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Summarize case of opening vignette: decision modeling at HP using spreadsheets

The vignette relates to providing decision support in a large organization. The


analytics may not solve the problem because the problem may not be of an analytic
nature. So nonmodeling solutions is important. Sometimes an existing tool, modifying
an existing tool, or a custom tool may solve a problem. The developers use
analytically derived decision guidelines instead of a tool and they may determine that
it is better to present decision rules.
1. What are some of the key questions to be asked in supporting decision making
through DSS?
Answer:
-

Will analytics solve the problem?


Can an existing solution be leveraged?
Is a tool needed?

2. What guidelines can be learned from this vignette about developing DSS?
Answer: There are 5 guidelines that tends to increase the probability of the new tool
will be successful. The first guideline is to develop a prototype as quickly. The second
guideline is to build insight, not black boxes. The third guideline is to remove
unneeded complexity before handoff. The fourth guideline is to partner with end
users in discovery and deign. The fifth guideline is to develop an Operations
Research (OR) champion.
3. What lessons should be kept in mind for successful model implementation?
Answer: There are three phases of lesson that have to keep in mind in order to
develop the best solution for the problem that are problem framing, the actual design
and development of the tools, and the handoff.
Summarize case of Making Elevators Go Faster!
The problem is slow elevators in a tall hotel tower. After find many solutions,
the management determined that the real problem was not about the actual waiting
time, but it was the perceived waiting time. So the solution was to install full-length
mirrors on elevator doors on each floor.
1. What is the difference between a problem and its symptoms?
Answer: A problem has a solution whereas a symptom helps you to identify a
problem.
2. Why is it important to classify a problem?
Answer: Problem classification is the conceptualization of a problem. Problem can
be found quickly and efficiently.
3. What is meant by problem decomposition?
Answer: Decomposition is one of the most important aspects of the analytical

hierarchy process. Sometimes the problem is so big or complex that we dont know
where to start.
Decomposition is when we break a problem down into smaller parts to make it easier
to tackle.
4. Why is establishing problem ownership so important in the decision-making
process?
Answer: Problem ownership means having the authority, and taking the
responsibility, of solving it. Lack of problem ownership means either that someone is
not doing his or her job, or that the problem at hand has yet to be identified as
belonging to anyone. In either case, it cannot be solved until someone owns it.

Chapter 2: DSS-BI Foundation and Technology page 67-106


Terminologies
Ad hoc DSS
Analytical techniques
Automated decisionmaking (ADM)
Automated decision system
(ADS)
Best Buy
Bounded rationality
Business activity
monitoring (BAM)
Business process
management (BPM)
Business process
reengineering (BPR)
Capacities
Chief executive officer
(CEO)
Choice phase
Cognos
Compound DSS
Computer-based
information system (CBIS)
Creativity
Custom-made DSS system
Database management
system (DBMS)
Data Directory
Data management
subsystem
Decision makers
Decision making
Decision style
Descriptive models
DSS resource
Enterprise resource
management (ERM)
Enterprise resource
planning (ERP)
Group support system

Meaning
A DSS that deals with specific problems that are
usually neither anticipated nor recurring.
Methods that use mathematical formulas to derive an
optimal solution.
A business rule-based system that uses intelligence to
recommend solutions to repetitive decisions such as
pricing

An advanced performance measurement and analysis


approach that embraces planning and strategy
A methodology for introducing a fundamental change
in specific business process. BPR is usually supported
by an information system.

The third phase in decision-making, in which an


alternative is selected.

Software for establishing, updating, and querying a


database.

The action of selecting among alternatives.


The manner in which a decision maker thinks and
reacts to problems. It includes perceptions, cognitive
responses, values, and beliefs.
A model that describes things as they are.

Information system, specifically DSS that supports the

(GSS)
Information overload
Institutional DSS
Interactive Financial
Planning System (IFPS)
Internal data
Model base
Normative model
Suboptimization

collaborative work of groups.


An excessive amount of information being provided,
making processing and absorbing tasks very difficult
for the individual.
A DSS that is a permanent fixture in an organization
and has continuing financial support. It deals with
decisions of a recurring nature.

A collection of preprogrammed quantitative models


organized as a single unit.
A model that prescribes how a system should operate.
An optimization-based procedure that does not
consider all the alternatives for or impacts on an
organization.

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