Decision support systems are integrative software systems designed to help managers make better decisions. They are interactive, computer based systems that help users facing complex activities. DSS also provide the means of complete data storage and retrieval. DSS are used to make many different types of decisions. They are a special type of Information System primarily used by upper management for making both long-term (strategic) and short-term (tactical) decisions. DSS are found to have a wide variety of automation. Some DSS’s help make very complex judgments like sales forecasts, prescribing medical treatment, or predicting earthquakes. In contrast, many people in business use DSS’s everyday and may not even know it. A DSS can be as simple as a spreadsheet that monitors inventory levels and helps users manage vendors and the timing of inventory replenishment. Every DSS also varies on its level of automation. Some are completely automated like, for example, integrated supply chain information systems that place orders automatically by monitoring demand and inventory levels. Most commonly, however, when people refer to DSS’s they refer to systems that organize data in such a way that helps management perform their jobs more efficiently.
This diagram shows the basic flow of information throughout a DSS. First, raw data is entered into the DSS. Depending on the type of system this data could be anything from product costs to an individual’s height and weight. This raw data is stored in the DSS and retrieved in the form of useful information. For example suppose this is a DSS for a doctor’s office. When you arrive at the office the nurse takes you into the examination room and takes your vitals and enters the data into the DSS. The nurse enters your weight, height, current medications, the date, your symptoms, etc. and the DSS adds this data to your medical record. The DSS then performs its own preliminary diagnosis and displays the information in the form of a report. (useful information). Your doctor then examines this diagnosis and proceeds with the checkup. The extent to which the doctor uses the diagnosis from the DSS is completely up to him or her and is subject to his or her own expertise. DSS’s help organize data and present it in such a way that decision makers will have better information before actually making a decision.
This is not an exhaustive list rather some or the underlying reasons why DSS’s have helped businesses in many industries make better decisions. DSS’s help store data through the use of databases in a way that is easily accessible. When faced with multiple decisions a sophisticated DSS can prioritize decisions as well as rank available options. DSS’s are most popularly used in forecasting and anticipating decisions which is why it keeps a record of past decisions and decision making criteria. A DSS can provide a lot of consistency to decision making through its uniform way of breaking down decisions. Likewise, the constraints of a DSS are set by the users and are adaptable as well. Finally, the most convincing reason for DSS’s is that they utilize the strengths of both humans and computers in the decision making process.
Decision support systems can be used in virtually every industry and virtually every industry is using decision support systems. This list should help the audience grasp how prevalent this technology is and how DSS’s are improving decisions on a large scale. Ask members of the audience if they can think of a few more examples.
These fundamental components are found in some form or another in almost every DSS. DBMS stores the raw data MBMS converts the raw data into useful information DGMS or user-interface
The database management system is how the raw data is stored in the DSS. The DBMS assigns data a type and stores data according the data type and retrieves this information through the use of queries. Lots of data can be stored and organized through the use of unique identifiers (keys) that the database uses to organize and quickly retrieve data. Databases are also capable of monitoring changes made by different users which can help in quality management and in tracking how data and information is changed through data storage. In addition, databases can limit user access through the use of user accounts. Certain data can be restricted or privileged to a particular user based on their account settings within the database.
The MBMS is the component that interacts with the database to create useful information from the raw data stored in the database. For example, a MBMS extracts the required data stored in a database to create a sales forecast. The MBMS makes all of the needed calculations and returns a report or summary of findings in a user-friendly format. The MBMS works behind the scenes to perform programmed functions whether they be report creation, calculations for cost-benefit analysis, or other types of analysis like option prioritization etc.
The DGMS is the user-interface. As the user-interface it represents the entire DSS to the end user. This is where managers ask the questions and behind the scenes the DBMS and MBMS are called on to perform their required functions. The DGMS is what displays the results of the DSS. This is how users input data and extract the information provided to make better decisions.
Health care-- Advanced DSS’s are being used to help diagnosis patients in the Health Care field. DSS’s are also being consulted when prescribing medication. Automotive -- DSS’s systems help technicians trouble-shoot emission problems. When cars fail to pass emission tests a DSS helps determine the source of the toxins in the exhaust fumes with a list of possible causes and solutions.
Agriculture – Farmers use historical data to forecast rainfall, temperature, and as a result crop yield prediction. Airline– The airline industry uses DSS’s to schedule flights and allocate resources to ensure that flights are full. In all these instances companies with DSS’s can create powerful competitive advantages.
OutlookSoft – Microsoft-based solution used for strategic planning, budgeting, forecasting, and scorecarding. webFocus – Product by Information Builders uses a “Business intelligence platform” that makes data accessible and meaningful to a wide range of users in an organization. SYBASE – global enterprise software ERGO —Single user decision support environment for organization, prioritizing, what-if scenarios, etc. ERGOV — Targeted towards government sector. TESS —Technology Evaluation Support System. Multi-user system for collaborative decision making.
DSS’s are powerful tools that bring so many different benefits to an organization. As this presentation illustrated DSS’s are helping organizations make better decisions and consequently increase overall effectiveness.
Additional resources for further investigation on the topic of Decision Support Systems.
Dss nitin chugh
Decision Support System Presented By:- Nitin Chugh
Decision Support Systems:- A decision support system (DSS) is a computer- based information system that supports business or organizational decision-making activities.
Decision Support System The essential flow of information in a DSS.
W Decision Support Systems? hy Data is easily stored and retrieved. Prioritize decisions. Anticipate upcoming decisions. Remember and evaluate past decisions. Provide consistency to decision making. Combines the expertise of human and computer decision making.
Situations were DSS can be used: Inventory control • Business cycle control Sales forecasting • Performance evaluation Cost-benefit analysis • Value analysis Problem diagnosis • Target marketing Option prioritization • Supply Chain integration • Customer tracking Resource allocation • Knowledge management
Components of a DSS Three fundamental components Database management system (DBMS) Model-base management system (MBMS) Dialog generation and management system (DGMS)
Database management system DBMS Data storage User access Organizes data into types Provides logical data structure Lets user know the type of data that is available
Model-base management system MBMS Transforms data from DBMS into useful information Prepare information for decision making
Dialog generation and management systemDGMS User interface for DSS How users extract desired information from DSS.
How DSS’s are being used Health care-- Diagnosing patients Automotive– Emissions testing
How DSS’s are being used Agriculture-- Crop yield Airline– Flight scheduling
Examples of Decision Support Systems OutlookSoft • ERGO webFocus • ERGOV SYBASE • TESS
Conclusion Decision Support Systems can help all types of organizations. DSS’s use the advantages of computers and humans in decision making. DSS’s should be customized to fit the specific needs of your organization.