Chapter 13
Decision Support Systems
Decision Support Systems
Simon’s Types of Decisions
Simon’s Types of Decisions
Programmed decisionsProgrammed decisions
– repetitive and routinerepetitive and routine
– have a definite procedurehave a definite procedure
Nonprogrammed decisionsNonprogrammed decisions
– Novel and unstructuredNovel and unstructured
– No cut-and-dried method for handling problemNo cut-and-dried method for handling problem
Types exist on a continuumTypes exist on a continuum
Simon’s Problem Solving
Simon’s Problem Solving
Phases
Phases
IntelligenceIntelligence
– Searching environment for conditions calling for a solutionSearching environment for conditions calling for a solution
DesignDesign
– Inventing, developing, and analyzing possible courses of Inventing, developing, and analyzing possible courses of action
action ChoiceChoice
– Selecting a course of action from those available Selecting a course of action from those available
ReviewReview
Definitions of a Decision
Definitions of a Decision
Support System (DSS)
Support System (DSS)
General definition -
General definition - a system providing both a system providing both
problem-solving and communications capabilities problem-solving and communications capabilities
for semistructured problems for semistructured problems
Specific definition -
Specific definition - a system that supports a a system that supports a single manager or a relatively small group of single manager or a relatively small group of
managers working as a problem-solving team in managers working as a problem-solving team in
the solution of a semistructured problem by the solution of a semistructured problem by
providing information or making suggestions providing information or making suggestions
concerning
concerning specific specific decisions.decisions.
The DSS Concept
The DSS Concept
Gorry and Scott Morton coined the phrase ‘DSS’ in Gorry and Scott Morton coined the phrase ‘DSS’ in 1971, about ten years after MIS became popular
1971, about ten years after MIS became popular
Decision types in terms of problem structureDecision types in terms of problem structure
– Structured problems can be solved with algorithms and Structured problems can be solved with algorithms and decision rules
decision rules
– Unstructured problems have no structure in Simon’s Unstructured problems have no structure in Simon’s phases
phases
– Semistructured problems have structured and Semistructured problems have structured and unstructured phases
Degree of Degree of problem problem structure structure
The Gorry and Scott Morton Grid
The Gorry and Scott Morton Grid
Alter’s DSS Types
Alter’s DSS Types
In 1976 Steven Alter, a doctoral student In 1976 Steven Alter, a doctoral student
built on Gorry and Scott-Morton framework built on Gorry and Scott-Morton framework
– Created a taxonomy of six DSS typesCreated a taxonomy of six DSS types – Based on a study of 56 DSSsBased on a study of 56 DSSs
Classifies DSSs based on “degree of Classifies DSSs based on “degree of
Levels of Alter’s DSSs
Levels of Alter’s DSSs
Level of problem-solving support from Level of problem-solving support from lowest to highest
lowest to highest
– Retrieval of information elementsRetrieval of information elements – Retrieval of information filesRetrieval of information files
– Creation of reports from multiple filesCreation of reports from multiple files – Estimation of decision consequencesEstimation of decision consequences – Propose decisionsPropose decisions
– Make decisionsMake decisions
Importance of Alter’s
Importance of Alter’s
Study
Study
Supports concept of developing systems Supports concept of developing systems
that address particular decisions that address particular decisions
Makes clear that DSSs need not be Makes clear that DSSs need not be
Retrieve Retrieve information information elements elements Analyze Analyze entire entire files files Prepare Prepare reports reports from from multiple multiple files files Estimate Estimate decision decision consequen-ces ces Propose Propose decisions decisions Degree Degree of of problem problem solving solving support support Degree of Degree of complexity of the complexity of the problem-solving problem-solving
system system
Little
Little MuchMuch
Alter’s DSS Types
Alter’s DSS Types
Make
Make
decisions
decisions
Three DSS Objectives
Three DSS Objectives
1.
