BIT 30303

DECISION SUPPORT SYSTEM

CHAPTER 2 DATA AND MODEL MANAGEMENT
• 2.1 Data Management Subsystem
• 2.2 Data Organisation
• 2.3 Model and data-oriented decision support systems
• 2.4 Knowledge Repository of Decision Support System
• 2.5 Business intelligence and decision support systems
2.1 Data Management Subsystem
The Data Management Subsystem

• DSS database
• Database management system
• Data directory
• Query facility

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DSS Database Issues

• Data warehouse
• Data mining
• Special independent DSS databases
• Extraction of data from internal, external, and private sources
• Web browser data access
• Web database servers
• Multimedia databases
• Special GSS databases (like Lotus Notes / Domino Server)
• Online Analytical Processing (OLAP)
• Object-oriented databases
• Commercial database management systems (DBMS)

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The Model Management Subsystem

Analog of the database management subsystem

• Model base

• Model base management system

• Modeling language

• Model directory

• Model execution, integration, and command processor

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Copyright 2001, Prentice Hall, Upper Saddle River, NJ
The Knowledge Based (Management)
Subsystem
• Provides expertise in solving complex unstructured and semi-structured
problems
• Expertise provided by an expert system or other intelligent system
• Advanced DSS have a knowledge based (management) component
• Leads to intelligent DSS
• Example: Data mining

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 The User Interface (Dialog) Subsystem

• Includes all communication between a user and the MSS

• Graphical user interfaces (GUI)
• Voice recognition and speech synthesis possible

• To most users, the user interface is the system

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Copyright 2001, Prentice Hall, Upper Saddle River, NJ
The User

Different usage patterns for the user, the manager, or the

decision maker

• Managers
• Staff specialists
• Intermediaries
1. Staff assistant
2. Expert tool user
3. Business (system) analyst
4. GSS Facilitator

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2.2 Data Organisation
Data and Model Management
• An increasing focus on the value of data to an
organization pointed out that the quality and
structure of the database largely determines the
success of a DSS.
• A database organizes data into a logical hierarchy
based on granularity of the data.
• The hierarchy contains four elements:
1. Database 2. Files
3. Records 4. Data elements

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 Hierarchy of Data

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The Database Management System
• Even though the data within each file have a common
structure (the record), the files themselves may be
quite diverse.
• The important role of organizing the files and
databases goes to the DBMS.
• The two main responsibilities of the DBMS are:
1. Coordinating the tasks related to storing and accessing
information.
2. Maintenance of the logical independence between the data
in the DSS database and the DSS application.

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General Functions of the DBMS
• Data definition – providing a data definition language
and allowing for interrelation of data
• Data manipulation – providing a query language,
allowing for capture and extraction
• Data integrity – allows user to describe rules that
maintain integrity and check for errors

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General Functions of the DBMS (cont.)
• Access control – allows identification of users, controls
access and tracks usage
• Concurrency control – provides procedures for
controlling the effects of simultaneous access
• Transaction recovery – provides mechanisms for restart
and reconciliation in the event of hardware failure

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2.3 Model and data-oriented decision support
systems
The Model Base
• A model is a simplification of some event
constructed to help study the event.
• The model base is the modeling counterpart to the
database; it stores and organizes the various models
the DSS uses in its analyses.
• The MBMS (or model base management system) is
the counterpart to the DBMS.
• The model base is what differentiates a DSS from
other information systems.

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General Functions of the MBMS

• Modeling language – allows for creation of decision models, provides a

mechanism for linking multiple models
• Model library – stores and manages all models, provides a catalog and
description.
• Model manipulation – allows for management and manipulation of the
model base with functions (run, store, query, etc.) similar to those in a
DBMS.

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2.4 Knowledge Repository of Decision Support
System
DSS Knowledge Base

• Any true decision requires reasoning, which requires information.

• can just be raw information, or rules, heuristics, constraints or previous
outcomes.
• This knowledge The knowledge base is where all of this information is
stored by the DSS.
• Knowledge is different from information in either the database or model
base in that it is problem-specific.

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Contents of the Knowledge Base

• Knowledge in the base can be categorized into two

simple groups.
• Facts represent what we know to be true at a given
time.
• Hypotheses represent the rules or relationships we
believe to exist between the facts.

