Decision Support Systems Concepts Week 5. 2 DSS Configurations Many configurations exist; based on...

Decision Support Systems Decision Support Systems ConceptsConcepts

Week 5Week 5

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DSS ConfigurationsDSS Configurations

Many configurations exist; based on management-decision situation specific technologies used for support

DSS have three basic components1. Data 2. Model3. User interface4. (+ optional) Knowledge

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DSS ConfigurationsDSS Configurations

Each component has several

variations; are typically deployed online

Managed by a commercial of custom software

Typical types: Model-oriented

DSS Data-oriented DSS

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DSS DescriptionDSS Description An early definition of DSS

A system intended to support managerial decision makers in semistructured and unstructured decision situations

meant to be adjuncts to decision makers (extending their capabilities but not replacing their judgment)

aimed at decisions that required judgment or at decisions that could not be completely supported by algorithms

would be computer based; operate interactively; and would have graphical output capabilities…

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DSS DescriptionDSS Description A DSS is typically built to support the

solution of a certain problem (or to evaluate a specific opportunity). This is a key difference between DSS and BI applications BI systems monitor situations and identify

problems and/or opportunities, using variety of analytic methods

The user generally must identify whether a particular situation warrants attention

Reporting/data warehouse plays a major role in BI

DSS often has its own database and models

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DSS DescriptionDSS Description DSS is an approach (or methodology) for

supporting decision making uses an interactive, flexible, adaptable computer-

based information system (CBIS) developed (by end user) for supporting the

solution to a specific nonstructured management problem

uses data, model and knowledge along with a friendly (often graphical; Web-based) user interface

incorporate the decision maker's own insights supports all phases of decision making can be used by a single user or by many people

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A Web-Based DSS ArchitectureA Web-Based DSS Architecture

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DSS Characteristics and DSS Characteristics and CapabilitiesCapabilities

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DSS Characteristics and DSS Characteristics and CapabilitiesCapabilities Business analytics implies the use of models

and data to improve an organization's performance and/or competitive posture

Web analytics implies using business analytics on real-time Web information to assist in decision making; often related to e-Commerce

Predictive analytics describes the business analytics method of forecasting problems and opportunities rather than simply reporting them as they occur

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DSS ClassificationsDSS Classifications

AIS SIGDSS Classification for DSS Communications-driven and group

DSS Data-driven DSS Document-driven DSS Knowledge-driven DSS Model-driven DSS

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Communications-Driven and Group DSS

Use computer, collaboration, and communication technologies to support groups in tasks that may or may not involve decision making

Examples: Support meetings KMS developed around communities

of practice

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Data-Driven DSS

Primarily involved with data and processing

DB organization plays a major role in structure

Features strong report generation and query capabilities

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Document-Driven DSS

Rely on knowledge coding, analysis, search and retrieval for decision support

KMS

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Knowledge-Driven DSS and ES

Involve the application of knowledge technologies to address specific decision support needs

Example: AI-based DSS and ES

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Model-Driven DSS

Developed around one or more optimization or simulation models

Most common end-user tool Excel

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Compound (or Hybrid) DSS

Include 2 or more of the major categories

Data-driven can feed a model-driven DSS

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DSS ClassificationsDSS Classifications

Holsapple and Whinston's Classification1. The text-oriented DSS2. The database-oriented DSS. 3. The spreadsheet-oriented DSS4. The solver-oriented DSS5. The rule-oriented DSS (include most

knowledge-driven DSS, data mining, management, and ES applications)

6. The compound DSS

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Brief Example: Advanced Scout Allows NBA coaches and league

officials organize and interpret the data collected at every game

Can review countless stats: shots attempted, shots blocked, assists made, personal fouls, etc.

Can detect patterns; patterns found are linked to video of the game

Helps coaches mine through and analyze a lot of data

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Components of DSSComponents of DSS Data Management Subsystem

Includes the database that contains the data Database management system (DBMS) Can be connected to a data warehouse

Model Management Subsystem Model base management system (MBMS)

User Interface Subsystem Knowledgebase Management Subsystem

Organizational knowledge base

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Design and Development of DSS

Focus on the decision, then build or buy?

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Overview of Design and Development Approaches

Traditional system analysis and design, SDLC

An iterative, rapid prototyping, or “quick-hit” approach

Managers develop their own personal DSS, End-User DSS Development

21Design and Development of DSS, D. J. Power

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Investigate Alternative Design and Development Approaches Building effective DSS is important

and expensive Choose an approach that increases

the chances the DSS will be used Building a DSS is a difficult task;

people vary so much in terms of their personalities, knowledge and ability, the jobs they hold, and the decision they make

22Design and Development of DSS, D. J. Power

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Methodology

SDLC the standard Alternatives

Prototyping End-user development

Involve quickly constructing a portion of the DSS then testing, improving, and expanding

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A Decision-Oriented Design Approach Pre-design description and diagnosis

of decision making Diagnosis of current decision –

making Identification of problems or opportunities for improvement in current decision behavior Determine how decisions are currently made

Design and Development of DSS, D. J. Power

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Decision – orientation is the key

Specify changes in decision processes Determine what specific improvements in decision behavior are to be achieved Flowchart the process


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3 Diagnostic Steps

Collect data on current decision-making Use interviews, observations, and historical records

Establish a coherent description of the current decision process

Specify a norm for how decisions should be made


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Decision Process Audit Plan

Step 1: What will be audited and by whom

Step 2: Examine and diagram process

Step 3: Observe and collect data Step 4: Assess performance Step 5: Reporting and

recommendations


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DSS Audit Plan Step 1

Define the decisions, decision processes and related business processes that will be audited. Define the authority of the auditor, purpose of the audit, scope of the audit, timing of the audit, and resources required to perform the audit. Identify a primary contact.