1. Assist in solving semistructured problemsAssist in solving semistructured problems 2.
2. Support, not replace, the manager Support, not replace, the manager 3.
3. Contribute to decision effectiveness, rather Contribute to decision effectiveness, rather than efficiency
GDSS software Mathematical Mathematical Models Models OtherOther
group group members members Database Database GDSS GDSS software software Environment Environment IndividualIndividual problemproblem solverssolvers Decision support system EnvironmentEnvironment
Legend: Data Communication Information
A DSS Model
A DSS Model
Database Contents
Database Contents
Used by Three Software SubsystemsUsed by Three Software Subsystems
– Report writers Report writers
»Special reportsSpecial reports »Periodic reportsPeriodic reports »COBOL or PL/ICOBOL or PL/I »DBMSDBMS
– Mathematical modelsMathematical models
»Simulations Simulations
Group Decision Support
Group Decision Support
Systems
Systems
Computer-based system that supports groups of Computer-based system that supports groups of
people engaged in a common task (or goal) and
people engaged in a common task (or goal) and
that provides an interface to a shared environment.
that provides an interface to a shared environment. Used in problem solvingUsed in problem solving
Related areasRelated areas
– Electronic meeting system (EMS) Electronic meeting system (EMS)
– Computer-supported cooperative work (CSCW)Computer-supported cooperative work (CSCW) – Group support system (GSS)Group support system (GSS)
– GroupwareGroupware
How GDSS Contributes
How GDSS Contributes
to Problem Solving
to Problem Solving
Improved communicationsImproved communications
Improved discussion focusImproved discussion focus
GDSS Environmental
GDSS Environmental
Settings
Settings
Synchronous exchange Synchronous exchange
– Members meet at same timeMembers meet at same time
– Committee meeting is an exampleCommittee meeting is an example
Asynchronous exchangeAsynchronous exchange
– Members meet at different timesMembers meet at different times – E-mail is an exampleE-mail is an example
More balanced participation.More balanced participation.
GDSS Types
GDSS Types
Decision roomsDecision rooms
– Small groups face-to-faceSmall groups face-to-face – Parallel communicationParallel communication – AnonymityAnonymity
Local area decision networkLocal area decision network
– Members interact using a LANMembers interact using a LAN
Legislative sessionLegislative session
– Large group interactionLarge group interaction
Computer-mediated conferenceComputer-mediated conference
Smaller Larger
GROUP
GROUP SIZESIZE
Face-to-face
Dispersed
Decision Room
Local Area Decision Network
Legislative Session
Computer-Mediated Conference
MEMBER
MEMBER
PROXIMITY
PROXIMITY
Group Size and Location Determine
Group Size and Location Determine
GDSS Environmental Settings
Groupware
Groupware
FunctionsFunctions
– E-mailE-mail – FAXFAX
– Voice messagingVoice messaging – Internet accessInternet access
Lotus Notes Lotus Notes
Electronic mail X X X X
FAX X X O X
Voice messaging O X
Internet access X X O X
Bulletin board system X 3 O
Personal calendaring X X 3 X
Group calendaring X X O X
Electronic conferencing O X 3 3
Task management X X 3 X
Desktop video conferencingO
Database access O X 3
Workflow routing O X 3 X
Reengineering O X 3
Electronic forms O 3 3 O
Group documents O X X O
Main Groupware Functions
Main Groupware Functions
IBM TeamWARE Lotus Novell IBM TeamWARE Lotus Novell Function Workgroup Office Notes GroupWise
Function Workgroup Office Notes GroupWise
X = standard feature
Artificial Intelligence (AI)
Artificial Intelligence (AI)
The activity of providing such machines as computers with the ability to display behavior that
History of AI
History of AI
Early historyEarly history
– John McCarthy coined term, AI, in 1956, at John McCarthy coined term, AI, in 1956, at Dartmouth College conference.
Dartmouth College conference.
