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{ A decision refers to a choice b/w two or more
alternatives.
{ The purpose of DSS in organizations can be
classified into two broad categories:
{ problem solving
{ opportunity exploiting
{ DSS is an approach that improves decision
making abilities of managers in less time & with
` accuracy

 
 


 










{ |ore than 5,000 trains passes through 2,800km & 400
stations each day in Netherlands
{ The old infrastructure was not capable to handle such a
huge passenger flow and the problem worsen during rush
hours causing long delays
{ Passengers were compelled to use their own cars whose
variable cost was higher & creating other problems like
traffic, pollution, fuel, etc.
{ Netherlands Spoorwegen (NS), was loosing money &
asked government to integrate with bus & taxi systems, so
that commuters would have more incentives to use train
`
{ Government help was needed


 


 










{ ºail 21, is the name of the government¶s attempt
to bring the system into the twenty-first century
{ The idea was to reduce road traffic among large
cities, stimulate regional economies by
providing a better public transportation,
stimulate rail cargo & also to reduce short-
distance flight to Europe
{ A company named ºailned is managing the
` project which scheduled for completion in 2010



 


 
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{ ºailned developed several alternatives infrastructure
called µcocktails¶ & put them into analysis. It involved
following steps:
{ Use experts to list possible alternative projects
{ Estimate passenger flows in each stations, using an
econometric model
{ Determine optimization of railway lines
{ Test feasibility
{ For last two steps a complex computerized DSS was
`
developed for execution

 
 


 
G G
{ This DSS was designed to do the line optimization
{ It involves a database & three quantities model
{ It supports several decisions regarding rails and it can be
used to simulate scenarios of ³cocktails´
{ It incorporates a management science model called,
integrate linear programming
{ Its also compares line system based on different criteria
{ Once the appropriate line system is completed, an
analysis of the required infrastructure is done using a
second DSS called DONS
`
 
 


 

{ This system contains a DSS database, GUI & two
algorithmic modules
{ These algorithm computes the arrival & departure time
of trains based on ³hard´ constraints (must be met) &
³soft´ constraints (can be delayed)
{ It represents both safety & customer-services
requirements
{ The objective is to create a feasible timetable for the
trains. If a feasible solution is not possible some of the
` ³soft´ constraints are relaxed


 


 
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{ ºouting the trains through the railway
stations is an extremely difficult problem that
cannot be solved simultaneously with the
timetable
{ Thus, STATIONS, used another DSS for
feasible optimal solutions. If these do not
exist, system modifications are made again
till such time any feasible solution is found
`
 
 


 

{ This DSS solution is fairly complex due to conflicting
objectives of government & railway company (NS) so
negotiation on final choice were needed
{ To do so, NS developed a special DSS for conducting
cost benefit evaluations
{ It is based on multiple criteria approach with
conflicting objectives
{ This tool can rank alternative ³cocktails´ based on
certain requirements and assumptions
`
 
 


 

{ The DSS were found to be extremely useful
{ They reduced the planning time & the cost of the
analysis and increased the precision quality of
decision
{ Despite difficult economic times, NS is competing
successfully in the country
{ An example was an overpass that required an
investment of $15 million. DONS came up with a
alternate which required an investment of $7.5
`
million only

 
 


 
Daimler`hrysler Bremen Plant `ase
  `hallenge: `oordinate the daily arrival of 70 rail
cars and 500 trucks to ensure just-in-time delivery
of car parts
  Solutions: Adopt Transportation Efficiency
Support System (TESYS) to synchronize the
deliveries with available loading docks and
production schedules
  Develop new business processes for coordinating
logistics with production needs
  Illustrates the how IT enhances decision making
and increases business process efficiency in a
` manufacturing environment

 
 


 
Information ºequirements of Key Decision-|aking Groups in a Firm

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‡Time Lines ‡Accuracy ‡`larity
‡Time Period ‡ºelevant ‡Detailed
‡Not outdated ‡Scope ‡Presentation

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: Accuracy, integrity, consistency,

completeness, validity, timeliness, accessibility
‡ |

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managers
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organization that resist change

 

 


 
Stages in Decision |aking

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DSS are `omputer Based Information system.
They consists of the following components:
{ Analytical models
{ Specialized databases
{ Decisions maker¶s own insight and judgments
{ Interactive computer-based modeling process
to semi structured and unstructured business
decision
`
 
 


 
SYSTE|S FOº DE`ISION SUPPOºT
Overview of a Decision-Support System

`
 
 


 
Using DSS involves 4 basic analytical modeling activities:
{ What-if analysis
A how changes on a variable effects other variables
{ Sensitivity analysis
A how repeated changes on a variable effects other variables
{ Goal-seeking analysis
A make changes in a variable to achieve desired result
{ Optimization analysis
A finding an optimum value for a variable, giving certain
`
constraints

