![Page 1: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/1.jpg)
1-1
Enabling the Organization - Decision Making
Min Song, Ph.D.IS 465
![Page 2: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/2.jpg)
Decision Support Systems
• Decision support systems (DSS)– Offer potential to assist in solving both semi-
structured and unstructured problems
![Page 3: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/3.jpg)
Decision Making as a Component of Problem Solving
Intelligence
Design
Choice
Implementation
Monitoring
Problemsolving
Decisionmaking
![Page 4: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/4.jpg)
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
![Page 5: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/5.jpg)
Problem Solving Factors
• Multiple decision objectives• Increased alternatives• Increased competition• The need for creativity• Social and political actions• International aspects• Technology• Time compression
![Page 6: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/6.jpg)
Characteristics of a DSS (1)
• Handles large amounts of data from different sources
• Provides report and presentation flexibility• Offers both textual and graphical orientation
![Page 7: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/7.jpg)
Characteristics of a DSS (2)
• Supports drill down analysis• Performs complex, sophisticated analysis and
comparisons using advanced software packages
• Supports optimization, satisficing, and heuristic approaches
![Page 8: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/8.jpg)
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
![Page 9: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/9.jpg)
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
![Page 10: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/10.jpg)
Exceldemo
![Page 11: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/11.jpg)
Capabilities of a DSS (1)
• Supports– Problem solving phases– Different decision frequencies
Frequencylow high
Merge withanother
company?
How many widgets
should I order?
![Page 12: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/12.jpg)
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
![Page 13: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/13.jpg)
Decision Making Levels
Operational-levelmanagers involved withdaily decisions
Strategic-level managersinvolved with long-term
decisions
LowHigh
Decision Frequency
Strategic
Tactical
Operational
![Page 14: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/14.jpg)
Integration ofTPS, 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
![Page 15: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/15.jpg)
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
![Page 16: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/16.jpg)
Components of a DSS
• 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
![Page 17: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/17.jpg)
Database Model base
External databaseaccess
Access to theinternet, networks,and other computersystems
Dialogue manager
DBMS MMS
Externaldatabases
![Page 18: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/18.jpg)
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
![Page 19: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/19.jpg)
Advantages and Disadvantagesof 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
![Page 20: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/20.jpg)
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
![Page 21: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/21.jpg)
Databases
Model base GDSS processor GDSS software
Dialoguemanager
External databaseaccess
Users
Access to the internetand corporate intranet,
networks, and othercomputer system
Externaldatabases
![Page 22: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/22.jpg)
Characteristics of a GDSS (1)
• Special design• Ease of use• Flexibility• Decision-making support– Delphi approach (decision makers are geographically
dispersed)– Brainstorming– Group consensus– Nominal group technique
![Page 23: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/23.jpg)
Characteristics of a GDSS (2)
• Anonymous input• Reduction of negative group behaviour• Parallel communication• Automated record keeping• Cost, control, complexity factors
![Page 24: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/24.jpg)
Group Results Matrix
![Page 25: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/25.jpg)
Components of a GDSS and GDSS Software
• Database• Model base• Dialogue manager• Communication capability• Special software (also called GroupWare)• E.g., Lotus Notes– people located around the world work on the same
project, documents, and files, efficiently and at the same time
![Page 26: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/26.jpg)
GDSS Alternatives
Local areadecision network
Wide areadecision network
Decisionroom Teleconferencing
Location of group members
close distant
high
low
Dec
isio
n fr
eque
ncy
![Page 27: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/27.jpg)
Decision Room
• Decision Room– For decision makers located in the same geographic area
or building– Use of computing devices, special software, networking
capabilities, display equipment, and a session leader– Collect, coordinate, and feed back organized information
to help a group make a decision– Combines face-to-face verbal interaction with technology-
aided formalization
![Page 28: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/28.jpg)
![Page 29: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/29.jpg)
Wide Area Decision Network
• Characteristics– Location of group members is distant– Decision frequency is high– Virtual workgroups• Groups of workers located around the world working
on common problems via a GDSS
![Page 30: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/30.jpg)
Executive Support System
• Characteristics– A specialized DSS that
includes all the hardware, software, data, procedures, and people used to assist senior-level executives within the organization
Board of directors
President
Function areavice presidents
Function areamanagers
![Page 31: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/31.jpg)
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
![Page 32: 1-1 Enabling the Organization - Decision Making Min Song, Ph.D. IS 465](https://reader030.vdocuments.us/reader030/viewer/2022032522/56649d615503460f94a423b4/html5/thumbnails/32.jpg)
Capabilities of an ESS
• Support for– defining overall vision– strategic planning– strategic organizing and staffing– strategic control– crisis management