Decision Making & Decision Support Systems

By A.S.Gera

What is decision making ???
• Decision making Is the process of choosing a course of action for dealing with a problem or opportunity. • The process of examining your possibilities option , comparing them and choosing a course of action.

The DecisionMaking Process

Define the Problem

Gather facts and develop alternatives.

Evaluate Alternatives

Monitor your solution.

Implement the chosen Alternative

Select the best alternative.

The DecisionMaking Process

Define the Problem

Evaluate Alternatives

Implement the chosen Alternative

Gather facts and develop alternatives.

Select the best alternative.

Follow up and evaluate the chosen alternative.

Objectives Of DSS
• • • • What is Decision Support System (DSS)? Decision Structure Components of DSS Classification 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 makes useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions. • A DSS does not make decisions; rather it is a powerful tool that is used to support decision-making

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

The components of a DSS are: The DSS database: A collection of data from a number of applications or groups The DSS software system: Contains the software tools that are used for analyzing the data, including OLAP tools, datamining tools, or a collection of mathematical or analytical models The user interface: Controls the interaction between the users of the system and the DSS software tools

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

COMPONENTS OF DSS
TPS DSS DATA BASE EXTERNAL DATA

USER INTERFACE

DSS SOFTWARE SYSTEM MODELS OLAP TOOLS DATAMINING TOOLS

USER

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