DECISION SUPPORT SYSTEMS

1. EDA

2. DEFINITION:
• It refers to a class of systems, which support the process of making
decisions.
• It is interactive computer based systems, which help decision makers,
utilize data and model to solve unstructured problems.
Characterestics:
1. Provide rapid access to information.
2. Handle large amounts of data from different sources.
3. Provide report and presentation flexibility
4. Offers both textual and graphical orientation.
5. Support drill down approach
6. Perform complex, sophisticated analysis and comparisons using
advanced software packages.
EDA

3. USERS OF INFORMATION:
1. Subscription mode: the decision maker receives reports that are
generally automatically on a regular basis.
2. Terminal mode: the decision maker is the direct user of the system
through the internet.
3. Clerk mode: the decision maker uses the system directly but
offline, preparing input on a coding form.
4. Intermediary mode: the decision maker uses the system through
intermediaries, who perform the analysis and interpret and report
the results.
Types of Intermediaries:
 Staff assistant(staff analyst): this person has specialised
knowledge about problems and some experience with the decision
support technology.
 Expert Tool User: this person is skilled in the application of one or
more types of specialized problem solving tools.
EDA

4. Resources:
1. Hardware resources
2. Software resources
3. Data resources
4. Model resources
5. Problem resources
6. People resources
7. Decision support system packages.
Uses of DSS:
1) Independent problems
2) Interrelated problems
3) Organizational problems
Benefits of DSS:
1. Improving personal efficiency
2. Improving problem solving
3. Facilitating communications
4. Promoting learning
5. Increasing organizational control
EDA

5. Terminology:
• Information
•Alternative
•Criteria
•Goals
•Value
•Preference
•Decision quality
•Acceptance
Elements:
Decision maker
Decision problem
Attitude, value and personal goal
Assumptions
Environment
Alternatives available
Analytical results
Constraints
Act of selection or choice.
Timing of decision
Proper communication of decision for its
execution.
EDA

6. Factors influencing decision making:
• time pressures
• manager’s values
• Organizational policy
• Manager’s propensity for risk.
Herbert Simon model:
1. Intelligence 2. Design 3. Choice
1. Intelligence: Information system can help in the intelligence stage by
providing information about internal and external conditions that
might require division making by appropriate managers.
2. Design: it involves developing and evaluating alternative courses of
action. 1. structured 2. unstructured
3. Choice: Information systems should help managers select a proper
course of action and then provide feedback on the success of the
implemented decision.
EDA

7. Framework:
1. Language system
2. Presentation system
3. Knowledge system
4. Problem processing system
Extended Framework:
1. Communication-driven
2. Data-driven
3. Document driven
4. Knowledge driven
5. Model driven
EDA