BANUMATHY

HIMA JAYARAJ
V.MARTINA
SHAKTHI UMA MAHESWARI
VINCY HELEN J.
 A decision support system (DSS) is an information system that
supports business or organizational decision-making activities.
 DSSs serve the management, operations and planning levels of
an organization and help people make decisions about problems
that may be rapidly changing and not easily specified in advance
i.e. unstructured and semi-structured decision problems.
 Decision support systems can be either fully computerized or
human-powered, or a combination of both.
 As companies migrate towards responsive e-business models,
they are investing in new data driven decision support application
frameworks that help them respond rapidly to changing market
conditions and customer needs.
 Level of decision making differs in size , shape , and
participants as today’s fluid organisational structure
evolve.
Thus, the levels of managerial decision making that
must be supported by information technology in a
successful organisation are:
 STRATEGIC MANAGEMENT:
A board of directors and an executive committee of the
CEO and top executive develop overall organisational
goals, strategies, policies, and objectives as part of a
strategic planning process. They also monitor the
strategic performance of the organisation and its overall
direction in the political, economic, and competitive
business environment.
 TACTICAL MANAGEMENT:
Business professionals in self directed teams as well as business
unit managers develop short and medium range plans , schedules ,
and budgets and specify the policies, procedures , and business
objectives for their subunits of the company. They also allocate
resources and monitor the performance of their organisational
subunits, including departments , divisions , process teams ,
project teams and other work groups.

 OPERATIONAL MANAGEMENT:
The members of self-directed teams or operating managers
develop short range plans such as weekly production schedules.
They direct the use of resources and the performance of tasks
accordingly to procedures and within budgets and schedules they
establish for the teams and other work groups of the organisation.
Types of decision structure
Unstructured decisions
(cash management, BPR, company
reorganization)

Semi-structured decisions
(daily work, performance appraisal,
capital budgeting, product planning

Structured decisions
(inventory control, program control)
 Information about
performance of organization
 Periodic, demand, push
reports and responses
 Prespecified, fixed
 Information produced by
extraction and manipulation
Management Information
System
 Information and techniques
to analyse problems
 Interactive responses
 Flexible, adaptable
 Information produced by
analytical modelling
Decision support system
 The user interface
 The database
 The models and analytical tools
 The DSS architecture and network
TPS EXTERNAL
DATA
DSS
DATABASE

DSS SOFTWARE SYSTEM MODELS

OLAP TOOLS
DATAMINING TOOLS

USER INTERFACE

USER
 Facilitation
 Interaction
 Ancillary
 Repeated Use
 Identifiable
 Task Oriented
 Support Individual and group decision making
 Comprehensive data Access
WHAT IF ANALYSIS
 A managerial user would be able to observe and
evaluate changes.
 Helps in making decisions.
SENSTIVITY ANALYSIS
 Used when they are uncertain about assumptions made.
 Helps the managers to take decisions about
forthcoming project without knowing the actual cost of
the money being borrowed.
GOAL SEEKING ANALYSIS
 This answers all the Wh questions.

OPTIMIZATION ANALYSIS
 One or more variable are changed repeatedly to obtain
best value for target variables
 Uses software like solver tool in MS Excel, linear
programming.
Advantages:
 Faster decision making
 Time Saving
 Effective
 Collaboration and Communication

Disadvantages:
 Information Overload
 System Design Failure
 Unaware of assumptions