Presentation On DSS

Presenter Present To
A K M Enamul Haque
G.M.Ali Shahriar Linkon Associate Professor Adjunct
ID:193-17-413 Daffodil International University

Md.Sobuz Al Mamun
ID:193-17-409

2
What Is a Decision Support System?

 A DSS is a computer-based information system that supports business or organizational

decision-making activities.
 A DSS is a collection of integrated software applications and hardware that form the
backbone of an organization’s decision making process and help to make decisions,
which may be rapidly changing and not easily specified in advance

3
A

P
r
o
c
e
s
s

O
f

D
S
S
4
 “
Some DSS taxonomy?
In the mid-1970s, the first wave of computerized decision support systems (DSS) became practical. Steven L. Alter,
while a Ph.D. student at Massachusetts Institute of Technology, studied and classified these first wave DSS. Then in
1980, Alter published his taxonomy of computerized DSS in an influential scholarly professional book. Alter's first
wave DSS taxonomy is based on the degree to which DSS output can directly determine a decision. Also, the
taxonomy is related to a spectrum of generic operations that can be performed by decision support systems. So what is
Alter's DSS taxonomy?
Alter's taxonomy is a simple classification of the DSS found in his research (cf., Alter, 1975). His taxonomy is
anchored by generic decision support operations that extend along a single dimension, ranging from extremely data-
oriented to extremely model-oriented. Alter's idea was that a decision support system could be categorized in terms of
the generic operations it performs, independent of type of problem, functional area or decision perspective. 5
 “
First wave DSS may involve retrieving a single item of information, providing a mechanism for ad hoc data analysis,
providing pre-specified aggregations of data in the form of reports or "screens". DSS may also include estimating the
consequences of proposed decisions and proposing decisions. Alter (1975) classified 56 DSS into seven distinct
categories or types of DSS. His seven types include:

1.File drawer systems that provide access to data items. Examples include real-time equipment monitoring, inventory
reorder and monitoring systems. Simple query and reporting tools that access OLTP or a data mart fall into this
category.

2.Data analysis systems that support the manipulation of data by computerized tools tailored to a specific task and
setting or by more general tools and operators. Examples include budget analysis and variance monitoring and analysis
of investment opportunities. Most data warehouse applications would be categorized as data analysis systems. 6
 “
3.Analysis information systems that provide access to a series of decision-oriented databases and small models.
Examples include sales forecasting based on a marketing database, competitor analyses, product planning and analysis.
Online Analytical Processing (OLAP) and Business Intelligence (BI) systems generally are in this category.

4.Accounting and financial model-based DSS that calculate the consequences of possible actions. Examples include
estimating profitability of a new product; analysis of operational plans using a goal-seeking capability, break-even
analysis, and generating estimates of income statements and balance sheets. These types of models should be used with
"What if?" or sensitivity analysis.

5.Representational model-based DSS that estimate the consequences of actions on the basis of simulation models that
include relationships that are causal as well as accounting definitions. Examples include a market response model, risk
analysis models, and equipment and production simulations. 7
 “
6.Optimization model-based DSS that provide an optimal solution consistent with a series of constraints that can guide
decision making. Examples include scheduling systems, resource allocation, and material usage optimization.

7.Suggestion DSS based on logic models that perform the logical processing leading to a specific suggested decision for
a fairly structured or well-understood task. Examples include insurance renewal rate calculation, an optimal bond-
bidding model, a log cutting DSS, and credit scoring.

An understandable taxonomy or typology like Steven Alter's helps reduce the confusion for managers who are
investigating and discussing decision support systems. The taxonomy also helps users and developers communicate
their experiences with and expectations for DSS.

8
 DSS Characteristics
 Facilitation
 Interaction
 Repeated Use
 Identifiable
 Task-oriented
 Decision Impact
 Supports individual and group decision making
 Easy to Develop and Deploy
 Flexibility :
9
 DSS Objectives
1. Increase the effectiveness of the manager's decision making process.
2. Supports the manager in the decision-making process but does not replace it.
3. Improve the directors effectiveness of decision making.

10
 DSS Components
DSS components may be classified as:

 Inputs : Factors, numbers, and characteristics to analyze.

 User Knowledge and Expertise : Inputs requiring manual analysis by the user.
 Outputs : Transformed data from which DSS "decisions" are generated.
 Decisions : Results generated by the DSS based on user criteria.

11
 DSS Requirement
 Data collection from multiple sources (sales data, inventory data, supplier data, market research data.
etc.).
 Data formatting and collation.
 A suitable database location and format built for decision support -based reporting and analysis .
 Robust tools and applications to report, monitor, and analyze the data.

12
 Limitaion
 Difficulty in Quantifying All the Data.
 Unaware of Assumptions.
 System Design Failure
 Difficulty in Collecting All the Required Data.
 Lack of Technology Knowledge in Users.

13
 Advantages
 Time savings.
 Enhance effectiveness.
 Improve interpersonal communication.
 Competitive advantage.
 Increase decision maker satisfaction.
 Promote learning.
 Increase organizational control.
 Improves personal efficiency
14
 Disadvantages
 Monetary cost
 Information Overload.
 Too much Dependence on DSS.
 Devaluation of Subjectivity.
 Cost of Development.
 Status reduction
 False belief in objectivity
 Transfer of power
15
 DSS Applications
 Medical diagnosis.
 Business and Management.
 Agricultural production.
 Forest management.

16
THANK
YOU !
ANY QUESTIONS?

17
 Reference
 Alter, S.L., "A Study of Computer Aided Decision Making in Organizations," Ph.D. dissertation, M.I.T., 1975.
 Alter, S.L. Decision Support Systems: Current Practice and Continuing Challenge. Reading, MA: Addison-Wesley, 1980.
 Power, D. J., “Supporting Decision-Makers: An Expanded Framework,” In Harriger, A. (Editor), e-Proceedings Informing Science
Conference, Krakow, Poland, June 19-22, 2001, 431-436.
 Power, D. J., Decision Support Systems: Concepts and Resources for Managers, Westport, CT: Greenwood/Quorum, 2002.
 Power, D. J., “Specifying an Expanded Framework for Classifying and Describing Decision Support Systems,” Communications
of the Association for Information Systems, Vol. 13, Article 13, February 2004b, 158-166.

18