A Brief History of Decision Support Systems
version 4.0 or see version 2.8
Summary
Information Systems
researchers and technologists have built and investigated Decision Support
Systems (DSS) for approximately 40 years. This paper chronicles and
explores the developments in DSS beginning with building model-driven DSS
in the late 1960s, theory developments in the 1970s, and the
implementation of financial planning systems, spreadsheet DSS and Group
DSS in the early and mid 80s. Data warehouses, Executive Information
Systems, OLAP and Business Intelligence evolved in the late 1980s and
early 1990s. Finally, the chronicle ends with knowledge-driven DSS and the
implementation of Web-based DSS in the mid-1990s.
I. Introduction
Computerized decision
support systems became practical with the development of minicomputers,
timeshare operating systems and distributed computing. The history of the
implementation of such systems begins in the mid-1960s. In a technology
field as diverse as DSS, chronicling history is neither neat nor linear.
Different people perceive the field of Decision Support Systems from
various vantage points and report different accounts of what happened and
what was important (cf., Arnott & Pervan, 2005; Eom & Lee, 1990b;
McCosh & Correa-Perez, 2006; Power, 2003; Power, 2004a; Silver, 1991).
As technology evolved new computerized decision support applications were
developed and studied. Researchers used multiple frameworks to help build
and understand these systems. Today one can organize the history of DSS
into the five broad DSS categories explained in Power (2001; 2002; 2004b),
including: communications-driven, data-driven, document driven,
knowledge-driven and model-driven decision support
systems.
This hypertext
document is a starting point in explaining the origins of the various
technology threads that are converging to provide integrated support for
managers working alone, in teams and in organization hierarchies to manage
organizations and make more rational decisions. History is both a guide to
future activity in this field and a record of the ideas and actions of
those who have helped advance our thinking and practice. Historical facts
can be sorted out and better understood, but more information gathering is
necessary. This web page is a starting point in collecting more first hand
accounts and in building a more complete mosaic of what was occurring in
universities, software companies and in organizations to build and use
DSS.
This document traces
decision support applications and research studies related to model and
data-oriented systems, management expert systems, multidimensional data
analysis, query and reporting tools, online analytical processing (OLAP),
Business Intelligence, group DSS, conferencing and groupware, document
management, spatial DSS and Executive Information Systems as the
technologies emerge, converge and diverge. All of these technologies have
been used to support decision making. A timeline of major historical
milestones relevant to DSS is included in Appendix
I.
The study of decision
support systems is an applied discipline that uses knowledge and
especially theory from other disciplines. For this reason, many DSS
research questions have been examined because they were of concern to
people who were building and using specific DSS. Hence much of the broad
DSS knowledge base provides generalizations and directions for building
more effective DSS (cf., Baskerville & Myers, 2002; Keen,
1980).
The next section
describes the origins of the field of decision support systems. Section 3
discusses the decision support systems theory development that occurred in
the late 1970s and early 1980s. Section 4 discusses important developments
to communications-driven , data-driven, document
driven, knowledge-driven and model-driven DSS (cf., Power, 2002). The
final section briefly discusses how DSS practice, research
and technology is continuing to evolve.
II. Decision Support Systems Origins
In the 1960s,
researchers began systematically studying the use of computerized
quantitative models to assist in decision making and planning (Raymond,
1966; Turban, 1967; Urban, 1967, Holt and Huber, 1969). Ferguson and Jones
(1969) reported the first experimental study using a computer aided
decision system. They investigated a production scheduling application
running on an IBM 7094. In retrospect, a major historical turning point
was Michael S. Scott Morton's (1967) dissertation field research at
Harvard University.
Scott Morton’s study
involved building, implementing and then testing an interactive,
model-driven management decision system. Fellow Harvard Ph.D. student
Andrew McCosh asserts that the “concept of decision support systems was
first articulated by Scott Morton in February 1964 in a basement office in
Sherman Hall, Harvard Business School” (McCosh email, 2002) in a
discussion they had about Scott Morton’s dissertation. During 1966, Scott
Morton (1971) studied how computers and analytical models could help
managers make a recurring key business planning decision. He conducted an
experiment in which managers actually used a Management Decision System
(MDS). Marketing and production managers used an MDS to coordinate
production planning for laundry equipment. The MDS ran on an IDI 21 inch
CRT with a light pen connected using a 2400 bps modem to a pair of Univac
494 systems.
The pioneering work of
George Dantzig, Douglas Engelbart and Jay Forrester likely influenced the
feasibility of building computerized decision support systems. In 1952,
Dantzig became a research mathematician at the
Rand Corporation, where he began implementing linear programming on its
experimental computers. In the mid-1960s, Engelbart and colleagues developed the first
hypermedia—groupware system called NLS (oNLine
System). NLS facilitated the creation of digital libraries and the storage
and retrieval of electronic documents using hypertext. NLS also provided
for on-screen video teleconferencing and was a forerunner to group
decision support systems. Forrester was involved in building the SAGE
(Semi-Automatic Ground Environment) air defense system for
North
America completed in 1962.
SAGE is probably the first computerized data-driven DSS. Also, Professor
Forrester started the System Dynamics Group at the Massachusetts Institute
of Technology Sloan School. His work on corporate modeling led to
programming DYNAMO, a general simulation compiler.
