A Decision Support System (DSS) is a computer-based information system that aids organizational decision-making by integrating software applications and hardware. It consists of various components, including databases and model bases, and facilitates structured and unstructured decision-making processes while distinguishing between programmed and non-programmed decisions. DSS provides benefits such as improved decision accuracy and timeliness while also facing challenges like information overload and potential costs.

2. DECISION SUPPORT
SYSTEM
Laiba Ghafoor 007
Choudhary Aitzaz Ahsan 008

3. What is DSS?
A DSS is a computer-based information system that supports business or
organizational decision-making activities.
A DSS is a collection of integrated software applications and hardware that form
the backbone of an organization’s decision making process and help to make
decisions, which may be rapidly changing and not easily specified in advance.

4. Decision Making as a Component of Problem Solving

5. Decision Making and Problem Solving
Every organization needs effective decision making
In most cases, strategic planning and overall goals of the organization set the course for decision
making
Information systems can assist with strategic planning and problem solving

6. Decision Making as a Component of
Problem Solving
Decision-making phase: first part of problem-solving process
◦ Intelligence stage: potential problems or opportunities are identified and defined
◦ Design stage: alternative solutions to the problem are developed
◦ Choice stage: requires selecting a course of action

7. Decision Making as a Component of
Problem Solving (continued)
Problem solving: goes beyond decision making to include implementation and monitoring
stages
Implementation stage: a solution is put into effect
Monitoring stage: decision makers evaluate the implementation

8. Programmed Versus Non programmed
Decisions
Programmed decision
◦ Decision made using a rule, procedure, or quantitative method
◦ Easy to computerize using traditional information systems
Non programmed decision
◦ Decision that deals with unusual or exceptional situations
◦ Not easily quantifiable

9. An Overview of
Management Information Systems
Management information system (MIS)
◦ Integrated collection of people, procedures, databases, and devices
◦ Provides managers and decision makers with information to help achieve organizational goals
◦ Can give the organization a competitive advantage
◦ Providing the right information to the right people in the right format and at the right time
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10. Management Information Systems in
Perspective
 Management information system (MIS) (continued)
 Provides managers with information that supports effective decision making and provides feedback
on daily operations
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11. Inputs to a Management Information
System
Internal data sources
◦ TPSs and ERP systems and related databases
◦ Data warehouses and data marts
◦ Specific functional areas throughout the firm
External data sources
◦ Customers, suppliers, competitors, and stockholders whose data is not already captured by the TPS
◦ Internet
◦ Extranets
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12. Outputs of a Management Information
System (continued)
 Scheduled report: produced periodically, or on schedule, such as daily, weekly, or monthly
◦ Key-indicator report: summary of previous day’s critical activities
 Demand report: developed to give certain information at someone’s request
 Exception report: automatically produced when a situation is unusual or requires
management action
 Drill-down reports: provide increasingly detailed data about a situation
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13. Characteristics of a Management
Information System
Provide reports with fixed and standard formats
Produce hard-copy and soft-copy reports
Use internal data stored in computer system
Allow users to develop custom reports
Require user requests for reports developed by systems personnel
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14. Functional Aspects of the MIS
Most organizations are structured along functional lines or areas
MIS can be divided along functional lines to produce reports tailored to individual functions
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15. Financial Management Information
Systems
Financial MIS: provides financial information to executives and others
Some financial MIS subsystems and outputs
◦ Profit/loss and cost systems: profit and revenue centers
◦ Auditing: internal and external
◦ Uses and management of funds
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16. Profit center: a department within an organization that focuses on generating profits.
Revenue center: a division with in a company that generates sales or revenues.
Auditing: analyzing the financial condition of an organization and determining whether financial
statements and reports produces by the financial MIS are accurate.
Uses and management of funds: internal uses of funds include purchasing additional inventory,
updating plants and equipment etc
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17. Financial Management Information Systems
(continued)
17
Figure 10.7: Overview of a Financial MIS

18. Manufacturing Management Information
Systems
 Manufacturing MIS subsystems and outputs monitor and control the flow of materials,
products, and services through the organization
 Design and engineering: CAD systems
 Master production scheduling and inventory control
◦ Methods: EOQ, MRP, JIT
 Process control
◦ Techniques: CAM, CIM, FMS
 Quality control and testing
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19. Manufacturing Management Information Systems
(continued)
19
Figure 10.8: Overview of a Manufacturing MIS

