DECISSION SUPPORT SYSTEM

DECISION

Making decisions concerning complex

systems often strains our cognitive
capabilities.

Predicting how the system will react

to an external manipulation such as a
policy decision is often difficult.

DECISSION MAKING PROCESS

CHOICE

INTELLIGENCE

DESIGN

PROCESS VIEW OF DECISION MAKING

Decision support system

Decision Support Systems (DSS) are a specific class
of computerized information system that supports
business and organizational decision-making activities
.
A properly designed DSS is an interactive softwarebased 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.

WHY DSS

Because decision-making involves a complex

sequence of activities over time, it implies
there are at least three functions that should
be assigned to DSSs:

1) The capability of capturing and saving

information from previous activities;
2) Data processing capability;
3) Data retrieval capability.

COMPONENTS OF DSS

There are three fundamental

components of DSS :

DATA BASE MANAGEMENT SYSTEM (DBMS)

MODEL BASED MANAGEMENT SYSTEM (MBMS)

DIALOG GENERATION &MANAGEMENT SYSTEM

(DGMS)

THE ARCHITECTURE OF DSS

Types of DSS

DS systems can be separated into seven broad

categories, each aiding decision making by
different methods:
DATA DRIVEN DSS.
MODEL-DRIVEN DSS.
KNOWLEDGE DRIVEN DSS.
DOCUMENT DRIVEN DSS.
Communication Driven DSS.
INTER & INTRA-ORGANIZATIONAL DSS.
NEW BREED OF DSS

PROCESING MODEL FOR DSS

DATA
KNOWLEDGE
DATABASE

IN-HOUSE
PROPRIETARY
DATABASE

DSS
PROCESSING MODELS

EXTERNAL AND
INTERNAL
ENVIRONMENT

FINANCIAL
ACOUNTING
ECONOMICAL

PROCESSING BY MANAGER, USING KNOWLEDGE,

EXPERIENCE AND INTUITION
QUALITY DECISION

NEW BREEDS OF DSS

HYBRID SYSTEM
Eg.-WEB BASED DSS

On-line Analytical Processing (OLAP)

MANAGEMENT REQUIREMENT
OF DSS

ALLOCATING RESOURCES
PREPARING BUDGETS
OBSERVATION OF RESULTS
EVALUATION OF RESULT
MODIFICATION OF ACTIVITES AND
RESOURCES

Intangible payoffs DSS

Improved internal control.

Enhances long term profitability by

improving quality of decision making.

Faster response to changes in

business environment .

Cont .

Better management awareness of

internal strength and weaknesses and
external threats and opportunities.

Allows managers to record

experience and use it in future for
similar scenarios that may arise
within the organization.