In 1960, J.C.R.
Licklider published his ideas about the future role of multiaccess
interactive computing in a paper titled “Man-Computer Symbiosis.” He saw
man-computer interaction as enhancing both the quality and efficiency of
human problem solving and his paper provided a guide for decades of
computer research to follow. Licklider was the architect of Project MAC at
MIT that furthered the study of interactive
computing.
By April 1964, the
development of the IBM System 360 and other more powerful mainframe
systems made it practical and cost-effective to develop Management
Information Systems (MIS) for large companies (cf., Davis, 1974). These
early MIS focused on providing managers with structured, periodic reports
and the information was primarily from accounting and transaction
processing systems, but the systems did not provide interactive support to
assist managers in decision making.
Around 1970 business
journals started to publish articles on management decision systems,
strategic planning systems and decision support systems (cf., Sprague
and Watson 1979).. For example, Scott Morton and colleagues McCosh and Stephens published decision support related
articles in 1968. The first use of the term decision support system was in
Gorry and Scott-Morton’s (1971) Sloan Management
Review article. They argued that Management Information Systems primarily
focused on structured decisions and suggested that the supporting
information systems for semi-structured and unstructured decisions should
be termed “Decision Support Systems”.
T.P. Gerrity, Jr. focused on Decision Support Systems
design issues in his 1971 Sloan Management Review article titled "The
Design of Man-Machine Decision Systems: An Application to Portfolio
Management". The article was based on his MIT Ph.D. dissertation. His
system was designed to support investment managers in their daily
administration of a clients' stock portfolio.
John D.C. Little, also
at Massachusetts Institute of Technology, was studying DSS for marketing.
Little and Lodish (1969) reported research on
MEDIAC, a media planning support system. Also, Little (1970) identified criteria for designing models
and systems to support management decision-making. His four criteria
included: robustness, ease of control, simplicity, and completeness of
relevant detail. All four criteria remain relevant in evaluating modern
Decision Support Systems. By 1975, Little was
expanding the frontiers of computer-supported modeling. His
DSS called Brandaid was designed to support product, promotion,
pricing and advertising decisions. Little also helped develop the
financial and marketing modeling language known as
EXPRESS.
In 1974, Gordon Davis,
a Professor at the University of
Minnesota, published his
influential text on Management Information Systems. He defined a
Management Information System as "an integrated, man/machine system for
providing information to support the operations, management, and
decision-making functions in an organization. (p. 5)."
Davis's Chapter 12 was
titled "Information System Support for Decision Making" and Chapter 13 was
titled "Information System Support for Planning and Control".
Davis’s framework
incorporated computerized decision support systems into the emerging field
of management information systems.
Peter Keen and Charles
Stabell claim the concept of decision support
systems evolved from "the theoretical studies of organizational decisionmaking done at the Carnegie Institute of
Technology during the late 1950s and early '60s and the technical work on
interactive computer systems, mainly carried out at the Massachusetts
Institute of Technology in the 1960s. (Keen and Scott
Morton, 1978)". Herbert Simon’s books (1947, 1960) and articles
provide a context for understanding and supporting decision
making.
In 1995, Hans Klein
and Leif Methlie noted “A study of the origin of
DSS has still to be
written. It seems that the first DSS papers were published
by PhD students or professors in business schools, who had access to the
first time-sharing computer system: Project MAC at the
Sloan
School, the Dartmouth Time
Sharing Systems at the Tuck
School. In
France,
HEC was the first French
business school to have a time-sharing system (installed in 1967), and the
first DSS papers were published
by professors of the School in 1970. (p. 112).”
III. Theory Development
In the mid- to late
1970s, both practice and theory issues related to DSS were discussed at
academic conferences including the American Institute for Decision
Sciences meetings and the ACM SIGBDP Conference on Decision Support
Systems in San Jose, CA in January 1977 (the proceeding were included in
the journal Database). The first International Conference on Decision
Support Systems was held in Atlanta,
Georgia in 1981. Academic
conferences provided forums for idea sharing, theory discussions and
information exchange.
At about this same
time, Keen and Scott Morton’s DSS textbook (1978)
provided the first broad behavioral orientation to decision support system
analysis, design, implementation, evaluation and development. This
influential text provided a framework for teaching DSS in business
schools. McCosh and Scott-Morton’s (1978) DSS
book was more influential in Europe.
In 1980, Steven Alter
published his MIT doctoral dissertation results in an influential book.
Alter's research and papers (1975; 1977)
expanded the framework for thinking about business and management
DSS. Also, his case
studies provided a firm descriptive foundation of decision support system
examples. A number of other MIT dissertations completed in the late 1970s
also dealt with issues related to using models for decision
support.
Alter concluded from
his research (1980) that decision support systems could be categorized in
terms of the generic operations that can be performed by such systems.
These generic operations extend along a single dimension, ranging from
extremely data-oriented to extremely model-oriented. Alter conducted a
field study of 56 DSS that he categorized into seven distinct types of
DSS. His seven types include:
·
File drawer
systems that provide access
to data items.
·
Data analysis
systems that support the
manipulation of data by computerized tools tailored to a specific task and
setting or by more general tools and operators.
·
Analysis information
systems that provide access
to a series of decision-oriented databases and small models.
