Decision Support Systems (DSS)

 DSS is an acronym for Decision Support System

 Enable middle level managers to get answers to unexpected and
generally nonrecurring kinds of problems, such as how a strike might
affect production schedules
 Group Decision Support Systems (GDSS) are sometimes created to
help a team that is put in charge of such problems
 DSS pulls information from TPS system
 DSS are used to analyze data – they produce reports that don’t
have fixed formats, therefore they’re a flexible tool for analysis.
 DSS systems typically have four parts:
The user
 Typically a middle level manager who has to make the
decision
System Software
 Typically a PC based system for an easy interface
Data
 Typically stored on a database and consists of two sources:
 Internal data – from within the organization, often from the
TPS systems
 External data – from outside the organization, often from
market research firms, US government agency reports, etc.
Decision models
 Three basic types including:
 Strategic models: help top level executives in long range
planning such as stating objectives or planning plant locations
 Tactical models: help mid level managers control the work
of the organization such as financial planning or sales promotion
planning
 Operational models: help lower level managers accomplish
day to day activities such as evaluating and maintaining quality
control
Q. Define Decision Support System (DSS). Write the difference between MIS
and DSS. Describe the characteristics of DSS. What are DSS components?
Definition
Decision Support Systems (DSS) are a specific class of computerized information
system that supports business and organizational decision-making activities. A
properly designed DSS is an interactive software-based system intended to help
decision makers compile useful information from raw data, documents, personal
knowledge, and/or business models to identify and solve problems and make
decisions.
Difference between MIS and DSS
MIS DSS
1. It is the original form of 1. It is the advance
management information. version of MIS.
2. An MIS is normally used 2. A DSS is good at
only with more structured handling unstructured
problems. problems that cannot be
easily programmed.
 3. An MIS primarily 3. A DSS supports
supports the organization. individuals, small groups,
and the entire
organization.
4. This is not true of all 4. A DSS supports all
MIS systems; some make aspects and phases of
automatic decisions and decision making; it does
replace the decision not replace the decision
maker. maker—people still make
the decisions.
5. An MIS usually 5. A DSS emphasizes
emphasizes (draw actual decisions and
attention) information decision-making styles.
only.
6. An MIS is typically an 6. A DSS is a direct
indirect support system support system that
that uses regularly provides interactive
produced reports. reports on computer
screens.
7. An MIS, using printed 7. The computer
reports that may be equipment that provides
delivered to managers decision support is usually
once a week, may not online and related to real
provide immediate results. time (providing immediate
results). Computer
terminals and display
screens are examples;
these devices can provide
immediate information and
answers to questions.
8. An MIS’s response time 8. Because a DSS is
is usually longer. flexible and can be
implemented by users, it
usually takes less time to
develop and is better able
to respond to user
requests.
9. An MIS is frequently 9. DSS users are usually
several years old and was more directly involved in
often developed for people its development.
who are no longer
performing the work
supported by the MIS.
Characteristics of DSS
The key DSS characteristics and capabilities are as follows :
1. Support for decision makers in semi structured and unstructured problems.
2. Support managers at all levels.
3. Support individuals and groups.
4. Support for interdependent or sequential decisions.
5. Support intelligence, design, choice, and implementation.
6. Support variety of decision processes and styles.
7. DSS should be adaptable and flexible.
8. DSS should be interactive ease of use.
9. Effectiveness, but not efficiency.
10. Complete control by decision-makers.
11. Ease of development by end users.
12. Support modeling and analysis.
13. Data access.
14. Standalone, integration and Web-based
DSS components
A typical decision support system consist four major Components, namely
Data management subsystem
Data management subsystem includes the database, which contains relevant data
for the situation and is managed by software called the database management
system (DBMS).
Data management in DSS is a necessary function primarily useful in the intelligence
stage of the decision-making process, but not sufficient to support design and choice
stages of decision-making processes. To adequately support these stages, DSS
should be able to include the following activities: projection, deduction, analysis,
creation of alternatives, comparison of alternatives, optimization and simulation. In
performing these essential tasks, DSS utilizes many types of management
science/operations research (MS/OR) models. They include linear programming,
integer programming, network models, goal programming, simulation and statistical
models and spreadsheet modeling.
Model management subsystem
Model-based management systems are computer programs used as a part of a DSS
generator to build models, restructure models and update models. The models are
management science models, linear programming, integer programming, network
models, goal programming, simulation and statistical models and spreadsheet model.
In association with model management, multiple criteria decision making (MCDM)
model embedded DSS and knowledge-based DSS have emerged recently.
Knowledge-based (Management) subsystems
Another important emerging DSS subsystem is the study of knowledge-based
decision support systems (KBDSS), which are hybrid systems of DSS and ES that
help solve a broad range of organizational problems. In integrating DSS and ES, two
basic approaches are visible : expert support systems (ESS) and intelligent support
systems (ISS). The key differences between these two systems are as follows. ESS
are to replace human expertise with machine expertise, while ISS are to amplify the
memory and intelligence of humans and groups. The development of knowledge-
based systems such as ESS is knowledge acquisition, which is a part of knowledge
engineering – the process includes representation, validation, Conclusion,
explanation and maintenance.
User interface sub-systems
The functions of the user interface (dialogue generation and management) sub
system is :
1 allow the user to create, update, delete database files and decision models via
database management systems and model-based management systems;
2 provide a variety of input and output formats. The formats include multi-
dimensional colour graphics, tables and multiple windows in a screen;
3 provide different styles of dialogues (such as graphical user interfaces, menus,
direct command languages, form interaction, natural language interaction, and
questions and answers).
Researcher has investigated several important issues in the designing, building, and
implementing of a user interface. They include data /information display formats
(for example, tabular versus graphics), cognitive and psychological factors, use of
multimedia and hypermedia (documents that contain several types of media linked
by association), 3-dimemensional user interfaces, virtual reality and its impact on
decision making, geographical information systems, and natural language
processing.