Decision Support Systems & Expert Systems Chapter 10.
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Transcript of Decision Support Systems & Expert Systems Chapter 10.
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Decision Support Systems & Expert Systems
Chapter
10
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Why Study Decision Support Systems?
Today, companies are investing in new data-driven decision support application frameworks that help them respond rapidly to
changing market conditions and customer needs.
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Information, Decisions and Management
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Levels of Management Decision Making
Strategic – group of executives develop overall organizational goals, strategies, policies, and objectives strategic planning process
ERPs, EISs, and DSSs play an important role
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Levels of Management Decision Making
Tactical – managers and business professionals in self-directed teams develop short- and medium-range plans schedules and budgets specify policies, procedures develop objectives for their subunits
DSSs, MISs, SCMs help make decisions at this level
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Levels of Management Decision Making
Operational – managers or members of self-directed teams develop short-range plans such as weekly production schedules employee scheduling assigning tasks and objectives
MISs, TSPs, and PCSs help at this level.
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Information Quality
Definition: Information products whose
characteristics, attributes, or qualities make the information more value
All these systems work to Make data into information Increate the value of information
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Decision Structure
Structured – situations where the procedures to follow when a decision is needed can be specified in advance
Unstructured – decision situations where it is not possible to specify in advance most of the decision procedures to follow
Semi structured - decision procedures that can be prespecified, but not enough to lead to a definite recommended decision
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MIS vs. DSS
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Management Information Systems (MIS)
Definition: An information system that produces
information products that support many of the day-to-day decision-making needs of managers and business professionals
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Management Reporting Alternatives
Periodic Scheduled Reports
Exception Reports
Demand Reports and Responses
Push Reporting
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Decision Support Systems (DSS)
Definition: Provide interactive information support to
managers and business professionals during the decision-making process Analytical models (Model Base) Specialized databases A decision maker’s own insights and judgments An interactive, computer-based modeling
process
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Model Base (part of DSS)
Definition: Software component that consists of
models used in computational and analytical routines that mathematically express relationships among variables
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OLAP: Online Analytical Processing (part of DSS)
Definition: Enables mangers and analysts to
interactively examine and manipulate large amounts of detailed and consolidated data from many perspectives
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OLAP Operations
Consolidation – aggregation of data
Drill-down – detail data that comprise consolidated data
Slice and Dice – ability to look at the database from different viewpoints
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OLAP Technology
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MIS vs DSS
DSS tends to use data from many different sources: Operational Database Data Marts Data Warehouses
An MIS tends to draw information from one source usually an operational database.
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Unique to DSS
What-if Analysis – end user makes changes to variables, or relationships among variables, and observes the resulting changes in the values of other variables
Sensitivity Analysis – value of only one variable is changed repeatedly and the resulting changes in other variables are observed
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Unique to DSS
Goal-Seeking – set a target value for a variable and then repeatedly change other variables until the target value is achieved
Optimization – goal is to find the optimum value for one or more target variables given certain constraints then one or more other variables are changed repeatedly until the best values for the target variables are discovered
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Data Mining (used more in DSS than MIS)
Data mining analyzes the vast data in corporate data warehouses, and tries to discover patterns, trends, and correlations hidden in the data that can help a company improve
its business performance. Data mining software may perform regression,
decision tree, neural network, cluster detection, or market basket analysis for a business.
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Artificial Intelligence (AI)
Definition: A field of science and technology based on
disciplines such as computer science, biology, psychology, linguistics, mathematics, and engineering
Goal is to develop computers that can simulate the ability to think, as well as see, hear, walk, talk, and feel
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Attributes of Intelligent Behavior
Think and reason Use reason to solve problems Learn or understand from experience Acquire and apply knowledge Exhibit creativity and imagination Deal with complex or perplexing situations Respond quickly and successfully to new situations Recognize the relative importance of elements in a
situation Handle ambiguous, incomplete, or erroneous information
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Domains of Artificial Intelligence
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Cognitive Science
Definition: Focuses on researching how the human
brain works and how humans think and learn
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Robotics
Definition: Robot machines with computer
intelligence and computer controlled, humanlike physical capabilities
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Natural Interfaces
Definition: Includes natural language, speech
recognition, and the development of multisensory devices that use a variety of body movements to operate computers
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Expert Systems
Definition: A knowledge-based information system
that uses its knowledge about a specific, complex application to act as an expert consultant to end users
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Expert System Components
Knowledge Base – facts about specific subject area and heuristics that express the reasoning procedures of an expert
Software Resources – inference engine and other programs refining knowledge and communicating with users
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Expert System Benefits
Faster and more consistent than an expert
Can have the knowledge of several experts
Does not get tired or distracted by overwork or stress
Helps preserve and reproduce the knowledge of experts
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Expert System Limitations
Limited focus
Inability to learn
Maintenance problems
Developmental costs
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Expert System Categories
Decision Making buy/sell risk/no risk rain/no rain
Trouble Shooting / Diagnosis Hello welcome to Dell;
how can I help you? Suddenly an idiot
seems like an expert.
Selection/Classification Tell me what you see, expert
system figures out what it really is...
Process Monitoring and Control Robot control, assembly-line
control, missile control Design/Configuration
Specify what you want, expert system figures out specifically how to do it.
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Expert System Components
Knowledge base
Expert System Software
UserInterface
Engine
user
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Expert System Components
Knowledge base
user
Expert System Software
UserInterface
Engine
Raw Data or Facts
Expert or Knowledge Engineer
Knowledge Acquisition Program
Expert System Development Process
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Expert System Components
Knowledge base
Non-expertGruntRobotMissile
Expert System Software
Interface
Engine
Raw Data or Facts
Knowledge Acquisition Program
Expert System Development Process
user
Expert or Knowledge Engineer
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DSS ComponentsModel Base
Analytical & Statistical Models
Someone with Knowledge
Decision Maker
DSS Software
UserInterface
Engine
Raw Data or Facts
Data Management Extraction, Generation, Validation, etc.
DSS Processes