Decision Making, Systems, Modeling, and Support
Decision Making, Systems, Modeling, and Support
Decision Making, Systems, Modeling, and Support
DECISION MAKING,
SYSTEMS,
MODELING, AND
SUPPORT
Phases of the decision
process
1. Intelligence
2. Design Simon
3. Choice
4. Implementation Huber
What is the
relevance
of this
model to
DSS?
What are
some of the
challenges in
each phase
/sub-steps
shown in Fig
2.1?
Herbert Simon
Issues in Intelligence Phase
Example:
• Data collection
– Data is not available or too much data
– Obtaining data is expensive
– Data may not be accurate /precise enough
– Data is qualitative; representing it is difficult
• Problem classification
- places problem in a definable category
Egs: Product-mix, Capital budgeting, Negotiation
- leads to a standard solution (canned) approach
• Problem decomposition
- divide and conquer
Eg: CSU: Common Management System (SOLAR)
Modeling for Decision Support
(Design phase)
• Measuring outcomes
– The value of an alternative is evaluated in terms of goal
attainment
• Rational:
– All alternatives will be evaluated
– Will look for the best (optimum) solution
• Bounded rationality:
– Sub-optimization: failure to look for an overall solution for
the organization
– Satisficing (or good enough) solution
– Humans like to simplify problems
– consider fewer alternatives, criteria, constraints
– they are under time pressure, cost
– they have limited processing power
Decision Making:
(The Choice Phase)
• What-if analysis
A process that involves asking a computer what the effect of changing
some of the input data or parameters would be
– Resistance to change
– Degree of support of top management
– User training
How does DSS support Simon’s model of
decision-making?