DECISION SUPPORT SYSTEM

SHRAVYA SUDHIR KIEV NEESHA

DECISION SUPPORT SYSTEMS

MEANING:
It is a computer-based information system that supports
business or organizational decision-making activities.

DSS serves the management, operations, and planning levels of an organization and help to make decisions, which may

be rapidly changing and not easily specified in advance.

It also includes knowledge based system.

Decision support systems can be either fully computerized,

human or a combination of both.

OBJECTIVE: It is an interactive software 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.

DECISION MAKING AS A COMPONENT OF PROBLEM SOLVING

Intelligence

Decision making

Design

Choice

Problem solving

Implementation Monitoring

Solution Types
Optimization model

Finding the best solution

Satisficing model

Finding a good -- but not necessarily the best -- solution to

a problem
Heuristics

Commonly accepted guidelines or procedures that usually find a good solution

Problem Solving Factors

Multiple decision objectives Increased alternatives Increased competition The need for creativity International aspects Technology Time compression

CHARCTERISTICS:
DSS

handles large amount of data from different sources. report and presentation flexibility with both textual

Provides

and graphical orientation.

It

focuses on providing help in analysing situations rather

than providing right information in form of various types of reports.

It

is individual specific. Each decision maker can incorporate

his own perceptions about the problem and analyze its effect.

 It

is only supportive in nature and human decisions makers

still retain their supremacy. It does not thrust its outcomes on the decision makers.

It needs an effective database management system. complex, sophisticated analysis and comparisons

Performs

using advanced software packages.

Performs

different types of analyses

What-if analysis: Makes hypothetical changes to problem and observes impact on the results

Simulation: Duplicates features of a real system

Goal-seeking analysis: Determines problem data required for a given result

Components of a GDSS and GDSS Software

Database Model base Dialogue manager Communication capability Special software (also called GroupWare) E.g., Lotus Notes

people located around the world work on the same project, documents, and files, efficiently and at the same time

GDSS Alternatives
high
Decision frequency Local area Wide area decision network decision network

Decision room low close

Teleconferencing

distant

Location of group members

Decision Room
For decision makers located in the same geographic area or building Use of computing devices, special software, networking capabilities, display equipment, and a session leader Collect, coordinate, and feed back organized information to help a group make a decision Combines face-to-face verbal interaction with technology-aided formalization

Wide Area Decision Network

Characteristics
Location of group members is distant Decision frequency is high Virtual workgroups
Groups of workers located around the world working on common problems via a GDSS

Executive Support System

Board of directors

Characteristics
A specialized DSS that includes all the hardware, software, data, procedures, and people used to assist senior-level executives within the organization
President

Function area vice presidents Function area managers

Characteristics of ESSs

Tailored to individual executives Easy to use Drill down capabilities Support the need for external data Help with situations with high degree of uncertainty Futures orientation (predictions, forecasting) Linked with value-added business processes

Capabilities of an ESS

Support for
defining overall vision strategic planning strategic organizing and staffing strategic control crisis management