project starts, it might have to be stopped if the environment it operates is changed.
Decision making characteristics Decision is made based on the information available. At each part of the assessment, there may have to be iterative development to take account improvement in data that take place as the project proceeds. A project will not go ahead unless there is adequate funding.
Management Management is decision making The manager is a decision maker Organizations are filled with decision makers at different level. Management is considered as art: a talent acquired over years by trial-and-error. However decision making today is becoming more complicated: Technology / Information/Computers : increasing More alternative to choose Structural Complexity / Competition : increasing larger cost of error International markets / Consumerism : increasing more uncertainty about future Changes, Fluctuations : increasing need for quick decision Management problems Most management problems for which decisions are sought can be represented by three standard elements objectives, decision variables, and constraints. Objective Maximize profit Provide earliest entry into market Minimize employee discomfort/turnover Decision variables Determine what price to use Determine length of time tests should be run on a new product/service Determine the responsibilities to assign to each worker Constraints Cant charge below cost Test enough to meet minimum safety regulations Ensure responsibilities are at most shared by two workers
Types of Problems Structured: situations where the procedures to follow when a decision is needed can be specified in advance Repetitive Standard solution methods exist Complete automation may be feasible Unstructured: decision situations where it is not possible to specify in advance most of the decision procedures to follow One-time No standard solutions Rely on judgment Automation is usually infeasible Semi-structured: decision procedures that can be pre specified, but not enough to lead to a definite recommended decision Some elements and/or phases of decision making process have repetitive elements
DSS most useful for repetitive aspects of semi-structured problems A Multidiscipline Study It is clear that DSS belong to an environment with multidisciplinary foundations, including (but not exclusively): Database research, Artificial intelligence, Human-computer interaction, Simulation methods, Software engineering, and Telecommunications. Approaches to the design and construction of DSS Studies on DSS development conducted during the last 15 years have identified more than 30 different approaches to the design and construction of decision support methods and systems. Interestingly enough, none of these approaches predominate and the various DSS development processes usually remain very distinct and project-specific. This situation can be interpreted as a sign that the field of DSS development should soon enter in its formalization stage.
Model-driven DSS A model-driven DSS emphasizes access to and manipulation of a statistical, financial, optimization, or simulation model. Model-driven DSS use data and parameters provided by users to assist decision makers in analyzing a situation; they are not necessarily data intensive. Dicodess is an example of an open source model-driven DSS generator (Gachet 2004). Other examples: A spread-sheet with formulas in
A statistical forecasting model
An optimum routing model
Data-driven (retrieving) DSS A data-driven DSS or data-oriented DSS emphasizes access to and manipulation of a time series of internal company data and, sometimes, external data. Simple file systems accessed by query and retrieval tools provides the elementary level of functionality. Data warehouses provide additional functionality. OLAP provides highest level of functionality. Examples: Accessing AMMIS data base for all maintenance Jan89-Jul94 for CH124
Accessing INTERPOL database for crimes by .
Accessing border patrol database for all incidents in Sector ...
Model and data-retrieving DSS Examples: Collect weather observations at all stations and forecast tomorrows weather
Collect data on all civilian casualties to predict casualties over the next month
Communication-driven DSS A communication-driven DSS use network and comminication technologies to faciliate collaboartion on decision making. It supports more than one person working on a shared task. examples include integrated tools like Microsoft's NetMeeting or Groove (Stanhope 2002), Vide conferencing. It is related to group decision support systems. Document-driven DSS A document-driven DSS uses storage and processing technologies to document retrieval and analysis. It manages, retrieves and manipulates unstructured information in a variety of electronic formats. Document database may include: Scanned documents, hypertext documents, images, sound and video. A search engine is a primary tool associated with document drivel DSS. Knowledge-driven DSS A knowledge-driven DSS provides specialized problem solving expertise stored as facts, rules, procedures, or in similar structures. It suggest or recommend actions to managers. MYCIN: A rule based reasoning program which help physicians diagnose blood disease. Architecture Three fundamental components of DSS: the database management system (DBMS), the model management system (MBMS), and the dialog generation and management system (DGMS). the Data Management Component stores information (which can be further subdivided into that derived from an organization's