Decision Support System (DSS)

Data Visualization Technologies

*Data visualization The process of presenting data to users in visual formats, thereby making IT applications more attractive and understandable to users *Geographic Information Systems (GIS) -A computer-based system for capturing, integrating, manipulating, and displaying data using digitized maps -Geocoding -the process of assigning geographical location to every object -Enables users to generate information for planning, problem solving, and decision making -Examples: ESRI, Intergraph, Pitney Bowes Mapinfo *Reality mining -Using GISs and Global Positioning - Systems (GPSs) together -Allowing analysts to extract information from the usage patterns of mobile phones and other wireless devices

Digital dashboard

- integrates information from multiple components and presents it in a unified display

Transaction Processing Systems

-Capture data 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 -Debits and credits -Inventory going into and out of the system -Items being bought and sold. -Payments being made and received -Uses source data automation: captures data at the point of origin

Three quantitative (mathematical) models often used by DSSs include:

1. Sensitivity analysis - the study of the impact that changes in one (or more) parts of the model have on other parts of the model 2. What-if analysis - checks the impact of a change in an assumption on the proposed solution 3. Goal-seeking analysis - finds the inputs necessary to achieve a goal such as a desired level of output

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.

____________ have well-defined relationships and are easily quantifiable while _________________ may have several answers that will work, and they are not easily quantifiable.

Decision support systems Transactional decisions Ad-hoc decisions Nonprogrammed decisions Programmed decisions Analytical decisions

Nonstructured decisions

Fuzzy, complex problems with no cut-and-dried procedures and solutions

DECISION SUPPORT SYSTEM (DSS)

Highly flexible and interactive IT system that is designed to support decision making when the problem is not structured ( i.e. Nonprogrammed decision). Spreadsheets are a common form of decision support system (DSS)

Nonprogrammed Decisions (nonstructured decision)

Ill-structured situations with vague or changing relationships between variables Not easily quantifiable in advance. No agreed-on decision making method. There may be several "right" answers (although some answers could be better than other answers).

Components of a DSS

Model management component - consists of both the DSS models and the model management system Data management component - stores and maintains the information that you want your DSS to use User interface management component - allows you to communicate with the DSS

Reasons for the growth of decision-making information systems

People need to analyze large amounts of information People must make decisions quickly People must apply sophisticated analysis techniques, such as modeling and forecasting, to make good decisions People must protect the corporate asset of organizational information

Different Decision Types

Programmed Decisions (structured decision) Nonprogrammed Decisions (nonstructured decision)

Structured decisions

Routine and repetitive problems with standard procedures and solutions

Programmed Decisions (structured decision)

Structured situations with well defined relationships Quantifiable. There is an understood and accepted method for making the decision. Very easy to automate (program) these types of decisions.

As you move from lower to upper levels in an organization, information needs move from ___________ in nature to __________.

Transactional in nature to analytical

YIELD MANAGEMENT SYSTEMS

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 plane take off full at the highest possible average cost per seat

DSS Quantitative Model: What-if analysis:

change one assumption and see what impact it has on the model

Satisficing:

find a good solution, one that satisfies all of your decision criteria, without necessarily being the best solution.

Optimization:

find the very best solution given the constraints provided (aka the optimal answer) An example would be "solver" in Excel.

If you are trying to find the very best solution given the constraints provided, you are using a technique called ___________

optimization

If you want to find a good solution, one that satisfies all your decision criteria, without necessarily being the best solution., you are using a technique called _____________.

satisficing

Most decisions that you make fall somewhere in between.....

structured and nonstructured (containing elements of both).

DSS Quantitative Model: Goal-seeking analysis

what inputs must occur in order to achieve the desired result?