Chapter 2
Decision Support Systems:
An Overview
Learning Objectives
• Understand DSS configurations.
• Learn characteristics and capabilities of DSS.
• Understand DSS components.
• Describe structure of DSS components.
• Understand how DSS and the Web interact.
• Learn the role of the user in DSS.
• Understand DSS hardware and integration.
• Learn DSS configurations.
Southwest Airlines Flies in the Face of
Competition Through DSS Vignette
• Successfully integrates DSS applications
• Ties ERP applications to OLAP, allowing
retrieval of financial data
• Allows access to both financial and
operational data
Decision Support Systems
• Systems designed to support managerial
decision-making in unstructured
problems
• More recently, emphasis has shifted to
inputs from outputs
• Mechanism for interaction between user
and components
• Usually built to support solution or
evaluate opportunities
DSS
• A DSS is a methodology that supports
decision-making.
• It is:
– Flexible;
– Adaptive;
– Interactive;
– GUI-based;
– Iterative; and
– Employs modeling.
Business Intelligence
• Proactive
• Accelerates decision-making
• Increases information flows
• Components of proactive BI:
– Real-time warehousing
– Exception and anomaly detection
– Proactive alerting with automatic recipient
determination
– Seamless follow-through workflow
– Automatic learning and refinement
Components of DSS
• Subsystems:
– Data management
• Managed by DBMS
– Model management
• Managed by MBMS
– User interface
– Knowledge Management and organizational
knowledge base
Data Management Subsystem
• Components:
– Database
– Database management system
– Data directory
– Query facility
Database
• Interrelated data extracted from various
sources, stored for use by the
organization, and queried
– Internal data, usually from TPS
– External data from government agencies,
trade associations, market research firms,
forecasting firms
– Private data or guidelines used by decision-
makers
Database Management System
• Extracts data
• Manages data and their relationships
• Updates (add, delete, edit, change)
• Retrieves data (accesses it)
• Queries and manipulates data
• Employs data dictionary
Data Directory
• Catalog of all data
– Contains data definitions
– Answers questions about the availability of
data items
– Source
– Meaning
– Allows for additions, removals, and
alterations
Model Management Subsystem
• Components:
– Model base
– Model base management system
– Modeling language
– Model directory
– Model execution, integration, and command
processor
Models
• Strategic
– Supports top management decisions
• Tactical
– Used primarily by middle management to
allocate resources
• Operational
– Supports daily activities
• Analytical
– Used to perform analysis of data
Model Base Management System
• Functions:
– Model creation
– Model updates
– Model data manipulation
– Generation of new routines
• Model directory:
– Catalog of models
– Definitions
Model Management Activities
• Model execution
– Controls running of model
• Model command processor
– Receives model instructions from user
interface
– Routes instructions to MBMS or module
execution or integration functions
• Model integration
– Combines several models’ operations
User Interface System
Data management Knowledge-based Model management
and DBMS system and MBMS
User Interface Management System (UIMS)
Natural Language Processor
Input Output
Action Display
Languages Language PC Display
Users Printers, Plotters
User Interface Management System
• GUI
• Natural language processor
• Interacts with model management and
data management subsystems
• Examples
– Speech recognition
– Display panel
– Tactile interfaces
– Gesture interface
Knowledge-Based Management System
• Expert or intelligent agent system
component
• Complex problem solving
• Enhances operations of other components
• May consist of several systems
• Often text-oriented DSS
DSS Hardware
• De facto standard
• Web server with DBMS:
– Operates using browser
– Data stored in variety of databases
– Can be mainframe, server, workstation, or
PC
– Any network type
– Access for mobile devices
DSS Classifications
• Alter
– Extent to which outputs can directly support
or determine the decision
– Data oriented or model oriented
• Holsapple and Whinston
– Text oriented, database oriented, spreadsheet
oriented, solver oriented, rule oriented, or
compound
• Intelligent
(ad hoc analysis)
DSS Classifications
• Donovan and Madnick
– Institutional
– Problems of recurring nature
• Ad hoc
– Problems that are not anticipated or are not
repetitive
• Hackathorn and Keen
– Personal support, group support, or
organizational support
DSS Classifications
• GSS v. Individual DSS
– Decisions made by entire group or by lone
decision maker
• Custom made v. vendor ready made
– Generic DSS may be modified for use
• Database, models, interface, support are built in
• Addresses repeatable industry problems
• Reduces costs
Web and DSS
• Data collection
• Communications
• Collaborations
• Download capabilities
• Run on Web servers
• Simplifies integration problems
• Increased usability features