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Chapter 10 Decision Support Systems
Chapter 10 Decision Support Systems
Support Systems
James A. O'Brien, and George Marakas.
Management Information Systems with MISource
2007, 8th ed. Boston, MA: McGraw-Hill, Inc.,
2007. ISBN: 13 9780073323091
Learning Objectives
Web-based dashboards
Displays critical information in graphic form
Assembled from data pulled in real time from
corporate software and databases
Managers see changes almost instantaneously
Now available to smaller companies
Potential problems
Pressure on employees
Divisions in the office
Tendency to hoard information
Information Quality
Decision Structure
Structured (operational)
The procedures to follow when decision
is needed can be specified in advance
Unstructured (strategic)
It is not possible to specify in advance
most of the decision procedures to follow
Semi-structured (tactical)
Decision procedures can be pre-specified,
but not enough to lead to the correct decision
Management Information
Systems
Information produced by
extraction and manipulation of
business data
Information produced by
analytical modeling of
business data
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DSS Components
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Model Base
A software component that consists of
models used in computational and analytical
routines that mathematically express relations
among variables
Spreadsheet Examples
Linear programming
Multiple regression forecasting
Capital budgeting present value
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Management Information
Systems
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OLAP
Enables managers and analysts to examine
and manipulate large amounts of detailed and
consolidated data from many perspectives
Done interactively, in real time, with rapid
response to queries
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Consolidation
Aggregation of data
Example: data about sales offices rolled up
to the district level
Drill-Down
Display underlying detail data
Example: sales figures by individual product
Slicing and Dicing
Viewing database from different viewpoints
Often performed along a time axis
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Data Mining
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Analysis of Customer
Demographics
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Features of an EIS
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Dashboard Example
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Enterprise
Information
Portal
Components
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Cognitive Science
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Robotics
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Natural Interfaces
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Decision Support
Helps capture the why as well as the what of
engineered design and decision making
Information Retrieval
Distills tidal waves of information into simple
presentations
Natural language technology
Database mining
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Expert Systems
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Knowledge Base
Facts about a specific subject area
Heuristics that express the reasoning
procedures of an expert (rules of thumb)
Software Resources
An inference engine processes the knowledge
and recommends a course of action
User interface programs communicate with
the end user
Explanation programs explain the reasoning
process to the end user
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Methods of Knowledge
Representation
Case-Based
Knowledge organized in the form of cases
Cases are examples of past performance,
occurrences, and experiences
Frame-Based
Knowledge organized in a hierarchy or
network of frames
A frame is a collection of knowledge about
an entity, consisting of a complex package
of data values describing its attributes
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Methods of Knowledge
Representation
Object-Based
Knowledge
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Decision Management
Loan portfolio analysis
Employee performance evaluation
Insurance underwriting
Diagnostic/Troubleshooting
Equipment calibration
Help desk operations
Medical diagnosis
Software debugging
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Design/Configuration
Computer option installation
Manufacturability studies
Communications networks
Selection/Classification
Material selection
Delinquent account identification
Information classification
Suspect identification
Process Monitoring/Control
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Process Monitoring/Control
Machine control (including robotics)
Inventory control
Production monitoring
Chemical testing
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Development Tool
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Knowledge Engineering
A knowledge engineer
Works with experts to capture the knowledge
(facts and rules of thumb) they possess
Builds the knowledge base, and if necessary,
the rest of the expert system
Performs a role similar to that of systems
analysts in conventional information systems
development
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Neural Networks
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Fuzzy Logic
Fuzzy logic
Resembles human reasoning
Allows for approximate values and
inferences and incomplete or ambiguous data
Uses terms such as very high instead of
precise measures
Used more often in Japan than in the U.S.
Used in fuzzy process controllers used in
subway trains, elevators, and cars
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Genetic Algorithms
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Typical VR Applications
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Intelligent Agents
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