DECISION SUPPORT SYSTEMS Lecture Notes Dr. Ir. Sudaryanto, MSc. [email protected]

Decision Support System

DECISION SUPPORT SYSTEMS

Lecture Notes

Dr. Ir. Sudaryanto, MSc.

[email protected]@yahoo.com

Gunadarma University


THE COCEPTUAL FOUNDATION FOR DECISION SUPPORT SYSTEMS

Part 1 DSS: Past, Present, Future

Dr. Ir. Sudaryanto, [email protected]

Ir. (IPB), MSc (AIT-Thailand), Dr. rer.pol. (Aachen-Germany)


The Background

Complexity

Shorter PLC

Global Competition Speed of

decision DSS

CompetitiveIntelligence


Managerial Functions & Roles


Managerial Functions & RolesManagerial Functions & Roles


The The Importance of knowledge


Data


InformationInformation


Knowledge


Introduction

Evolution of Computer based application• 1st generation

• Mainframe computers for transaction processing• 2nd generation

• MIS :management reporting • 3rd generation: DSS

• To help management to deal with semi structure and unstructure decision making

• Full development during 1970s and 1980s


Management Information Systems

Schedule reports for well define Information needs

Demand reports for ad hoc Information request

The ability to query a database for specific data

MIS

The ultimate mission of information systems: To improve the performance of information workers in organization through the application of information technology


DSS : The definition

Sprague, 1980:

• Computer based systems

• Help the decision maker

• Confront ill-structure problems

• Through direct interaction

• With data and analysis model

Scenario of problem solving using DSS


Dichotomy of Information Work

• High volume of transaction• Low cost/value per transaction• Well structure procedures• Output measures defined• Focus on process• Focus on efficiency• Handling of data• Predominantly clerical workers• Example: back office, payroll processing

• Low volume of transaction• High value (cost) per transaction• ill structure procedures• Output measures less defined• Focus on problems and goals• Focus on effectiveness• Handling of concepts• Managers and profesionals• Example: loan department, planning department

Procedure -based Goal -based


The Data processing Evolution

Basic dataprocessing

Filemanagement

Query,Report generation

• Stand alone EDP jobs• Transaction processing• Each program has its own files• Data handling : sorting, classifying, summarizing

DPEV

• Addition of flexible report generator and queryLanguage

• Integrated EDP jobs for related function• Sharing files across several program• Develop software for handling files

Data basemanagement

• Software system for dealing with data separate from Program

• MIS capability• Reduction of program maintenance


• Conceptualization of DSS: DDM paradigm• Three Components/ Sub system

• Dialog between the system and the user• Data that support the system• Model to provide analysis capabilities

• New technology continues to affect the dialog, data and models

Principles of DSS


The Components of a DSS

___________Strategic

Models

___________Tactical Models

___________Operational

Models

___________Model Buildings

Blocks andSubroutines

Model Base

Data BaseManagement

System

Model BaseManagement

System

User

___________Finance

___________Production

___________Marketing

___________Personnel

______________R&D

______________Other

______________

Otherinternal

data

External data

Documentbased

data

Data Base

Tra

nsa

cti

on

Dat

a

Dialog BaseManagement

System


The Dialog Component

Knowledge base

Action language

Presentationlanguage

•What the user knows about• the decision• how to use the DSS

•How to train user ?• one to one tutorial• classes /lectures• programmed an computer aided instruction• command or sequence files• instructions manual - online, context specific

DSS



Knowledge base

Action language


•How to control DSS• question - answer• menu - driven / oriented• command language• input-output approach• visual oriented interface - icon• voice input

•Physical action • Keyboard input• touchscreen, mouse driven

DSS



Knowledge base

Action language


DSS

• Printed report•Text•Graphics

• Animation• Voice output


Dialog Styles

Combination or set of option for implementing the knowledge base, the action language and

the presentation language

Mouse

Pull - down menumove icons Graphical presentation

Shortcut to Cdplayer.lnkShortcut to Powerpnt.lnk

0

10

20

30

40

50

60

70

80

90

Q1 Q2 Q3 Q4

Sales year2002


The Data Component

Data source

Traditional EDP/MIS__________________

Data records, files

Public Data Base__________________Socio-economic data

CorporateLibrary

Word processingrecords management

____________________records, opinions, memos, estimate

Internal External

Rec

ord

base

Doc

umen

tba

se• Internal (within organization)

• easy to generate and manage• External

• popular as “public data base”• In context of DSS :as information source

• documents, concept, ideas, opinions


The Organizational option

Traditional application development group

Operation research/management Science group

A stand alone, formally chartered DSS group

Planing department / Staff analysis groupwithin a functional department

A DSS group within end user services

Information center

• Institutional support play a leading role in development and management of DSS system• Support characteristics:

• Staff background• Types of services• DSS development methodology

DSSInstitutional

Support


Development of DSS

Affecting factors• PC revolution• Increasing capability and reducing cost of telecomunication• Increasing availability of public data• Growth of artificial intelligent techniques• Increasing knowledge and computer literacy• Availability of hardware and software• Incereasing availability of mobile computing and communication


The Challenges

•Integrated architecture•Connectivity

•LAN•WAN

•Document data•More intelligence

2626

• Specific DSS– Developed for supporting one particular type ofdecision.

• DSS Generators– Programs which decision makers and programmerscan use to quickly build a specific DSS application.

– Spreadsheets, IFPS, @RISK, etc.• DSS Tools– Languages, development tools, text editors, etc.,which require more technical sophistication beforethey can become specific DSS.

DSS Levels

2727

• Permanent / Institutional DSS– Developed for an on-going decision situation. May be refined or updated as needed.– For repetitive use (operation)• Ad-Hoc DSS– Built for one specific decision requiring immediatesupport. Often rapidly assembled using DSSgenerators & tools. May eventually result inpermanent DSS.

– usually for strategic planning

DSS Types

2828

– Augment decision maker’s knowledge managementabilities

– Allow decision maker to solve larger and morecomplex problems

– Make decision making faster and more reliable– Stimulate decision maker’s thoughts about a problem & reveal new ways of thinking

– Support decision maker’s decision/position withcomputational evidence

– Organizational competitive advantage

DSS Benefits

2929

– DSS do not replace human creativity and experience– DSS is constrained by the knowledge in its databases– DSS is constrained by the models and processes in itsmodel base and programming

– DSS is limited by its computer platform– Decision makers are required to communicate withthe DSS in its language or interface mode

– DSS are often narrow in their area of application

DSS Limitations


END

DECISION SUPPORT SYSTEMS Lecture Notes Dr. Ir. Sudaryanto, MSc. [email protected]

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