Chapter 1
Introduction
Decision Support Systems For
Business Intelligence
Contents
• What is a DSS?
• Uses of a Decision Support System
• The Book
Introduction
• Good decision making requires being informed and
having relevant and appropriate information to base
choices on.
• The process of organizing and examining information
about options is the process of modeling.
• Models can range from informal to complex
mathematical relationships.
• The quality of a decision depends on the adequacy and
quality of available information, the number of options,
and the appropriateness of the modeling.
• Decision Support Systems (DSS) can help refine
understanding of customers, improve customer
relationship management, and enable more effective
and profitable business decisions.
Introduction
Figure 1.4: Uses of DSS in Business
Introduction
Figure 1.5: Pressure to Build DSS
WHAT IS A DSS?
• A DSS is a computer-based system that supports choice by
assisting the decision maker in the organization of
information and modeling of outcomes.
WHAT IS A DSS?
Figure 1.6: Continuum of information
system products.
Components of a DSS
Figure 1.7: Components of a DSS
WHAT IS A DSS? (continue.)
• Decision support system use is not programming and not data
entry. That is, decision makers do not write computer code to
analyze data when using a DSS.
• Rather the DSS provides a framework through which decision
makers can obtain necessary assistance for decision making
through an easy-to-use menu or command system.
• Generally, a DSS will provide help in formulating alternatives,
accessing data, developing models, and interpreting their
results, selecting options or analyzing the impacts of a
selection.
• In other words, the DSS provides a vehicle for accessing
resources external to the decision-making process for use in
that choice process.
USES OF A DECISION SUPPORT
SYSTEM
• DSS applications range from strategic planning
to operations management in both the public
and private sectors, including for-profit and not-
for-profit organizations.
• DSS are most useful when it is not obvious what
information needs to be provided, what models
to use, or what criteria are most appropriate.
• DSS can be used for structured problems as well
as unstructured problems where users proceed
differently with each problem.
• If the data are collected electronically but are not
used to their full potential, a DSS is warranted.
USES OF A DECISION SUPPORT
SYSTEM
• Generally, it is accepted that DSS technology is warranted if the goal is
to help decision makers:
– Look at more facets of a decision
– Generate better alternatives
– Respond to situations quickly
– Solve complex problems
– Consider more options for solving a problem
– Brainstorm solutions
– Utilize multiple analyses in solving a problem
– Have new insights into problems and eliminate "tunnel vision" associated with
– premature evaluation of options
– Implement a variety of decision styles and strategies
– Use more appropriate data
– Better utilize models
– Consider "what if?" analyses
The Book
• As the DSS develops in this book, we will use a liberal
definition of the term so as to allow a wide variety of
technologies to be included. This allows exploration of the
greatest range of opportunities available for DSS.
• The possibilities will be pursued in terms of the three
components defined earlier. In the next few chapters, we
will discuss each of these components in depth.
• Following that will be further discussion on special features
in some systems and guidelines for development and
implementation.
Q&A