Type of Decision Support System (DSS)

TI4051 Decision Support System – Week 5

Information and Decision System Research Group
Industrial Engineering – Institut Teknologi Bandung
Decision Support System (DSS)
• A highly flexible and interactive IT system that is designed to support decision making
when the problem is not structured. Provide alternative-analysis report.
• It utilizes data, it provides easy user interface, and it allows for the decision maker’s own
insights.
• DSS may utilize models, is built by an interactive process (frequently by end-users),
supports all the phases of the decision making, and may include a knowledge component.
• Sprague and Carlson (1982) defined DSSs as “a class of information system that draws on
transaction processing systems and interacts with the other parts of the overall
information system to support the decision-making activities of managers and other
knowledge workers in organizations.
Five Broad DSS Categories

• Model-driven DSS
• Data-driven DSS
• Communication-driven DSS
• Document-driven DSS
• Knowledge-driven DSS
1. Model-driven DSS
• Initiated by Scott-Morton’s (1971) - production planning management decision system
• Based on some developed model (usually from complex systems).
• It is used for analyzing decisions or to choose from among different alternatives.
• Model-driven DSS use statistical, financial, mathematical, analytical, simulation or optimization
models to provide decision support. So, decisions are based on models.
• Model-driven DSSs use limited data and parameters provided by decision makers to aid decision
makers in analyzing a situation, but in general large data bases are not needed for model-driven
DSSs.
• Sensitivity analysis as a main technique.

• Model used in Model-driven DSS

1. Accounting and Financial Models:
o Break-Even Analysis
o Budget Financial Model
o Financial statements
1. Model-driven DSS

• Model used in Model-driven DSS

2. Decision Analysis Models:
o Analytical Hierarchy Process (AHP)
o Decision Tree
o Influence Diagram
3. Forecasting Models:
o Judgement Methods
o Moving Average
o Exponential Smoothing
4. Network and Optimization Models
5. Simulation
2. Data-driven DSS
• It is concerned with database or data warehouse. It can pose specific queries to the database or
data warehouse in order to receive response from it.
• It discover previously unknown patterns by analyzing large pools of data from data warehouse. So,
decisions are based on analyzed data.
• It is deployed through a centralized system or client–server link or via the web.
• Initiate the development of Business Intelligence (BI).
• Data mining as a main technique.

• Example of Data-driven DSS:

o Shopping recommendation system
o Travel accommodation recommendation
system
o Customer loyalty program
3. Communication-driven DSS
• Communications-driven DSS is a category of DSS that uses network and communications
technologies to facilitate collaboration, communication and shared decision-making support.
• A multiparticipant DSS that enable two or more people to communicate with each other, share
information, and coordinate their activities.
• Initiated by Murray Turrof (1970) – the first computer mediated, multimachine communications,
and conferencing system (EMISARI).
• Commonly used in Group Decision Support Systems (GDSS)

• Example of Communication-driven DSS:

o Chat and instant messaging services
o electronic meeting system, video conferencing
o collaborative workgroup software (groupware) :
Outlook, Office Suites, Teams, Google
Workspace, Trello
o voting system
4. Document-driven DSS
• A document-driven DSS uses computer storage and processing technologies to provide document
retrieval and analysis.
• Large document databases may include scanned documents, hypertext documents, images,
sounds, and video.
• Examples of documents that might be accessed by a document-driven DSS are policies and
procedures, product specifications, catalogs, and corporate historical documents, including
minutes of meetings and correspondence.

• A search engine is a primary decision-aiding tool

associated with a document-driven DSS. It is also called
text-oriented DSSs.
• May be applied to search in the web for specific
information or specific page and find the documents with
specific search key or specific item or text.
5. Knowledge-driven DSS
• Knowledge-driven DSSs can suggest or recommend actions to managers, with specialized
problem-solving expertise.
• The expertise consists of knowledge about a particular domain, understanding of problems within
that domain, and skill at solving some of these problems.
• It is basically used to provide advice to the managers or to choose products or services.
• Initiate the development of Expert System and the contribution of Artificial Intelligence (AI) to
DSS.

• Example of Knowledge-driven DSS:

o Clinical decision support system
o Dietary nutrition recommendation system
DSS Variations
Holsapple and Whinston’s Classification (1996); Burstein and Holsapple (2008)

