Architecture of DSS, GDSS & ESS

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Decision Support Framework by gory & Scott

Type of Decision
Structured

Operational control
Accounts receivable, Accounts payable ,Order Entry Production controlling inventory control

Managerial Control
Budget analysis Short-term forecasting Personal Reports Make-or-Buy Credit evaluation budget preparation Plant layout Project scheduling Reward system design Inventory categorization

Strategic planning
Financial management Investment portfolio warehouse location Distribution System Building a new plant Mergers and acquisition New product planning compensation planning Quality assurance HR Policies Inventory planning

Semi Structured

Unstructured

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Buying software Negotiating Approving loans Recruiting an Operating a help desk executive Selecting a cover for Buying hardware Information andlobbying Organizations magazine

R&D planning New tech development Social responsibility planning

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

DBMS

MMS

Access to the internet, networks, and other computer systems

External database access

External databases

Dialogue manager

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The Database

Data in databases, data marts, warehouses Use data mining to help with the decisions Ex. Who should an airline target for flights 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
high
Decision frequency Local area Wide area decision network decision network

Decision room low close

Teleconferencing

distant

Location of group members

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GDSS Time/Place Environment

Same-Time Same-Place
(Most widely used GDSScomputers 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)
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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

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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, theyre 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 lowerlevel 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 Process

1) 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 anonymously 4) 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 scale 6) Repeat Steps 3, 4, 5 as necessary 7) Reach decision 8) 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 area vice presidents

Function area managers

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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
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