Decision Support System (DSS) is an organized collection of people, procedures, databases, and

devices used to support problem-specific decision making. DO THE RIGHT THING.

Problem solving is a critical activity that goes beyond decision making including the
implementation stage and begins after identifying the problem
Decision Making defined as a selection of one course of action from two or more alternative
courses of action. Thus, it involves a choice-making activity and the choice determines our action
or inaction.
Herbert Simons Decision Making Model model was later incorporated by George Huber into an
expanded model of the entire problem-solving process.
The intelligence phase consists of finding, identifying, and formulating the problem or situation
that calls for a decision. This has been called deciding what to decide. The end result of the
intelligence phase is a decision statement. Simon borrowed the term from its military
meaning, which involves the gathering of information without necessarily knowing what it will
lead to in terms of decisions to be made. In business decision making, we must often collect a
great deal of information before we realize that a decision is called for.
The design phase is where we develop alternatives. This phase may involve a great deal of
research into the available options. During the design phase we should also state our objectives
for the decision we are to make.
In the choice phase, we evaluate the alternatives and feasibility that we developed in the design
phase and choose one of them. The end product of this phase is a decision that we can carry
out. Selecting a course of action
Implementation. The decision that is ultimately carried out. Solution is put onto effect
Monitoring. In this phase, decision implemented is evaluated. Was the course of action taken a
good choice? whether the anticipated results were achieved and to modify the process in light of
new information. Monitoring can involve feedback and adjustment.
Programmed decisions are made using a rule, procedure, or quantitative method. For
example, to say that inventory should be ordered when inventory levels drop to 100 units is a
programmed decision because it adheres to a rule. Programmed decisions are easy to
computerize using traditional information systems. Programmed decisions are those that a
manager has encountered and made in the past. The decision the manager made was correct
because she used the assistance of company policies, computations or a set of decision-making
guidelines. In addition to being well structured with predetermined rules regarding the decisionmaking process, programmed decisions may also be repetitive or routine as their outcome was
successful in the past. It generally does not take a manager as long to come to a conclusion
when faced with a business-related programmed decision because the challenge faced is not
new. As a result, programmed decisions allow a manager to make streamlined and consistently
effective choices.
Nonprogrammed decisions deal with unusual or exceptional situations. In many cases, these
decisions are difficult to quantify. Each of these decisions contains unique characteristics, and
standard rules or procedures might not apply to them. Like how fastfood reastau leaned on more
healthier food
Optimization models use problem constraints. A limit on the number of available work hours in a
manufacturing facility is an example of a problem constraint. An optimization model finds the
best solution, usually the one that will best help the organization meet its goals
MATLAB (matrix laboratory) is a multi-paradigm numerical computing environment and fourthgeneration programming language. A proprietary programming language developed by
MathWorks, MATLAB allows matrix manipulations, plotting of functions and data, implementation
of algorithms, creation of user interfaces, and interfacing with programs written in other
languages, including C, C++, Java, Fortran and Python.

OptaPlanner is mathematical optimization software. It solves constraint satisfaction problems

with construction heuristic and metaheuristic algorithms. It's professional Open Source,
sponsored by Red Hat.
Heuristics, also known as rules of thumb, are commonly accepted guidelines or procedures that
usually find a good solution
Satisfacing one that finds a goodbut not necessarily the bestsolution to a problem. Satisficing
is used when modeling the problem properly to get an optimal decision would be too difficult,
complex, or costly. Satisficing normally does not look at all possible solutions but only at those
likely to give good results.
The plus sign (+)(Performance - Decision quality Problem complexity) by the arrow from
performance to benefits indicates that increased performance has a positive impact on benefits.
The minus sign (-) (Cost - Hardware Software Database Networks and Internet Personnel
Procedures ) from cost to benefits indicates that increased cost has a negative impact on
benefits.
The first era (mainframe and minicomputer) was ruled by IBM and their mainframe computers.
computers would often take up whole rooms and require teams to run themIBM supplied the
hardware and the software
(personal computer) microprocessors started to compete with mainframes and minicomputers
and accelerated the process of decentralizing computing power from large data centers to
smaller offices. NOTE that the first microprocessor a four-bit device intended for a
programmable calculator The MITS Altair 8800 was the first commonly known microprocessorbased system, followed closely by the Apple I and II. It is arguable that the microprocessor-based
system did not make significant inroads into minicomputer use until 1979, when VisiCalc
prompted record sales of the Apple II on which it ran. The IBM PC introduced in 1981 was more
broadly palatable to business, but its limitations gated its ability to challenge minicomputer
systems until perhaps the late 1980s to early 1990s
third era (client/server), in which computers on a common network access shared information on
a server. This lets thousands and even millions of people access data simultaneously.
fourth era (enterprise) enabled by high speed networks, tied all aspects of the business
enterprise together offering rich information access encompassing the complete management
structure
The fifth era (cloud computing) is the latest and employs networking technology to deliver
applications as well as data storage independent of the configuration, location or nature of the
hardware.
operational database is the source of data for the data warehouse. It contains detailed data used
to run the day-to-day operations of the business. The data continually changes as updates are
made, and reflect the current value of the last transaction
database application is a computer program whose primary purpose is entering and retrieving
information from a computerized database
The most significant internal data sources for an MIS are the organizations various TPS and ERP
systems and related databases. External sources of data can include customers, suppliers,
competitors, and stockholders whose data is not already captured by TPS and ERP systems, as
well as other sources, such as the Internet. companies also use data warehouses and data marts
to store valuable business information.
Scheduled report - contains information on assessment data, short and long term goals or plans,
activities and strategies implemented and to be executed, as well as evaluation of outcome. It
also integrates the current strong and weak points, opportunities that are open or available, and
also the actual and potential conflicts. The frequency of preparation and submission depends on
the companys protocol or internal operating procedures. Regardless of timing or frequency, the

content of the report usually remains the same to all organizations, unless there are
modifications in the workflow.
Key-indicator report - Monthly bills are also examples of scheduled reports. Using its monthly
bills, the Sacramento Municipal Utility District compares how people use energy, trying to
encourage better energy usage. - a business report used to evaluate factors that are crucial to
the success of an organization. - differ per organization; business may be net revenue or a
customer loyalty metric
Demand report - a report that is not scheduled, but created on an as-needed basis. - also called
as action report. developed to provide certain information upon request. In other words, these
reports are produced on demand rather than on a schedule. Like other reports discussed in this
section, they often come from an organizations database system. For example, an executive
might want to know the production status of a particular itema demand report can be
generated to provide the requested information by querying the companys database. FedEx, for
example, provides demand reports on its Web site to allow customers to track packages from
their source to their final destination. Other examples of demand reports include reports
requested by executives to show the hours worked by a particular employee, total sales to date
for a product, and so on.
Exception reports are reports that are automatically produced when a situation is unusual or
requires management action. For example, a manager might set a parameter that generates a
report of all inventory items with fewer than the equivalent of five days of sales on hand. This
unusual situation requires prompt action to avoid running out of stock on the item. The exception
report generated by this parameter would contain only items with fewer than five days of sales in
inventory.
As with key-indicator reports, exception reports are most often used to monitor aspects
important to an organizations success. In general, when an exception report is produced, a
manager or executive takes action.
Drill down reports . Using these reports, analysts can see data at a high level first (such as sales
for the entire company), then at a more detailed level (such as the sales for one department of
the company), and then at a very detailed level (such as sales for one sales representative).