DECISION SUPPORT CS 217

SYSTEM
Preface DSS have evolved over
the past four decades

THEORETICAL COMPUTERIZED
CONCEPTS APPLICATIONS
 contains
DSS Architecture three key
components:

a knowledge base

a computerized model

user interface
 simulate cognitive decision-
making functions of humans
based on artificial
intelligence methodologies

DSS (including expert systems,

data mining, machine
learning, connectionism,
logistical reasoning, etc.) in
order to perform decision
support functions.
 The applications of DSS cover
many domains, ranging from
aviation monitoring, transportation
safety, clinical diagnosis, weather

DSS forecast, business management, to

internet search strategy.
By combining knowledge bases
with inference rules, DSS are able
to provide suggestions to end users
to improve decisions and outcomes.
At the dawn of the 21st century,

more sophisticated applications of computer-based

DSS have been evolved and they have been adopted in
diverse areas to assist in decision making and
problem solving.
Empirical evidence suggests that the adoption of DSS
results in positive behavioral changes, significant
error reduction, and the saving of cost and time.
INTRODUCTION

 Making decisions concerning complex systems

(e.g., the management of organizational
operations, industrial processes, or investment
portfolios; the command and control of military
units; or the control of nuclear power plants)
often strains our cognitive capabilities.
 OBJECTIVES:
To ensure students to
differentiate and distinguish
CHAPTER 1 the difference between DSS
INTRODUCTION and other computer based
information systems (CBIS).
TO DECISION Knowing the task of a managers
SUPPORT SYSTEM and how CBIS and be
incorporated into their work to
accomplish task in an efficient
and effective manner.
Evolution of Decision Support Systems

1940s, data-processing techniques have been

continuously advancing.
It was in the late 1950s that many organizations began
to utilize transaction processing systems (TPS) or
electronic data processing (EDP) systems to automate
routine clerical tasks such as payroll, inventory and
billing.
Evolution of Decision Support Systems

In the 1960s, we witnessed the emergence of management

information systems (MIS) with the development of database
management systems for collecting, organizing, storing and
retrieving data.
 MIS were developed to extract valuable management information
by aggregating and summarizing massive amounts of transaction
data and allowing user-interactive managerial queries.
The inclusion of simple modelling and statistical methods as a
component of MIS permits computer systems to make routine
(structured) decisions.
Evolution of Decision Support Systems

It was not until 1970 that scholars began to recognize

the important roles computer-based information systems
(CBIS) play in supporting managers in their semi-
structured or unstructured decision-making activities.
Since the 1970s, study of DSS has become an essential
part of CBIS.
Evolution of DSS cont.

In the 1980s, we witnessed another wave of information

technologies, the artificial intelligence-based expert systems (ES),
which are to replace and mimic human decision makers in making
repetitive decisions in a narrow domain (see ARTIFICIAL
INTELLIGENCE (AI); KNOWLEDGE-BASED SYSTEMS).
During the mid 1980s, executive information systems (EIS)
emerged as an important tool to serve the information needs of
executives.
EIS provides timely and critical information which has been filtered
and compressed for tracking and control purposes.
Evolution of DSS cont.

The latest addition to CBIS is artificial neural networks (ANN).

Neural network computing involves building intelligent systems to
mimic human brain functions. ANN attempt to achieve knowledge
processing based on the parallel processing method of human
brains, pattern recognition based on experience, and fast
retrieval of massive amounts of data (see NEURAL NETWORKS).
Fuzzy logic, genetic algorithm, and intelligent agents are some
of other intelligent techniques that can be used along with neural
networks to improve the effectiveness of personal, group, and
organizational decision making.
Evolution to DSS cont.

Decision support systems (DSS) are human–computer

decision-making systems to support managerial
judgements, and intuitions to solve managerial problems
by providing necessary information, generating,
evaluating and suggesting decision alternatives.
Most organizational problems need a combination of
quantitative and qualitative data processing.
Management Support Systems Technologies

1. Decision Support Systems (DSS)

2. Group Support Systems (GSS) including Group DSS
3. Executive Information System (EIS)
4. Expert Systems (ES)
5. Artificial Neural Networks (ANN)
6. Hybrid Support Systems
Managerial Decision Making and Management
Information Systems

What is Managerial Decision Making?

What is Information System?

Managerial Decision Making and Management
Information Systems cont.

