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Architecture of DSS, GDSS & ESS

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Decision Support Frameworkby gory & Scott

Type of Decision Operational control Managerial Control Strategic planning

Structured Accounts receivable, Accounts payable ,Order Entry

Budget analysis Short-term forecasting Personal Reports Make-or-Buy

Financial management Investment portfolio warehouse location Distribution System

Semi Structured Production controlling inventory control

Credit evaluation budget preparation Plant layoutProject schedulingReward system designInventory categorization

Building a new plantMergers and acquisition New product planning compensation planning Quality assurance HR PoliciesInventory planning

Unstructured Buying softwareApproving loansOperating a help deskSelecting a cover for magazine

NegotiatingRecruiting an executiveBuying hardwarelobbying

R&D planningNew tech developmentSocial responsibility planning

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Selected DSS Applications

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Comparison of DSSs and MISs

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Components of a DSS

Model management software (MMS) Coordinates the use of models in the DSS

Model base Provides decision makers with access to a

variety of models Dialogue manager

Allows decision makers to easily access and manipulate the DSS

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Database Model base

External databaseaccess

Access to theinternet, networks,and other computersystems

Dialogue manager

DBMS MMS

Externaldatabases

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The Database

Data in databases, data marts, Data in databases, data marts, warehouseswarehouses

Use data mining to help with the decisionsUse data mining to help with the decisions Ex. Who should an airline target for flights Ex. Who should an airline target for flights

from Istanbul to Ankara?from Istanbul to Ankara?

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Model Base

Model Base Provides decision makers with

access to a variety of models and assists them in decision making

Models Financial models Statistical analysis models Graphical models Project management models

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The Model Base

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Examples of GDSS Software

Lotus Notes Store, manipulate, distribute memos

Microsoft Exchange Keep individual schedules Decide on meeting times

NetDocuments Enterprise Two people can review the same document

together

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Components of a GDSS and GDSS Software

Database Model base Dialogue manager Communication capability Special software (also called GroupWare) E.g., Lotus Notes

people located around the world work on the same project, documents, and files, efficiently and at the same time

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Similarities in DSS & GDSS

• use models, data and user-friendly software • are interactive with “what-if” capabilities • use internal and external data • allow the decision maker to take an active role • have flexible systems • have graphical output

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Why use GDSS

High level managers can spend 80% of their time making decisions in groups. Applied correctly, GDSS can reduce this time, arriving at a better decision faster.

GDSS provides the hardware, software, databases and procedures for effective decision making.

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GDSS Alternatives

Local areadecision network

Wide areadecision network

Decisionroom

Teleconferencing

Location of group members

close distant

high

lowDec

isio

n fr

eque

ncy

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GDSS Time/Place Environment

Same-Time

Same-Place(Most widely used GDSS-

computers with projectors, voting tools)

Same-Time

Different-Place(team room, tools, audio

conferencing, screen sharing, chat)

Different-Time

Same-Place(audio/video conferencing,

document sharing)

Different-Time

Different-Place(voice mail, email, bulletin boards)

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Decision Room

Decision Room For decision makers located in the same geographic

area or building Use of computing devices, special software,

networking capabilities, display equipment, and a session leader

Collect, coordinate, and feed back organized information to help a group make a decision

Combines face-to-face verbal interaction with technology-aided formalization

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Wide Area Decision Network

Characteristics Location of group members is distant Decision frequency is high Virtual workgroups

• Groups of workers located around the world working on common problems via a GDSS

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Advantages of GDSS

Anonymity – drive out fear leading to better decisions from a diverse hierarchy of decision makers

Parallel Communication – eliminate monopolizing providing increased participation, better decisions

Automated record keeping – no need to take notes, they’re automatically recorded

Ability for virtual meetings – only need hardware, software and people connected

Portability - Can be set up to be portable… laptop Global Potential - People can be connected across the

world No need for a computer guru – although some basic

experience is a must

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Disadvantages of GDSS Cost –infrastructure costs to provide the hardware and

software/room/network connectivity can be very expensive

Security – especially true when companies rent the facilities for GDSS; also, the facilitator may be a lower-level employee who may leak information to peers

Technical Failure – power loss, loss of connectivity, relies heavily on bandwidth and LAN/WAN infrastructure – properly setup system should minimize this risk

Keyboarding Skills – reduced participation may result due to frustration

Training – learning curve is present for users, varies by situation

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Typical GDSS Process1) Group Leader (and Facilitator?) select software,

develop agenda 2) Participants meet (in decision room/Internet) and are

given a task. 3) Participants generate ideas – brainstorm anonymously4) Facilitator organize ideas into categories (different for

user-driven software)5) Discussion and prioritization – may involve ranking by

some criteria and/or rating to the facilitators scale6) Repeat Steps 3, 4, 5 as necessary 7) Reach decision8) Recommend providing feedback on decision and results

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Examples of GDSS taken directly from http://cicero.com

1) “One example of implementation of GDSS is at IBM. They, as well as many other corporations, initiated GDSS to improve group meetings. A specific case involved a plant manager not being able to identify the cause of problems with shop floor control. After having a meeting for two hours with plant personnel all that resulted were arguments and bad feelings.

So after meeting with the company's GDSS facilitator, the manager decided to have ten plant employees, himself, and two junior analysts participate in a GDSS program. They would use electronic brainstorming and voting to resolve the shop floor control problem.

The manager and the facilitator decided the topic would be "What are the key issues in improving shop floor control?"

After brainstorming for 35 minutes and compiling 645 lines of suggestions, ideas and comments on how to improve shop floor control, the manager found that he had gotten useful information about the issue for the first time.

A list was compiled of the comments and then the members of the group ranked them in order of importance. The results were displayed and a discussion was taken in ten minutes. The manager thanked the participants and was given a printout of all the discussion and results of the group vote .

2) “Another example is Hewlett-Packard. Their human-factors engineers work at locations all over the world. And they meet in person only once a year. The rest of the time, they have frequent, ongoing meetings to discuss professional and company issues. But they have these discussions through an electronic conference and final decision making is done with the aid of GDSS .

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Executive Support System

Executive Support System (ESS) is a reporting tool (software) that allows you to turn your organization's data into useful summarized reports. These reports are generally used by executive level managers for quick access to reports coming from all company levels and departments such as billing, cost accounting , staffing, scheduling, and more.

Characteristics A specialized DSS that includes all the

hardware, software, data, procedures, and people used to assist senior-level executives within the organization

Board of directors

President

Function areavice presidents

Function areamanagers

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Executive Support System tools also provide analysis tools that predicts a series of performance outcomes over time using the input data. This type of ESS is useful to executives as it provides possible outcomes and quick reference to statistics and numbers needed for decision-making.

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Characteristics of ESSs

Tailored to individual executives Easy to use Support the need for external data Help with situations with high degree of

uncertainty Future orientation (predictions, forecasting) Linked with value-added business processes

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Capabilities of an ESS

Support for defining overall vision strategic planning strategic organizing and staffing strategic control crisis management

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Summary

Decision-making phase - includes intelligence, design, and choice

Problem solving - also includes implementation and monitoring

Decision approaches - optimization, satisficing, and heuristic

Management information system - an integrated collection of people, procedures, databases, and devices that provide managers and decision makers with information to help achieve organizational goals

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Summary

Decision support system (DSS) - an organized collection of people, procedures, software, databases, and devices working to support managerial decision making

Group decision support system (GDSS) - also called a computerized collaborative work system, consists of most of the elements in a DSS, plus software needed to provide effective support in group decision-making settings

Executive support systems (ESSs) - specialized decision support systems designed to meet the needs of senior management