Decision Support System (DSS)
DSS
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.
Decision
support systems generally involve non-programmed decisions. Therefore; there
will be no exact report, content or format for these systems. Reports are
generated on the fly.
1 Attributes of a DSS
Adaptability
and flexibility
High
level of Interactivity
Ease of
use
Efficiency
and effectiveness
Complete
control by decision-makers.
Ease of
development
Extendibility
Support
for modeling and analysis
Support
for data access
Standalone,
integrated and Web-based
2 Characteristics of a DSS
Support
for decision makers in semi structured and unstructured problems.
Support
for managers at various managerial levels, ranging from top executive to line
managers.
Support
for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization
level.
Support
for interdependent or sequential decisions.
Support
for intelligence, design, choice, and implementation.
Support
for variety of decision processes and styles
DSSs are
adaptive over time.
3 Benefits of DSS
Improves
efficiency and speed of decision making activities
Increases
the control, competitiveness and capability of futuristic decision making of
the organization
Facilitates
interpersonal communication
Encourages
learning or training
Since it
is mostly used in non-programmed decisions, it reveals new approaches and sets
up new evidences for an unusual decision
Helps
automate managerial processes
4 Components of a DSS
Following
are the components of the Decision Support System:
Database
Management System (DBMS): To solve a problem the necessary data may come from
internal or external database. In an organization, internal data are generated
by a system such as TPS and MIS.External data come from a variety of sources
such as newspapers, online data services, databases (financial, marketing,
human resources).
Model
Management system: It stores and accesses models that managers use to make
decisions. Such models are used for designing manufacturing facility, analyzing
the financial health of an organization. Forecasting demand of a product or
service etc.
Support
Tools: Support tools like online help; pull down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user
interactions with the system.
5 Classification of DSS
There are
several ways to classify DSS. Hoi Apple and Whinstone classify DSS in
following:
Text
Oriented DSS: It contains textually represented information that could have a
bearing on decision. It allows documents to be electronically created, revise
and viewed as needed
Database
Oriented DSS: Database plays a major role here; it contains organized and
highly structured data.
Spreadsheet
Oriented DSS: it contains information in spread sheets that allows create,
view, modify procedural knowledge and also instruct the system to execute
self-contained instructions. The most popular tool is Excel and Lotus 1-2-3.
Solver
Oriented DSS: it is based on a solver, which is an algorithm or procedure
written for performing certain calculations and particular program type.
Rules
Oriented DSS: It follows certain procedures adopted as rules.
Rules
Oriented DSS: Procedures are adopted in rules oriented DSS. Export system is
the example.
Compound
DSS: It is built by using two or more of the five structures explained above
6 Types of DSS
Status
Inquiry System: helps in taking operational management level or middle level
management decisions, for example daily schedules of jobs to machines or
machines to operators.
Data
Analysis System: needs comparative analysis and makes use of formula or an
algorithm, for example cash flow analysis, inventory analysis etc.
Information
Analysis System: In this system data is analyzed and the information report is
generated. For example, sales analysis, accounts receivable systems, market
analysis etc.
Accounting
System: keep tracks of accounting and finance related information, for example,
final account, accounts receivables, accounts payables etc. that keep track of
the major aspects of the business.
Model
Based System: simulation models or optimization models used for decision-
making used infrequently and creates general guidelines for operation or
management.
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