Decision Support System

Deci sion Suppo rt Sy ste ms

Definitions of a Decision Support System General definition - a system providing both problem-solving and communications capabilities for semistructured problems

Specific definition - a system that supports a single manager or a relatively small group of managers working as a problem-solving team in the solution of a semistructured problem by providing information or making suggestions concerning specific decisions.

Decision Making ■

Simon’s types of decisions – Programmed – Nonprogrammed

■

Simon’s phases (activities) of decision making – – – –

Intelligence Design Choice Review

The Decision Support System Concept Gory and Scott-Morton coined the phrase ‘DSS’ in 1971, about ten years after MIS became popular ■ Structured problems could be solved by algorithms and decision rules ■ Unstructured problems have no structure in Simon’s phases ■ Semistructured problems have structured and unstructured phases ■

The Gorry and Scott Morton Grid Management levels Operational control Structured

Degree of problem structure Semistructured

Unstructured

Management control

Strategic planning

Accounts receivable

Budget analysis-engineered costs

Tanker fleet mix

Order entry

Short-term forecasting

Warehouse and factory location

Inventory control Production scheduling

Variance analysis-- Mergers and overall budget acquisitions

Cash management

Budget preparation

New product planning

PERT/COST systems

Sales and production

R&D planning

Alter’s DSS Types The least degree of problem-solving support comes from retrieval of information elements ■ More support comes from retrieving information files ■ Still more support comes from reports from multiple files ■

Alter’s DSS Types (continued) Even more support from systems that can estimate decision consequences ■ More support from systems that can propose decisions ■ And the most support comes from systems that can make decisions ■

Alter’s DSS Types

Retrieve information elements

Little

Analyze entire files

Prepare reports from multiple files

Estimate decision consequences

Degree of complexity of the problem-solving system

Propose decisions

Make decisions

Much

Degree of problem solving support

The DSS Focuses on Semistructured Problems

Computer Solution

Structured

Manager + Computer (DSS) Solution

Semistructured

Manager Solution

Unstructured

DEGREE OF PROBLEM STRUCTURE

Peter Keen Believes That a DSS Should: 1. Assist in solving semistructured problems 2. Support, not replace, the manager 3. Contribute to decision effectiveness, rather than efficiency

A DSS Model Environment Individual problem solvers

Report writing software

Other group members

GDSS GDSS software software

Mathematical Models

Database

Decision support system Environment Legend:

Data

Communication

Information

Contents of the Database are Used by Three Software Subsystems Report writers (including COBOL) ■ Mathematical models ■ GDSS -- contributes to communications effectiveness ■

Group Decision Support Systems Definition - a computer-based system that supports groups of people engaged in a common task (or goal) and that provides an interface to a shared environment. ■ GDSS is used in problem solving ■ Electronic meeting system (EMS) is used for group interaction of all kinds. Example JAD session. ■

GDSS Environmental Settings Asynchronous exchange as well as synchronous exchange of information ■ There is less wasted time. ■ There is more balanced participation. ■

Group Size and Location Determine GDSS Environmental Settings GROUP SIZE Face-toface

MEMBER PROXIMITY Dispersed

Smaller

Larger

Decision Room

Legislative Session

Local Area Decision Network

ComputerMediated Conference

GDSS example: U. of Arizona's Group System (Groupware) Electronic brainstorming (EBS) program ■ Parallel communication ■ Anonymity ■

– Idea Organizer – Vote program

Groupware Functions - electronic mail, FAX, voice messaging, internet access, and others ■ Lotus Notes has been a particularly popular groupware product ■

Main Groupware Functions IBM TeamWARE Lotus Function Workgroup Office Notes Electronic mail X X X FAX X X O Voice messaging O Internet access X X O Bulletin board system X 3 Personal calendaring X X 3 Group calendaring X X O Electronic conferencing O X 3 Task management X X 3 Desktop video conferencingO Database access O X 3 Workflow routing O X 3 Reengineering O X 3 Electronic forms O 3 3 Group documents O X X X = standard feature

O = optional feature

Novell GroupWise X X X X O X X 3 X

X O O

3 = third party offering

A Groupware Strategy Orientation session to familiarize the group to the groupware ■ Implementation tips ■

– – – –

designate a groupware champion pick a pilot project define the problem select the groupware

Groupware Implementation Company politics

Corporate culture

1.

Designate a groupware champion 2. Pick a pilot project 3. Define the problem 4. Select the groupware

Individual resistance