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Knowledge Acquisition and Retrieval

• One or more people called knowledge engineers gather the information

for the knowledge base. These people are specially trained in techniques
for extracting this from experts in the domain.
• The inference engine is the part of knowledge base that applies the rules
to pull the information out in the form the user desires.

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User Interfaces
• An interface is a component designed to allow the
user to access internal components of a system.
• In general, the more common the interface, the less
training need be provided to users. Think, how
many Windows programs use the same menu
structure as Microsoft Word?
• The general functions of a DSS interface are the
communication language and the presentation
language.

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General functions of the DSS Interface

• Communication language – allows for interaction with the DSS in a

variety of ways, identifies form of input (see the next slide), provides
support to DSS users, captures previous dialogues so future interactions
can be improved.
• Presentation language – provides for presentation of data in a variety of
formats, allows for detailed report generation, can provide multiple views
of the data.

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Common Input Devices

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The DSS User

• In a DSS, the user is as much a part of the system as the hardware and
software.
• User roles: Alter classified users into five categories (decision maker,
intermediary, maintainer, operator and feeder).
• Patterns of DSS use: Alter further classifies the various user roles into one
of four basic patterns of use. The next slide illustrates those patterns.

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2.5 Business intelligence and decision support
systems
What is business intelligence with example?

• Business intelligence (BI) refers to the procedural and technical

infrastructure that collects, stores, and analyzes the data produced by a
company's activities. BI is a broad term that encompasses data mining,
process analysis, performance benchmarking, and descriptive analytics.
What is business intelligence and decision support
system?

• Decision support systems are a subset of business intelligence aimed at

helping organizations make informed business decisions based on vast
troves of analyzed data.
How business intelligence systems help for decision
support?
• Business Intelligence helps companies make informed decisions on
strategic issues by providing crucial information on current and historical
performance of the company along with future trends, expected
demands, customer behavior etc.
Types of BI Tools and Software
• Spreadsheets: Spreadsheets like Microsoft Excel and Google Docs are some
of the most widely used BI tools.
• Reporting software: Reporting software is used to report, organize, filter, and
display data.
• Data visualization software: Data visualization software translates datasets into
easy-to-read, visually appealing graphical representations to quickly gain
insights.
• Data mining tools: Data mining tools "mine" large amounts of data for
patterns using things like artificial intelligence, machine learning, and statistics.
• Online analytical processing (OLAP): OLAP tools allow users to analyze
datasets from a wide variety of angles based on different business perspectives.
Examples of BI
Lowe's Corp
• Lowe's Corp, which operates the nation's second-largest home improvement retail chain, is
one of the earliest big-box adopters of BI tools.
• Specifically, it has leaned on BI tools to optimize its supply chain, analyze products to
identify potential fraud, and solve problems with collective delivery charges from its stores.

Coca-Cola Bottling Company

• Coca-Cola Bottling had a problem with its daily manual reporting processes: they restricted
access to real-time sales and operations data.
• But by replacing the manual process with an automated BI system, the company completely
streamlined the process and saved 260 hours a year (or more than six 40-hour work weeks).
• Now, the company's team can quickly analyze metrics like delivery operations, budget, and
profitability with just a few clicks.
Challenges and issues in business

• The benefits of computerized decision support

• Companies work in an unstable or rapidly changing economy.
• There are difficulties in tracking the numerous business operations.
• Competition has increased especially global competition.
• Electronic commerce is changing the ways business is done.
• Existing information systems do not fully support decision making.
An Early Framework for Computerized Decision
Support
• Types of control in all managerial activities
• Strategic planning
• Management control
• Operational control
• The types of decision support matrix
• For semi-structured decisions and unstructured decisions, conventional MIS and MS tools are
insufficient
• Decision support systems (DSS) are used
Structured decisions

• Computer support for structured decisions

• Management science (MS) or operations research (OR)
The application of a scientific approach and mathematical models to the analysis
and solution of managerial decision situations (e.g., problems, opportunities)
Structured Decision

• Computer support for structured decisions

• Automated decision systems (ADS)
A business rules-based system that uses intelligence to recommend solutions to
repetitive decisions (such as pricing)
Unstructured Decision

• Computer support for unstructured decisions

• Customized solutions
• intuition and judgment
• Computerized communication and collaboration technologies
• Knowledge management
Semi Structured Decision Support

