DECISION SUPPORT SYSTEMS

A KNOWLEDGE-BASED APPROACH

Part One - Decision Making and Knowledge

The study of decision support systems has many technical aspects. But before delving into these, it is important to appreciate the setting in which they are used. The setting is a competitive knowledge-rich world in which managers make decisions about what to do with their organizations' resources. Multitudes of decisions are made every day and range from those that are simple to those that are very complex. Every one of these decisions involves the use of knowledge of varying kinds and amounts, and many of them can benefit from (or even require) the use of technology known as decision support systems.

Part One establishes the context for understanding decision support systems from a knowledge-based viewpoint. This is a context that emphasizes the place of managers in organizations, of decision making in management, and of knowledge in decision making.

Chapter 1 introduces a seven-point perspective of managerial work, as a basis for subsequent chapters' treatments of decision making and knowledge. This perspective is built from a consideration of the manager's task of structuring an organization's resources to fulfil certain purposes in the face of an environment that can be very dynamic. Traditional characterizations of the functions managers perform and the roles they play also contribute to the seven-point perspective.

Chapter 2 begins to examine the notion of decision making in more detail. It presents the classical view of decision making as an activity of choosing from among alternatives and the complementary knowledge-oriented view of manufacturing a piece of knowledge about what to do. The setting in which decisions are made is examined from several angles, as it can influence the kind of decision support that is warranted. Similarly, we look at ways of classifying decisions, as the type of decision can influence what decision support features are appropriate.

Chapter 3 continues the survey of decision making by focusing on decision makers and decision processes. Different kinds of decision makers are identified as a basis for understanding decision support variations. The process of making a decision is characterized as a flow of various problem solving episodes, typically involving three phases and guided by some strategy. Decision support systems differ in terms of the kinds of episodes, phases, and strategies they support.

Chapter 4 explores the major flows of knowledge involved in manufacturing a decision and draws an important distinction between acquiring knowledge and deriving it. A number of computer-based techniques for managing knowledge are cited and their value in being incorporated into decision support systems is considered. Knowledge management is concerned with more than specific computer-based techniques. It also encompasses an appreciation of the distinctions among various types of knowledge, because some techniques are better at handling one type of knowledge than another. The developer of a decision support system (DSS) must be aware of such distinctions.

The case study that concludes Part One pulls together much of content from the first four chapters to synthesize a unified view of the main ideas in an applied setting. The case exercises give a way to apply what has been learned from the four chapters, to draw on prior knowledge of technology, and to anticipate some of what will be covered in the remainder of the book.