DECISION SUPPORT SYSTEM

A decision support systems (DSS) is a computer-based information system that supports

business or organizational decision-making activities. DSSs serve the management, operations,
and planning levels of an organization and help to make decisions, which may be rapidly
changing and not easily specified in advance.

DSSs include knowledge-based systems. A properly designed DSS is an interactive software-

based system intended to help decision makers compile useful information from a combination
of raw data, documents, personal knowledge, or business models to identify and solve problems
and make decisions.

Typical information that a decision support application might gather and present are:

 inventories of information assets (including legacy and relational data sources, cubes,
data warehouses, and data marts),
 comparative sales figures between one period and the next,
 projected revenue figures based on product sales assumptions.

The Architecture of an Optimizing Decision Support System.

The architecture of the envisaged decision support system is shown in Figure 1. It will have the
following characteristics:

 It should utilize high performance parallel and distributed platforms, as the most cost
effective way of providing sufficient computing cycles to perform real world
optimization using computational models.

 It should incorporate a wide range of optimization algorithms where the cost of a solution
is computed by a modelling application, to tackle the various different types of
optimization problems encountered in environmental modelling.

 It should allow for rapid prototyping of an experiment, since users of such systems often
like to experiment with different aspects of the model and explore a wide range of
scenarios.

 It should incorporate user interaction in the decision making process. Since it is often
difficult to formulate a good cost measure for some environmental problems, it is useful
if the user can guide the system using domain specific knowledge.
 Figure 1. Decision Support System Architecture

There are three fundamental components of DSS:

_ Database management system (DBMS). A DBMS serves as a data bank for the DSS. It stores
large quantities of data that are relevant to the class of problems for which the DSS has been
designed and provides logical data structures (as opposed to the physical data structures)
with which the users interact. A DBMS separates the users from the physical aspects of the
database structure and processing. It should also be capable of informing the user of the types
of data that are available and how to gain access to them.
_ Model-base management system (MBMS). The role of MBMS is analogous to that of a DBMS.
Its primary function is providing independence between speci_c models that are used in a DSS
from the applications that use them. The purpose of an MBMS is to transform data from the
DBMS into information that is useful in decision making. Since many problems that the user
of a DSS will cope with may be unstructured, the MBMS should also be capable of assisting
the user in model building.
_ Dialog generation and management system (DGMS). The main product of an interaction with
a DSS is insight. As their users are often managers who are not computer-trained, DSSs
need to be equipped with intuitive and easy-to-use interfaces. These interfaces aid in model
building, but also in interaction with the model, such as gaining insight and recommendations
from it. The primary responsibility of a DGMS is to enhance the ability of the system user
to utilize and benefit from the DSS. In the remainder of this article, we will use the broader
term user interface rather than DGMS.

Decision Support Systems (DSS) are a class of computerized information system that support
decision-making activities. DSS are interactive computer-based systems and subsystems
intended to help decision makers use communications technologies, data, documents, knowledge
and/or models to complete decision process tasks.

A decision support system may present information graphically and may include an expert
system or artificial intelligence (AI). It may be aimed at business executives or some other group
of knowledge workers.

Typical information that a decision support application might gather and present would be, (a)
Accessing all information assets, including legacy and relational data sources; (b) Comparative
data figures; (c) Projected figures based on new data or assumptions; (d) Consequences of
different decision alternatives, given past experience in a specific context.

There are a number of Decision Support Systems. These can be categorized into five types:

 Communication-driven DSS
Most communications-driven DSSs are targetted at internal teams, including
partners. Its purpose are to help conduct a meeting, or for users to collaborate.
The most common technology used to deploy the DSS is a web or client server.
Examples: chats and instant messaging softwares, online collaboration and net-
meeting systems.
 Data-driven DSS
Most data-driven DSSs are targeted at managers, staff and also product/service
suppliers. It is used to query a database or data warehouse to seek specific
answers for specific purposes. It is deployed via a main frame system,
client/server link, or via the web. Examples: computer-based databases that have a
query system to check (including the incorporation of data to add value to existing
databases.
 Document-driven DSS
Document-driven DSSs are more common, targeted at a broad base of user
groups. The purpose of such a DSS is to search web pages and find documents on
a specific set of keywords or search terms. The usual technology used to set up
such DSSs are via the web or a client/server system. Examples:
 Knowledge-driven DSS:
Knowledge-driven DSSs or 'knowledgebase' are they are known, are a catch-all
category covering a broad range of systems covering users within the organization
seting it up, but may also include others interacting with the organization - for
example, consumers of a business. It is essentially used to provide management
advice or to choose products/services. The typical deployment technology used to
set up such systems could be slient/server systems, the web, or software runnung
on stand-alone PCs.
 Model-driven DSS
Model-driven DSSs are complex systems that help analyse decisions or choose
between different options. These are used by managers and staff members of a
business, or people who interact with the organization, for a number of purposes
depending on how the model is set up - scheduling, decision analyses etc. These
DSSs can be deployed via software/hardware in stand-alone PCs, client/server
systems, or the web.