·
Accounting and
financial models that calculate the
consequences of possible actions.
·
Representational
models that estimate the
consequences of actions on the basis of simulation models.
·
Optimization
models that provide
guidelines for action by generating an optimal solution consistent with a
series of constraints.
·
Suggestion
models that perform the
logical processing leading to a specific suggested decision for a fairly
structured or well-understood task.
Donovan and Madnick (1977) classified DSS as institutional or ad
hoc. Institutional DSS support decisions that are recurring. An ad hoc DSS
supports querying data for one time requests. Hackathorn and Keen (1981) identified DSS in three
distinct yet interrelated categories: Personal DSS, Group DSS and
Organizational DSS.
In 1979, John Rockart of the Harvard
Business
School published a ground
breaking article that led to the development of executive information
systems (EISs) or executive support systems
(ESS). Rockart developed the concept of using information
systems to display critical success metrics for
managers.
Robert Bonczek, Clyde Holsapple,
and Andrew Whinston (1981) explained a
theoretical framework for understanding the issues associated with
designing knowledge-oriented Decision Support Systems. They identified
four essential "aspects" or general components that were common to all
DSS: 1. A language system (LS) that specifies all
messages a specific DSS can accept; 2. A presentation system (PS) for all
messages a DSS can emit; 3. A knowledge system (KS) for all knowledge a
DSS has; and 4. A problem-processing system (PPS) that is the "software
engine" that tries to recognize and solve problems during the use of a
specific DSS. Their book explained how Artificial Intelligence and Expert
Systems technologies were relevant to developing
DSS.
Finally, Ralph Sprague
and Eric Carlson’s (1982) book Building Effective Decision Support
Systems was an important milestone. Much of the book further explained
the Sprague (1980) DSS framework of data
base, model base and dialog generation and management software. Also, it
provided a practical, and understandable overview
of how organizations could and should build DSS. Sprague and Carlson (1982) defined
DSS as "a class of information system that draws on transaction processing
systems and interacts with the other parts of the overall information
system to support the decision-making activities of managers and other
knowledge workers in organizations (p. 9).”
IV. DSS Applications Development
Beginning in about
1980 many activities associated with building and studying DSS occurred in
universities and organizations that resulted in expanding the scope of DSS
applications. These actions also expanded the field of decision support
systems beyond the initial business and management application domain.
These diverse systems were all called Decision Support Systems. From those
early days, it was recognized that DSS could be designed to support
decision-makers at any level in an organization. Also, DSS could support
operations decision making, financial management and strategic
decision-making.
A literature survey
and citation studies (Alavi & Joachimsthaler, 1990, Eom
& Lee, 1990a, Eom, 2002, Arnott & Pervan, 2005)
suggest the major applications for DSS emphasized manipulating
quantitative models, accessing and analyzing large data bases, and
supporting group decision making. Much of the model-driven DSS research
emphasized use of the systems by individuals, i.e., personal DSS, while
data-driven DSS were usually institutional, ad hoc or organizational DSS.
Group DSS research emphasized impacts on decision process structuring and
especially brainstorming.
The discussion in this
section follows the broad historical progression of DSS research. The
first subsection examines model-driven DSS, then the focus turns to
data-driven DSS and executive information systems and notes the growing
prominence of such systems beginning in the late 1980s. The origins of
communications-driven DSS are then briefly explored and the bifurcation
into two types of group DSS, model-driven and communications-driven.
Developments in document storage technologies and search engines then made
document-driven DSS more widely available as web-based systems. The last
subsection summarizes major developments in Artificial Intelligence (AI)
and expert systems that made suggestion or knowledge-driven DSS
practical.
IV.1 Model-driven DSS
Scott-Morton’s (1971)
production planning management decision system was the first widely
discussed model-driven DSS, but Ferguson and Jones’ (1969) production
scheduling application was also a model-driven DSS. Many of the early
decision systems mentioned in section 2, e.g., Sprinter, MEDIAC and Brandaid, are probably
model-driven DSS.
A model-driven DSS
emphasizes access to and manipulation of financial, optimization and/or
simulation models. Simple quantitative models provide the most elementary
level of functionality. Model-driven DSS use limited data and parameters
provided by decision makers to aid decision makers in analyzing a
situation, but in general large data bases are not needed for model-driven
DSS (Power, 2002). Early versions of model-driven DSS were called
model-oriented DSS by Alter (1980), computationally oriented DSS by Bonczek, Holsapple and Whinston (1981) and later spreadsheet-oriented and
solver-oriented DSS by Holsapple and Whinston (1996).
The first commercial
tool for building model-driven DSS using financial and quantitative models
was called IFPS, an acronym for interactive financial planning system. It
was developed in the late 1970's by Gerald R. Wagner and his students at
the University of
Texas. Wagner’s company,
EXECUCOM Systems, marketed IFPS until the mid 1990s. Gray’s Guide to IFPS
(1983) promoted the use of the system in business schools. Another DSS
generator for building specific systems based upon the Analytic Hierarchy
Process (Saaty, 1982), called Expert Choice, was
released in 1983. Expert Choice supports personal or group decision
making. Ernest Forman worked closely with Thomas Saaty to design Expert Choice.
