Decision Support Systems for Business Intelligence

Praise for the First Edition "This is the most usable decision support systems text. [i]t is far better than any other text in the field" —Computing Reviews Computer-based systems known as decision support systems (DSS) play a vital role in helping professionals across various fields of practice understand what information is needed, when it is needed, and in what form in order to make smart and valuable business decisions. Providing a unique combination of theory, applications, and technology, Decision Support Systems for Business Intelligence, Second Edition supplies readers with the hands-on approach that is needed to understand the implications of theory to DSS design as well as the skills needed to construct a DSS. This new edition reflects numerous advances in the field as well as the latest related technological developments. By addressing all topics on three levels—general theory, implications for DSS design, and code development—the author presents an integrated analysis of what every DSS designer needs to know. This Second Edition features: Expanded coverage of data mining with new examples Newly added discussion of business intelligence and transnational corporations Discussion of the increased capabilities of databases and the significant growth of user interfaces and models Emphasis on analytics to encourage DSS builders to utilize sufficient modeling support in their systems A thoroughly updated section on data warehousing including architecture, data adjustment, and data scrubbing Explanations and implications of DSS differences across cultures and the challenges associated with transnational systems Each chapter discusses various aspects of DSS that exist in real-world applications, and one main example of a DSS to facilitate car purchases is used throughout the entire book. Screenshots from JavaScript® and Adobe® ColdFusion are presented to demonstrate the use of popular software packages that carry out the discussed techniques, and a related Web site houses all of the book's figures along with demo versions of decision support packages, additional examples, and links to developments in the field. Decision Support Systems for Business Intelligence, Second Edition is an excellent book for courses on information systems, decision support systems, and data mining at the advanced undergraduate and graduate levels. It also serves as a practical reference for professionals working in the fields of business, statistics, engineering, and computer technology.

Table of Contents:
Preface xiii Part I Introduction to Decision Support Systems 1 1 Introduction 3 What is a DSS? 13 Uses of a Decision Support System 17 The Book 19 Suggested Readings 19 Questions 21 On the Web 22 2 Decision Making 23 Rational Decisions 25 Bounded Rationality and Muddling Through 29 Nature of Managers 31 Appropriate Decision Support 33 Electronic Memory 33 Bias in Decision Making 33 Appropriate Data Support 36 Information Processing Models 37 Tracking Experience 45 Group Decision Making 46 Intuition, Qualitative Data, and Decision Making 47 How Do We Support Intuition? 48 Virtual Experience 51 Business Intelligence and Decision Making 53 Analytics 57 Competitive Business Intelligence 58 Conclusion 60 Suggested Readings 60 Questions 65 On the Web 66 Part II DSS Components 67 3 Data Component 69 Specific View Toward Included Data 72 Characteristics of Information 73 Timeliness 73 Sufficiency 74 Level of Detail 75 Understandability 76 Freedom from Bias 77 Decision Relevance 78 Comparability 78 Reliability 80 Redundancy 80 Cost Efficiency 80 Quantifiability 81 Appropriateness of Format 82 More is Never Better! 83 Databases 85 Database Management Systems 86 Data Warehouses 87 Data Scrubbing 93 Data Adjustment 96 Architecture 97 Car Example 101 Possible Criteria 101 Data Warehouse 102 Information Uses 102 “How To” 107 Discussion 118 Suggested Readings 121 Questions 123 On the Web 124 4 Model Component 125 Models and Analytics 125 Options for Models 129 Representation 130 Time Dimension 132 Linearity of the Relationship 134 Deterministic Versus Stochastic 135 Descriptive Versus Normative 136 Causality Versus Correlation 137 Methodology Dimension 138 Problems of Models 147 Data Mining 148 Intelligent Agents 156 Model-Based Management Systems 159 Easy Access to Models 159 Understandability of Results 163 Integrating Models 166 Sensitivity of a Decision 168 Model Management Support Tools 174 Car Example 177 Brainstorming and Alternative Generation 177 Flexibility Concerns 179 Evaluating Alternatives 183 Running External Models 189 Discussion 190 Suggested Readings 190 Questions 193 On the Web 195 4S Intelligence and Decision Support Systems 197 Programming Reasoning 200 Backward-Chaining Reasoning 201 Forward-Chaining Reasoning 203 Comparison of Reasoning Processes 206 Uncertainty 206 Representing Uncertainty with Probability Theory 208 Representing Uncertainty with Certainty Factors 209 Discussion 211 Suggested Readings 211 Questions 212 On the Web 212 5 User Interface 215 Goals of the User Interface 216 Mechanisms of User Interfaces 218 User Interface Components 223 Action Language 224 Display or Presentation Language 233 Knowledge Base 251 Car Example 256 Discussion 271 Suggested Readings 271 Questions 273 On the Web 274 Part III Issues of Design 277 6 International Decision Support Systems 279 Information Availability Standards 289 Data Privacy 290 Data Availability 295 Data Flow 296 Cross-Cultural Modeling 297 Effects of Culture on Decision Support System 303 Discussion 310 Suggested Readings 310 Questions 312 On the Web 313 7 Designing a Decision Support System 315 Planning for Decision Support Systems 319 Designing a Specific DSS 320 Design Approaches 329 The Design Team 340 DSS Design and Reengineering 341 Discussion 344 Suggested Readings 344 Questions 346 On the Web 347 8 Object-Oriented Technologies and DSS Design 349 Kinds of Development Tools 350 Non-Object-Oriented Tools 350 Object-Oriented Tools 352 Benefits of Object-Oriented Technologies for DSS 365 Suggested Readings 366 Questions 367 On the Web 367 9 Implementation and Evaluation 369 Implementation Strategy 369 Ensure System Does What It is Supposed to Do the Way It is Supposed to Do It 372 Keep Solution Simple 375 Develop Satisfactory Support Base 375 Institutionalize System 380 Implementation and System Evaluation 382 Technical Appropriateness 382 Overall Usefulness 385 Implementation Success 386 Organizational Appropriateness 391 Discussion 392 Suggested Readings 392 Questions 394 On the Web 395 Part IV Extensions of Decision Support Systems 397 10 Executive Information and Dashboards 399 KPIs and Balanced Scoreboards 400 Dashboards 401 Dashboard as Driver to EIS 408 Design Requirements for Dashboard 410 Dashboard Appliances 417 Value of Dashboard and EIS 418 Discussion 423 Suggested Readings 423 Questions 425 On the Web 426 11 Group Decision Support Systems 427 Groupware 429 GDSS Definitions 432 Features of Support 434 Decision-Making Support 434 Process Support 438 GDSS and Reengineering 439 Discussion 440 Suggested Readings 440 Questions 442 On the Web 443 Index 445