8th ed. Upper Saddle River, N.J.: Pearson Prentice Hall, pages, , English, Book; Illustrated, Decision support and business intelligence systems. Decision Support and Business Intelligence Systems (9th Edition) By Efraim Turban, . Support and Business Intelligence Systems, 8th Edition, Turban, Aronson, Liang, Sharda, Download Arriba Comunicacion Y Cultura pdf ebooks free. Business intelligence and analytics: systems for decision support/Ramesh Sharda, Most of the specific improvements made in this tenth edition concentrate on three lesforgesdessalles.info lesforgesdessalles.info). Hoven, "Data Marts: Plan Big, Build Small," in JS Management Handbook, 8th ed.
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Study Decision Support and Business Intelligence Systems (8th Edition) discussion and chapter questions and find Decision Support and. DECISION SUPPORT SYSTEMS AND INTELLIGENT SYSTEMS, 7th Ed. by' Braim: . The Advantage of PetroVantage: Business Intelligence/DSS Creates. Decision Support and Business Intelligence Systems (9th Edition) [20ebooks. com] - Download as PDF File .pdf), Text File .txt) or read online. 8th Edition.
The questions are rated by difficulty level, and the answers are referenced by hook page number. The Choice Phase 2. Mining Text for Security and Counterterrorism, 7. Second, most DSS are constructed to directly support specific decision making. If you need help getting started, read the tutorials on the TestGen site. According to Simon , the human mind lias only a limited ability to process and store infor- mation. Appropriate for all courses in Decision Support Systems DSS , computerized decision making tools, and management support systems.
Decision Support System Cures for Healthcare 3. Modeling and Analysis 4. Business Intelligence Special Introductory Section: The Essentials of Business Intelligence 1. Data Warehousing 5. Business Analytics and Data Visualization 6. Web Intelligence and Web Analytics 6. Data, Text, and Web Mining 7. Highmark, Inc. Neural Networks for Data Mining 8. Business Performance Management 9. Cisco and the Virtual Close 9. Where Do We Want to Go? How Do We Get There? How are We Doing? Collaborative Design at Boein-Rocketdyne Characteristics, Process, Benefits, and Dysfunctions From VoIP to Wikis Knowledge Management Intelligent Systems Artificial Intelligence and Expert Systems Advanced Intelligent Systems Intelligent Systems over the Internet An Overview Representing Knowledge for Intelligent Agents Implementing Decision Support Systems Systems Development and Acquisition Elite-Care Supported by Intelligent Systems Share a link to All Resources.
Instructor Resources. Websites and online courses. Other Student Resources. About the Author s. Previous editions. Third, the book benefited gready from the efforts of many individuals who contributed advice and interesting material such as problems , gave feedback on material, or helped with class testing.
Greenwich, Connecticut , Expert Choice, Inc. Sixth, many individuals helped us with administrative matters and editing, proof- reading, and preparation.
Judy Lang collaborated with all of us, provided editing, and guided us during the entire project through die eighth edition, Finally, the Prentice Hall leant is to be commended; Executive Editor Boh Horan, w r ho orchestrated tltis project; our editorial project manager Kelly Loftus, who kept us on the timeline; Kitty Jarrett, who copyedited the manuscript; and the production team, Karalyn Hoi I anti at Prentice Half and the staff at GGS Book Services, who transformed the manuscript into a book.
We would like to thank all these individuals and corporations, Without their help, the creation of this book would not have been possible.
Ramesh and Dursun w r ant to specifically acknowledge the contributions of previous coauthors Jay Aronson and T P, Liang whose original contributions constitute significant components of the book. As this book went to press, we verified that all the cited Web sites were active and valid.
Web sites to which we refer in the text sometimes change or are discontinued because compa- nies change names, are bought or sold, merge, or fall Sometimes W'eb sites are down for maintenance, repair, or redesign.
If you have a problem connecting to a Web site that we mention, please be patient and simply run a Web search to try to identify the new site. Most times, the new site can be found quickly. We apologize in advance for tills inconvenience.
Decision Support and Business Intelligence Systems. Ninth Edition Page: These technologies have had a profound impact on corporate strategy, performance, and competitiveness. These techniques are also strongly connected to the Internet, intranets, and Web tools, as shown throughout the book.
In Part I, we provide an overview of the whole book in one chapter. We cover several topics in this chapter. The first topic is managerial decision making and its computerized support; the second is frameworks for decision support.
We then introduce business intelligence. We also provide brief coverage of the tools used and their implementation, as well as a preview of the entire book. Organizations, private and public, are under pressures that force them to respond quickly to changing conditions and to be innovative in the way they operate.
Processing these, in die framework of the needed decisions, must be done quickly, frequently in real time, and usually requires some computerized support. This book is about using business intelligence as computerized support for managerial decision making. It concentrates both on die theoretical and conceptual foundations of decision support, as well as on the commercial tools and techniques diat are available.
