Decision Support Systems
Decision support system (DSS) – a highly flexible and interactive system that is designed to support decision making when the problem is not structured
Decision support systems help you analyze, but you must know how to solve the problem, and how to use the results of the analysis
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Chapter 4Analytics, Decision Support, and Artificial Intelligence: Brainpower for Your Business DECISIONS AND DECISION SUPPORTCarry out the chosen solution and monitor the resultsExamine the merits of each solution and choose the best oneConsider ways of solving the problemFind or recognize the problem, need, or opportunityDecision Support SystemsDecision support system (DSS) – a highly flexible and interactive system that is designed to support decision making when the problem is not structured Decision support systems help you analyze, but you must know how to solve the problem, and how to use the results of the analysisGEOGRAPHIC INFORMATION SYSTEMSGeographic information system (GIS) – DSS designed specifically to analyze spatial informationSpatial information is any information in map formBusinesses use GIS software to analyze information, generate business intelligence, and make decisionsGoogle Earth as a GISPredictive AnalyticsPredictive analytics – highly computational data-mining technology that uses information and business intelligence to build a predictive model for a given business applicationInsurance, retail, healthcare, travel, financial services, CRM, SCM, credit scoring, etcPredictive AnalyticsText AnalyticsText analytics – uses statistical, AI, and linguistic technologies to convert textual information into structured informationGaylord Hotels uses text analytics to make sense of customer satisfaction surveysLots of AnalyticsWeb analyticsHR analyticsMarketing analyticsCRM analyticsSocial media analyticsMobile analyticsARTIFICIAL INTELLIGENCEArtificial intelligence, the science of making machines imitate human thinking and behavior, can replace human decision making in some instancesExpert systemsNeural networks (and fuzzy logic)Genetic algorithmsAgent-based technologiesExpert SystemsExpert (knowledge-based) system – an artificial intelligence system that applies reasoning capabilities to reach a conclusionUsed for Diagnostic problems (what’s wrong?)Prescriptive problems (what to do?)Neural Networks and Fuzzy LogicNeural network (artificial neural network or ANN) – an artificial intelligence system that is capable of finding and differentiating patternsFuzzy logic – a mathematical method of handling imprecise or subjective information, like “short” or “tall” Genetic AlgorithmsGenetic algorithm – an artificial intelligence system that mimics the evolutionary, survival-of-the-fittest process to generate increasingly better solutions to a problemTake millions of solutions and determines the optimal oneAGENT-BASED TECHNOLOGIESAgent-based technology (software agent) - piece of software that acts on your behalf (or on behalf of another piece of software) performing tasks assigned to it Biomimicry & Swarm IntelligenceBiomimicry – learning from ecosystems and adapting their characteristics to human and organizational situationsSwarm (collective) intelligence – the collective behavior of groups of simple agents that are capable of devising solutions to problems as they arise, eventually learning to coherent global patterns