What is a DSS?
• “A model-based set of procedures for processing
Decision Support Systems Concepts,
Methodologies, and Technologies: An Overview
Chapter 3
The DSS Application
• A Decision Support System is an approach
for supporting decision-making
• This approach is realized in specific DSS
applications
– Custom applications to support unique
decision situations
– Common applications to support repetitive
decision situations
data and judgments to assist a manager in his
decision making”
– Little, 1970
• “A DSS is typically built to support the solution of a
certain problem or to evaluate an opportunity.”
• “It uses an interactive, flexible, adaptable computer-
based information system especially developed for
supporting the solution to a specific nonstructured
management problem.
– Turban & all, 2011
What is a DSS?
• We can also define a DSS by:
– Goals: what do we want a DSS to
accomplish?
– Characteristics: what are the
broad ideas behind a DSS?
– Functions: what does a DSS need
to do?
– Types: can DSS be grouped by
common characteristics?
– Components: what subsystems are
contained in a DSS?
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DSS Goals
• Decision Quality:
– Improve decision making effectiveness of
unstructured, nonprogrammed decisions.
– Improve chances of a positive decision
outcome.
– Faster decision making to take advantage of
sudden opportunities.
– Ability to apply wider range of modeling and
analysis tools than manually possible.
– Enforcement of objectivity & consistency.
DSS Goals
• Improved Management of Decisions:
– Enhance implementation by communicating
decision aspects.
– Provide for monitoring progress of decision
outcomes.
– Empower managers by providing access to
wider array of data and information.
DSS Goals
• New Insights & Learning:
– Allow decision makers to experiment with
different strategies or alternatives.
– Allow decision makers to examine changes in
decision making conditions (what-if).
– Allow decision makers to track consequences
of current or past decisions.
DSS Characteristics
• Semi-structured & unstructured decisions
• Support managers at all levels
• Support individuals and groups
• Interdependent or sequential decisions
• Support intelligence, design, choice,
implementation
• Support various decision processes & styles
• Adaptable & flexible
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DSS Characteristics
• Interactive, ease of use
• Effectiveness, not efficiency
• Humans control the process/machine
• Ease of development by end users
• Modeling and analysis
• Data access
• Standalone, integration, and web-based
DSS Types
• Communications-driven & Group DSS
– Focus on collaboration and communication
among team members
– Commonly known as Group Support Systems
• Data-driven DSS
– Focus is on developing and maintaining a
large collection of data
– Models are relatively simple
– Often tied to data warehouse development
DSS Functions
• Communication with the decision maker
• Assimilation of knowledge from decision
maker and other sources
• Problem Recognition by monitoring
environment or reporting exceptions
• Problem Solving and decision making
• Packaging of the decision for presentation
DSS Types
• Document-driven DSS
– Support decision-making by providing access
to a variety of documents
– Minimal use of models
• Knowledge-driven DSS
– Usage of knowledge-based systems and
artificial intelligence
– Referred to as intelligent DSS or automated
decision-making systems
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DSS Types
• Model-driven DSS
– Focus is on developing and maintaining a
large collection of sophisticated models
– Data collection usually not as extensive
• Compound DSS
– Combination or hybrid of several DSS types
DSS Types
• Specific DSS
– Developed for supporting one particular type of
decision.
• DSS Generators
– Programs which decision makers and programmers
can use to quickly build a specific DSS application.
– Spreadsheets with templates are commonly used
• DSS Tools
– Languages, development tools, text editors, etc.,
which require more technical sophistication before
they can become specific DSS.
DSS Types
• Permanent / Institutional DSS
– Developed for an on-going decision situation. May be
refined or updated as needed.
• Ad-Hoc DSS
– Built for one specific decision requiring immediate
support. Often rapidly assembled using DSS
generators & tools. May eventually result in
permanent DSS.
DSS Components
• 1970: The IBM Research Laboratory in
San Jose published a framework in which
includes three sets of capabilities in the
areas of:
– Dialog - it should be easy to and interact
with non-programmers.
– Data - it should have access to a wide variety
of data.
– Modeling - it should utilize and provide
analysis and modeling in a variety of ways
suited for the individual user.
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DSS Components Data Management Subsystem
• DSS Database:
– Decision-maker’s personal database
– Database specifically built for DSS
– Data gathered from, or access provided to other
organizational or external databases
• Database Management System:
– Software system which provides (and sometimes
prohibits) access to database contents.
• Data Dictionary / Directory System:
– Index of all data items contained in a database
• Database Query Facility