 
 


 
SYSTE|S FOº DE`ISION SUPPOºT
Analytical |odeling Example

`
 
 


 
The Difference between |IS and DSS
|' '
‡ Primarily address ‡ Support semi-structured
structured problems and unstructured problems
‡ Greater emphasis on
‡ Provides typically
models, assumptions, ad-
fixed, scheduled reports hoc queries, display
based on routine flows graphics
of data and assists in ‡ Emphasizes change,
the general control of flexibility, and a rapid
` the business


response 
 


 
Business Value of DSS
‡ Providing fine-grained information for decisions that enable the
firm to coordinate both internal and external business processes
much more precisely
‡ Helping with decisions in:
‡ `º|
‡ S`|
‡ Pricing Decisions
‡ Asset Utilization
‡ Data Visualization: Presentation of data in graphical forms, to help
users see patterns and relationships
‡ Geographic Information Systems (GIS): Special category of DSS that
display geographically referenced data in digitized maps
`
 
 


 
A DSS for `ustomer Analysis and Segmentation

`
 

 


 
What Is a GDSS?
‡ Group Decision-Support System (GDSS) is
an interactive computer-based system used
to facilitate the solution of unstructured
problems by a set of decision makers
working together as a group.
`
 
 


 
Three |ain `omponents of GDSS:
‡ Hardware (conference facility, audiovisual
equipment, etc.)

‡ Software tools (Electronic questionnaires,

brainstorming tools, voting tools, etc.)

‡ People (Participants, trained facilitator,

`
support staff)

 
 


 
Overview of a GDSS |eeting
‡ In a GDSS electronic meeting, each attendee
has a workstation.
‡ The workstations are networked and are
connected to the facilitator¶s console, which
serves as the facilitator¶s workstation and
control panel, and to the meeting¶s file server.
‡ All data that the attendees forward from their
workstations to the group are collected and
`
saved on the file server.

 
 


 
Overview of a GDSS |eeting (`ontinued)
‡ The facilitator is able to project computer images
onto the projection screen at the front of the room.
‡ |any electronic meeting rooms have seating
arrangements in semicircles and are tiered in
legislative style to accommodate a large number of
attendees.
‡ The facilitator controls the use of tools during the
`
meeting.

 
 


 
Group System Tools

`
 
 


 
Business Value of GDSS
‡ Traditional decision-making meetings support an optimal size
of three to five attendees. GDSS allows a greater number of
attendees
‡ Enable collaborative atmosphere by guaranteeing contributor¶s
anonymity
‡ Enable non-attendees to locate organized information after the
meeting.
‡ `an increase the number of ideas generated and the quality of
decisions while producing the desired results in fewer meetings
‡ `an lead to more participative and democratic decision making
`
 
 


 
The ºole of Executive Support Systems in the Firm
‡ ESS can bring together data from all parts of the firm and enable
managers to select, access, and tailor them as needed.
‡ It tries to avoid the problem of data overload so common in paper
reports.
‡ The ability to drill down is useful not only to executives but also
to employees at all level of the firm who need to analyze data.
‡ `an integrate comprehensive firm-wide information and external
data in timely manner
‡ Inclusion of modeling and analysis tools usable with a minimum
`
of training

 
 


 
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: Goals of EIS are:
{ to provide executive with instant
information about firm¶s `ritical Success
Factor (`SFs)
{ generally executives are non-technical,
provide them tools that are easy to use and
remember
{ GUI based EIS are preferred
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{ they help to gather, share and organize
facts about any specific area to create
business knowledge
{ companies are using web as knowledge
portals ^


 


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{ to simulate the ability to think & solve
business problems like human mind
{ it is designed to leverage human
capabilities, rather, eliminating them
{ helps in planning, complex resource
management, forecasting etc.
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{ 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
{ ºespond quickly and successfully to new situations
{ ºecognize the relative importance of elements in a situation
{ Handle ambiguous, incomplete, or erroneous information
`
 
 


 
Domains of AI
Artificial
Intelligence

`ognitive ºobotics Natural

Science Applications Interface
Application Applications
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{ A system of reasoning based on human
reasoning
{ It represents small but serious & growing
application of business
{ Data provided in this logical system is not
concrete but ambiguous

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{ Decision Support:
A Intelligent human-computer interface (H`I) to solve
problem
{ Information ºetrieval:
A Data-mining for marketing trend analysis etc
{ Virtual ºeality:
A X-ray like vision enabled by enhanced-reality visualization
{ ºobotics:
A |achine vision inspections systems for guiding, etc
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{ It is a knowledge based information system that uses
it knowledge about a complex application area.
`omponents are:
A Î 
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: first facts about specific system
second heuristic, that express reasoning like ³if __
then __ else __´
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: an expert software package
that has the engine to deliver knowledge
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