Lesson 6

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Objectives
 To know about The Decision Support System (DSS)

 To understand types of processing tasks performed by DSS

 To know the characteristics of Group Decision Support

System (GDSS)

 To understand the concept of Executive Information

System (EIS)
Definition:

 Decision support systems are computer-based information systems

that provide interactive information support to managers and

business professionals during the decision making process.

Decision support systems
 Decision support systems use:

 Analytical models

 Specialized databases

 A decision maker’s own insights and judgments

 An interactive computer-based modeling process to support

semi structured business decisions.
Decision support system
 A decision support system helps users to analyze the information

and make decisions

 Decision support systems may include data from internal source

(TPS, MIS) or external sources

 Decision makers use decision support system to design decision

models

 Decision model is a numerical representation of a realistic situation

such as cash flow model of a business that shows how income

adds to cash accounts and how expenses deplete accounts

Programmed and Non-programmed
Decisions
 There are two types of decisions:
 programmed decisions
 Non-programmed decisions.

 Programmed decisions are basically automated processes,

general routine work.

 These decisions have been taken several times.

 These decisions follow some guidelines or rules.


 For example, selecting a reorder level for inventories, is a
programmed decision.
 Non-programmed decisions occur in unusual and non-addressed
situations. so it would be a new decision.

 There will not be any rules to follow.

 These decisions are made based on the available information.

 These decisions are based on the manger's discretion, instinct,

perception and judgment.

 For example, investing in a new technology is a non-programmed

decision.
Examples of DSS
Objectives of DSS
Relationship with users

DSS

Cooperative
Passive DSS Active DSS
DSS
Characteristics of Decision support
system
 It focuses on problems that are unique and rapidly changing

 It is designed so that users can work with it directly.

 These systems include interactive and user-friendly software

 DSSs are adaptive over time.

Classification of DSS
 There are several ways to classify DSS. Hoi Apple and Whinstone
classifies DSS as follows:

 Text Oriented DSS: It contains textually represented information that

could have a bearing on decision. It allows documents to be
electronically created, revised and viewed as needed.

 Database Oriented DSS: Database plays a major role here; it

contains organized and highly structured data.

 Spreadsheet Oriented DSS: It contains information in spread sheets

that allows create, view, modify procedural knowledge and also
instructs the system to execute self-contained instructions. The most
popular tool is Excel and Lotus 1-2-3.
 Solver Oriented DSS: It is based on a solver, which is an algorithm
or procedure written for performing certain calculations and
particular program type.

 Rules Oriented DSS: It follows certain procedures adopted as

rules.

 Compound DSS: It is built by using two or more of the five

structures explained above.
Types of DSS
Knowledge
driven DSS

Communication Data driven

driven DSS DSS

DSS
Model driven Document
DSS Driven DSS
Analytical models of DSS
Working of DSS
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GDSS
 A Group Decision Support System, or GDSS,
consists of interactive software that allows for making
decisions by a group of participants.

 The goal of a GDSS is to improve the productivity of a

group to come to a decision.

A GDSS is sometimes also referred to as a

'computerized collaborative work system.'
Characteristics of a GDSS
 A GDSS has a number of unique characteristics to
support a group of participants in their decision-
making process:

 Special design to support creative thinking, effective

communications and decision-making techniques

 Easy to use so participants from different backgrounds

can all participate effectively
 Flexible so it can incorporate the different perspectives
and decision-making styles of the different
participants

 Automated record keeping for future review and

analysis

 Parallel communication to allow multiple participants

to contribute simultaneously
GDSS Vs. DSS

GDSS DSS
GDSS is a computer
DSS focuses on
based information
individual user, e.g.
system that focuses on
manager or supervisor
group

GDSS has networking

technology that is DSS have technologies
best suited for group which are focused for
discussions or single user
communications
Components of Group Decision
Support System (GDSS)

GDSS
Components

Software
Hardware People
tools
Features of Group Decision
Support System (GDSS)
 Ease of Use

 Better Decision Making

 Emphasis on Semi-structured and Unstructured

Decisions:

 Specific and General Support

 Supports all Phases of the Decision Making

 Supports Positive Group Behavior

 Ability for virtual meetings

 Automated record keeping

GDSS Software tools

 Electronic Questionnaire

 Electronic Brainstorming Tools

 Idea Organizer
Possible issues
 Cost

 Security

 Technical Failure

 Training