In 1978, Dan Bricklin and Bob Frankston co-invented the software
program VisiCalc (Visible Calculator). VisiCalc provided managers the
opportunity for hands-on computer-based analysis and decision support at a
reasonably low cost. VisiCalc
was the first "killer" application for personal computers and made
possible development of many model-oriented, personal DSS for use by
managers. The history of microcomputer spreadsheets is described in Power
(2000). In 1987, Frontline Systems founded by Dan Fylstra marketed the first optimization solver add-in
for Microsoft Excel.
In a 1988 paper, Sharda, Barr, and McDonnell reviewed the first 15
years of model-driven DSS research. They concluded that research related
to using models and financial planning systems for decision support was
encouraging but certainly not uniformly positive. As computerized models
became more numerous, research focused on model management and on
enhancing more diverse types of models for use in DSS such as multicriteria, optimization and simulation
models.
The idea of
model-driven spatial decision support system (SDSS) evolved in the late
1980’s (Armstrong, Densham, and Rushton., 1986) and by 1995
the SDSS concept had become firmly established in the literature (Crossland, Wynne, and Perkins, 1995). Data-driven
spatial DSS are also common.
IV.2 Data-driven DSS
In general, a
data-driven DSS emphasizes access to and manipulation of a time-series of
internal company data and sometimes external and real-time data. Simple
file systems accessed by query and retrieval tools provide the most
elementary level of functionality. Data warehouse systems that allow the
manipulation of data by computerized tools tailored to a specific task and
setting or by more general tools and operators provide additional
functionality. Data-Driven DSS with On-line Analytical Processing (cf.,
Codd et al., 1993) provide the highest level of
functionality and decision support that is linked to analysis of large
collections of historical data. Executive Information Systems are examples
of data-driven DSS (Power, 2002). Initial examples of these systems were
called data-oriented DSS, Analysis Information Systems (Alter, 1980) and
retrieval-only DSS by Bonczek, Holsapple and Whinston
(1981).
One of the first
data-driven DSS was built using an APL-based software package called
AAIMS, An Analytical Information Management System. It was developed from
1970-1974 by Richard Klaas and Charles Weiss at
American Airlines (cf. Alter, 1980).
As noted previously,
in 1979 John Rockart’s research stimulated the
development of executive information systems (EIS) and executive support
systems (ESS). These systems evolved from single user model-driven
decision support systems and from the development of relational database
products. The first EIS used pre-defined information screens maintained by
analysts for senior executives. For example, in the Fall of 1978, development of an EIS called Management
Information and Decision Support (MIDS) system began at Lockheed-Georgia
(cf., Houdeshel and Watson,
1987).
The first EIS were
developed in the late 1970s by Northwest Industries and Lockheed “who
risked being on the ‘bleeding edge’ of technology …. Few even knew about
the existence of EIS until John Rockart and
Michael Treacy’s article, ‘The CEO Goes
On-line,’ appeared in the January-February 1982 issue of the Harvard Business Review. (Watson, Houdeshel and Rainer, 1997,
p. 6)” Watson and colleagues. further note “A major contributor to
the growth of EIS was the appearance of vendor-supplied EIS software in
the mid-1980s. Pilot Software’s Command
Center and Comshare’s Commander EIS made it much easier for firms
to develop an EIS by providing capabilities for (relatively) easy screen
design, data importation, user-friendly front ends, and access to news
services. (p. 6)” In a related development in 1984, Teradata’s parallel processing relational database
management system shipped to customers Wells Fargo and
AT&T.
In about 1990, data
warehousing and On-Line Analytical Processing (OLAP) began broadening the
realm of EIS and defined a broader category of data-driven
DSS (cf., Dhar and Stein, 1997). Nigel Pendse (1997), author of the OLAP Report, claims both
multidimensional analysis and OLAP had origins in the
APL programming language
and in systems like Express and Comshare’s
System W. Nylund (1999) traces the developments
associated with Business Intelligence (BI) to Procter & Gamble’s
efforts in 1985 to build a DSS that linked sales
information and retail scanner data. Metaphor Computer Systems, founded by
researchers like Ralph Kimball from Xerox’s Palo Alto Research Center
(PARC), built the early P&G data-driven DSS. Staff from Metaphor later
founded many of the Business Intelligence vendors: The term BI is a
popularized, umbrella term coined and promoted by Howard Dresner of the Gartner Group in 1989. It describes a
set of concepts and methods to improve business decision making by using
fact-based support systems. BI is sometimes used interchangeably with
briefing books, report and query tools and executive information systems.
In general, business intelligence systems are data-driven
DSS.
Bill Inmon and Ralph Kimball actively promoted decision
support systems built using relational database technologies. For many
Information Systems practitioners, DSS built using Oracle or
DB2 were the first decision support systems they read about in the popular
computing literature. Ralph Kimball was "The Doctor of
DSS" and Bill Inmon was the "father of the data warehouse”. By 1995,
Wal-Mart’s data-driven DSS had more than 5 terabytes of on-line storage
from Teradata that expanded to more than 24
terabytes in 1997. In more recent years,
vendors added tools to create web-based dashboards and
scorecards.
IV.3 Communications-driven DSS
Communications-driven
DSS use network and communications technologies to facilitate
decision-relevant collaboration and communication. In these systems,
communication technologies are the dominant architectural component. Tools
used include groupware, video conferencing and computer-based bulletin
boards (Power, 2002).