traditional data repositories, from external sources such as the Internet, or from the personal insights and experiences of individual users); the Model Management Component handles representations of events, facts, or situations (using various kinds of models, two examples being optimization models and goal-seeking models); and the User Interface Management Component is of course the component that allows a user to interact with the system. DSS Components A Detailed Architecture Even though different authors identify different components in a DSS, academics and practitioners have come up with a generalized architecture made of six distinct parts: the data management system, the model management system, the knowledge engine, The user interface, the DSS architecture and network, and the user(s) Typical Architecture TPS: transaction processing system MODEL: representation of a problem OLAP: on-line analytical processing USER INTERFACE: how user enters problem & receives answers DSS DATABASE: current data from applications or groups DATA MINING: technology for finding relationships in large data bases for prediction TPS EXTERNAL DATA DSS DATA BASE DSS SOFTWARE SYSTEM MODELS OLAP TOOLS DATA MINING TOOLS USER INTERFACE USER DSS Model base Model base A software component that consists of models used in computational and analytical routines that mathematically express relations among variables Examples: Linear programming models, Multiple regression forecasting models Capital budgeting present value models
Applications There are theoretical possibilities of building such systems in any knowledge domain. Clinical decision support system for medical diagnosis. a bank loan officer verifying the credit of a loan applicant an engineering firm that has bids on several projects and wants to know if they can be competitive with their costs. DSS is extensively used in business and management. Executive dashboards and other business performance software allow faster decision making, identification of negative trends, and better allocation of business resources. A growing area of DSS application, concepts, principles, and techniques is in agricultural production, marketing for sustainable development. A specific example concerns the Canadian National Railway system, which tests its equipment on a regular basis using a decision support system. A DSS can be designed to help make decisions on the stock market, or deciding which area or segment to market a product toward. Characteristics and Capabilities of DSS The key DSS characteristics and capabilities are as follows: 1. Support for decision makers in semistructured and unstructured problems. 2. Support managers at all levels. 3. Support individuals and groups. 4. Support for interdependent or sequential decisions. 5. Support intelligence, design, choice, and implementation. 6. Support variety of decision processes and styles. 7. DSS should be adaptable and flexible. 8. DSS should be interactive ease of use. 9. Effectiveness, but not efficiency. 10. Complete control by decision-makers. 11. Ease of development by end users. 12. Support modeling and analysis. 13. Data access. 14. Standalone, integration and Web-based DSS Characteristics (DSS In Action 1.5: Houston Minerals Case)
Initial risk analysis (management science) Model examination using experience, judgment, and intuition Initial model mathematically correct, but incomplete DSS provided very quick analysis DSS: flexible and responsive. Allows managerial intuition and judgment Information Systems to support decisions Management Information Systems Decision Support Systems Decision support provided Provide information about the performance of the organization Provide information and techniques to analyze specific problems Information form and frequency Periodic, exception, demand, and push reports and responses Interactive inquiries and responses Information format Prespecified, fixed format Ad hoc, flexible, and adaptable format Information processing methodology Information produced by extraction and manipulation of business data Information produced by analytical modeling of business data Definitions DBMS - System for storing and retrieving data and processing queries Data warehouse - Consolidated database, usually gathered from multiple primary sources, organized and optimized for reporting and analysis MIS - System to provide managers with summaries of decision-relevant information Expert system - computerized system that exhibits expert-like behavior in a given problem domain Decision aid - automated support to help users conform to some normative ideal of rational decision making DSS - provide automated support for any or all aspects of the decision making process EIS (Executive information system) - A kind of DSS specialized to the needs of top executives Management Information Systems MIS Produces information products that support many of the day-to-day decision-making needs of managers and business professionals Prespecified reports, displays and responses Support more structured decisions MIS Reporting Alternatives Periodic Scheduled Reports Pre-specified format on a regular basis Exception Reports Reports about exceptional conditions May be produced regularly or when exception occurs Demand Reports and Responses Information available when demanded Push Reporting Information pushed to manager Online Analytical Processing OLAP Enables mangers and analysts to examine and manipulate large amounts of detailed and consolidated data from many perspectives Done interactively