• Computer support for semistructured problems

• A combination of both standard solution procedures and human judgment
• Management Science can provide models for the structured portion
• For the unstructured portion, a DSS can improve the quality of the information
on which the decision is based by providing a range of alternative solutions along
with their potential impacts
An Early Framework for
Computerized Decision Support
The Concept of Decision
Support Systems
The Concept of Decision Support Systems
(DSS)
• DSS as an Umbrella term: Describes any computerized system that
supports decision making in an organization
• DSS as a specific application
• The architecture of DSS
• Data
• Models manipulate data as related to a specific situation
• Knowledge component
• Users
• User interface
The Concept of Decision
Support Systems (DSS)
The Concept of Decision Support Systems
(DSS)
• Types of DSS
• model-oriented DSS: quantitative models used to generate a recommended solution to a
problem
• data-oriented DSS: support ad-hoc reporting and queries
A Framework for
Business
Intelligence (BI)
A Framework for
Business Intelligence (BI)
• Business intelligence (BI)
An umbrella term that combines architectures, tools, databases,
applications, and methodologies
• Evolution of BI
A Framework for
Business Intelligence (BI)
• BI architecture
• Data warehouse
• Business analytics
• Business Process Management (BPM)
• KPI-Business Performance, Dashboard
A Framework for
Business Intelligence (BI)
A Framework for
Business Intelligence (BI)
• Data warehouse
• Originally, included historical data that were organized and summarize, so end users could
easily view or manipulate data and information
• Today, some data warehouses include current data as well, so they can provide real time
decision support
A Framework for
Business Intelligence (BI)
• Business analytics
• Reporting and queries
• Advanced analytics
• Data, text and Web mining and other sophisticated
mathematical and statistical tools
A Framework for
Business Intelligence (BI)
• Data mining
A process of searching for unknown relationships or
information in large databases or data warehouses, using
intelligent tools such as neural computing, predictive
analytics techniques, or advanced statistical methods
A Framework for
Business Intelligence (BI)
• Business performance management (BPM)
An advanced performance measurement and analysis
approach that embraces planning and strategy
• BPM extends the monitoring, measuring, and comparing of
sales, profit, cost, profitability, and other performance
indicators by introducing the concept of “management and
feedback
• BPM provides a top-down enforcement of corporate-wide
strategy
A Framework for
Business Intelligence (BI)
• Business performance management
• User interface
• Dashboard
A visual presentation of critical data for executives to view. It
allows executives to see hot spots in seconds and explore the
situation
• Dashboards integrate information from multiple business areas
• Visualization tools
A Framework for
Business Intelligence (BI)
• Styles of BI
1. Report Delivery and Alerting
2. Enterprise Reporting (dashboard, scorecard)
3. Cube Analysis (Slice and Dice Analysis)
4. Ad-hoc Query
5. Statistics and Data Mining
A Framework for
Business Intelligence (BI)
• Benefits of BI
• Faster, more accurate reporting
• Improved decision making
• Improved customer service
• Increased revenue
DSS-BI Connection

1. The architecture is very similar since BI evolved from DSS

2. DSS are constructed to directly support specific decision
making; BI systems are geared to provide accurate and
timely information (indirect support)
3. BI has an executive and strategy orientation while DSS has
been oriented toward analysts
DSS-BI Connection

4. BI systems are constructed with commercially available tools

and components that are fitted to the needs of organizations;
DSS more programming is used to construct custom
solutions to very unstructured problems
5. DSS were developed mostly in the academic world; BI were
developed mostly by software companies
6. Many tools used by BI are also considered DSS tools (e.g.,
data mining and predictive analysis )
Management support systems (MSS)

A system that applies any type of decision support

tool or technique to managerial decision-making
The Major Tools and Techniques
of MSS
Computerized Tools for Decision Support
• Data management • Communication and
• Reporting status tracking collaboration
• Visualization • Knowledge management
• Business analytics • Intelligent systems
• Strategy and • Enterprise systems
performance
management
 The Major Tools and Techniques
of MSS
• Tools-Web connection
• All of these tools are available in both web-based and non web-based formats
• Hybrid (integrated) support systems
A support system that uses several tools and techniques to assist
management in solving managerial or organizational problems and assess
opportunities and strategies
 Implementing Computer-Based Managerial
Decision Support Systems

• Developing or acquiring support systems

• Justification and cost-benefit analysis
• Security and protection of privacy
• Integration of systems and applications
• The Web in DSS/BI implementation
• Information portals and MSS
Thank you