Engelbart's 1962 paper
"Augmenting Human Intellect: A Conceptual Framework" is the anchor
for much of the later work related to communications-driven DSS. In 1969,
he demonstrated the first hypermedia/groupware system NLS (oNLine System) at the Fall Joint Computer Conference
in San
Francisco. Engelbart invented the both the computer mouse and
groupware.
Joyner and Tunstall’s article (1970) reporting
testing of their
Conference Coordinator computer software is the first empirical study in
this research area. Murray Turoff’s (1970)
article introduced the concept of Computerized Conferencing. He developed
and implemented the first Computer Mediated Communications System
(EMISARI) tailored to facilitate group
communications.
In the early 1980s,
academic researchers developed a new category of software to support group
decision-making called Group Decision Support Systems abbreviated GDSS (cf.,
Gray, 1981; Huber, 1982; Turoff and Hiltz, 1982). Mindsight from
Execucom Systems, GroupSystems developed at the
University of
Arizona and the SAMM system
developed by University of
Minnesota researchers were
early Group DSS.
Eventually GroupSystems matured into a commercial product. Jay
Nunamaker, Jr. and his colleagues wrote in 1992
that the underlying concept for GroupSystems had
its beginning in 1965 with the development of Problem Statement
Language/Problem Statement Analyzer at Case Institute of Technology. In
1984, the forerunner to GroupSystems called
PLEXSYS was completed and a computer-assisted group meeting facility was
constructed at the University of
Arizona. The first
Arizona facility, called the
PlexCenter, housed a large U-shaped conference
table with 16 computer workstations.
On the origins of
SAMM, Dickson, Poole and DeSanctis (1992) report
that Brent Gallupe, a Ph.D. student at the
University of
Minnesota, decided in 1984 "to
program his own small GDSS system in BASIC and run it on his university’s
VAX computer".
DeSanctis and Gallup (1987)
defined two types of GDSS. Basic or level 1 GDSS are systems
with tools to reduce communication barriers, such as large screens for
display of ideas, voting mechanisms, and anonymous input of ideas and
preferences. These are communications-driven
DSS. Advanced or level
2 GDSS provide problem-structuring techniques, such as planning and
modeling tools. These are model-driven group DSS. Since the mid-1980s,
many research studies have examined the impacts and consequences of both
types of group DSS. Also, companies have
commercialized model-driven group DSS and
groupware.
Kersten (1985) developed NEGO, a computerized group tool
to support negotiations. Bui
and Jarke (1986) reported developing Co-op, a
system for cooperative multiple criteria group decision support. Kraemer
and King (1988) introduced the concept of Collaborative Decision Support
Systems (CDSSs). They defined them as
interactive computer-based systems to facilitate the solution of
ill-structured problems by a set of decision makers working together as a
team.
In 1989, Lotus introduced a groupware product
called Notes and broadened the focus of GDSS to include enhancing
communication, collaboration and coordination among groups of people.
Notes had its roots in a product called PLATO Notes, written at the
Computer-based Education Research Laboratory (CERL) at the
University of Illinois in 1973 by David R. Woolley.
In general, groupware,
bulletin boards, audio and videoconferencing are the primary technologies
for communications-driven decision support. In the past few years, voice
and video delivered using the Internet protocol have greatly expanded the
possibilities for synchronous communications-driven
DSS.
IV.4 Document-driven DSS
A document-driven DSS
uses computer storage and processing technologies to provide document
retrieval and analysis. Large document databases may include scanned
documents, hypertext documents, images, sounds and video. Examples of
documents that might be accessed by a document-driven DSS are policies and
procedures, product specifications, catalogs, and corporate historical
documents, including minutes of meetings and correspondence. A search
engine is a primary decision-aiding tool associated with a document-driven
DSS (Power, 2002). These systems have also been called text-oriented DSS
(Holsapple and Whinston,1996).
The precursor for this
type of DSS is Vannevar Bush’s (1945) article
titled "As We May Think". Bush wrote "Consider a future device for
individual use, which is a sort of mechanized private file and library. It
needs a name, and to coin one at random, ‘memex’
will do”. Bush’s memex is a much broader vision
than that of today’s document-driven DSS.
Text and document
management emerged in the 1970s and 1980s as an important, widely used
computerized means for representing and processing pieces of text (Holsapple and Whinston,
1996). The first scholarly article for this category of DSS was written by
Swanson and Culnan (1978). They reviewed
document-based systems for management planning and control. Until the
mid-1990s little progress was made in helping managers find documents to
support their decision making. Fedorowicz (1993,
1996) helped define the need for such systems. She estimated in her 1996
article that only 5 to 10 percent of stored business documents are
available to managers for use in decision making. The World-wide web
technologies significantly increased the availability of documents and
facilitated the development of document-driven DSS.
IV.5 Knowledge-driven DSS
Knowledge-driven DSS
can suggest or recommend actions to managers. These DSS are
person-computer systems with specialized problem-solving expertise. The
"expertise" consists of knowledge about a particular domain, understanding
of problems within that domain, and "skill" at solving some of these
problems (Power, 2002). These systems have been called suggestion DSS
(Alter, 1980) and knowledge-based DSS (Klein & Methlie, 1995). Goul,
Henderson, and Tonge (1992) examined Artificial
Intelligence (AI) contributions to
DSS.