– Logic Theorist (first AI program. Herbert Simon Logic Theorist (first AI program. Herbert Simon
played a part)
played a part)
– General problem solver (GPS)General problem solver (GPS)
Past 2 decadesPast 2 decades
– Research has taken a back seat to MIS and DSS Research has taken a back seat to MIS and DSS development
development
Areas of Artificial Intelligence
Areas of Artificial Intelligence
Expert Expert
systems
systems AIAI
Appeal of Expert Systems
Appeal of Expert Systems
Computer program that codes the Computer program that codes the
knowledge of human experts in the form of knowledge of human experts in the form of
heuristics heuristics
Two distinctions from DSSTwo distinctions from DSS
– 1. Has potential to extend manager’s problem-1. Has potential to extend manager’s problem-solving ability
solving ability
– 2. Ability to explain how solution was reached2. Ability to explain how solution was reached
Know-ledge base
User
User interface
Instructions & information
Solutions &
explanations Knowledge
Inference engine
Problem
Domain
Development engine
Expert
Expert
system
Expert System Model
Expert System Model
User interfaceUser interface
– Allows user to interact with systemAllows user to interact with system
Knowledge baseKnowledge base
– Houses accumulated knowledgeHouses accumulated knowledge
Inference engineInference engine
– Provides reasoningProvides reasoning
– Interprets knowledge baseInterprets knowledge base
Development engineDevelopment engine
– Creates expert systemCreates expert system
User Interface
User Interface
User enters:User enters:
– InstructionsInstructions
– InformationInformation
Expert system provides:Expert system provides:
– SolutionsSolutions
– Explanations ofExplanations of
Knowledge Base
Knowledge Base
Description of problem domainDescription of problem domain
RulesRules
– Knowledge representation techniqueKnowledge representation technique – ‘‘IF:THEN’ logicIF:THEN’ logic
– Networks of rulesNetworks of rules
» Lowest levels provide evidenceLowest levels provide evidence
» Top levels produce 1 or more conclusionsTop levels produce 1 or more conclusions » Conclusion is called a Goal variable.Conclusion is called a Goal variable.
Conclusion
Conclusion
Evidence Evidence Evidence Evidence
Conclusion
A Rule Set That Produces One Final
Rule Selection
Rule Selection
Selecting rules to efficiently solve a Selecting rules to efficiently solve a
problem is difficult problem is difficult
Some goals can be reached with only a few Some goals can be reached with only a few
rules; rules 3 and 4 identify bird rules; rules 3 and 4 identify bird
Inference Engine
Inference Engine
Performs reasoning by using the contents of Performs reasoning by using the contents of
knowledge base in a particular sequence knowledge base in a particular sequence
Two basic approaches to using rulesTwo basic approaches to using rules – 1. Forward reasoning (data driven)1. Forward reasoning (data driven)
Forward Reasoning
Forward Reasoning
(Forward Chaining)
(Forward Chaining)
Rule is evaluated as: Rule is evaluated as:
– (1) true, (2) false, (3) unknown(1) true, (2) false, (3) unknown
Rule evaluation is an iterative processRule evaluation is an iterative process
When no more rules can fire, the reasoning When no more rules can fire, the reasoning
process stops even if a goal has not been process stops even if a goal has not been
reached reached
Start with inputs and work to solution
Rule 1 Rule 1 Rule 3 Rule 3 Rule 2 Rule 2 Rule 4 Rule 4 Rule 5 Rule 5 Rule 7 Rule 7 Rule 8 Rule 8 Rule 9 Rule 9 Rule 10 Rule 10 Rule 11 Rule 11 Rule 12 Rule 12 IF A THEN B IF C THEN D IF M THEN E IF K THEN F IF G
IF B OR D THEN K
IF E THEN L
IF K AND L THEN N
IF M
IF N OR O THEN P
F
IF (F AND H) OR J
IF (F AND H) OR J The The Forward Forward Reasoning Reasoning Process Process T T T T T T T T T Legend: Legend:
Reverse Reasoning Steps
Reverse Reasoning Steps
(Backward Chaining)
(Backward Chaining)
Divide problem into subproblemsDivide problem into subproblems
Try to solve one subproblemTry to solve one subproblem
Then try anotherThen try another
Start with solution and work back to inputs
T Rule 1 Rule 2 Rule 3 Step 4 Step 3 Step 2 Step 1 Step 5
IF A THEN B
IF B OR D THEN K
IF K AND L THEN N