in real time with rapid response OLAP Analytical Operations Consolidation Aggregation of data Drill-down Display detail data that comprise consolidated data Slicing and Dicing Ability to look at the database from different viewpoints Geographic Information Systems GIS DSS that uses geographic databases to construct and display maps and other graphics displays That support decisions affecting the geographic distribution of people and other resources Often used with Global Position Systems (GPS) devices Data Mining Main purpose is to provide decision support to managers and business professionals through knowledge discovery Analyzes vast store of historical business data Tries to discover patterns, trends, and correlations hidden in the data that can help a company improve its business performance Use regression, decision tree, neural network, cluster analysis, or market basket analysis Data Visualization Systems DVS DSS that represents complex data using interactive three-dimensional graphical forms such as charts, graphs, and maps DVS tools help users to interactively sort, subdivide, combine, and organize data while it is in its graphical form. Executive Information Systems EIS Combine many features of MIS and DSS Provide top executives with immediate and easy access to information About the factors that are critical to accomplishing an organizations strategic objectives (Critical success factors) So popular, expanded to managers, analysts and other knowledge workers Features of an EIS Information presented in forms tailored to the preferences of the executives using the system Customizable graphical user interfaces Exception reporting Trend analysis Drill down capability Enterprise Interface Portals EIP Web-based interface Integration of MIS, DSS, EIS, and other technologies Gives all intranet users and selected extranet users access to a variety of internal and external business applications and services Typically tailored to the user giving them a personalized digital dashboard Knowledge Management Systems The use of information technology to help gather, organize, and share business knowledge within an organization
Enterprise Knowledge Portals EIPs that are the entry to corporate intranets that serve as knowledge management systems Expert Systems ES A knowledge-based information system (KBIS) that uses its knowledge about a specific, complex application to act as an expert consultant to end users
KBIS is a system that adds a knowledge base to the other components on an IS Expert System Components Knowledge Base Facts about specific subject area Heuristics that express the reasoning procedures of an expert (rules of thumb) Software Resources Inference engine processes the knowledge and makes inferences to make recommend course of action User interface programs to communicate with end user Explanation programs to explain the reasoning process to end user Using DSS What-if Analysis End user makes changes to variables, or relationships among variables, and observes the resulting changes in the values of other variables Sensitivity Analysis Value of only one variable is changed repeatedly and the resulting changes in other variables are observed Using DSS Goal-Seeking Set a target value for a variable and then repeatedly change other variables until the target value is achieved Optimization Goal is to find the optimum value for one or more target variables given certain constraints One or more other variables are changed repeatedly until the best values for the target variables are discovered Note on DSS Decision support systems quite literally refer to applications that are designed to support, not replace, decision making. Unfortunately, this is too often forgotten by decision support system users, or these users simply equate the notion of intelligent support of human decision making with automated decision making. Decision Support in Business Changing marketing conditions Customer needs Companies invest in data-driven decision support application frameworks to help them respond to Management information Decision support Other information systems Accomplished by several types of Decision Structure The procedures to follow when a decision is needed can be specified in advance It is not possible to specify in advance most of the decision procedures to follow Decision procedures can be pre-specified, but not enough to lead to the correct decision Structured (operational) Unstructured (strategic) Semi-structured (tactical) Information Quality Outdated, inaccurate, or hard to understand information has much less value Information products are made more valuable by their attributes, characteristics, or qualities Content Form Time Information has three dimensions Attributes of Information Quality Decision Support Trends Personalized decision support Modeling Information retrieval Data warehousing What-if scenarios Reporting Decision Support Trends Business Intelligence Applications Difference between DSS- BI connection Business Intelligence BI is more appropriate for large organizations (DWH is expensive) BI implies to use data warehouse. It provide accurate and timely information and support DSS. It has an executive & strategy orientation, especially in BPM and dashboards Decision Support System DSS can be appropriate to any type of organization.
DSS may or may not have such feature. DSS are constructed to directly support specific decision making. DSS is oriented towards analysts. Business Intelligence
BI is constructed with commercial available tools and components.
