- Every large organization has large files or databases containing data used in operating the business. Does a data warehouse differ from these operational files or databases? Explain why or why not.
Yes, a data warehouse differs from an organizations operational files and databases. Data warehouses are repositories of all electronic data of an organization that is designed to make possible convenient retrieval, reporting and analysis of the data. The information stored in the data warehouses is organized such that it is arranged by subjects rather than based on the functions of an organization and are collected from numerous sources that the organization is connected. They are commonly utilized by companies to aid them in their decision –making processes.
Data warehouse is different from organizations operational files of databases in such a way that databases are made for specific transactions of a company and usually analyzed the collected data in a single domain while data warehouses has the ability to deal simultaneously from several domains while looking for connections among these areas enabling the company to perform as one rather than threatening data as a separate entity in each domain. Since data on the data warehouses doesn’t change as much as data on the databases, it enables it to make trend analysis. In addition, because of the constant updating of databases since they are transaction based, its time-span is very short so analyzed data from it cannot help much in decision-making since decision support systems usually needs data that is analyzed over long periods. Companies and decision-makers usually need analyzed data from numerous sources or covering all the operations of the company over long periods of time and not data for specific transactions within a limited period. (Watson, 2005)
- Describe two examples of specific DSSs that are being used to assist in decision making. You may use examples from the textbook or other examples you have read about or heard about.
One example of specific DSS that is used to assist management’s decision making is a data-driven DSS. ABN AMRO a Dutch Bank operating world-wide with over 3,000 branches located in different countries utilized data-driven DSS to help them make decisions on improving their customer relationship management, monitor credit risks matrix and customer revenue analysis. The specific DSS employed uses a data warehouse that is capable of performing and analyzing regional business performances as well as performance of each country. (Power, 2013)
A computer company in Silicon Valley used DSS through the use of star scheme approach in data warehousing. Using Geographic, Time and Product dimensions, the DSS uses was able to get data from and query information like determining what were the total sales for a particular period in a particular geographic area or what product was the most profitable in a certain month at a specific location, which then was used by the management to help them decide on what to do with a product at a specific brand. Is the product selling or not and should they produce more or not?
- Describe two examples of expert systems that are being used to assist in decision making. You may use examples from the textbook or other examples you have read about or heard about.
An example of an expert system that aids in decision-making is personality profiler. If the human resources department of an organization needs to determine who among its employees best fits a single new role, an expert system may be used to analyzed a set of psychological questions that are answered by each of the employees. Before making a decision as to whom the position will be given, the HR will consult the results of the analysis made by the expert system and from it a shortlist of the most qualified employees will be generated. Of course the final decision will be based on some other criteria but the expert system was able to help the HR trim-down the choices.
Another application of an expert system is on medical diagnostics. An expert system may contain hundreds of thousands of diseases and their corresponding characteristics or symptoms. This expert system can help the doctor in diagnosing the patient by loading symptoms to the system while it returns the possible illnesses that patient has before making any further clinical tests or seeking second opinion.
References:
Power, Dan (2013). Types of Decision Support Systems. Retrieved from http://www.gdrc.org/decision/dss-types.html
Watson, Hugh (2005). Data Warehouse Architectures: Factors in the Selection Decision and the Success of the Architectures. Retrieved from http://www.terry.uga.edu/~hwatson/DW_Architecture_Report.pdf