20. Marketing Management Information
Systems
Marketing MIS: supports managerial activities in product development, distribution, pricing
decisions, and promotional effectiveness
Subsystems
◦ Marketing research
◦ Product development
◦ Promotion and advertising
◦ Product pricing
◦ Sales analysis
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21. Human Resource Management
Information Systems
Human resource MIS: concerned with activities related to employees and potential employees
Subsystems
◦ Human resource planning
◦ Personnel selection and recruiting
◦ Training and skills inventory
◦ Scheduling and job placement
◦ Wage and salary administration
◦ Outplacement
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22. Human Resource Management Information
Systems (continued)
22
Figure 10.11: Overview of a Human Resource MIS

23. Other Management Information Systems
Accounting MIS: provides aggregate information on accounts payable, accounts receivable,
payroll, and many other applications
Geographic information system (GIS): capable of assembling, storing, manipulating, and
displaying geographic information
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24. An Overview of Decision Support
Systems
DSS: organized collection of people, procedures, software, databases, and devices used to help
make decisions that solve problems
Focus of a DSS is on decision-making effectiveness regarding unstructured or semistructured
business problems
Used by managers at all levels
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25. Characteristics of a Decision Support
System
Provide rapid access to information
Handle large amounts of data from different sources
Provide report and presentation flexibility
Offer both textual and graphical orientation
Support drill-down analysis
25

26. Characteristics of a Decision Support
System (continued)
 Perform complex, sophisticated analysis and comparisons using advanced software packages
 Support optimization, satisficing, and heuristic approaches
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27. Capabilities of a Decision Support System
Support problem-solving phases
Support different decision frequencies
◦ Ad hoc DSS
◦ Institutional DSS
Support different problem structures
◦ Highly structured problems (known facts)
◦ Semistructured or unstructured problems (facts are not clear.)
Support various decision-making levels
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28. Capabilities of a Decision Support System
(continued)
28
Figure 10.14: Decision-Making Level

29. A Comparison of DSS and MIS
29
Table 10.3: Comparison of DSSs and MISs

30. A Comparison of DSS and MIS
(continued)
30
Table 10.3: Comparison of DSSs and MISs (continued)

31. Components of a Decision Support
System
 Database
 Model base
 Dialogue manager: user interface that allows decision makers to:
 Easily access and manipulate the DSS
 Use common business terms
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32. Components of a Decision Support System
(continued)
32
Figure 10.15: Conceptual Model of a DSS

33. The Database
Database management system
◦ Allows managers and decision makers to perform qualitative analysis on data stored in company’s
databases, data warehouses, and data marts
◦ Can also be used to connect to external databases
Data-driven DSS: primarily performs qualitative analysis based on the company’s databases
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34. The Model Base
Model base: provides decision makers with access to a variety of models and assists them in
decision making
◦ Allows them to perform quantitative analysis on both internal and external data
Model-driven DSS: primarily performs mathematical or quantitative analysis
Model management software (MMS): software that coordinates the use of models in a DSS
excel
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35. The User Interface or Dialogue Manager
Allows users to interact with the DSS to obtain information
Supports with all aspects of communications between user and hardware and software that
establish the DSS
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36. Group Support Systems
Group support system (GSS)
◦ Consists of most elements in a DSS, plus software to provide effective support in group decision making
◦ Also called group decision support system or computerized collaborative work system
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37. Group Support Systems
Group support system (GSS)
◦ Consists of most elements in a DSS, plus software to provide effective support in group decision making
◦ Also called group decision support system or computerized collaborative work system
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38. Group Support Systems (continued)
38
Figure 10.16: Configuration of a GSS

