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Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserve C h a p t e r James A. O’Brien 9 Decision Support Systems

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Page 1: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh Edition

1

Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

C h a p t e r

James A. O’Brien

9Decision

Support

Systems

Page 2: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 2Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

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.

Page 3: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 3Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Chapter Objectives

• Explain how the following information systems can support the information needs of executives, managers, and business professionals:– A) Executive Information Systems– B) Enterprise Information Portals– C) Enterprise Knowledge 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.

Page 4: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 4Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

e-Business Decision Support Applications

CustomerRelationshipManagement

Situation: What-ifScenario Analysis

Supply ChainManagement

Knowledge/InnovationManagement

Enterprise PerformanceMonitoring

Employee-Manager/Customer/Partner

Page 5: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 5Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Decisions in the e-Business

StrategicManagement

TacticalManagement

OperationalManagement

Dec

isio

ns

Information

Decision Characteristics

Unstructured

Semi-structured

Structured

Page 6: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 6Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Management Information System Reports

Periodic ScheduledReports

Periodic ScheduledReports

Exception ReportsException Reports

Demand Reportsand Responses

Demand Reportsand Responses

Push ReportsPush Reports

MajorManagementInformation Systems Reports

Page 7: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 7Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Online Analytical Processing

OLAPServerOLAPServer

Multi-dimensional

database

CorporateDatabases

Client PC

Web-enabled OLAPSoftware

Data is retrieved from corporate databasesand staged in an OLAP multi-dimensional database

•Operational DB•Data Marts•Data Warehouse

Page 8: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 8Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Decision Support Systems

What If-AnalysisWhat If-Analysis

Sensitivity AnalysisSensitivity Analysis

Goal-Seeking AnalysisGoal-Seeking Analysis

Optimization AnalysisOptimization Analysis

ImportantDecision SupportSystemsAnalytical Models

ImportantDecision SupportSystemsAnalytical Models

Page 9: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 9Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Enterprise Information Portals and DSS

Enterprise Information Portal GatewayEnterprise Information Portal User Interface

SearchAgents

SearchAgents OLAPOLAP Data

Mining

Data Mining

KnowledgeManagement

KnowledgeManagement

Database Management Functions

DataMart

OtherBusiness

Applications

OperationalDatabase

AnalyticalDatabase

KnowledgeBase

DSS

What-If ModelsSensitivity ModelsGoal-Seeking ModelsOptimization Models

Internet Intranet Extranet

Page 10: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 10Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

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

Page 11: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 11Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Artificial Intelligence Applications

CognitiveScience

Applications

CognitiveScience

Applications

ArtificialIntelligenceArtificial

Intelligence

RoboticsApplications

RoboticsApplications

NaturalInterface

Applications

NaturalInterface

Applications

•Expert Systems•Fuzzy Logic•Genetic Algorithms•Neural Networks

•Visual Perceptions•Locomotion•Navigation•Tactility

•Natural Language•Speech Recognition•Multisensory Interface•Virtual Reality

Page 12: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 12Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

AI Application Areas in Business

Neural NetworksNeural Networks

Fuzzy Logic SystemsFuzzy Logic Systems

Virtual RealityVirtual Reality

Expert SystemsExpert Systems

AI ApplicationAreas inBusiness

AI ApplicationAreas inBusiness

Intelligent AgentsIntelligent Agents

Genetic AlgorithmsGenetic Algorithms

Page 13: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 13Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Intelligent Agents

InterfaceTutors

InterfaceTutors

PresentationAgents

PresentationAgents

NetworkNavigation

Agents

NetworkNavigation

Agents

Role-PlayingAgents

Role-PlayingAgents

UserInterfaceAgents

InformationManagement

Agents

SearchAgentsSearchAgents

InformationBrokers

InformationBrokers

InformationFilters

InformationFilters

Page 14: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 14Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Components of Expert Systems

The Expert SystemThe Expert System

KnowledgeBase

User Workstation

ExpertAdvice User

InterfacePrograms

UserInterfacePrograms

InferenceEngine

Program

InferenceEngine

Program

Expert System DevelopmentExpert System Development

Workstation

KnowledgeEngineering

KnowledgeAcquisition

Program

KnowledgeAcquisition

Program

Expert and/orKnowledge Engineer

Page 15: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 15Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Expert System Applications

Decision ManagementDecision Management

Diagnostic/TroubleshootingDiagnostic/Troubleshooting

Maintenance/SchedulingMaintenance/Scheduling

Design/ConfigurationDesign/Configuration

Selection/ClassificationSelection/Classification

Major ApplicationCategoriesof Expert Systems

Process Monitoring/ControlProcess Monitoring/Control

Page 16: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 16Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

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.

• Information systems must support a variety of management decision-making levels and decisions. These include the three levels of management activity: strategic, tactical, and operational.

Page 17: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 17Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

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.

Page 18: Eleventh Edition 1 Introduction to Essentials for Information Systems Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved

Eleventh EditionJames A. O’Brien 18Introduction to Essentials for Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

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 Agents


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