Information Technology Reference
In-Depth Information
The Model Base
The
model base
allows managers and decision makers to perform
quantitative analysis
on both internal and external data. A
model-driven DSS
primarily performs mathematical
or quantitative analysis. The model base gives decision makers access to a variety of models
so that they can explore different scenarios and see their effects. Ultimately, it assists them
in the decision-making process. Procter & Gamble, maker of Pringles potato chips, Pam-
pers diapers, and hundreds of other consumer products, uses a model-driven DSS to
streamline how raw materials and products flow from suppliers to customers. The model-
driven DSS has saved the company hundreds of millions of dollars in supply chain-related
costs. Model-driven DSSs are excellent at predicting customer behaviors. LoanPerformance
(
www.loanperformance.com
),
for example, uses models to help it forecast which customers
insurance firms, such as health insurer HighMark, use model-driven DSSs to predict fraud.
Some stock trading and investment firms use sophisticated model-driven DSSs to make
computerized trading programs can result in millions of dollars of trading profits.
Model management software (MMS)
can coordinate the use of models in a DSS, in-
cluding financial, statistical analysis, graphical, and project-management models. Depending
on the needs of the decision maker, one or more of these models can be used (see Table 10.3).
model base
Part of a DSS that provides
decision makers access to a variety
of models and assists them in
decision making.
model management software
Software that coordinates the use of
models in a DSS.
Model Type
Description
Software
Financial
Provides cash flow, internal rate of return, and other investment analysis
Spreadsheet, such as Microsoft Excel
Statistical
Provides summary statistics, trend projections, hypothesis testing, and more
Statistical programs, such as SPSS or SAS
Graphical
Assists decision makers in designing, developing, and using graphic displays
of data and information
Graphics programs, such as Microsoft
PowerPoint
Project
Management
Handles and coordinates large projects; also used to identify critical activities
and tasks that could delay or jeopardize an entire project if they are not
completed in a timely and cost-effective fashion
Project management software, such as
Microsoft Project
Table 10.3
The User Interface or Dialogue Manager
The user interface or dialogue manager allows users to interact with the DSS to obtain
information. It assists with all aspects of communications between the user and the hardware
and software that constitute the DSS. In a practical sense, to most DSS users, the user interface
is the DSS. Upper-level decision makers are often less interested in where the information
came from or how it was gathered than that the information is both understandable and
accessible.
Model Management
Software
DSSs often use financial,
statistical, graphical, and
project-management models.
The DSS approach has resulted in better decision making for all levels of individual users.
However, many DSS approaches and techniques are not suitable for a group decision-making
environment. Although not all workers and managers are involved in committee meetings
and group decision-making sessions, some tactical and strategic-level managers can spend
more than half their decision-making time in a group setting. Such managers need assistance
with group decision making. A
group support system (GSS)
, also called a
group decision
support system
and a
computerized collaborative work system
, consists of most of the elements
in a DSS, plus software to provide effective support in group decision-making settings
(see Figure 10.17).
group support system (GSS)
Software application that consists of
most elements in a DSS, plus soft-
ware to provide effective support in
group decision making; also called
group decision support system or
computerized collaborative work
system.