39. Characteristics of a GSS That Enhance
Decision Making
Special design
Ease of use
Flexibility
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40. Characteristics of a GSS That Enhance
Decision Making (continued)
Anonymous input
Reduction of negative group behavior
Parallel communication
Automated record keeping
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41. GSS Software
Often called groupware or workgroup software
Helps with joint work group scheduling, communication, and management
Examples
◦ Virtual Office from Groove Networks
◦ Lotus Notes
◦ Office Communicator
◦ IBM’s Workplace
◦ Microsoft’s NetMeeting
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42. GSS Software (continued)
Examples of groupware products available on the Web
◦ WebEx, Genesys Meeting Center, GoToMeeting Corporate
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43. Executive Support Systems
Executive support system (ESS):
◦ Specialized DSS
◦ Includes hardware, software, data, procedures, and people used to assist senior-level executives
◦ Also called an executive information system (EIS)
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44. Executive Support Systems (continued)
44
Figure 10.19: The Layers of Executive Decision Making

45. Executive Support Systems in Perspective
Tailored to individual executives
Easy to use
Drill-down capabilities
Support need for external data
Can help with situations that have a high degree of uncertainty
Future-oriented
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46. Capabilities of Executive Support Systems
Support for defining overall vision
Support for strategic planning
◦ Determining long-term objectives through analysis of current organization and prediction of future trends
Support for crisis management
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47. DSS Characteristics
Facilitation : DSS facilitate and support specific decisionmaking activities and/or decision
processes.
Interaction : DSS are computer-based systems designed for interactive use by decision makers
or staff users who control the sequence of interaction and the operations performed.
Ancillary : DSS can support decision makers at any level in an organization. They are NOT
intended to replace decision makers.
Repeated Use : DSS are intended for repeated use. A specific DSS may be used routinely or used
as needed for ad hoc decision support tasks.
Identifiable: DSS may be independent systems that collect or replicate data from other
information systems OR subsystems of a larger, more integrated information system.

48. DSS Characteristics (cont.)
Task-oriented : DSS provide specific capabilities that support one or more tasks related to
decision-making, including: intelligence and data analysis; identification and design of
alternatives; choice among alternatives; and decision implementation.
Decision Impact : DSS are intended to improve the accuracy, timeliness, quality and overall
effectiveness of a specific decision or a set of related decisions.
Supports individual and group decision making : It provides a single platform that allows all users
to access the same information and access the same version of truth, while providing autonomy
to individual users and development groups to design reporting content locally.
Comprehensive Data Access : It allows users to access data from different sources concurrently,
leaving organizations the freedom to choose the data warehouse that best suits their unique
requirements and preferences.

49. DSS Characteristics (cont.)
Easy to Develop and Deploy : DSS delivers an interactive, scalable platform for rapidly developing
and deploying projects. Multiple projects can be created within a single shared metadata.
Within each project, development teams create a wide variety of re-usable metadata objects.
Integrated software : DSS’s integrated platform enables administrators and IT professionals to
develop data models, perform sophisticated analysis, generate analytical reports, and deliver
these reports to end users via different channels (Web, email, file, print and mobile devices).
Flexibility : DSS features are flexible and can be altered according to need providing a helping
hand in the work process.

50. DSS Objectives
1. Increase the effectiveness of the manager's decisionmaking process.
2. Supports the manager in the decision-making process but does not replace it.
3. Improve the directors effectiveness of decision making.

51. DSS Components
DSS components may be classified as:
Inputs : Factors, numbers, and characteristics to analyze.
User Knowledge and Expertise : Inputs requiring manual analysis by the user.
Outputs : Transformed data from which DSS "decisions" are generated.
Decisions : Results generated by the DSS based on user criteria.

52. DSS Requirements
Data collection from multiple sources (sales data, inventory data, supplier data, market research
data. etc.).
Data formatting and collation.
A suitable database location and format built for decision support -based reporting and analysis
.
Robust tools and applications to report, monitor, and analyze the data.

53. DSS Advantages
1. Time savings
2. Enhance effectiveness
3. Improve interpersonal communication
4. Competitive advantage
5. Cost reduction
6. Increase decision maker satisfaction
7. Promote learning
8. Improves personal efficiency

54. DSS Disadvantages
1. Monetary cost.
2. Overemphasize decision making.
3. Assumption of relevance.
4. Transfer of power.
5. Unanticipated effects.
6. Obscuring responsibility.
7. False belief in objectivity.
8. Status reduction.
9. Information overload.

55. DSS Applications
Medical diagnosis.
Business and Management.
Agricultural production.
Forest management.