Decision support systems (DSS) provide computerized support for decision-making processes. They allow users to actively work with data warehouses and apply models to simplify complex decision situations. DSS can be passive by aiding the decision process without explicit recommendations, or active by providing suggested decisions or solutions. Group decision support systems (GDSS) facilitate group problem solving with tools for idea generation, organization, and evaluation. Executive decision support systems (EDSS) specifically help senior managers with strategic problems by combining internal and external data sources to monitor organizational performance and identify opportunities.

1. Decision Support
System
By
K. Babu Rajendra Prasad (ST59551)
Group Code - 4602MDA
Information Systems Management

2. Decision Making & Information System
• Decisions are made at all levels of the firm.
• Some decisions are very common and routine but exceptionally valuable.
• IT provides new tools for managers to carryout decisions.
• Receiving the most concrete, up-to-date information and redistributing it
to those who need to aware of it.
• IT does not provide any information directly, but provides some
capabilities to the user to analyze the decision problem and generate
some meaningful information for decision-making

3. Decision Support System
• Refers to class of system which supports in the process of decision
making and does not always give a decision itself.
• Decision Support Systems supply computerized support for the decision
making process.
• End-users actively work with the data warehouse.
• End-users apply models to represent, understand, and simplify the
decision situation.

4. Types of Decision

5. Decision Making Concepts

6. DSS: Decision Support Systems
sales revenue profit prior
154 204.5 45.32 35.72
163 217.8 53.24 37.23
161 220.4 57.17 32.78
173 268.3 61.93 47.68
143 195.2 32.38 41.25
181 294.7 83.19 67.52
Sales and Revenue 1994
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Legend
Sales
Revenue
Profit
Prior
Database
Model
Output

7. Framework for Developing DSS

Intelligence Phase
Design Phase
Choice Phase

REALITY
Implementation
of Solution

SUCCESS
FAILURE
Verification, Testing
of Proposed Solution
Validation of
the Model
Examination

8. Characteristics and Capabilities of DSS
 Support decision makers at all managerial levels
 Support several interdependent and/or sequential decisions
 Support all phases of decision making and a variety of decision-making
processes and styles
 Can be adapted over time to deal with changing conditions
 Easy to construct
 Utilizes models and links to data- and knowledge bases
 Execute sensitivity analysis

9. DSS Analysis
• 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

10. Components and Structure of DSS

11. Components and Structure of DSS
• Data Management
• Includes the database(s) containing relevant data for the decision
situation
• User Interface
• Enables the users to communicate with and command the DSS
• Model Management
• Includes software with financial, statistical, management science, or
other quantitative models
• Knowledge Management
• Provides knowledge for solution of the problem; supports any of the
other subsystems or act as an independent component

12. DSS – Classifications -relationship with the user
 Passive DSS
• System that aids the process of decision making, but that cannot bring out
explicit decision suggestions or solutions.
• Active DSS
• Can bring out such decision suggestions or solutions.
• Cooperative DSS
• Allows the decision maker to modify, complete, or refine the decision
suggestions provided by the system, before sending them back to the
system for validation. The system again improves, completes, and refines
the suggestions of the decision maker. Repeat this process.

13. DSS – Classifications -mode of assistance
 Model-driven DSS
• Use data and parameters provided by users to assist decision makers in
analyzing a situation
• Eg :- Decodes is an example of an open source model-driven DSS generator
o Communication-driven DSS
• Supports more than one person working on a shared task
• Eg:- Microsoft's NetMeeting or Groove
o Data-driven DSS
• Emphasizes access to and manipulation of a time series of internal company
data and, sometimes, external data.

