THE BUSINESS SCHOOL,

UNIVERSITY OF JAMMU

MANAGEMENT INFORMATION SYSTEM

DECISION SUPPORT SYSTEM

MODELING IN DECISION SUPPORT
GROUP DECISION SUPPORT SYSTEM

Submitted by:-
Antra Sharma(07)
Ishana Sharma(19)
Manasvi Suri(21)

Submitted to:-
Ms. Garima Kohli

DECISION SUPPORT SYSTEM

Decision support systems (DSS) are interactive software-based systems intended to help
managers in decision-making by accessing large volumes of information generated from various
related information systems involved in organizational business processes, such as office
automation system, transaction processing system, etc.

DSS uses the summary information, exceptions, patterns, and trends using the analytical models.
A decision support system helps in decision-making but does not necessarily give a decision
itself. The decision makers compile useful information from raw data, documents, personal
knowledge, and/or business models to identify and solve problems and make decisions.

Programmed and Non-programmed Decisions

There are two types of decisions - programmed and non-programmed decisions.

Programmed decisions are basically automated processes, general routine work, where −

 These decisions have been taken several times.

 These decisions follow some guidelines or rules.

For example, selecting a reorder level for inventories, is a programmed decision.

Non-programmed decisions occur in unusual and non-addressed situations, so −

 It would be a new decision.

 There will not be any rules to follow.

 These decisions are made based on the available information.

 These decisions are based on the manger's discretion, instinct, perception and judgment.

For example, investing in a new technology is a non-programmed decision.

Decision support systems generally involve non-programmed decisions. Therefore, there will be
no exact report, content, or format for these systems. Reports are generated on the fly.

ATTRIBUTES OF A DSS

 Adaptability and flexibility

 High level of Interactivity
  Ease of use
 Efficiency and effectiveness
 Complete control by decision-makers
 Ease of development
 Extendibility
 Support for modeling and analysis
 Support for data access
 Standalone, integrated, and Web-based

CHARACTERISTICS OF A DSS
 Support for decision-makers in semi-structured and unstructured problems.

 Support for managers at various managerial levels, ranging from top executive to line
managers.

 Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization level.

 Support for interdependent or sequential decisions.

 Support for intelligence, design, choice, and implementation.

 Support for variety of decision processes and styles.

 DSSs are adaptive over time.

BENEFITS OF DSS
 Improves efficiency and speed of decision-making activities.

 Increases the control, competitiveness and capability of futuristic decision-making of the

organization.

 Facilitates interpersonal communication.

 Encourages learning or training.

  Since it is mostly used in non-programmed decisions, it reveals new approaches and sets
up new evidences for an unusual decision.

 Helps automate managerial processes.

COMPONENTS OF A DSS
Following are the components of the Decision Support System −

 Database Management System (DBMS) − To solve a problem the necessary data may
come from internal or external database. In an organization, internal data are generated
by a system such as TPS and MIS. External data come from a variety of sources such as
newspapers, online data services, databases (financial, marketing, human resources).

 Model Management System − It stores and accesses models that managers use to make
decisions. Such models are used for designing manufacturing facility, analyzing the
financial health of an organization, forecasting demand of a product or service, etc.

Support Tools − Support tools like online help; pulls down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with the
system.

CLASSIFICATION OF DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows −

 Text Oriented DSS − It contains textually represented information that could have a
bearing on decision. It allows documents to be electronically created, revised and
viewed as needed.

 Database Oriented DSS − Database plays a major role here; it contains organized and
highly structured data.

 Spreadsheet Oriented DSS − It contains information in spread sheets that allows create,
view, modify procedural knowledge and also instructs the system to execute self-
contained instructions. The most popular tool is Excel and Lotus 1-2-3.

 Solver Oriented DSS − It is based on a solver, which is an algorithm or procedure

written for performing certain calculations and particular program type.
  Rules Oriented DSS − It follows certain procedures adopted as rules.

 Rules Oriented DSS − Procedures are adopted in rules oriented DSS. Export system is
the example.

 Compound DSS − It is built by using two or more of the five structures explained
above.

TYPES OF DSS
Following are some typical DSSs −

 Status Inquiry System − It helps in taking operational, management level, or middle

level management decisions, for example daily schedules of jobs to machines or
machines to operators.

 Data Analysis System − It needs comparative analysis and makes use of formula or an
algorithm, for example cash flow analysis, inventory analysis etc.

 Information Analysis System − In this system data is analyzed and the information
report is generated. For example, sales analysis, accounts receivable systems, market
analysis etc.

 Accounting System − It keeps track of accounting and finance related information, for
example, final account, accounts receivables, accounts payables, etc. that keep track of
the major aspects of the business.

 Model Based System − Simulation models or optimization models used for decision-
making are used infrequently and creates general guidelines for operation or
management.

GROUP DECISION SUPPORT SYSTEM

Group decision system, is a computerized based system that helps managers and employees to
take better enhancing faster decisions, and also its main purpose to solve problems and help
decision – making process.
Group decision supported system, is like a DSS but here we do it in group, we can say it is an
electronic meeting for colleagues to discuss and take important decisions in business, and the
result will be better than if one person took the decision and it will faster for sure.

