Decision System 11642g

Figure 2-2

A Symbolic Representation for a Payroll TPS

Figure 2-3

Management Information Systems (MIS) (continued)

Figure 2-5

Decision- Systems (DSS) (Continued)

Voyage-estimating decision- system

Figure 2-7

Model of a Typical Executive System

Figure 2-8

THE DIFFERENCE BETWEEN MIS AND DSS SYSTEMS FOR DECISION

Management Information Systems (MIS) • Primarily address structured problems • Typically provide fixed, scheduled reports based on data extracted and summarized from firm’s underlying TPS • Assist managers in monitoring and controlling the business

The Difference between MIS and DSS (continued) SYSTEMS FOR DECISION

Decision Systems (DSS) • semi structured and unstructured problems • Greater emphasis on models, assumptions, ad-hoc queries, display graphics • Emphasize change, flexibility, and a rapid response

The Difference between MIS and DSS (continued)

DSS Philosophy provide integrated tools, data, models and language to s DSS Systems Analysis establish what tools are needed in the decision process Design iterative process

The Difference between MIS and DSS (continued)

MIS Philosophy provide structured information to end s MIS Systems Analysis identify information requirements up front Design deliver system based on frozen requirements

Business Value of DSS

Providing fine-grained information for decisions that enable the firm to coordinate both internal and external business processes much more precisely Helping with decisions in Supply chain management Customer relationship management Pricing Decisions Asset Utilization

Business Value of DSS

Data Visualization: Presentation of data in graphical forms, to help s see patterns and relationships Geographic Information Systems (GIS): Special category of DSS that display geographically referenced data in digitized maps

DECISION SYSTEM A decision system (DSS) is a computer-based information system that s business or organizational decisionmaking activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.

DSS APPLICATION AREA  Comparative sales figures between one week

and the next.  Projected revenue figures based on new

product sales assumptions.

DSS APPLICATION AREA  decision systems designed to

    

manage inventory Use DSS for sales optimization and sales projections DSS to optimize industry-specific systems Land Allocation Decision System Clinical decision system WebFOCUS reporting software

DSS APPLICATION AREA  Simplify Access to Data Needed To Make

   

Decisions Provide Reminders and Prompts Assist in Order Entry Assist in Diagnosis Review New Clinical Data; Alert When Important Patterns Are Recognized

DSS APPLICATION AREA  Examples of Successful Computer Decision

Systems  HIV Guidelines at Boston Beth Israel  Antimicrobial Use in the ICU

DECISION

A decision is choice out of several alternatives (options) made by the decision maker to achieve some objective s in a given situation.

DECISION TYPES

 Strategic decision  Tactical decision  Operation decision

DECISION TYPES  1. Strategic Decision: these are known as

major decision influence whole or major part of the organization. Such decisions contribute directly to the achievement of common goals of the organization; have long range effect upon the organization.

DECISION TYPES  2.

Tactical Decision: tactical decision relate to the implementation of strategic decisions, directed towards developing divisional plans, structuring workflows, establishing distribution channels, acquisition of resources such as men, materials and money. These decisions are taken at the middle level of management.

DECISION TYPES  3.

Operational Decision: operational decisions relate to day-to-day operations of the enterprise having a short-term horizon and are always repeated. These decisions are based on facts regarding the events and do not require much of business judgments. Operational decisions are taken at lower level of management.

CATEGORIES OF DECISION M AKING  Structured Situations:   decisions are automated  decision systems are not required

 Examples: Allocate resources to

managers; develop a marketing plan

CATEGORIES OF DECISION M AKING

 Semistructured Situations: there is a method to follow  requirements are clear cut

 Examples: Restock inventory; determine

special offers to customers

CATEGORIES OF DECISION M AKING  Unstructured Recognised Situations:   there is no method to reach the decision  judgments are required  requires insights into the problem

 Examples: Approve capital budget;

decide corporate objectives

CATEGORIES OF DECISION M AKING

TYPES OF DECISION MAKING  Types Of Decision-Making Systems  There are two types of systems based on the

manager’s knowledge about the environment.  Closed Decision-Making System  Open Decision-Making System

TYPES OF DECISION MAKING  closed decision-making system.  If the manager operates in a known

environment then it is a closed decisionmaking system.  Open Decision-Making System  If the manager operates in an environment not known to him, then the decision-making

system is termed as an Open DecisionMaking System

DSS COMPONENTS  Inputs: Factors, numbers, and characteristics

to analyze  Knowledge and Expertise: Inputs requiring manual analysis by the  Outputs: Transformed data from which DSS "decisions" are generated  Decisions: Results generated by the DSS based on criteria

DSS COMPONENTS  1. Data Management Subsystem  2. Model Management Subsystem  3. Knowledge Management Subsystem  4. Interface Subsystem  5. The

DECISION-MAKING PROCESS  The decision-making process can be divided into three main phases:  (a) Intelligence: searching the environment for condition calling for decisions. The phase consists of determining that a problem exists.  (b) Design: during this phase a set of alternative solution is generated and tested for feasibility.  (c) Choice: in this phase, the decision-maker

select one of the solution identified in the design phase.