14. DSS – Classifications -mode of assistance
 Document-driven DSS
• Manages, retrieves and manipulates unstructured information in a
variety of electronic formats.
 Knowledge-driven DSS
• Provides specialized problem solving expertise stored as facts, rules,
procedures

15. MIS v/s DSS
 Provide information on firm’s performance to
help managers monitor and control the
business
 Produce answers to routine questions and
fixed, regularly scheduled reports
 Sometimes MIS reports are only exception
reports (highlighting only exceptional
conditions)
 Oriented to internal events
 Make use of simple methods such as
summaries and comparisons
 Provides input to operational, tactical and
strategic levels
 Depend on TPS for their data
 DSS support semi-structured and unstructured
problem analysis
 Helps make decisions that are unique, rapidly
changing and not specified in advance
 Bring information from external sources also
 DSS emphasizes change, flexibility and rapid
response and works on interactive user-friendly
mode
 Make use of mathematical models/statistical
techniques
 Caters more to strategic decision making
 Uses internal information from both MIS and TPS
MIS DSS

16. Benefits of DSS• Improves personal efficiency
• Speed up the process of decision making
• Increases organizational control
• Encourages exploration and discovery on the part of the decision
maker
• Speeds up problem solving in an organization
• Facilitates interpersonal communication
• Promotes learning or training
• Generates new evidence in support of a decision
• Creates a competitive advantage over competition
• Reveals new approaches to thinking about the problem space
• Helps automate managerial processes
• Create Innovative ideas to speed up the performance

17. Group Decision Support
System (GDSS)

18. Group Decision Support System
 An interactive computer-based system used to facilitate the solution of
unstructured problems
 A set of decision makers working together as a group.
 GDSS make meetings more productive by providing tools to facilitate
planning, generating, organizing, and evaluating ideas; establishing
priorities; and documenting meeting proceedings for others in the firm.
 Originally developed for meetings in which all participants are in the same
room.
 But nowadays used for networked meetings in which participants' are in
different locations.

19. Group System Tools

20. Components of GDSS
 Hardware: Including conference facilities and electronic hardware.
 Software tools: Including electronic questionnaires, brainstorming tools,
idea organizers, questionnaire tools, voting tools; stakeholder
identification and analysis tools; policy formation tools, and group
dictionaries.
 People: Refers not only to the participants but also to a trained facilitator
and often to a staff that supports the hardware and software.

21. Functions of GDSS Applications
 Predicting decision outcomes.
 Identifying factors and trends.
 Developing models of business processes.
 Computing optimum mixes.
 Facilitating group communication, collaboration and teamwork.
 Determining sensitivity of results to changes in decision variables.
 Becoming familiar with a problem domain.

22. GDSS – Business Value
Using GDSS, productivity can increase with increase in number of attendees
More collaborative atmosphere by guaranteeing contributors’ anonymity
GDSS software tools follow structured methods for preserving results of
meetings, enabling non-attendees to locate needed info after the meeting
GDSS meetings can increase number of ideas generated and quality of decisions
while producing the desired results in fewer meetings
Leads to more participative and democratic decision making
Most useful for tasks involving idea generation, complex problems and large
groups

23. Executive Decision
Support System (EDSS)

24. EDSS
 Help senior managers with unstructured problems that occur at the
strategic level of the firm.
 Combining the internal and external sources.
 Helps to monitor :
 organizational performance,
 Track activities of competitors,
 Spot problems,
 Identify opportunities
 Forecast trends.

25. EDSS
 It is also known as
• Executive Support Systems(ESS)
• Executive Information Systems(EIS)
o Benefits
o Increases organizational control.
o Reveals new approaches to thinking about the problem space.
o Encourages exploration and discovery on the part of the decision maker.
o Creates a competitive advantage over competition

26. EDSS Capabilities
• Drill down-ability to go to details at several levels
• Critical success factors-most critical for success of business
• Key performance indicator
• Status access-latest data available on Knowledge Process (KP)
• Trend analysis-short , medium and long term trend on KP
• Adhoc analysis-analysis made anytime upon demand
• Exception reporting-report that highlight deviations larger than certain
threshold

27. EDSS

28. INTERRELATIONSHIPS AMONG SYSTEMS

29. Conclusion:-
• These are some of the techniques used in information
system.
• Technology keeps changing Time toTime.
• Near Future Decision support systems may expanded and
useful in all type of applications from day to day usage.