This introductory chapter provides more details 2 1 The acronym DSS Is treated as both singular and plural throughout this book. This chapter has the following sections: For more than a century, the railroad industry was heavily regulated, and Norfolk Southern and its predecessor railroads made money by managing their costs.
Managers focused on opti- mizing the use of railcars to get the most production out of their fixed assets. On-time delivery became an important factor in die industry.
Norfolk Southern has always used a variety of sophisticated systems to run its business. Becoming a scheduled railroad, however, required new systems that w r ould first use statistical models to determine the best routes and connections to optimize railroad performance, and then apply the models to create the plan that would actually run the railroad operations.
Norfolk Southern realized that it w r as not enough to mn the railroad using TOP — it also had to monitor and measure its performance against the TOP plan. The warehouse data comes from the systems that mn the company Le. In , the data warehouse became a critical component of TOP. Norfolk Southern built a TOP dashboard application that pulls data from the data warehouse and then graphically depicts actual performance against the trip plan for both train performance and connection perfomiance.
The application uses visualization technology so that field managers can more easily interpret the large volumes of data e. The User name: And, in the past 5 years, railcar cycle time has decreased by an entire day, which trans- lates into millions of dollars in annual savings. Norfolk Southern has an enterprise data warehouse , w r hich means that once data is placed in the warehouse, it is available across the company, not just for a single application.
Although train and connection performance data is used for the TOP application, the company has been able to leverage that data for all kinds of other purposes. For example. Where did my shipment come from?
How long did it take to arrive? What were the problems along die route? Users can access current data, which is updated houriy, or they can look at data from the past 3 years. The self-service nature of accessNS has allowed Norfolk Southern to give customers what they want and also reduce the number of people needed for customer service. In fact, without accessNS, it would take approximately 47 people to support the current level of customer reporting.
Departments across the company — from Engineering and Strategic Planning to Cost and Human Resources — use the enterprise data warehouse. One interesting internal application was developed by Human Resources.
By combining employee demographic data e. Norfolk Southern uses the data warehouse to analyze trends, develop forecasting schedules, archive records, and facilitate customer self-service. Norfolk Southern was the first railroad to offer self-service business intelligence, and its innovation is setting an example that other railroads have followed.
The company was also one of die first railroads to provide a large variety of historical data to external customers. Questions for the Opening Vignette 1, How' are information systems used at Norfolk Southern to support decision making?
What type of information is accessible through the visualization applications? How does Norfolk Soudiern use the data warehouse for HR applications? What We Can Learn from This Vignette This vignette show's that data warehousing technologies can offer a player even in a mature industry the ability to attain competitive advantage by squeezing additional efficiency from its operations.
Indeed, in many cases, this may be the major frontier to explore. Getting more out of a company's assets requires more timely and detailed understanding of its operations, and the ability to use that information to make better decisions. We will see many examples of such applications throughout this book.
Additional resources about this vignette are available on the Teradata University Network, w r hich is described later in the chapter. Companies are moving aggressively to computerized support of their operations. To understand why companies are embracing computerized support, including business intelligence, we developed a model called the Business Pressures-Responses-Support model, which is shown in Figure 1.
This complexity creates opportunities on the one hand and problems on the other. Take globalization as an example.
Today, you can eas- ily find suppliers and customers in many countries, which means you can buy cheaper materials and sell more of your products and sendees; great opportunities exist. However, globalization also means more and stronger competitors. Business environment factors can be divided into four major categories: These categories are summarized in Table 1. Note that die intensity of most of these factors increases with time, leading to more pressures, more competition, and so on.
In addition, organizations and departments within organizations face decreased budgets and amplified pressures from top managers to increase performance and profit. In this kind of environment, managers must respond quickly, innovate, and he agile. They use different actions to counter die pressures. Managers may cake other actions, including the following: Many, if not all, of these actions require some computerized support. These and other response actions are frequently facilitated by computerized DSS.
The resources are considered inputs, and attainment of goals is viewed as the output of die process. The degree of success of die organization and the manager is often measured by the ratio of outputs to inputs.
This ratio is an indication of the organization s productivity, which is a reflection of the organizational and mana- gerial performa nee. The level of productivity or the success of management depends on the perform- ance of managerial functions, such as planning, organizing, directing, and controlling.
To perform their functions, managers are engaged in a continuous process of making decisions. Making a decision means selecting the best alternative from two or more solutions. The Nature of Managers' Work Mint z berg's classic study of top managers and several replicated studies suggest that managers perform 10 major roles dial can lie classified into three major categories: To perform these roles, managers need information that is delivered efficiently and in a timely manner to personal computers PCs on their desktops and to mobile devices.