STAGES IN DECISION MAKING

Decision-Making Stages  Orientation stage  Conflict stage  Emergence stage  Reinforcement

Decision-Making Stages  Orientation stage- This phase is where

meet for the first time and start to get to know each other.  Conflict stage- Once group become familiar with each other, disputes, little fights and arguments occur. Group eventually work it out.

Decision-Making Stages  Emergence stage- The group begins

to clear up vague opinions by talking about them.  Reinforcement stage- finally make a decision, while justifying themselves that it was the right decision.

DECISION-MAKING STEPS  Establishing community:  Perception:  Interpretation:  Judgment:  Motivation:  Action:  Reflection in action:

 Reflection on action:

DECISION-MAKING STEPS  Establishing community: creating and nurturing the

relationships, norms, and procedures that will influence how problems are understood and communicated. This stage takes place prior to and during a moral dilemma  Perception: recognizing that a problem exists  Interpretation: identifying competing explanations for the problem, and evaluating the drivers behind those interpretations  Judgment: sifting through various possible actions or responses and determining which is more justifiable

DECISION-MAKING STEPS  Motivation: examining the competing commitments which may distract from a more

moral course of action and then prioritizing and committing to moral values over other personal, institutional or social values  Action: following through with action that s the more justified decision. Integrity is ed by the ability to overcome distractions and obstacles, developing implementing skills, and ego strength  Reflection in action  Reflection on action

Figure 1 Decision Understanding Stages

Stage 1: DetectingWhat Has Happened?

Stage 2: MonitoringWhat Is Happening?

Stage 3: PredictingWhat Will Happen?

Figure 2 DSS Hardware Evolution

Stage 1: Mainframe and Terminals

Stage 2: Personal Computers (PCs) and Workstations

Stage 3: Locally Networked PCs

Stage 4: InternetNetworked PCs

Stage 5 Networked Devices

 DSS- Theory Development  DSS Applications Development

 DSS- Theory Development      



File drawer systems Data analysis systems Analysis information systems ing and financial models Representational models Optimization models Suggestion models

 DSS- Theory Development  File drawer systems that provide access to

data items.  Data analysis systems that the manipulation of data by computerized tools tailored to a specific task and setting or by more general tools and operators.  Analysis information systems that provide access to a series of decision-oriented databases and small models. 

 DSS- Theory Development  ing and financial models that

calculate the consequences of possible actions.  Representational models that estimate the consequences of actions on the basis of simulation models.  Optimization models that provide guidelines for action by generating an optimal solution consistent with a series of constraints.  Suggestion models that perform the logical processing leading to a specific suggested decision for a fairly structured or well-understood task.

DSS Applications Development  1 Model-driven DSS  2 Data-driven DSS  3 Communications-driven DSS  4 Document-driven DSS  5 Knowledge-driven DSS  6 Web-based DSS

CHARACTERISTICS OF A DSS          

Facilitation.

Interaction. Ancillary. Task-oriented. Identifiable. Decision Impact.

CHARACTERISTICS OF A DSS  Facilitation. DSS facilitate and specific decision-making

activities and/or decision processes.

  Interaction. DSS are computer-based systems designed for

interactive use by decision makers or staff s who control the sequence of interaction and the operations performed.

  Ancillary. DSS can decision makers at any level in an

organization. They are NOT intended to replace decision makers.

  Repeated Use. DSS are intended for repeated use. A specific

DSS may be used routinely or used as needed for ad hoc decision tasks.



CHARACTERISTICS OF A DSS   

    

Repeated Use. DSS are intended for repeated use. A specific DSS may be used routinely or used as needed for ad hoc decision tasks.

Task-oriented. DSS provide specific capabilities that one or more tasks related to decision-making, including: intelligence and data analysis; identification and design of alternatives; choice among alternatives; and decision implementation. Identifiable. DSS may be independent systems that collect or replicate data from other information systems OR subsystems of a larger, more integrated information system. Decision Impact. DSS are intended to improve the accuracy, timeliness, quality and overall effectiveness of a specific decision or a set of related decisions.

CLASSIFICATION OF DSS On Use level DSS is classified as

  On the conceptual level DSS is classified as  On System level DSS is classified as



CLASSIFICATION OF DSS  On Use level DSS is classified as

  1. ive DSS,  2. Active DSS, and  3. Cooperative DSS 

CLASSIFICATION OF DSS   On the conceptual level DSS is classified as

      

1. communication-driven DSS, 2. data-driven DSS, 3. document-driven DSS, 4. knowledge-driven DSS, and 5. model-driven DSS.

CLASSIFICATION OF DSS  On System level DSS is classified as

  1. enterprise-wide DSS and  2. desktop DSS

DSS VS MIS