Chapter 12 Decision Support and Geographic Information Systems

1. Chapter 12Decision Support and Geographic Information Systems

2. Decision Making in Business • Organization’s success • depends on quality of • managers’ decisions

3. The Decision-Making Process • Three decision-making phases:

4. Business problems vary from structured to unstructured. Many fall between the two extremes and are considered semi-structured. Structured and Unstructured Problems

5. Structured and Unstructured Problems • Structured Problems • Proven set of steps for solution (Algorithm) • Unstructured Problems • Multiple potential solution • Semistructured Problems • Neither fully structured nor totally unstructured

6. Structured and Unstructured Problems • Programmable Problems • Specific programs can be written to solve • Structured problems are programmable • Unstructured problems are unprogrammable • Managers and Semistructured Problems • Most common type of problem for managers

7. DSS Components • Decision Support Systems (DSS) • Computer-based information systems that help managers select one of many solutions • Automates some of decision-making process • Sophisticated and fast analysis • Used at all management levels

8. DSS Components • Three Major Components • Data management module • Model management module • Dialog management module • Together, DSS modules: • Help enter request conveniently • Search vast amounts of data • Use data in desired models • Present results in readable manner

9. DSS Components • The Data Management Module • Gives user access to databases • Usually linked to external databases

10. DSS Components • The Model Management Module • Selects appropriate model to analyze data • Linear regression model

11. DSS Components • The Dialog Module • Interface between user and other modules • Prompts user to select a model • Allows database access and data selection • Lets user enter/change parameters • Displays analysis results Textual, tabular, and graphical displays

12. Types of Decision Support Systems • Personal Decision Support Systems • Serve individual users in daily decision making • Run on personal computers • Single model for data processing

13. Types of Decision Support Systems • Group Decision Support Systems • Promote brainstorming and group decision making • Located in conference room or on networked computers • Weigh votes to overcome impasses

14. Executive Information Systems • Executive Information Systems (EIS) • Alleviate information overload for executives • Select most relevant data for analysis • Drilling down • Consolidate and summarize data • Display data graphically

15. Executive Information Systems • An effective EIS has the following features: • An easy-to-use and easy-to-learn graphical user interface • On-request “drill-down” capability • On-demand financial and other ratios, and other indicators • Easy-to-use but sophisticated tools to allow navigation in databases and data warehouses

16. Executive Information Systems • Statistical analysis tools • The ability to respond to ad hoc queries and sensitivity analyses • Access to external data pools • The ability to solve diverse business problems

17. Developing Decision Support Systems • When Should a DSS Be Built? • What is the type problem and how structured is it? • Are the required data available in databases and data warehouses? • How often do managers encounter the problem? • Who will use the system? • Can the prospective users spare adequate time for the development process?

18. GeographicInformation Systems • Geographic Information System (GIS) • Decision aid for map-related decisions • Typical GIS contains • Database of quantitative and qualitative data • Database of maps • Program to display information on maps