• Text-oriented DSS
• Hypertext-oriented DSS
• Database-oriented DSS
• Spreadsheet-oriented DSS
• Solver-oriented DSS
• Rule-oriented DSS
• Compound DSS
• Multiparticipant DSS
1. Text-oriented DSS
• Much of the information required to support decision making is
contained within documents, and these may be in physical form (e.g.,
hardcopy signed document) or digital form (e.g., word processing
document, spreadsheet, drawing, e-mail).
• They need to be accessed and retrieved quickly to support
responsiveness in decision making and quality decisions.
• Text-oriented DSS supports a decision maker by electronically keeping
track of textually represented knowledge that could have a bearing on
decisions.
• It allows documents to be electronically created, revised, and reviewed
by a decision maker on an as-needed basis.
• Generating knowledge from text is becoming increasingly important
through such functionalities as text mining.
• Organizations that have not implemented effective document
management solutions are at risk of loosing customers due to factors
such as lack of responsiveness and provision of incorrect information.
2. Hypertext-oriented DSS
• There is a problem with traditional text management: it is not convenient to trace a flow of ideas through
separate pieces of text. There is no explicit relationship or connection between the knowledge held in one
text file and the knowledge in another.
• By using hypertext, each piece of text is linked to other pieces of text that are conceptually related to it.
• Hypertext-oriented DSS allows a user to request the creation, deletion, and traversal of links of text.
• The benefit of this hypertext kind of DSS is that it supplements a decision maker’s own capabilities by
accurately storing and recalling large volumes of concepts and connections.
• Used in Web-oriented DSSs.
3. Database-oriented DSS
• Driven by a database of organized and highly structured data, tabular fashion.
• Using relational database management.
• Like text-oriented DSSs, these systems aid decision makers by accurately tracking and selectively recalling
knowledge that satisfies a particular need or serves to stimulate ideas. However, the knowledge handled by
database-oriented DSSs tend to be primarily descriptive and rigidly structured.
• Consists of:
• database control system; allows manipulating table structures and contents.
• interactive query processing system; able to respond to certain standard types of requests for data
retrieval
• custom-built processing system; presenting responses in a specially tailored fashion without requiring
the user to learn the syntax of a query language or to use as many keystrokes.
• Use data warehouse: a large collection of data integrated from multiple operational systems, oriented toward
a particular subject domain, whose content is not over-written or discarded.
4. Spreadsheet-oriented DSS
• Database-oriented DSS: a user cannot view, modify, or create procedures.
• Using the spreadsheet, user can create, view, and modify procedural knowledge.
• It is not nearly as convenient as database management in handling large volumes of descriptive
knowledge, nor does it allow a user to readily represent and process data in textual passages.
• The formulas of a spreadsheet constitute a chunk of procedural knowledge, containing instructions that
generate new knowledge.
• Spreadsheet-oriented DSSs are typically used for what-
if analyses in order to see the implications of some set
of assumptions embodied in the cell definitions.
• The user task and calculation can be eased by macros.
5. Solver-oriented DSS
• A solver is a procedure consisting of instructions that a computer can execute in order to solve any class of
problem. Solver management is concerned with the storage and use of a collection of solvers.
• A solver-oriented DSS is frequently equipped with more than one solver, and the user’s request indicates
which is appropriate for the problem at hand.
• The collection of available solvers is often centered around some area of problems such as financial,
economic, forecasting, planning, statistical, or optimization problems.
• Two basic approaches for incorporating solvers into a DSS:
• Fixed; the solver cannot be easily added to or deleted from the DSS, all a user can choose to do is
execute any of the solvers.
• Flexible; solvers can be manipulated (e. g., create, delete, update, combine, coordinate) according to
user requests.
5. Solver-oriented DSS
Commercial Solvers

Optimization/Mathematical
Programming Solvers
Linear, Integer, Dynamic
Programmning models, Network
models (Lingo, Lindo, SAS…).

Simulation Solvers
(Goldsim, Analytica,
VirtualSim, …)

Decision Analysis Solvers

(Decision Explorer, MindDecider,
Logical Decisions…)
5. Solver-oriented DSS
Microsoft Excel family: enable to create a spreadsheet-based solver DSS

Many other products work with Excel Solver such as:

C++ Visual Basic

Matlab
Microsoft Excel Evolutionary Solver

Microsoft Excel Solver bundled with

Spreadsheet-Based
Excel and Microsoft Office, is the
most widely used general-purpose Solvers:
optimization modeling system The Excell
Family
6. Rule-oriented DSS
• DSS architecture is based on a knowledge management technique that involves certain procedures adopted
as rules.
• It is also known as an expert system because it emulates the nature of a human expert from whom we may
seek advice in the course of making a decision.
• Three basic forms of a rule are:
• If: description of a possible situation (premise)
• Then: indication of actions to take (conclusion)
• Because: justification for taking those actions (reason)
• A rule-oriented DSS holds one or more rule sets, where each rule set pertains to reasoning about what
recommendation to give a user seeking advice on some subject (e.g., correcting a manufacturing process that
is turning out defective goods, portfolio advice sought by investors, recommendations about where to site
additional retail outlets).
• Particularly valuable when human experts are unavailable and too expensive.

•
7. Compound DSS
• There are two basic options:
• Use multiple DSSs, each oriented toward a particular technique
• Use a single DSS that encompasses multiple techniques
• Three approaches to integration across DSSs:
• Conversion: requires a facility that can convert outputs of one processing system into a form that is
acceptable as input to another system.
• Clipboard: transferal of knowledge between processors using intermediary repository, which each
system can both copy knowledge into and grab knowledge from.
• Confederation: Instead of copy-paste from a clipboard, confederated PPSs share a common knowledge
system, having a single knowledge representation format that can be directly interpreted by each of the
distinct system.
• Two approaches to integration within a DSS:
• Nesting: separate knowledge-management technique is nested within the capabilities of another (e.g.,
solver management in Ms. Excel and spreadsheet management in Ms. Word).
• Synergy: All techniques are integrated into a single tool that allows any capability to be used
independently of another, or together with another within a single operation.
8. Multiparticipant DSS
• A computer-based system that supports multiparticipant decision maker (a group, a team, or an
organization).
• Applications:
• Handling participant interactions
• Supporting a negotiation among participants
• It is intended to support participants organized into relatively complex structures of authority, influence,
specialization, and communication, such as enterprises, supply chains, large project teams, and markets.
Book References
• Burstein, F., and Holsapple, C.W. (2008). Handbook on Decision Support Systems 1: Basic Theme. Springer
• Burstein, F., and Holsapple, C.W. (2008). Handbook on Decision Support Systems 2: Variations. Springer
Thank you.
Information and Decision System Research Group
Industrial Engineering – Institut Teknologi Bandung