Professional Documents
Culture Documents
Example
• A writer, a selected group of journal and text resources at a
local library – and a strategy for using those resources – may
serve as part of a decision support system.
DSS Goals and Applications
Reformulate problem
CAPABILITIES OF DSS
A DSS provides support for decision
maker at all management levels
It supports all phases of decision making
process-intelligence-design and choice
It promotes learning.
It is adaptable by the user over time to
deal with changing condition
Properties of Decision Support System
DSS Model
Software Base
Models
Data Base -Financial
-Statistical analysis
Graphical -Graphical
Interface -Project managment
Decision
Maker User
A database is an organized collection of data for
one or more multiple uses .
Databases consist of software-based "containers"
that are structured to collect and store information
so users can retrieve, add, update or remove
such information in an automatic fashion
A graphical user interface (GUI) (sometimes
pronounced gooey is a type of user interface item
that allows people to interact with programs in
more one ways
Types of DSS
Status inquiry system
Data analysis system
Information analysis system
Accounting system
Model based system
Example of DSS types
Decision Type of system
required
• Selection of vendor Inquiry System
•Procurement Inquiry system
•Pricing Data analysis
•Selection of vendor based on Information analysis system
price , quality, performance
•Selection of capital Asset Return on investment
analysis system
•Inventory rationalization Valuation of inventory and
accounting system
Putting A DSS at work
• Functions
- Arithmetic and Statistical Functions
i.e. SUM, AVG, LOG etc.
- Financial Functions
PV, FV, NPV, PMT etc.
- Conditional Functions
IF, CHOOSE etc.
- Data Functions
TODAY, DATE etc.
Analysis
• Four widely used types of DSS analysis tools:
• Statistical Tools
• Optimizing Tools
• What-if Analysis
• Intelligence routines.
BEHAVIOURAL MODEL
These models are useful in understanding the
behavior amongst the business variables.
Examples :
regression analysis
Time series analysis
Market research methods
Ratio analysis for financial assessment
Management science models
These models are developed on the principles
of business management, accounting,
econometrics.
Examples :
Budgeting models
Break-even analysis model
Return on investment analysis
Procedural models
PERT/CPM
Operational research models
• These models are mathematical models .
These represent the real life problems situation
in terms of the variables, constraints,
parameters expressed in algebraic equations.
• Examples:
Mathematical programming techniques
Linear programming model
Inventory control model
DSS Development
• The DSS development process in many instances, after
decision-making needs are identified and an initial prototype
developed, several evaluation/ modification iterations may be
needed before the DSS is ready for use.
• DSS development tools:
=> Spreadsheets
=> User Interface
=> Command Interfaces
=> Templates
=> Physical Modification
Figure: DSS Development Process
DSS Examples
• A contract negotiation DSS
• An Oil Executive’s DSS
• An Environmental DSS
DSS Examples
• DSS For Education Decisions
• School Match (elementary/secondary school
search, school match)
• Official MBA Guide (screen and rank MBA
programs)
• DSS for Financial Decisions
• Financenter (customizable calculators)
• Prudential Securities ( advice, strategies,
calculators)
DSS Examples
• DSS for Health Decisions
• Almond Board (personalized fitness & nutrition
advice)
• AFAA (health evaluation, tips, news, answers)
• Health Grades (alternatives, evaluators, tips)
• DSS for Information Technology Decisions
• Avantsoft (ROI calculation for technology
investment)
• Developer.com (advice, tips, tutorials, news, online
library)
DSS Examples
• DSS for Insurance Decisions
• Insure.com (alternatives, ratings, guidance)
• Quotesmith (insurance quotes)
• MarketTrak (neural net and genetic algorithm
forecasts, performance, comparison)
• NEOS (online demo of portfolio optimizer)
• DSS for Natural Resource Decisions
• Ag Canada (online DSS for manure management)
• IMP (online DSS for pest management)
DSS Examples
• DSS for Purchasing Decisions
• CompareNet (comparisons)
• mySimon (shopping agent)
• Consumers Digest (product reviews, shopping tips)
• CARPOINT
• DSS for Real Estate Decisions
• CyberHomes (search for home alternatives)
• Countrywide (financing calculators, mortgage
alternatives)
• GetSmart (mortgage finder)
•
DSS Examples
• Geographic DSS
• Leeds (online demo for radioactive waste disposal)
• SUNY-Buffalo (tutorial, course, materials)
Group Decision Support Systems
DBMS database
transactions
DBMS database
TP Monitor
TPS, MIS/DSS, and Special-
Purpose Information Systems
Transaction Processing Activities
Data collection: Capturing data necessary for the
transaction
Data editing: Check validity and completeness
Ex: 400 hours/week instead of 40 hours/week
Data correction: Correct the wrong data
Data manipulation: Calculate, summarize
Data storage: Update transactions
Document production and reports: Create end
results (paychecks)
Transaction Processing Activities
Transaction Processing Cycle
Transaction
Document
Invalid Transaction
Correction and Control Control Log
Input
Log
Objectives of TPS
Process data generated by and about transactions
Maintain a high degree of accuracy
Ensure data and information integrity and accuracy
Produce timely documents and reports
Increase labour efficiency
Help provide increased and enhanced service
Help build and maintain customer loyalty
Achieve competitive advantage
ACID test
Atomicity: all steps involved in transaction completed
successfully as a group
Cost of assets
Payments
Accounts Accounts
receivable payable
Paycheques Expense
transactions
Customer Budget
Components Of TPS
• There are four components of a Transaction
Processing System
• Input- These are source documents such as
customer orders, purchase orders etc. They help in,
1. Capturing data.
2. Indicates what data is required for recording and
what actions need to be taken.
• Processing- It involves the use of journals and
registers for chronological recording of data.
Journals are used for financial accounting
transactions and registers for other type of data.
Components Of TPS
• Storage- The computer stores various records in
files.
files are of two types, transaction file and master file.
• Output- The outputs generated are in the form of
documents such as trial balance, profit and loss
account, balance sheet etc.
Components Of TPS
Data
DataInput
Input Data
DataProcessing
Processing Output
OutputGeneration
Generation
Data
DataStorage
Storage
Transaction Processing Methods
On-line transaction processing (OLTP) - method of
computerized processing in which each transaction is
processed immediately and the affected records are
updated
On-line Schematic
Terminal
Terminal Terminal
Output
Terminal
Immediate
processing
of each
transaction
Terminal
Terminal
Transaction Processing Methods
Batch processing – method of computerized processing
in which business transactions are accumulated over a
period of time and prepared for processing as a single
unit.
Batch Schematic
Data entry
Input
of accumulated Output
transactions (batched)
Transaction Processing Methods
On-line analytic processing (OLAP) – method of
computerized processing in which data is entered on-
line and validated but, their processing is done on
periodic batch basis. It is basically used for making
management decisions by analysis of the data.
Control for TPS
• Control in the system is required to ensure that the
system is achieving the objectives.
• Audit Trails- It’s the chronology of activities that
can be traced from beginning to the end or vice
versa. This is important as it tells us what went
wrong in the transaction.