Decision Support System

The system has three phases viz. Intelligence, Design, Choice. The decision support system basically helps the
information system in the Intelligent phase where the objective is to identify the problem and then go to the design
phase for solution.

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! decision support system can be defined simply as a system that provides information for ma"ing semi#structured
and unstructured decisions.
$ence the decision support system refers to a class of system which supports in the process of decision ma"ing and
does not always give a decision itself.
!ttributes of Decision Support System%#
&. 'le(ibility%# The systems are fle(ible so that any semi#structured or unstructured decision ma"ing
situation can be tac"led with ease and speed.
). Simple *odels %# The system are simple models of decision ma"ing. The only change is that a
different set of information is sought for the user of different models. The
choice of the model depends upon the comple(ity of decision ma"ing.
+. Database%# The decision support system needs database ,s-. The system calls for several inputs
from database for decision ma"ing.

Types of Decision Support System%#
&. Data !nalysis System% # These decision systems are based on comparative analysis and use of
a formula or an algorithm. .ut these processes are not structured and therefore vary. The cash flow
analysis, the inventory analysis are the e(amples of the analysis system. This system is used at
lower level of the organization to analyses files containing curve or historical data. e.g. budget
analysis system or financial system for analyzing alternative investment opportunities.
). Information !nalyses System%# In this system, the data is analyzed and information
/eports are generated. The reports might be having e(aptions as a feature. The decision ma"es
0se these reports for assessment of the situation for decision ma"ing. The sales analysis, the
accounts receivable system, the mar"et research analysis are e(amples of the system.

+. !ccounting *odels%# !ccounting models calculate the conse1uences of planned
actions on the basis of accounting definition. They typically generate estimates of income,
projected 23l a4c and balance sheet etc. based on variation in input values to the definitional
formulae. 5(amples of accounting models are budgeting system and other short#term
planning tools. These systems are used by staff analysts and managers. 0sage pattern is in
the form of input estimates of an activity, estimated monetary results of the activity etc.
6. /epresentational *odels%# /epresentational models estimate the conse1uences of actions
on the basis of models, that represents some non#definitional characteristics of the system. Such as
probabilities of occurrence of events. They include all simulation models that contain elements
beyond accounting definitions of ris" analysis model using estimated probability distribution for
each of the "ey. 0sage pattern is in the form of input for possible decisions and receiving
estimated results as output.
7. ptimization *odels%# ptimization models provide guidelines for action by generating
optimal solution consistent with a series of constraints. These models are used for decisions
that can be described mathematically and where a specify objective, such as minimization of
cost4ma(imization of revenue can be established.
Components of Decision Support System%#
&. Database
). *odel .ase
+. DSS Software
&. Database%#
Database is a prere1uisite for developing any type of information system. Database is a collection of
current and historical data from a number of groups or applications, and these are organized for easy
access by a range of applications.
Since DSS re1uire data from various functional areas of an organization 8 production,
mar"eting, finance, and human resources, database must contain data of all these functional areas.
9Some large organizations do not provide direct access to a central database to DSS because
of two reasons%#
rganizations want to protect data from accidental or inappropriate changes in the database.
It is a slow and e(pensive process for the DSS to search through large database.
The process affects not only the performance of the DSS but also the other systems using the database.
$ence such organization creates separate DSS database e(tracting relevant data from both internal and
e(ternal sources.
). *odel .ase%#
! model base is a collection of mathematical and analytical models that can be made accessible to the DSS users. !
model is an abstract representation that illustrates the various components or relationships of a phenomenon. *odels
may be of different types 8
2hysical model ,model of a machine-
*athematical model ,e1uation, formula-
:erbal model ,description of a procedure for doing wor"-.
+. DSS Software%#
The third component of a DSS is DSS Software System. DSS Software System permits easy interaction b4w the
users and database and model base. It manages the creation of storage and retrieval of models from the model base
and integrates them with data in the database. DSS are meant for relatively higher level managers who are not
e(perts in computer handling, the user#DSS interface must be easy so that relevant information is e(tracted without
much pain. Since each manager may have his own uni1ue wor"ing style, the DSS Software System must offer this
fle(ibility e1 *S#e(cel provides such facilities.