Decision Support Systems

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1 Introduction to Essentials for Systems 1 Eleventh Edition James A. O Brien C h a p t e r 9 Decision Support Systems James A. O Brien Introduction to Essentials for Systems Eleventh Edition 2 Chapter Objectives Identify the changes taking place in the form and use of decision support in e-business enterprises. Identify the role and reporting alternatives of management information systems. Describe how online analytical processing can meet key information needs of managers. Explain the decision support system concept and how it differs from traditional management information systems.

2 James A. O Brien Introduction to Essentials for Systems Eleventh Edition 3 Chapter Objectives Explain how the following information systems can support the information needs of executives, managers, and business professionals: A) Executive Systems B) Enterprise Portals C) Enterprise Portals Identify how neural networks, fuzzy logic, genetic algorithms, virtual reality, and intelligent agents can be used in business. Give examples of several ways expert systems can be used in business decision-making situations. James A. O Brien Introduction to Essentials for Systems Eleventh Edition 4 e-business Decision Support Applications Customer Relationship Supply Chain Employee- Manager/ Customer/Partner Enterprise Performance Monitoring /Innovation Situation: What-if Scenario Analysis

3 James A. O Brien Introduction to Essentials for Systems Eleventh Edition 5 Decisions in the e-business Decision Characteristics Unstructured Strategic Semi-structured Decisions Tactical Structured Operational James A. O Brien Introduction to Essentials for Systems Eleventh Edition 6 System Reports Periodic Scheduled Reports Exception Reports Major Systems Reports Demand Reports and Responses Push Reports

4 James A. O Brien Introduction to Essentials for Systems Eleventh Edition 7 Online Analytical Processing Data is retrieved from corporate databases and staged in an OLAP multi-dimensional database Client PC Web-enabled OLAP Software OLAP Server Multidimensional database Corporate Databases Operational DB Data Marts Data Warehouse James A. O Brien Introduction to Essentials for Systems Eleventh Edition 8 Decision Support Systems What If-Analysis Sensitivity Analysis Important Decision Support Systems Analytical Models Goal-Seeking Analysis Optimization Analysis

5 James A. O Brien Introduction to Essentials for Systems Eleventh Edition 9 Enterprise Portals and DSS Internet Intranet Extranet Enterprise Portal Gateway Enterprise Portal User Interface Search OLAP Data Mining DSS What-If Models Sensitivity Models Goal-Seeking Models Optimization Models Database Functions Data Mart Operational Database Other Business Applications Analytical Database Base James A. O Brien Introduction to Essentials for Systems Eleventh Edition 10 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

6 James A. O Brien Introduction to Essentials for Systems Eleventh Edition 11 Artificial Intelligence Applications Artificial Intelligence Cognitive Science Applications Robotics Applications Natural Interface Applications Expert Systems Fuzzy Logic Genetic Algorithms Neural Networks Visual Perceptions Locomotion Navigation Tactility Natural Language Speech Recognition Multisensory Interface Virtual Reality James A. O Brien Introduction to Essentials for Systems Eleventh Edition 12 AI Application Areas in Business Neural Networks Fuzzy Logic Systems Genetic Algorithms Virtual Reality AI Application Areas in Business Intelligent Expert Systems

7 James A. O Brien Introduction to Essentials for Systems Eleventh Edition 13 Intelligent Interface Tutors Search Presentation User Interface Brokers Network Navigation Role- Playing Filters James A. O Brien Introduction to Essentials for Systems Eleventh Edition 14 Components of Expert Systems The Expert System Expert Advice User Interface Programs Inference Engine Program Base User Workstation Expert System Development Acquisition Program Engineering Workstation Expert and/or Engineer

8 James A. O Brien Introduction to Essentials for Systems Eleventh Edition 15 Expert System Applications Decision Diagnostic/Troubleshooting Maintenance/Scheduling Design/Configuration Major Application Categories of Expert Systems Selection/Classification Process Monitoring/Control James A. O Brien Introduction to Essentials for Systems Eleventh Edition 16 Chapter Summary Decision support systems in business are changing. The growth of corporate intranets, extranets, and other web technologies have increased the demand for a variety of personalized, proactive, web-enabled analytical techniques to support DSS. systems must support a variety of management decision-making levels and decisions. These include the three levels of management activity: strategic, tactical, and operational.

9 James A. O Brien Introduction to Essentials for Systems Eleventh Edition 17 Chapter Summary (cont) Online analytical processing is used to analyze complex relationships among large amounts of data stored in multidimensional databases. Data mining analyzes large stores of historical data contained in data warehouses. Decision support systems are interactive computer-based information systems that use DSS software and a model base to provide information to support semi-structured and unstructured decision making. James A. O Brien Introduction to Essentials for Systems Eleventh Edition 18 Chapter Summary (cont) The major application domains in artificial intelligence include a variety of applications in cognitive sciences, robotics, and natural interfaces. Major AI application areas include: Neural Networks Fuzzy Logic Genetic Algorithms Virtual Reality Intelligent

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