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.

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

"This volume 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." (Zentralblatt MATH, 2011)

"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." (News Blaze, 28 February 2011)

VICKI L. SAUTER, PhD, is Professor of Information Systems at the University of Missouri–St. Louis. She has published numerous journal articles in her areas of research interest, which include systems analysis, decision support systems, and Web development. Dr. Sauter currently serves as an Associate Editor for the Journal of Decision Support Systems Technology and INFORMS Online.

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.