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

Managers

and business professionals in selfdirected 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

Flexible

Discovery-Oriented

Characteristics of a DSS System

Accessible

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