This information is delivered by networks, generally via Web technologies. In addition to obtaining information necessary to better perform their roles, man- agers use computers directly to support and improve decision making, wiiich is a key task that is part of most of these roles. Many managerial activities in all roles revolve around decision making. Managers, especially those at high managerial levels, are prima- rily decision makers. We review the decision-making process next but will study it in more detail in the next chapter.
The Decision-Making Process For years, managers considered decision makin g purely an ait — a talent acquired over a long period through experience i. Management was considered an art because a variety of individual styles could be used in approaching and successfully solving the same types of managerial problems. These styles were often based on creativity, judgment, intuition, and experience rather than on systematic quantitative methods grounded in a scientific approach.
However, recent research suggests that companies with top managers who are more focused on persistent work almost dullness tend to outperform those with leaders whose main strengths are interpersonal communication skills Kaplan et ai. It is more important to emphasize methodical, thoughtful, analytical decision making rather than flashiness and interpersonal communication skills.
Compiled from H. Define the problem i. Construct a model that describes the real-world problem. Idemiiy possible solutions to the modeled problem and evaluate the solutions. Compare, choose, and recommend a potential solution to the problem. To follow this process, one must make sure that sufficient alternative solutions are being considered, that the consequences of using these alternatives can lae reasonably predicted, and that comparisons are done properly.
However, the environmental factors listed in Table LI make such an evaluation process difficult for the following reasons: Therefore, making deci- sions today is indeed a complex task.
Because of these trends and changes, it is nearly impassible to rely on a trial-and- enor approach to management t especially for decisions for which the factors shown in Table 1,1 are strong influences. Managers must he more sophisticated: Most of those tools and techniques are discussed in this hook. Using them to support decision making can be extremely rewarding in mak- ing effective decisions. In the following section, we look now at why we need computer support and how it is provided.
Section 1,3 Review Questions 1. Describe the three major managerial roles, and list some of the specific activities in each, 2, Why have some argued that management is the same as decision making? TuuSiy decisions are critics! Furthermore, the benefits-to-cost ratio of computers and the speed of executions are constantly increasing. Many decisions are made today by groups whose members may be in different locations. Groups can collaborate and communicate readily by using Web-based tools.
Computerized support can User name: In addition, computerized support can increase the productivity of staff support e. Decision makers can also increase their productivity by using software optimization tools that help determine die best way to run a business see Chapter 4.
Many decisions involve complex computa- tions. Data for these can be stored in different databases anywhere in the organ- ization and even possibly at Web sites outside the organization. The data may include text, sound, graphics, and video, and they can be in foreign languages. It may be necessary to transmit data quickly from distant locations. Computers can search, store, and transmit needed data quickly, economically, securely, and transparently.
Large data warehouses, like the one operated by Wal-Mart, contain terabytes and even petabytes of data. Computers can provide extremely great storage capability for any type of digital information, and diis informa- tion can be accessed and searched very rapidly. Special methods, including parallel computing, are available to organize, search, and mine the data.
The costs related to data warehousing are declining. For example, more data can be accessed, more alternatives can lae evaluated, forecasts can be improved, risk analysis can be performed quickly, and the views of experts some of whom are in remote locations can be collected quickly and at a reduced cost.
Expertise can even be derived directly from a computer system using artificial intelligence methods discussed in Part III and also Chapter With computers, decision makers can perform complex simulations, check many possible scenarios, and assess diverse impacts quickly and economically.
In addition, organizations must be able to frequently and rapidly change their mode of operation, reengineer processes and structures, empower employees, and innovate in order to adapt to their changing environments.
Decision support technologies such as intelligent systems can empower people by allowing them to make good decisions quickly, even if they lack some knowledge. According to Simon , the human mind lias only a limited ability to process and store infor- mation.
People sometimes find it difficult to recall and use information in an error -free fashion due to their cognitive limits. The term cognitive limits indicates that an indi- viduals problem-solving capability is limited when a wide range of diverse information and knowledge is required. Computerized systems enable people to overcome their cognitive limits by quickly accessing and processing vast amounts of stored informa- tion see Chapter 2 j.
Most important, the Web provides 1 access to a vast body of data, information, and knowledge available around the world; 2 a common, user-friendly graphical user interface GLIT that is easy to learn to use and readily available- 3 ihe ability to effectively collaborate with remote partners: Using wireless technology, managers can access information anytime and from anyplace, analyze and interpret it, and communicate with, those involved.
Next, we present an early frame- work for decision support. Section 1,4 Review Questions 1, How have the capabilities of computing evolved over time? List some capabilities of computing that can facilitate managerial decision making, 3. How can a computer help overcome the cognitive limits of humans? Gorry and Scott-Morton created and used this framework in die early s.
Two dimensions are die degree of structuredness and the types of control. Z Decls ion Su pport Fra mewor ks No part of any book may be reproduced or transmitted by any means without the publisher's prior permission.