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Examine the formal design of the process. Diagram the process and specify criteria, etc. Is the design effective and efficient?

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Examine the actual use of the decision process. Observe the process. Interview decision makers and collect data. Is the process implemented and used as intended?

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Assess performance of the actual decision process. What works? Can cycle time be reduced? Are decisions appropriate? Timely? Cost effective? Is the process producing value in meeting business objectives? If not, why?

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Reporting and recommendations. Summarize steps 1-4 in a written report. Discuss what is working well and what needs to be improved. Develop recommendations for improving the process. Hold an exit meeting with decision makers.

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Reaching a Diagnosis

Focus on identifying what is assumed by decision-makers in the decision situation

Focus on what is defined by decision-makers as the range of available remedial actions

How can decision-making be improved?


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Critical Success Factors Design Method for a Data-Driven DSS Focus on individual managers and on

their current hard and soft information needs

It identifies "the limited number of areas in which results, if they are satisfactory, will insure successful competitive performance for the organization" (Rockart, 1979)

If organizational goals were to be attained, then these key areas of activity - usually three to six factors - would need careful and consistent attention from management.

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Conduct a feasibility study

Issues Objectives DSS Scope and Target Users Anticipated DSS Impacts Major Alternatives

Conclusions Build versus Buy


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If build, then choose a DSS Development Approach SDLC A rapid prototyping approach End-user DSS development


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7 Step SDLC Approach

Confirm user requirements Systems analysis System design Programming Testing Implementation Use and Evaluation


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SDLC

Project plans must be carefully preparedDetermine the needs of potential usersIdentify the outputs that fulfill those needsTechnical requirements should follow logical requirements and design stepsIf in-house development is not chosen, a request – for – proposal [RFP] may be required


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SDLC

In many situations a full-scale SDLC is too rigid for DSS, especially a DSS where requirements are changing rapidly

User requirements agreed upon at the first stage of the process are hard to change


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5 Step Rapid Prototyping Process 1. Identify user requirement 2. Develop a first iteration DSS

prototype 3. Evolve and modify the next DSS

prototype 4. Test and return to step 3 if needed 5. Full-scale implementation


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How is a prototype developed?

DSS analyst sits down with potential users and develops requirements

Analyst develops a prototype User use the prototype, react to,

comment on, and eventually approve Missing features are added later


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More on Prototyping

Once approved, the prototype can be expanded in the development environment or used as a specification for a DSS developed in a language like Java, C, or C++

Compared with the SDLC approach, prototyping seems to improve user-developer communication


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End-User DSS Development

Puts the responsibility for building and maintaining a DSS on the manager who builds it

Major advantages 1) person who wants computer support will be involved in creating it2) fast 3) lower cost


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End-User Development Concerns

End-users may select an inappropriate software development product

End-user may have limited expertise in the use of the product and the IT group may have limited ability to support End-user development

Errors during End-user DSS development are common


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End-User Development Concerns

Unnecessary databases are sometimes developed by the end-users for their DSS

DSS may have limited testing and limited documentation

End-user databases may be poorly constructed and difficult to maintain

End-users rarely follow a systematic development process


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DSS project Management

Assign DSS project manager Tasks include diagnosis, a feasibility

study, and a definition of the objectives and scope of the proposed project

The larger the scope of the project the more important it is to receive widespread agreement and sponsorship of the project


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DSS Project Management

Once the project is approved then a methodology and project plan needs to be developedOutsourced – process needs to be developed for creating RFP’s and then evaluating proposalsIn-house – development and technical tools need to be resolved


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DSS Project Management

DSS project manager should identify tasks that need to be completed, resources that are needed and project deliverablesDeliverables are especially important for monitoring the progress of the project


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DSS Project Participants

DSS Project Manager or DSS analystExpert who makes the technical decisions about the software and hardware to use

Executive SponsorSenior manager who has the influence to help resolve major resource issues and potential problems

Potential DSS users Users are often non-technical people in functional

areas of a business like marketing and finance


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DSS Project Participants

DSS Builder or analyst Technical Support Staff

DW Architect, Data Quality Analyst Toolsmith/Specialist

Focus on the tools and technologies that will be used in the construction of the DSSNetwork Specialists, Database Administrator


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Decision Support Systems Concepts Week 5. 2 DSS Configurations Many configurations exist; based on...

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