Management:
A process by which organization
goals are achieved through the use of
resources.
Managerial Decision Making and Management
Information Systems cont.

These resources (people, money, energy,

materials, space, time) are considered inputs
and

attainment of the goals is viewed as the output

of the process.
Managerial Decision Making and Management
Information Systems cont.

Productivity:
The degree of success of the organization and the
manager’s job is often measured by the ratio
between outputs and inputs. It is a major concern
for any organization because it determines the
well being of the organization and its members.
 Outputs
Productivity =
Inputs
A Framework for DSS

Type of Operational Managerial Strategic Support Needed

Decision Control Control Planning
Structured Account Budget analysis Financial MIS, operation
Receivable, order Management research models,
entry transaction
processing
Semi structured Production Credit evaluation Building new DSS
scheduling, plant
inventory control
Unstructured Selecting a cover Negotiation, R&D planning DSS, ES, Neural
for magazine, recruiting an network
buying software executive
Support Needed MIS, management Management EIS, ES, Neural
science science, DSS, ES, EIS network
A Framework for DSS cont.

 Structured processes: refer to routine and

repetitive problems for which standard solution
exists.
 Unstructured processes: “fuzzy”, complex
problems for which there are no cut-and-dried
solution.
Decision Support Systems

• Definition 1:
“Interactive computer-based systems, which help decision utilize data and
models to solve unstructured problems”
• Definition 2:
“Decision support systems couple the intellectual resources of individuals with
the capabilities of the computer to improve the quality of decisions. It is a
computer-based support system for management decision makers who deal
with semi-structured problems.
• Definition 3:
A complex set of computer programs and equipment that allows end-user-
usually managers and professionals – to analyze, manipulate, format, display,
and output data in different ways.
Why use a DSS?

Factors Percentage
Accurate information is needed 67
DSS viewed as organizational winner 44
New information is needed 33
Management mandate the DSS 22
Timely information is provided 17
Cost reduction is achieved 6
Group Support System

Group Decision Support System (GDSS):

• Is a set of software, hardware and language
components that support a team of people engaged in
decision related to meeting.
• Aims to improve the process of group decision making
by removing common communication barriers,
providing techniques for structuring decision analysis,
and systematically directing the pattern timing, or
content of discussion.
Executive Information Systems (EIS)

EIS are developed primarily for:

Serve the information needs of executives
Provide extremely user-friendly interface for executive
Meet individual execuvites’ decision style
Provide timely and effective tracking and control
Proved quick access to detailed information
Expert Systems

a computer program that uses artificial-intelligence methods

to solve problems within a specialized domain that ordinarily
requires human expertise.
The first expert system was developed in 1965 by Edward
Feigenbaum and Joshua Lederberg of Stanford University in
California, U.S. Dendral, as their expert system was later
known, was designed to analyze chemical compounds.
Expert systems now have commercial applications in fields as
diverse as medical diagnosis, petroleum engineering, and
financial investing.
Source: https://www.britannica.com/technology/expert-system
Expert Systems cont.

• Expert system is a great interest to organization

because of their potential to enhance productivity and
to augment work forces in many specialty areas where
human experts are becoming increasingly difficult to
find and retain.
• Typically, an ES can reach a level of performance
comparable to or even exceeding the human expertise
in some specialized and usually narrow problem area.
Some Differences between MIS and DSS
Management Information Systems:
• Structured task: standard operating
procedures, decision rules,
information flows can be reliably
predefine
• Main payoff: improve in efficiency by
reducing costs, turnaround time
• Relevance of MIS: provide reports and
access of data
• MIS is to serve all levels of managerial
activities
• Structured reports are of a limited
value for unique problems.
Decision Support Systems:
• Computer as a tool and couple
together with analytical aids provides
effective management judgment in
making decision
• Payoff: improving manager’s decision
making
• Can addressed ad hoc or unexpected
problems
• Provide decision support in a short
time frame
• DSS can be developed by end-user or
non-data processing professionals
Support Decision Making

Decision making process:

• Step A – Problem Finding: Involves the collection of information
from various sources in order to identify problems and opportunities
• Step B – Analysis: The analysis can be qualitative or quantitative or
combine.
• Step C – Choice: The decision is made regarding to the problem
based on the results of the analysis.
• Step D – Implementation: In the even that the decision is to
implement a proposed solution, A DSS and/or ES can provide the
support.