Decision Support Systems

Objectives
• • • • • • What is Decision Support System (DSS)? Decision Structure Decision Support System Characteristics Components of DSS Classification of DSS Benefits of DSS

What is Decision Support System?
An interactive, flexible computerized information system that enables managers to obtain and manipulate information as they are making decisions.

What is Decision Support System?
• DSS is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

Information required at different management levels

Levels of Management in Decision Making
Strategic

management

Executives

develop organizational goals, strategies, policies, and objectives As part of a strategic planning process
Tactical

management
and business professionals in self-directed

Managers

teams Develop short- and medium-range plans, schedules and budgets Specify the policies, procedures and business objectives for their subunits

Levels of Management in Decision Making
• Operational management
– Managers or members of self-directed teams – Develop short-range plans such as weekly production schedules

Decision Structure
• Structured Decisions – situations where the procedures to follow when a decision is needed can be specified in advance • Unstructured Decisions – decision situations where it is not possible to specify in advance most of the decision procedures to follow • Semi structured Decisions - decision procedures that can be prespecified, but not enough to lead to a definite recommended decision

DSS System Characteristics
Interactive Interactive Flexible Flexible Discovery-Oriented Discovery-Oriented Accessible Accessible

Characteristics Characteristics of a of a DSS System DSS System

COMPONENTS OF DSS
TPS DSS DATA BASE EXTERNAL DATA

USER INTERFACE

DSS SOFTWARE SYSTEM MODELS OLAP TOOLS DATAMINING TOOLS

USER

Classification of DSS
• Model-driven DSS • Communication-driven DSS • Data-driven DSS • Document-driven DSS • Knowledge-driven DSS

Model-driven DSS
• A model-driven DSS emphasizes access to and manipulation of a statistical, financial, optimization, or simulation model. • Model-driven DSS use data and parameters provided by users to assist decision makers in analyzing a situation; they are not necessarily data-intensive.

Communication-driven DSS
• A communication-driven DSS supports more than one person working on a shared task

Data-driven DSS
• A data-driven DSS or data-oriented DSS emphasizes access to and manipulation of a time series of internal company data and, sometimes, external data

Document-driven DSS
• A document-driven DSS manages, retrieves, and manipulates unstructured information in a variety of electronic formats.

Knowledge-driven DSS
• A knowledge-driven DSS provides specialized problem-solving expertise stored as facts, rules, procedures, or in similar structures

Benefits of DSS
Improves personal efficiency Accelerate problem solving Facilitates interpersonal communication Promotes learning or training Increases organizational control Generates new evidence in support of a decision Creates a competitive advantage over competition Reveals new approaches to thinking about the problem space

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