2. Decision is a choice from two or more
alternatives.
Is the first part of problem solving
exercise.
Two types:
Programmed.
Non programmed.
3. Computer-based information system.
Supports business or organizational
decision-making activities.
DSSs serve the management, operations,
and planning levels of an organization.
4. Increasing complexity of decisions
Technology
Information
Number and complexity of options
Pace of change
Increasing availability of computerized support
Inexpensive high-powered computing
Better software
More efficient software development process
Increasing usability of computers
6. 6
Transaction
Processing
system
Management
information
system
External
Data
DSS
DATABASE
DSS Software User
Interface
User
7. Sensitivity Analysis
The study of the effect that changes in one or more parts of a model have on
other parts of the model
What-if Analysis
Checks the impact of a change in the assumptions or other input data on
the proposed solution
Goal-seeking Analysis
Find the value of the inputs necessary to achieve a desired level
of output
8. Handle large amounts of data from different
sources.
Provide report and presentation flexibility.
Offer both textual and graphical orientation
Perform complex, sophisticated analysis and
comparisons using advanced software packages.
10. Unstructured decisions:
• Novel, non-routine decisions requiring judgment and
insights.
• Examples: Approve capital budget; decide corporate
objectives.
11. Semi structured decision :
Only part of decision has clear-cut answers provided by
accepted procedures.
Examples: Allocate resources to managers; develop a
marketing plan.
Structured decision :
Routine decisions with definite procedures.
Examples: Restock inventory; determine special offers to
customers.
12. Time savings
Enhance effectiveness
Improve interpersonal communication
Cost reduction
Increase decision maker satisfaction
Promote learning
Increase organizational control
13. Monetary cost
Overemphasize decision making
Obscuring responsibility
Unanticipated effects
False belief in objectivity
Status reduction
Information overload
14. The example we are going to explain is of
working of decision supporting system at
RUKMANI BAJAJ, INDORE