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MANAGEMENT INFORMATION SYSTEM (UNIT -2)

SUBMITTED BY GINU L PRAKASH SUBIN LOUIS ARYA .S RAKENTHU

A Decision Support System (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization (usually mid and higher management) and help to make decisions, which may be rapidly changing and not easily specified in advance (Unstructured and Semi-Structured decision problems). Decision support systems can be either fully computerized, human or a combination of both. DSS by its characteristics: 1. DSS tends to be aimed at the less well structured, underspecified problem that upper level managers typically face; 2. DSS attempts to combine the use of models or analytic techniques with traditional data access and retrieval functions; 3. DSS specifically focuses on features which make them easy to use by non computer people in an interactive mode; and 4. DSS emphasizes flexibility and adaptability to accommodate changes in the environment and the decision making approach of the user. DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, and personal knowledge, or business models to identify and solve problems and make decisions. Typical information that a decision support application might gather and present includes:

inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts), comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions.

Decision Making Concepts

Much of managerial work is decision making. Managers often have to consider large amounts of data, synthesis from them only relevant information and make decisions that will best benefit the organization. Hence, information should be conceived and able to prove their value as information system should support and assist effective decision-making Because of the importance of high-quality decision making, firms are

investing heavily in decision making and intelligence systems, which consist of technologies and applications designed to help users make better decisions. When we think of intelligence as applied to humans, we typically think of peoples ability to combine learned knowledge with new information and change their behavior in such a way that they succeed at their task or adapt to a new situation.

The decision-making process is a complex process in the higher hierarchy of management. The complexity is the result of many factors, such as the interrelationship among the experts or decision makers, a job responsibility, a question of feasibility, the codes of morals and ethics, and a probable impact on business

Whatever may be the situation, if one analyses the factors underlying the decision-making process, it would be observed that there are common characteristics in each of them. There is a definite method of arriving at a decision; And it can be put in the form of decision process model.

The decision-making process requires creativity, imagination and a deep

understanding of human behavior. The process covers a number of tangible and intangible factors affecting the decision-making process. It also requires a foresight to predict the post decision implications and a willingness to face those implications. All decisions solve a "problem" but over a period of time

they give rise to a number of other problems.

The Process of Developing DSS DSS systems are not entirely different from other systems and require a structured approach. Such a framework includes people, technology, and the development approach. The Early Framework of Decision Support System consists of four phases: Intelligence Searching for conditions that call for decision. Design Inventing, developing and analyzing possible alternative actions of solution. Choice Selecting a course of action among those. Implementation Adopting the selected course of action in decision situation. DSS technology levels (of hardware and software) may include: 1. The actual application that will be used by the user. This is the part of the application that allows the decision maker to make decisions in a particular problem area. The user can act upon that particular problem. 2. Generator contains Hardware/software environment that allows people to easily develop specific DSS applications. This level makes use of case tools or systems such as Crystal,Analytica and iThink. 3. Tools include lower level hardware/software. DSS generators including special languages, function libraries and linking modules An iterative developmental approach allows for the DSS to be changed and redesigned at various intervals. Once the system is designed, it will need to be tested and revised where necessary for the desired outcome.

Decision Making-Herbert Simon Model

Decision Support Systems (DSS) are interactive computer-based systems intended to help decision makers utilize data to identify and solve problems and make decisions.

checklists/heuristics. mathematical models.

Group Decision Support Systems (GDSS) - An interactive, computer-based system that facilitates solution of unstructured problems by a set of decision-makers working together as a group. It aids groups, especially groups of managers, in analyzing problem situations and in performing group decision making tasks.

Group Support Systems has come to mean computer software and hardware used to support group functions and processes.

Characteristics of GDSS Special Design Ease of use Specific and general support Suppressing negative group behavior Supporting positive group behavior.

Advantages of GDSS Anonymity drive out fear leading to better decisions from a diverse hierarchy of decision makers Parallel Communication eliminate monopolizing providing increased participation, better decisions Automated record keeping no need to take notes, they re automatically recorded

Ability for virtual meetings only need hardware, software and people connected Portability Can be set up to be portable laptop Global Potential People can be connected across the world No need for a computer guru although some basic experience is a must

Disadvantages of GDSS Cost infrastructure costs to provide the hardware and software/room/network connectivity can be very expensive Security especially true when companies rent the facilities for GDSS; also, the facilitator may be a lower-level employee who may leak information to peers Technical Failure power loss, loss of connectivity, relies heavily on bandwidth and LAN/WAN infrastructure properly setup system should minimize this risk Keyboarding Skills reduced participation may result due to frustration Training learning curve is present for users, varies by situation

Perception of messages lack of verbal communication could lead to misinterpretation. Executive Decision Support system ( EDSS )

An Executive Decision Support System (also known as Executive Information System or Executive Support System) is a computer based technology designed specifically for the information needs of top executives. ESS helps senior executives monitor organizational performance, track activities of competitors, spot problems, identify opportunities, and forecast trends. Combining data from internal and external sources, ESS create a generalized computing and communications environment that can be focused and applied to a changing array of problems.

EDSS Role ESS brings together information from all parts of the firm Ability to drill down is useful to senior executives and employees at lower levels alike. ESS provides managers with timely, comprehensive and accurate firm wide information. Through ESS, managers have access to external data such as industry trends, stock markets, economic and competitor information. With minimum experience and training, managers can use these tools to create graphic comparisons of data. Ability to detect signals of problems that indicate possible threats.

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