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IT - Management

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IT - Management

Organization Support Systems


A wide range of systems intended to support the way people work and take decisions These systems do not process transactions, instead they provide information for decision making

Systems that help the Decision Making


Decision Making System (DSS):
Its a Computer-based system that helps the decision maker utilize data and models to solve the problems. Most frequently used DSS is a spread sheet Package. Others are Databases, text .

Type of DSS
Data-oriented DSS
Provide tools for the manipulation and analysis of the data
Example: Statistical tests

Model Oriented DSS


Generally has some kind of mathematical model of the decision being
Example: An operation research optimization

Example of DSS
American Airlines Maximize the revenue or yield from each flight

Sell the right seat


To the right passenger At the right price

Example of DSS
To solve this issue American airlines
nonlinear, stochastic, mixed integer mathematical models 250 million decision variables for entire route system

Instead of developing a single model OR group developed a series of models to attack three more manageable sub problems

Example of DSS
First of the models controls OVERBOOKING Second model to help how many DISCOUNT seats to offer on a flight Third model TRAFFIC managementcontrol reservations by passengers origin and destination to maximize revenue.

Results
Overbooking DSS has been in use since 1990 and estimated to increase revenue by more than $200 million each Discount seat allocation model is estimated to have obtained from 30-49% of revenue A net profit of $ 892 million in 3 years period

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