In 1965, a Stanford University research team led by Edward Feigenbaum created the DENDRAL expert system. DENDRAL
led to the development of other rule-based reasoning programs including
MYCIN, which helped physicians diagnose blood diseases based on sets of
clinical symptoms. The MYCIN project resulted in development of the first
expert-system shell (Buchanan and Shortliffe,
1984).
Bonczek, Holsapple and
Whinston’s (1981) book created interest in using these technologies for
DSS. In 1983, Dustin Huntington established EXSYS. That company and
product made it practical to use PC based tools to develop expert systems.
By 1992, some 11 shell programs were available for the MacIntosh platform,
29 for IBM-DOS platforms, 4 for Unix platforms, and 12 for dedicated
mainframe applications (National Research Council, 1999). Artificial
Intelligence systems have been developed to detect fraud and expedite
financial transactions, many additional medical diagnostic systems have
been based on AI, expert systems have been used for scheduling in
manufacturing operation and web-based advisory systems. In recent years,
connecting expert systems technologies to relational databases with
web-based front ends has broadened the deployment and use of
knowledge-driven DSS.
V. Web-based DSS
Beginning in approximately 1995, the World-wide
Web and global Internet provided a technology platform for further
extending the capabilities and deployment of computerized decision
support. The release of the HTML 2.0 specifications with form tags and
tables was a turning point in the development of web-based DSS. In 1995, a
number of papers were presented on using the Web and Internet for decision
support at the 3rd International Conference of the International Society
for Decision Support Systems (ISDSS). In addition to Web-based,
model-driven DSS, researchers were reporting Web access to data
warehouses. DSS Research Resources was started as a web-based collection
of bookmarks. By 1995, the World-Wide Web (Berners-Lee, 1996) was
recognized by a number of software developers and academics as a serious
platform for implementing all types of Decision Support Systems (cf.,
Bhargava & Power, 2001).
In November 1995, Power, Bhargava and Quek
submitted the Decision Support Systems Research page for inclusion in
ISWorld. The goal was to provide a useful starting point for accessing
Web-based material related to the design, development, evaluation, and
implementation of Decision Support Systems. Nine months later, a DSS/WWW
Workshop organized by Power and Quek was held as part of the IFIP Working
Group 8.3 Conference on “Implementing Systems for Supporting Management
Decisions: Concepts, Methods and Experiences”, July 21-24, 1996 in London,
UK.
In 1996-97, corporate intranets were developed to
support information exchange and knowledge management. The primary
decision support tools included ad hoc query and reporting tools,
optimization and simulation models, online analytical processing (OLAP),
data mining and data visualization (cf., Powell, 2001). Enterprise-wide
DSS using database technologies were especially popular in Fortune 2000
companies (Power, 1997). Bhargava, Krishnan and Müller (1997) continued to
discuss and experiment with electronic markets for decision technologies.
In 1999, vendors introduced new Web-based
analytical applications. Many DBMS vendors shifted their focus to
Web-based analytical applications and business intelligence solutions. In
2000, application service providers (ASPs) began hosting the application
software and technical infrastructure for decision support capabilities.
2000 was also the year of the portal. More sophisticated "enterprise
knowledge portals" were introduced by vendors that combined information
portals, knowledge management, business intelligence, and
communications-driven DSS in an integrated Web environment (cf., Bhargava
and Power, 2001).
Power (1998) defined a Web-based decision support
system as a computerized system that delivers decision support information
or decision support tools to a manager or business analyst using a
"thin-client" Web browser like Netscape Navigator or Internet Explorer.
The computer server that is hosting the DSS application is linked to the
user's computer by a network with the TCP/IP protocol.
VI. Conclusions
DSS practice, research and technology continue to
evolve. By 1996, Holsapple and Whinton had identified five specialized types of DSS,
including text-oriented DSS, database-oriented DSS, spreadsheet-oriented
DSS, solver-oriented DSS, and rule-oriented DSS. These last four types of
DSS match up with some of Alter’s (1980)
categories. Arnott and Pervan (2005) traced the evolution of DSS using seven
sub-groupings of research and practice: personal DSS, group support
systems, negotiation support systems, intelligent DSS, knowledge
management-based DSS, executive information systems/business intelligence,
and data warehousing. These
sub-grouping overlap, but reflect the diverse evolution of prior
research.
This chapter used an expanded DSS framework
(Power, 2001, 2002) to retrospectively discuss the historical evolution of
decision support systems. The Web has had a significant impact on the
variety, distribution and sophistication of DSS, but handheld PCs,
wireless networks, expanding parallel processing coupled with very large
data bases and visualization tools are continuing to encourage the
development of innovative decision support
applications.
Historians use two approached to apply the past to
the future: reasoning by analogy and projection of trends. In many ways
computerized decision support systems are like airplanes, coming in
various shapes, sizes and forms, technologically sophisticated and a very
necessary tool in many organizations. Decision support systems research
and development will continue to exploit any new technology developments
and will benefit from progress in very large data bases, artificial
intelligence, human-computer interaction, simulation and optimization,
software engineering, telecommunications and from more basic research on
behavioral topics like organizational decision making, planning,
behavioral decision theory and organizational
behavior.