Data Management Subsystem Model Management Subsystem

• Model Base
– Collection of models
• Strategic, tactical, operational models
• Statistical, financial, marketing, management
science, accounting, engineering, etc. models
– model building blocks
• Program routines, functions, utilities, applets,
add-ons, etc.

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Model Management Subsystem Model Management Subsystem

• Model Directory
– Catalog of models, their purposes, their
requirements, their versions, etc.
• Modeling Languages
– Languages specifically developed for modeling
purposes
• Model Base Management System
– Helps user select & retrieve appropriate model
– Matches relevant or most current data from
database to selected model

User Interface /Dialog Management User Interface /Dialog Management

Subsystem Subsystem
• Provides for interaction between decision
maker and DSS.
• Modes of input
– Command Lines, menus, icons, voice, etc.
• Modes of output
– Screen, paper, digital file
• Types of output
– Text & numbers, graphs, animations, etc.

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User Interface /Dialog Management
Subsystem
• Interface developments
– Web-based DSS have made it easier and less
costly to make decision-relevant information
and model-driven DSS available to users in
geographically distributed locations, especially
through mobile devices
Decision Maker
• The decision maker is a key component of
the decision making process.
• It is still unclear how the relationship
between the decision maker and the DSS
should be established:
– Should the DSS be developed to match the decision
maker?
– Should the decision maker learn to deal with the
DSS?
– Should both be matched to the decision problem?
Knowledge-Based Subsystems
• Insertion of artificial-intelligence based
applications into a DSS architecture
– Assist user in selecting appropriate model for
the problem
– Assist user in managing model libraries
– Assist user in integrating uncertainties and
heuristics into mathematical models
– Assist user in interpreting model output
Decision Maker Types
• Manager / Actual Decision Maker
• Staff specialist – frequent user, detail-oriented
• Staff analyst – intermediary between managers and the system
– Staff assistant
An individual who acts as an assistant to a manager
– Expert tool user
A person who is skilled in the application of one or more types of
specialized problem-solving tools
– Business (system) analysts
An individual whose job is to analyze business processes and the
support they receive (or need) from information technology
– Facilitators (in a GSS)
A person who plans, organizes, and electronically controls a
group in a collaborative computing environment
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DSS Benefits & Limitations
• DSS Benefits
– Augment decision maker’s knowledge management
abilities
– Allow decision maker to solve larger and more
complex problems
– Make decision making faster and more reliable
– Stimulate decision maker’s thoughts about a problem
& reveal new ways of thinking
– Support decision maker’s decision/position with
computational evidence
– Organizational competitive advantage
Trends Impacting DSS
DSS Benefits & Limitations
• DSS Limitations
– DSS do not replace human creativity and experience
– DSS is constrained by the knowledge in its databases
– DSS is constrained by the models and processes in its
model base and programming
– DSS is limited by its computer platform
– Decision makers are required to communicate with
the DSS in its language or interface mode
– DSS are often narrow in their area of application
Trends Impacting DSS
• Rapid innovations in personal computing, more
advanced operating systems, and increasingly
sophisticated end-user software.
• Increased capability and decreasing cost of
telecommunications.
• Increasing availability of public databases and
other sources of external data.
• Growth of AI techniques - basic expert systems
and natural language systems.
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Trends Impacting DSS
• The development of ready-made (or near-ready-
made) DSS solutions for specific market
segments has been increasing.
• GSS improvements support collaboration at the
enterprise level.
• Different types of DSS components are being
integrated more frequently.