Structured processes are routine and typically repetitive problems for which standard solution methods exist.
Unstructured processes are fuzzy, complex problems for which there are no cut-and-dried solution methods, Simon also described the decision- making process with a three-phase process of intelligence, design, and choice. Later, a fourth phase was added: The four phases are defined as follows; 1. This phase involves searching for conditions that caJl for decisions.
This phase involves inventing, developing, and analyzing possible alter- native courses of action solutions. This phase involves selecting a course of action from among those available. This phase involves adapting the selected course of action to the decision situation i.
Tile relationships among the four phases are shown In Figure 1. We will discuss these phases in more detail in Chapter 2. In a structured problem, ail phases are structured. The procedures for obtaining the best or at least a good enough solution are known. Whether the problem involves finding an appropriate Inventory level or choosing an optimal investment strategy, die objectives are clearly defined.
Common objectives are cost minimization and profit maximization. Semis true tu red problems fall between structured and unstructured problems, having some structured elements and some unstructured dements. The initial purpose of tills matrix was to suggest different types of computerized support to different cells in the matrix.
Gorry and Scotr-Morton suggested, for example, that for setnistructured decisions and unstructured decisions , conventional management information systems MIS and management science MS tools are insufficient. Human intellect and a different approach to computer technologies are necessary.
They proposed the use of a supportive informa- tion system, which they called a DSS. Note that the more structured and operational control-oriented tasks such as those in cells 1,2. Computer Support for Structured Decisions Computers have supported structured and some semi structured decisions, especially those that involve operational and managerial control, since the s. Operational and managerial control decisions are made in all functional areas, especially in finance and production i.
Structured problems, which are encountered repeatedly, have a high level of struc- ture. It is therefore possible to abstract, analyze, and classify diem into specific categories.
For example, a make-or-buy decision is one category. Other examples of categories are capital budgeting, allocation of resources, distribution, procurement, planning, and inven- tory control decisions. For each category of decision, an easy-to-apply prescribed model and solution approach have been developed, generally as quantitative formulas.
Tills approach is called management science. The MS process adds a new step 2 to the process described in Section 1. MS is based on mathematical modeling i.
Modeling involves transforming a real-world problem into an appropriate pro totype structure model. Computerized methodologies can find solutions to die standard category models quickly and efflciendy see Chapter 4. Some of these, such as linear programming, are deployed direedy over the Web. An ADS is a rule-based sys- tem that provides a solution, usually in one functional area e. Application Case 1. The company had a 30 -year- old pricing and promotion system that was very labor intensive and that could no longer keep up with tee pricing decisions required in the fast- paced grocery market.
The company also had no means of reliably forecasting die impact of rule changes before prices lilt the store shelves. Giant Foods worked with DemandTec to deploy a system for its pricing decisions. The system is able to handle massive amounts of point-of-sale and competitive data to model and forecast con- sumer demand, as well as automate and streamline complex ruies-based pricing schemes.
It can handle large numbers of price changes, and it can do so without increasing staff. The system also has forecasting capabilities. These capabilities allow Giant Foods to predict the impact of pricing changes and new promotions before they lilt the shelves.
Giant Foods decided to implement the system for the entire store chain. The system has allowed Giant Foods to become more agile in its pricing.
It is now able to react to competitive pricing changes or vendor cost changes on a weekly basis rather than when resources become available. Giants productivity has doubled because it no longer has to increase staff for pricing changes. Today, many service industries use similar pricing models. In contrast with management science approaches, which provide a model -based solution to generic structured problems e. The following are examples of business rules: ADS attempt to automate highly repetitive decisions in order to justify the computerization cost , based on business rules.
ADS are mostly suitable for frontline employees who can see the customer information online and frequently must make quick decisions.
For further information on ADS, see Davenport and Harris - Compufer Support for Unstructured Decisions Unstructured problems can be only partially supported by standard computerized quantitative methods, it is usually necessary to develop customized solutions.
However, such solutions may benefit from data and information generated from cor- porate or external data sources see Pan III and Chapter Intuition and judgment may play a large role in these types of decisions, as may computerized communication and collaboration technologies see Chapter 10 , as well as knowledge management see Chapter Computer Support for Semistructured Problems Solving semistructured problems may involve a combination of standard solution proce- dures and human judgment.
MS can provide models for the portion of a decision-making problem [hai is structured.
These capabilities help managers to better understand the nature of problems and thus to make better decisions. Section 1,5 Review 7 Questions 1. What are structured, unstructured, and semistructured decisions? Provide two examples of each.
Define operational control, managerial control, and strategic planning. Decision support systems couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions. It is a computer-based support system for management decision makers who deal with semistructured problems.
Note that the term decision support system, like management information system MIS and other terms in the field of IX is a content-free expression le. Therefore, there is no universally accepted definition of DSS.
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