Trends suggest that
data-driven DSS will use faster, real-time access to larger, better
integrated databases. Model-driven DSS will be more complex, yet
understandable, and systems built using simulations and their accompanying
visual displays will be increasingly realistic. Communications-driven DSS
will provide more real-time video communications support. Document-driven
DSS will access larger repositories of unstructured data and the systems
will present appropriate documents in more useable formats. Finally,
knowledge-driven DSS will likely be more sophisticated and more
comprehensive. The advice from knowledge-driven DSS will be better and the
applications will cover broader domains.
Decision Support Systems
pioneers came from a wide variety of backgrounds and faced many challenges
that they successfully overcame to demonstrate the value of using
computers, information technologies and specific decision support software
to enhance and in some situations improve decision making. The DSS
pioneers created particular and distinct streams of technology development
and research that serve as the foundation for much of today’s interest in
building and studying computerized decision support systems. The legacy of
the pioneers must be preserved. Check the Decision Support Systems
Pioneers list at DSSResources.com/history/pioneers/pioneerslist.html.
The future of decision
support systems will certainly be different than the opportunistic and
incremental innovations seen in the recent past. Decision support systems
as an academic discipline is likely to follow a path similar to computer
architecture and software engineering and become more rigorous and more
clearly delineated. DSS consulting, teaching and research can be mutually
supportive and each task can help establish a niche for those interested
in building and studying DSS whether in Colleges of Information, Business
or Engineering.
The history of Decision
Support Systems covers a relatively brief span of years, and the concepts
and technologies are still evolving. Today it is still possible to
reconstruct the history of Decision Support Systems (DSS) from
retrospective accounts from key participants as well as from published and
unpublished materials. Many of the early innovators and early developers
are retiring but their insights and actions can be captured to guide
future innovation in this field. It is hoped this paper leads to email and
retrospective accounts that can help us understand the "real" history of
DSS. The Internet and Web have speeded-up developments in decision support
and have provided a new means of capturing and documenting the development
of knowledge in this research area. Decision support pioneers include many
academic researchers from programs at MIT, University of Arizona,
University of Hawaii, University of Minnesota and Purdue University. The
DSS pioneers created particular and distinct streams of technology
development and research that serve as the foundation for much of today’s
work in DSS.
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Appendix I. DSS Timeline
|
Year |
Major
Milestones |
|
1945 |
Bush proposed Memex |
|
1947 |
Simon book titled
Administrative Behavior |
|
1952 |
Dantzig joined RAND and continued research on linear
programming |
|
1955
|
Semiautomatic
Ground Environment (SAGE) project at M.I.T. Lincoln Lab uses first
light pen; SAGE completed 1962, first data-driven
DSS |
|
1956 |
Forrester started
System Dynamics Group at the M.I.T. Sloan School |
|
1960 |
Simon book The New
Science of Management Decision; Licklider
article on “Man-Computer Symbiosis” |
|
1962 |
Licklider architect of Project MAC program at M.I.T.;
Iverson’s book A Programming Language (APL); Engelbart's paper "Augmenting Human Intellect: A
Conceptual
Framework" |
|
1963 |
Englebart established
Augmentation Research Center at SRI |
|
1965
|
Stanford team led
by Feigenbaum created DENDRAL expert
system; Problem Statement Language/Problem Statement Analyzer
(PSL/PSA) developed at Case Institute of
Technology |
|
1966 |
UNIVAC 494
introduced; Tymshare founded and Raymond
article on computer time-sharing for business planning and
budgeting |
|
1967 |
Scott Morton’s
dissertation completed on impact of computer-driven visual display
devices on management decision-making process; Turban reports
national survey on use of mathematical models in plant maintenance
decision making |
|
1968 |
Scott Morton and
McCosh article; Scott Morton and Stephens
article; Englebart demonstrated
hypermedia—groupware system NLS (oNLine
System) at Fall Joint Computer Conference in
San
Francisco |
|
1969
|
Ferguson and Jones article on lab study of a
production scheduling computer-aided decision system running on an
IBM 7094; Little and Lodish MEDIAC, media
planning model; Urban new product model-based system called
SPRINTER |
|
1970 |
Little article on
decision calculus support system; Joyner and Tunstall article on Conference Coordinator
computer software; IRI Express, a multidimensional analytic tool for
time-sharing systems, becomes available; Turoff conferencing
system |
|
1971 |
Gorry and Scott Morton SMR article first
published use of term Decision Support System; Scott Morton book
Management Decision Systems; Gerrity
article Man-Machine decision systems; Klein and Tixier article on
SCARABEE |
|
1973 |
PLATO Notes,
written at the Computer-based Education Research Laboratory (CERL)
at the University of Illinois by David R. Woolley |
|
1974 |
Davis’s book Management Information Systems;