BI methodologies and tools were developed mostly by software companies. Decision Support System
They may have constructing solutions to very unstructured problem. In this more programming may be needed to customize solution. DSS methodologies & even some tools were developed mostly in academic world. Decision Making as a Component of Problem Solving Intelligence Design Choice Implementation Monitoring Problem solving Decision making Solution Types Optimization model Finding the best solution Satisficing 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 Multiple decision objectives Increased alternatives Increased competition The need for creativity Social and political actions International aspects Technology Time compression Characteristics of a DSS (1) Handles large amounts of data from different sources
Provides report and presentation flexibility
Offers both textual and graphical orientation
Characteristics of a DSS (2) Supports drill down analysis
Performs complex, sophisticated analysis and comparisons using advanced software packages
Supports optimization, satisfying, and heuristic approaches
Characteristics of a DSS (3) Performs different types of analyses 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
Capabilities of a DSS (1) Supports Problem solving phases Different decision frequencies low high Merge with another company? How many widgets should I order? Capabilities of a DSS (2) 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 Standalone Integration and Web- based Human control the process Effectiveness, not efficiency Interactive ease of use Adaptable and flexible Support variety Of decision processes and styles Support Intelligence, design, choice, implementation Interdependent or Sequential decisions Support individuals and groups Data access Modeling and analysis Ease of development by end users Semi structured and Unstructured problems Support managers at all levels DSS Decision Making Levels Operational-level managers involved with daily decisions Strategic-level managers involved with long-term decisions Low High Decision Frequency Strategic
Tactical
Operational Integration of TPS, MIS, and DSS 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
DIFFERENCE BETWEEN MIS AND DSS Management Information Systems Decision Support Systems Decision support provided Provide information about the performance of the organization Provide information and techniques to analyze specific problems Information form and frequency Periodic, exception, demand, and push reports and responses Interactive inquiries and responses Information format Pre-specified, fixed format Ad hoc, flexible, and adaptable format Information processing methodology Information produced by extraction and manipulation of business data Information produced by analytical modeling of business data Web-Based Decision Support Systems Web-based decision support systems Decision support system software provides business intelligence through web browser clients that access databases either through the Internet or a corporate intranet
Database Model base External database access Access to the internet, networks, and other computer systems Dialogue manager DBMS MMS 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 TYPES of DSS File Drawer Systems They are the simplest type of DSS Can provide access to data items Data is used to make a decision ATM Machine Use the balance to make transfer of funds decisions Data Analysis Systems Provide access to data Allows data manipulation capabilities Airline Reservation system No more seats available Provide alternative flights you can use Use the info to make flight plans Analysis Information Systems Information from several files are combined Some of these files may be external We have a true data base The information from one file, table, can be combined with information from other files to answer a specific query. Accounting Models Use internal accounting data Provide accounting modeling capabilities Can not handle uncertainty Use Bill of Material Calculate production cost Make pricing decisions Representational Model Can incorporate uncertainty Uses models to solve decision problem using forecasts Can be used to augment the capabilities of Accounting models Use the demand data to forecast next years demand Use the results to make inventory decisions. Optimization Systems Used to estimate the effects of different decision alternative Based on optimization models Can incorporate uncertainty Assign sales force to territory Provide the best assignment schedule Suggestion Systems A descriptive model used to suggest to the decision maker the best action A prescriptive model used to suggest to the decision maker the best action May incorporate an Expert System Use the system to recommend a decision Ex: Applicant applies for personal loan DSS Categories Support-based categories (Alter 1980) Data-based DSS Model-based DSS Nature of the decision situation (Donovan & Madnick 1977) Institutional Ad hoc User-based categories (Keen 1980) Individual Multi-individual Group DSS Categories Support based DSS Data-based DSS Model-based DSS Structured
Semi-structure
Unstructured Model-based DSS Data-based DSS DSS Categories Based on the nature of the decision situation Institutional Culture of the organization Regularly used Used by more than one persons Ad hoc One of kind One-time use Used by single individual DSS Categories Based on number of users Individual Multi-individual Group Benefits Individual Multi- individual Group Improving personal efficiency H H L Expediting problem solving L M H Facilitating communication L L H Promoting learning M H H Increasing control L H M Simons Model Problem Identification Qualitative Analysis Quantitative Analysis Decision External Internal AI, EIS ES DbDSS, MbDSS GDSS ES DSS Intelligence Design Choice Usage Modes Subscription Mode Terminal Mode Clerk Mode Intermediary Mode Subscription Model Decision maker receives outputs from the DSS on regular basis Terminal Mode Direct use of the DSS by the decision maker Access is through individual terminals May be user specific requirements Clerk Mode Decision maker fills out a form requesting output from DSS A clerk accesses the DSS Sends the output to the decision maker Intermediary Mode Decision maker uses the DSS with the help of a professional, knowledgeable assistant The assistant can be either a: Staff Assistant Technical Support Staff Business Analyst DSS in Summary A MANAGEMENT LEVEL COMPUTER SYSTEM Which: COMBINES DATA, MODELS, USER - FRIENDLY SOFTWARE FOR SEMISTRUCTURED & UNSTRUCTURED DECISION MAKING. It utilizes data, provides an easy-to-use interface, and allows for the decision maker's own insights.
A summary of commercial DSS system A summary of commercial DSS system show seven types of DSS: File Drawer Systems, that provide access to the data items. Data Analysis systems, that support manipulation of data by computerized tools for a specific task. Analysis Information systems, that provide access to a series of decision oriented databases and small models. Accounting and financial models, that calculates the consequences of possible actions. Representational model, that estimates the consequences of actions based on simulation models. Optimization models, that provide guidelines for action by generating an optimal solution Suggestion models, that perform the logical processing to a specific suggested decision for a task.