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Chapter 13
Decision Support Systems
13-1
Copyright 2001 Prentice-Hall, Inc.
Objectives
Q Have an expanded theoretical base for understanding
decision making and the DSS concept.
Q Understand the objectives of a DSS.
Q Understand one definition of a DSS and its accompanying
model.
Q Know how to apply the DSS concept to group problem
solving and achieve a group decision support system/GDSS
Q Be familiar with special GDSS software called groupware.
Q Know what is meant by the term artificial intelligence as
well as what areas are included.
Q Understand the appeal of expert sistem and how they
compare with DSSs.
Simons Types of Decisions
Q Programmed decisions
repetitive and routine
have a definite procedure
Q Nonprogrammed decisions
Novel and unstructured
No cut-and-dried method for handling problem
Q Types exist on a continuum
13-3
Simons Problem Solving Phases
Q Intelligence
Searching environment for conditions calling for a
solution
Q Design
Inventing, developing, and analyzing possible courses
of action
Q Choice
Selecting a course of action from those available
Q Review
Assessing past choices
13-4
Definitions of a Decision
Support System (DSS)
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.
13-5
The DSS Concept
Q Gorry and Scott Morton coined the phrase
DSS in 1971, about ten years after MIS
became popular
Q Decision types in terms of problem structure
Structured problems can be solved with
algorithms and decision rules
Unstructured problems have no structure in
Simons phases
Semistructured problems have structured and
unstructured phases 13-6
The Gorry and Scott Morton Grid
Management levels
Operational Management Strategic
control control planning
Structured Accounts Budget analysis-- Tanker fleet
receivable engineered costs mix
Degree of Order entry Short-term Warehouse and
problem forecasting factory location
structure Inventory
control
13-7
Alters DSS Types
Q In 1976 Steven Alter, a doctoral student
built on Gorry and Scott-Morton framework
Created a taxonomy of six DSS types
Based on a study of 56 DSSs
Q Classifies DSSs based on degree of
problem solving support.
13-8
Levels of Alters DSSs
Q Level of problem-solving support from
lowest to highest
Retrieval of information elements
Retrieval of information files
Creation of reports from multiple files
Estimation of decision consequences
Propose decisions
Make decisions
13-9
Importance of Alters Study
13-10
Alters DSS Types
Degree
of
problem
Retrieve Analyze Prepare Estimate Propose Make solving
information entire reports decision decisions decisions support
elements files from consequen-
multiple ces
files
Degree of
Little Much
complexity of the
problem-solving
system 13-11
Three DSS Objectives
1. Assist in solving semistructured problems
2. Support, not replace, the manager
3. Contribute to decision effectiveness, rather
than efficiency
13-12
A DSS Model
Environment
Individual Other
problem group
solvers members
Report GDSS
Mathematical GDSS
writing software
Models software
software
Database
Decision
support
system
Environment
Data Communication Information
Legend:
13-13
Database Contents
Q Used by Three Software Subsystems
Report writers
Special reports
Periodic reports
COBOL or PL/I
DBMS
Mathematical models
Simulations
Special modeling languages
Groupware or GDSS
13-14
Group Decision Support Systems
Q Computer-based system that supports
groups of people engaged in a common task
(or goal) and that provides an interface to a
shared environment.
Q Used in problem solving
Q Related areas
Electronic meeting system (EMS)
Computer-supported cooperative work (CSCW)
Group support system (GSS)
Groupware 13-15
How GDSS Contributes
to Problem Solving
Q Improved communications
Q Improved discussion focus
Q Less wasted time
13-16
GDSS Environmental Settings
Q Synchronous exchange
Members meet at same time
Committee meeting is an example
Q Asynchronous exchange
Members meet at different times
E-mail is an example
Q More balanced participation.
13-17
GDSS Types
Q Decision rooms
Small groups face-to-face
Parallel communication
Anonymity
Q Local area decision network
Members interact using a LAN
Q Legislative session
Large group interaction
Q Computer-mediated conference
Permits large, geographically dispersed group
interaction 13-18
Group Size and Location Determine
GDSS Environmental Settings
GROUP SIZE
Smaller Larger
13-19
Groupware
Q Functions
E-mail
FAX
Voice messaging
Internet access
Q Lotus Notes
Popular groupware product
Handles data important to managers
13-20
Main Groupware Functions
IBM TeamWARE Lotus Novell
Function Workgroup Office Notes GroupWise
E lectro n ic m ail X X X X
F AX X X O X
V o ice m essag in g O X
In tern et access X X O X
Bu lletin b o ard system X 3 O
P erso n al calen d arin g X X 3 X
G ro u p calen d arin g X X O X
E lectro n ic co n feren cin g O X 3 3
T ask m an ag em en t X X 3 X
Deskto p vid eo co n feren O
Datab ase access O X 3
W o rkflo w ro u tin g O X 3 X
Reen g in eerin g O X 3
E lectro n ic fo rm s O 3 3 O
G ro u p d o cu m en ts O X X O
X = standard feature O = optional feature 3 = third party offering
13-21
Artificial Intelligence (AI)
13-22
History of AI
Q Early history
John McCarthy coined term, AI, in 1956, at
Dartmouth College conference.