Meador and Ness article DSS application to corporate
planning |
|
1975 |
Alter completed
M.I.T. Ph.D. dissertation "A Study of Computer Aided Decision Making
in Organizations"; Keen SMR article on evaluating computer-based
decision aids; Boulden book on
computer-assisted planning systems |
|
1976 |
Sprague and Watson
article "A Decision Support System for Banks"; Grace paper on Geodata Analysis and Display
System |
|
1977 |
Alter article "A
Taxonomy of Decision Support Systems", Klein article on Finsim; Carlson and Scott Morton chair ACM
SIGBDP Conference DSS Conference |
|
1978 |
Development began
on Management Information and Decision Support (MIDS) at
Lockheed-Georgia; Keen and Scott Morton book; McCosh and Scott Morton book; Holsapple dissertation completed; Wagner founded
Execucom to market IFPS; Bricklin and Frankston created Visicalc (Visible Calculator) microcomputer
spreadsheet; Carlson from IBM, San Jose plenary speaker at HICSS-11;
Swanson and Culnan article document-based
systems for management planning |
|
1979 |
Rockart HBR article on CEO data
needs |
|
1980 |
Sprague MISQ
article on a DSS Framework; Alter book; Hackathorn founded MicroDecisionware |
|
1981 |
First International
Conference on DSS, Atlanta, Georgia; Bonczek, Holsapple, and Whinston book; Gray paper on SMU decision rooms
and GDSS |
|
1982 |
Computer named the
“Man” of the Year by Time Magazine; Rockart and Treacy
article “The CEO Goes On-Line” HBR; Sprague and Carlson book;
Metaphor Computer Systems founded by Kimball and others from Xerox
PARC; ESRI launched its first commercial GIS software called
ARC/INFO; IFIP Working Group 8.3 on Decision Support Systems
established |
|
1983 |
Inmon Computerworld article on relational DBMS;
IBM DB2 Decision Support database released; Student Guide to IFPS by
Gray; Huntington established Exsys; Expert Choice software
released |
|
1984 |
PLEXSYS, Mindsight and SAMM GDSS; first Teradata computer with relational database
management system shipped to customers Wells Fargo and AT&T;
MYCIN expert system shell explained |
|
1985 |
Procter &
Gamble use first data mart from Metaphor to analyze data from
checkout-counter scanners; Whinston
founded Decision Support Systems journal; Kersten developed
NEGO |
|
1987 |
Houdeshel and Watson article on MIDS; DeSanctis and Gallupe
article on GDSS; Frontline Systems founded by Fylstra, marketed solver add-in for
Excel |
|
1988 |
Turban DSS
textbook; Pilot Software EIS for Balanced Scorecard deployed at
Analog Devices |
|
1989 |
Gartner analyst
Dresner coins term business intelligence;
release of Lotus Notes; International Society for Decision Support
Systems (ISDSS) founded by Holsapple and
Whinston |
|
1990 |
Inmon book Using Oracle to Build Decision Support
Systems; Eom and Lee co-citation analysis
of DSS research 1971–1988 |
|
1991 |
Inmon books Building the Data Warehouse and
Database Machines and Decision Support Systems; Berners-Lee’s World
Wide Web server and browser, become publicly
available |
|
1993 |
Codd et al. paper defines online analytical
processing (OLAP) |
|
1994 |
HTML 2.0 with form
tags and tables; Pendse’s OLAP Report
project began |
|
1995
|
The Data
Warehousing Institute (TDWI) established; DSS journal issue on Next
Generation of Decision Support; Crossland,
Wynne, and Perkins article on Spatial DSS; ISWorld DSS Research pages and DSS Research
Resources |
|
1996 |
InterNeg negotiation software renamed Inspire;
OLAPReport.com established; |
|
1997 |
Wal-Mart and Teradata created then world’s largest production
data warehouse at 24 Terabytes (TB) |
|
1998 |
ACM First
International Workshop on Data Warehousing and
OLAP |
|
1999 |
DSSResources.com
domain name registered |
|
2000 |
First AIS Americas
Conference mini-track on Decision Support
Systems |
|
2001 |
Association for
Information Systems (AIS) Special Interest Group on Decision
Support, Knowledge and Data Management Systems (SIG DSS)
founded |
|
2003 |
International
Society for Decision Support Systems (ISDSS) merged with AIS SIG
DSS |
Author
Profile
Daniel J. Power is a Professor of Information
Systems and Management at the College of Business Administration at the
University of Northern Iowa, Cedar Falls, Iowa and the editor of
DSSResources.COM, the Web-based knowledge repository about computerized
systems that support decision making, the editor of PlanningSkills.COM,
and the editor of DSS News, a bi-weekly e-newsletter. Dan writes the
column "Ask Dan!" in DSS News.
Dr. Power's research interests include the design
and development of Decision Support Systems and how DSS impact individual
and organizational decision behavior. Since 1982, Power has published
more than 40 articles, book chapters and proceedings papers. He was
founding Chair of the Association for Information Systems Special Interest
Group on Decision Support, Knowledge and Data Management Systems (SIG
DSS).
Thanks for visiting. If you have any suggestions for improving this
brief history of DSS, I'd like to hear from you. I'm trying to collect
retrospective reports for my "Brief History of Decision Support Systems"
hypertext document at DSSResources.COM. I'm including recollections,
reflections and comments of those involved in the various DSS "threads"
and I'm trying to correct any errors of omission or misinterpretation.
How to citeA Brief History of Decision
Support Systems should be cited as:
Power, D.J. A Brief History of Decision Support Systems.
DSSResources.COM, World Wide Web,
http://DSSResources.COM/history/dsshistory.html, version 4.0, March 10,
2007.
|