Group Decision Support Systems (GDSS)were referred to as a Group Support System (GSS) or
an electronic meeting system since they shared similar foundations. However today’s GDSS is
characterised by being adapted for a group of people who collaborate to support integrated
systemsthinking for complex decision making. Participants use a common computer or network
to enable collaboration.

Computer software and hardware used to support group functions and processes.

Components Of Group Decision Support System (Gdss)

A Group decision support system (GDSS) is composed of 3 main components, namely hardware,
software tools, and people.

Hardware: It includes electronic hardware like computer, equipment used for networking,
electronic display boards and audio visual equipment. It also includes the conference facility,
including the physical setup – the room, the tables and the chairs – laid out in such a manner that
they can support group discussion and teamwork.

Software Tools: It includes various tools and techniques, such as electronic questionnaires,
electronic brainstorming tools, idea organizers, tools for setting priority, policy formation tool,
etc. The use of these software tools in a group meeting helps the group decision makers to plan,
organize ideas, gather information, establish priorities, take decisions and to document the
meeting proceedings. As a result, meetings become more productive.

People: It compromises the members participating in the meeting, a trained facilitator who helps
with the proceedings of the meeting, and an expert staff to support the hardware and software.
The GDSS components together provide a favourable environment for carrying out group
meetings.
Features of Group Decision Support System (GDSS)

 Ease of Use: It consists of an interactive interface that makes working with GDSS
simple and easy.
 Better Decision Making: It provides the conference room setting and various
software tools that facilitate users at different locations to make decisions as a group
resulting in better decisions.
 Emphasis on Semi-structured and Unstructured Decisions: It provides important
information that assists middle and higher level management in making semi-
structured and unstructured decisions.
 Specific and General Support: The facilitator controls the different phases of the
group decision support system meeting (idea generation, discussion, voting and vote
counting etc.) what is displayed on the central screen and the type of ranking and
voting that takes place, etc. In addition, the facilitator also provides general support to
the group and helps them to use the system.
 Supports all Phases of the Decision Making: It can support all the four phases of
decision making, viz intelligence, design, choice and implementation.
 Supports Positive Group Behaviour: a group meeting, as participants can share their
ideas more openly without the fear of being criticized, they display more positive
group behaviour towards the subject matter of the meeting.

Group Decision Support Situations

A group decision support system fosters collaboration and team decision-making in four
different situations:

 Same time, same place

 Same time, different place
 Different time, same place
 Different time, different place
Same Time, Same Place

In this situation, all decision makers are available at same time at same place. The information is
displayed on either computer projection system or on individual computers of participants.

Same Time, Different Place

In this situation, individuals participate in decision-making from geographically different

locations at the same time. A GDSS

 Allows people to see what others at different locations are doing

 Offers video conferencing facilities where participants can see and hear each other in real
time
 Offers support for meeting or interactions via two-way video
 Offers additional facilities, such as screen sharing, chat, audio, white boards

Different Time, Same Place

In this situation, GDSS fosters communication for those who work at same place but have
different shift timings. It offers numerous facilities, including:

 Document sharing
 Workstation software for shift work
 Email

Different Time, Different Place

It’s important to understand how GDSS work in different time and different place situations. It is
a situation where participants are geographically distant and also operate in a different time zone.
It fosters communication, collaboration and team decision making through:

 Conferencing
 Bulletin board
 Voice mail
 Email
A GDSS supports communication and collaboration in all the above situations.

Group Decision Support System (GDSS) Software Tools

Group decision support system software tools helps the decision makers in organizing their
ideas, gathering required information and setting and ranking priorities. Some of these tools are
as follows:

 Electronic Questionnaire: The information generated using the questionnaires helps

the organizers of the meeting to identify the issues that need immediate attention,
thereby enabling the organizers to create a meeting plan in advance.
 Electronic Brainstorming Tools: It allows the participants to simultaneously
contribute their ideas on the subject matter of the meeting. As identity of each
participant remains secret, individuals participate in the meeting without the fear of
criticism.
 Idea Organizer: It helps in bringing together, evaluating and categorizing the ideas
that are produced during the brainstorming activity.
 Tools for Setting Priority: It includes a collection of techniques, such as simple
voting, ranking in order and some weighted techniques that are used for voting and
setting priorities in a group meeting.
 Policy Formation Tool: It provides necessary support for converting the wordings of
policy statements into an agreement.

ADVANTAGES OF GDSS:
• Anonymity – drive out fear leading to better decisions from a diverse hierarchy of decision
makers

• Parallel Communication – eliminate monopolizing providing increased participation, better

decisions

• Automated record keeping – no need to take notes, they’re automatically recorded

• Ability for virtual meetings – only need hardware, software and people connected

• Portability – Can be set up to be portable like laptop

• Global Potential – People can be connected across the world

No need for a computer guru – although some basic experience is a must

DISADVANTAGES OF GDSS:
• Cost -infrastructure costs to provide the hardware and software/room/network connectivity can
be very expensive

• Security – especially true when companies rent the facilities for GDSS; also, the facilitator may
be a lower-level employee who may leak information to peers

• Technical Failure – power loss, loss of connectivity, relies heavily on bandwidth and
LAN/WAN infrastructure – properly setup system should minimize this risk

• Keyboarding Skills – reduced participation may result due to frustration

• Training – learning curve is present for users, varies by situation

 Perception of messages – lack of verbal communication could lead to misinterpretation