Logic Theorist (first AI program. Herbert Simon
played a part)
General problem solver (GPS)
Q Past 2 decades
Research has taken a back seat to MIS and DSS
development
13-23
Areas of Artificial Intelligence
Expert
systems AI
hardware
Robotics
Natural
language Perceptive
systems
Neural (vision,
networks hearing)
Learning
Artificial Intelligence
13-24
Appeal of Expert Systems
Q Computer program that codes the
knowledge of human experts in the form of
heuristics
Q Two distinctions from DSS
1. Has potential to extend managers problem-
solving ability
2. Ability to explain how solution was reached
13-25
Instructions & Solutions &
Knowledge
User information explanations
User
interface
Know-
Inference Problem
ledge
engine Domain
base
Development
engine
Expert
system
An Expert
System Model
Expert and
knowledge engineer 13-26
Expert System Model
Q User interface
Allows user to interact with system
Q Knowledge base
Houses accumulated knowledge
Q Inference engine
Provides reasoning
Interprets knowledge base
Q Development engine
Creates expert system
13-27
User Interface
Q User enters:
Instructions
Information } Menus, commands, natural language, GUI
13-28
Knowledge Base
13-29
A Rule Set That
Conclusion Produces One Final
Conclusion
Conclusion
Conclusion
13-31
Inference Engine
13-32
Forward Reasoning
(Forward Chaining)
Q Rule is evaluated as:
(1) true, (2) false, (3) unknown
Q Rule evaluation is an iterative process
Q When no more rules can fire, the reasoning
process stops even if a goal has not been
reached
Start with inputs and
work to solution
13-33
Rule 1 The Forward
T
IF A
THEN B Rule 7 Reasoning
Rule 2
F
IF B OR D
THEN K
Rule 10
IF K AND
Process
IF C T L THEN N
THEN D
T
Rule 3 Rule 8 Rule 12
T T
IF M IF E IF N OR O
THEN E THEN L THEN P
T
Rule 4
T
IF K Legend:
THEN F
Rule 9 First pass
Rule 5 Rule 11
T IF T
IF G IF(F
(FAND
ANDH)
H) IF M
OR
ORJJ
THEN H THEN O Second pass
THEN
THENMM T
Rule 6
F Third pass
IF I
THEN J
13-34
Reverse Reasoning Steps
(Backward Chaining)
Divide problem into subproblems
Try to solve one subproblem
Then try another
13-35
Step 4 The First Five Problems
Rule 1
IF A THEN
Step 3 Are Identified
B Rule 7
T Step 2
IF B OR D Rule 10
THEN K Step 1
Rule 2 T IF K AND L Rule 12
IF C THEN N
IF N OR O
THEN D
THEN P
Step 5
Rule 3 Rule 8
IF M IF E
THEN E THEN L
Rule 11 Legend:
Problems to
IF (F AND H) IF M
M be solved
Rule 9 IF
OR J THEN O
THEN O
THEN M
13-36
The Next Four Problems Are
Step 8 Identified Rule 12
Rule 4
If N Or O
Then P T
If K
Then F
T
Step 7 Step 6
Step 9
Rule 5
If G IF (F And H) If M
Then H Or J Then O
T Then M T T
13-39
Expert System Advantages
Q For managers
Consider more alternatives
Apply high level of logic
Have more time to evaluate decision rules
Consistent logic
Q For the firm
Better performance from management team
Retain firms knowledge resource
13-40
Expert System Disadvantages
13-41
Keys to Successful ES
Development
Q Coordinate ES development with strategic
planning
Q Clearly define problem to be solved and
understand problem domain
Q Pay particular attention to ethical and legal
feasibility of proposed system
Q Understand users concerns and expectations
concerning system
Q Employ management techniques designed to retain
developers 13-42
Neural Networks
13-43
The Human Brain
13-44
Simple Biological Neurons
Soma
Axonal Paths
(processor)
(output)
Synapse
Axon
Dendrites
(input)
13-45
Evolution of Artificial
Neural Systems (ANS)
Q McCulloch-Pitts mathematical neuron
function (late 1930s) was the starting point
Q Hebbs learning law (early 1940s)
Q Neurocomputers
Marvin Minskys Snark (early 1950s)
Rosenblatts Perceptron (mid 1950s)
13-46
Current Methodology
13-47
Single Artificial Neuron
y1 w1
y2 w2
y3 w3
y
wn-1
yn-1 13-48
OUT1 OUTn
Input
The Multi-Layer
Layer Perceptron
Y1 Yn2
OutputL
ayer
IN1 INn
13-49
Knowledge-based Systems
in Perspective
Q Much has been accomplished in neural nets
and expert systems
Q Much work remains
Q Systems abilities to mimic human
intelligence are too limited and regarded as
primitive
13-50
Summary [cont.]
Q AI
Neural networks
Expert systems
Q Limitations and promise
13-51
Case Study
1. A decision support system should let a manager
see the possible effects of a decision.
A) true B) false