Decision Support Systems


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Decision Support Systems

  1. 1. Tax Decision Support System Vikram B. Thadeshvar (44) Sailendra Sharma (55)
  2. 2. A Decision Support System (DSS) is an interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions. It is a general term for any computer application that enhances a person or group’s ability to make decisions. What is a DSS?
  3. 3. Process 1960 1980 1990 Mainframes Operational Systems Online Analytical Systems
  4. 4. Changing Business Needs ACTION WHY WHAT Prediction Forecast Business Need Complexity
  5. 5. Challenges before tax administrators <ul><li>Readily access and analyze the tax information </li></ul><ul><li>Effectively and accurately identify the area of non-compliance </li></ul><ul><li>Better understand the taxpayers </li></ul><ul><li>Formulate better legislative policies </li></ul><ul><li>Achieve higher degree of accuracy in revenue forecast </li></ul><ul><li>Optimize the operational cost </li></ul>
  6. 6. Typical analysis a Decision Maker may perform by Business Type by Tax Type by Tax Period by Location by its distribution across the various income groups of the taxpayers <ul><li>Compare the revenue collected and balance due for the past 5 years </li></ul><ul><li>Evaluate the effectiveness of audit programs in identifying non-filers and under reporters </li></ul><ul><li>Trends in the collected and due amounts in the various Payment Plans at various stages and defaulters </li></ul><ul><li>Evaluate the productivity of various departments in handling cases over the years </li></ul><ul><li>Evaluate the effectiveness of external data in identifying non-filers by showing the number of such taxpayers </li></ul>by the payment plan type by the tax period by the income group by the tax type by tax period by location by business type by tax period by location by business type
  7. 7. Tax Collection <ul><li>Analyze the trends in tax revenue for revenue </li></ul><ul><li>enhancement </li></ul><ul><li>Evaluate uncollected tax revenue </li></ul>
  8. 8. Problems in Transactional Applications <ul><li>Designed for real-time data entry and editing </li></ul><ul><li>Data maintained is constantly changing </li></ul><ul><li>Limited historical data is available for on-line comparisons </li></ul><ul><li>Running Decision Support queries degrades the performance of the Transactional Application </li></ul><ul><li>Complexity in achieving Comparisons, Aggregations, Rankings, Running totals etc. </li></ul>
  9. 9. Tax DSS Architecture <ul><li>“ A Data Warehouse is a </li></ul><ul><ul><li>subject-oriented, </li></ul></ul><ul><ul><li>integrated, </li></ul></ul><ul><ul><li>time variant and </li></ul></ul><ul><ul><li>non-volatile </li></ul></ul><ul><li>collection of data in support of </li></ul><ul><li>management’s decision-making process.” </li></ul>A Data-Mart contains a subset of the data available in an enterprise-wide data warehouse. <ul><li>Data Mining is </li></ul><ul><li>Discovering meaningful new correlations, </li></ul><ul><li>Patterns and trends </li></ul><ul><li>Using </li></ul><ul><li>Pattern recognition technologies, </li></ul><ul><li>Statistical and mathematical techniques </li></ul>On-Line Analytical Processing (OLAP) Is a process to assist decision making by using tools to facilitate the analysis of multi-dimensionally structured business information. Tax Compliance Data Mart Tax Data Warehouse Data Warehouse Data Extraction, Scrubbing and Transformation OLAP tools EIS Query & Reporting Statistical Analysis Data Mining LAN WAN Internet Meta Cube Internal Data Sources External Data Sources External Sources Indv. / Corp. Tax App. Un-employment Tax App. Withholding Tax App. A/R System Source Data Validation Data Scrubbing Data Migration Data Transformation Data Warehouse
  10. 10. Decision Support Methodology (DSM) Decision Support Analysis DSS Software Evaluation & Selection Operational Deployment and Support Prototype Development Revision & Enhancements Scoping of Prototype Project Evaluation Criteria Detailed Design System Construction Testing Demonstration Evaluation Functional Orientation Operational Training Deployment Maintenance Structured Interviews Decision Analysis Data Analysis Technical Analysis Conceptual DSS Orientation Plans & Prioritization Adaptation
  11. 11. Common Subject Areas <ul><li>Taxpayer Profiling </li></ul><ul><li>Tax Collection </li></ul><ul><li>Fraud Detection & Tax Non-compliance </li></ul><ul><li>Legislative Change Impact </li></ul><ul><li>Revenue Forecasting </li></ul><ul><li>These Subject Areas can be viewed w.r.t to </li></ul><ul><li>various common perspectives </li></ul><ul><li>Business Type </li></ul><ul><li>Location (States, City) </li></ul><ul><li>Taxpayer (Demographic) </li></ul><ul><li>Tax Type </li></ul><ul><li>Tax Period (Year, Quarter, Months) </li></ul><ul><li>Time (Year, Months, Events, Seasons) </li></ul>
  12. 12. Why Tata Infotech for Tax DSS? Large pool of resources Expertise in the Area Superior Solution Tax DSS Methodology Understand DSS Technology Make Things Happen
  13. 13. Revenue Forecasting <ul><li>Ability to formulate reasonable fiscal policies </li></ul><ul><li>Incorporate the historical revenue trends and other governing estimate variables </li></ul><ul><li>Provide the highest degree of accuracy in revenue forecasting </li></ul><ul><li>Use of econometric models to improve the accuracy of forecasts </li></ul>
  14. 14. Advantages <ul><li>Tangible Benefits </li></ul><ul><li>Improvement in non-compliance will increase tax revenue </li></ul><ul><li>More cost effective decisions are enabled </li></ul><ul><li>Better business intelligence is enabled </li></ul><ul><li>Enhanced taxpayer Services </li></ul><ul><li>Intangible Benefits </li></ul><ul><li>Improved productivity </li></ul><ul><li>Reduced redundant processing and support </li></ul><ul><li>Ability to focus on business processes through complete analysis </li></ul>
  15. 15. Conclusion <ul><li>Tax DSS holds great potential for dramatic business benefits </li></ul><ul><li>Capitalizes on the potential value of the organization’s information </li></ul><ul><li>Provide decision makers access to consistent, reliable and timely data </li></ul><ul><li>Still much more to explore and enhance </li></ul>
  16. 16. Thank You