IF N OR O THEN P IF C THEN D IF M THEN E IF E THEN L T
The First Five
The First Five
If K Then F Legend: Problems to be solved If G Then H If I Then J If M Then O Step 8
Step 9 Step 7 Step 6
Rule 4
Rule 5
Rule 11 Rule 6
T
IF (F And H) Or J Then M T Rule 9 T T Rule 12 T If N Or O
Then P
The Next Four Problems Are
The Next Four Problems Are
Identified
Identified
Forward Versus Reverse
Forward Versus Reverse
Reasoning
Reasoning
Reverse reasoning is faster than forward Reverse reasoning is faster than forward reasoning
reasoning
Reverse reasoning works best under certain Reverse reasoning works best under certain conditions
conditions
– Multiple goal variablesMultiple goal variables – Many rulesMany rules
Development Engine
Development Engine
Programming languages Programming languages– LispLisp – PrologProlog
Expert system shellsExpert system shells
– Ready made processor that can be tailored to a Ready made processor that can be tailored to a
particular problem domain
particular problem domain
Case-based reasoning (CBR)Case-based reasoning (CBR) Decision treeDecision tree
Expert System Advantages
Expert System Advantages
For managersFor managers
– Consider more alternativesConsider more alternatives – Apply high level of logicApply high level of logic
– Have more time to evaluate decision rulesHave more time to evaluate decision rules – Consistent logicConsistent logic
For the firmFor the firm
Expert System
Expert System
Disadvantages
Disadvantages
Can’t handle inconsistent knowledgeCan’t handle inconsistent knowledge
Can’t apply judgment or intuitionCan’t apply judgment or intuition
Keys to Successful ES
Keys to Successful ES
Development
Development
Coordinate ES development with strategic planningCoordinate ES development with strategic planning
Clearly define problem to be solved and understand Clearly define problem to be solved and understand
problem domain
problem domain
Pay particular attention to ethical and legal feasibility Pay particular attention to ethical and legal feasibility
of proposed system
of proposed system
Understand users’ concerns and expectations Understand users’ concerns and expectations
concerning system
concerning system
Employ management techniques designed to retain
Neural Networks
Neural Networks
Mathematical model of the human brainMathematical model of the human brain
– Simulates the way neurons interact to process Simulates the way neurons interact to process data and learn from experience
data and learn from experience
Bottom-up approach to modeling human Bottom-up approach to modeling human
intuition intuition
The Human Brain
The Human Brain
Neuron -- the information processorNeuron -- the information processor
– Input -- dendritesInput -- dendrites
– Processing -- somaProcessing -- soma
– Output -- axonOutput -- axon
Soma (processor)
Axon
Synapse
Dendrites (input)
Axonal Paths (output)
Simple Biological Neurons
Simple Biological Neurons
Evolution of Artificial
Evolution of Artificial
Neural Systems (ANS)
Neural Systems (ANS)
McCulloch-Pitts mathematical neuron McCulloch-Pitts mathematical neuron
function (late 1930s) was the starting point function (late 1930s) was the starting point
Hebb’s learning law (early 1940s)Hebb’s learning law (early 1940s)
NeurocomputersNeurocomputers
Current Methodology
Current Methodology
Mathematical models don’t duplicate Mathematical models don’t duplicate
human brains, but exhibit similar abilities human brains, but exhibit similar abilities
Complex networksComplex networks
Repetitious trainingRepetitious training
– ANS “learns” by exampleANS “learns” by example
y1
y2
y3
y w1
w2
w3
w
The The Multi-Layer Layer Perceptron Perceptron Yn2 IN
INnn
OUT
OUTnn
OUT
OUT11
IN
IN11
Y
Y11
Knowledge-based Systems
Knowledge-based Systems
in Perspective
in Perspective
Much has been accomplished in neural nets Much has been accomplished in neural nets
and expert systems and expert systems
Much work remainsMuch work remains
Systems abilities to mimic human Systems abilities to mimic human
intelligence are too limited and regarded as intelligence are too limited and regarded as
Summary [cont.]
Summary [cont.]
AIAI
– Neural networksNeural networks – Expert systemsExpert systems
Limitations and promiseLimitations and promise