Decision Support and Business

Intelligence Systems
(9th Ed., Prentice Hall)

Chapter 3:
Decision Support Systems Concepts,
Methodologies, and Technologies: An
Overview
 DSS Configurations
 Many configurations exist; based on
 management-decision situation
 specific technologies used for support
 DSS have three basic components
1. Data
2. Model
3. User interface
4. (+ optional) Knowledge

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 DSS 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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 Model-oriented DSS: helps firms
model alternative inventory stocking
levels, production schedules, or
transportation plans.

Data‐oriented DSS: provide access to

large data stores and analytics to
create information.
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 DSS Description
 DSS application
A DSS program built for a specific purpose
(e.g., a scheduling system for a specific
company)
 Business intelligence (BI)
A conceptual framework for decision
support. It combines architecture,
databases (or data warehouses), analytical
tools, and applications

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 DSS Description

 A DSS supports all phases of decision making

and may include a knowledge component
 A DSS can be used by a single user on a PC
or can be Web-based for use by many people
at several locations

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 DSS Characteristics and Capabilities
 DSS is not quite synonymous with BI
1. DSS are generally built to solve a specific
problem and include their own database(s)
2. BI applications focus on reporting and identifying
problems by scanning data stored in data
warehouses
3. Both systems generally include analytical tools
(BI called business analytics systems)
4. Although some may run locally as a spreadsheet,
both DSS and BI uses Web

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 DSS Characteristics and Capabilities

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 DSS Characteristics and Capabilities
 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 Classifications
 Other DSS Categories
1. Institutional and ad-hoc DSS
2. Personal, group, and organizational
support
3. Individual support system versus group
support system (GSS)
4. Custom-made systems versus ready-
made systems

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 DSS Classifications
 Holsapple and Whinston's Classification
1. The text-oriented DSS
2. The database-oriented DSS.
3. The spreadsheet-oriented DSS
4. The solver-oriented DSS
5. The rule-oriented DSS (include most knowledge-
driven DSS, data mining, management, and ES
applications)
6. The compound DSS

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 Components of DSS

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 Components 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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 Overall Capabilities of DSS
 Easy access to data/models/knowledge
 Proper management of organizational experiences
and knowledge
 Easy to use, adaptive and flexible GUI
 Timely, correct, concise, consistent support for
decision making
 Support for all who needs it, where and when
he/she needs it

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 DSS Components
Data Management Subsystem

 DSS database
 DBMS
 Data directory
 Query facility

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 Database Management Subsystem
Key Data Issues
 Data quality
 Data integration
 Scalability
 Data Security
 Timeliness
 Completeness, …

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 Ingredients of Data (Information) Quality Management

1. Data quality is a business problem, not only a

systems problem
2. Focus on information about customers and
suppliers, not just data
3. Focus on all components of data: definition,
content, and presentation
4. Implement data/information quality management
processes, not just software to handle them
5. Measure data accuracy as well as validity
6. Measure real costs (not just the percentage) of poor
quality data/information

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 DSS Components
Model Management Subsystem

 Model base
 MBMS
 Modeling
language
 Model directory
 Model execution,
integration, and
command
processor

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 DSS Components
Model Management Subsystem
 Model Types
 Strategic models
 Tactical models
 Operational models
 Analytic models
 Model building blocks
 Modeling tools

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 DSS Components
User Interface (Dialog) Subsystem
 Interface
 Application interface
 User Interface
 Graphical User Interface (GUI)

 User interface
The component of a computer system
that allows bidirectional communication
between the system and its user.
 User interface management
system (UIMS)
The DSS component that handles all
interaction between users and the
system
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 DSS Components
Knowledgebase Management System
 Knowledge components:
 Expert systems,
 Knowledge management systems,
 Neural networks,
 Intelligent agents,
 Fuzzy logic,
 Case-based reasoning systems, and so on
 Often used to better manage the other DSS
components

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 DSS User
 One faced with a decision that an MSS is
designed to support
 Manager, decision maker, problem solver, …
 User = Individual versus Group
 Managers versus Staff Specialists [staff
assistants, expert tool users, business
(system) analysts, facilitators (in a GSS)]

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 DSS Hardware
 Hardware affects the functionality and usability of the
MSS
 The choice of hardware can be made before, during,
or after the design of the MSS software

 Major hardware options:

 Organization’s servers
 Mainframe computers with legacy DBMS,
 Workstations
 Personal computers
 Client/server systems

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