Advantages:
1) Time savings. For all categories of decision support systems, research has demonstrated and substantiated
reduced decision cycle time, increased employee productivity and more timely information for decision
making. The time savings that have been documented from using computerized decision support are often
substantial. Researchers have not however always demonstrated that decision quality remained the same or
actually improved.
2) Enhance effectiveness. A second category of advantage that has been widely discussed and examined is
improved decision making effectiveness and better decisions. Decision quality and decision making
effectiveness are however hard to document and measure. Most research has examined soft measures like
perceived decision quality rather than objective measures. For example, Hogue and Watson (1983) reported
the most important reason managers cited for using a DSS was to obtain accurate information. Studies of
model-driven DSS have examined this outcome more than research on other types of DSS (cf., Sharda, Barr,
and McDonnell, 1988). Advocates of building data warehouses identify the possibility of more and better
analyses that can improve decision making.

3) Improve interpersonal communication. DSS can improve communication and collaboration among decision
makers. In appropriate circumstances, communications-driven and group DSS have had this impact. Model-
driven DSS provide a means for sharing facts and assumptions. Data-driven DSS make "one version of the
truth" about company operations available to managers and hence can encourage fact-based decision
making. Improved data accessibility is often a major motivation for building a data-driven DSS. This
advantage has not been adequately demonstrated for most types of DSS.

4) Competitive advantage. Vendors frequently cite this advantage for business intelligence systems,
performance management systems, and web-based DSS. Although it is possible to gain a competitive
advantage from computerized decision support, this is not a likely outcome. Vendors routinely sell the same
product to competitors and even help with the installation. Organizations are most likely to gain this
advantage from novel, high risk, enterprise-wide, inward facing decision support systems. Measuring this is
and will continue to be difficult. For more discussion of this issue read Ask Dan! (Vol. 6, No. 17, July 31,
2005).

5) Cost reduction. Some research and especially case studies have documented DSS cost saving from labor
savings in making decisions and from lower infrastructure or technology costs. This is not always a goal of
building DSS.

6) Increase decision maker satisfaction. The novelty of using computers has and may continue to confound
analysis of this outcome. DSS may reduce frustrations of decision makers, create perceptions that better
information is being used and/or create perceptions that the individual is a "better" decision maker.
Satisfaction is a complex measure and often researchers measure satisfaction with the DSS rather than
satisfaction with using a DSS in decision making. Some studies have compared satisfaction with and without
computerized decision aids. Those studies suggest the complexity and "love/hate" tension of using computers
for decision support.

7) Promote learning. Learning can occur as a by-product of initial and ongoing use of a DSS. Two types of
learning seem to occur: learning of new concepts and the development of a better factual understanding of
the business and decision making environment. Some DSS serve as "de facto" training tools for new
employees. This potential advantage has not been adequately examined.

8) Increase organizational control. Data-driven DSS often make business transaction data available for
performance monitoring and ad hoc querying. Such systems can enhance management understanding of
business operations and managers perceive that this is useful. What is not always evident is the financial
benefit from increasingly detailed data. Regulations like Sarbanes-Oxley often dictate reporting
requirements and hence heavily influence the control information that is made available to managers. On a
more ominous note, some DSS provide summary data about decisions made, usage of the systems, and
recommendations of the system. Managers need to be very careful about how decision-related information is
collected and then used for organizational control purposes. If employees feel threatened or spied upon
when using a DSS, the benefits of the DSS can be reduced. More research is needed on these questions.

Disadvantages:
1) Overemphasize decision making. Clearly the focus of those of us interested in computerized decision
support is on decisions and decision making. Implementing DSS may reinforce the rational perspective and
overemphasize decision processes and decision making. It is important to educate managers about the
broader context of decision making and the social, political and emotional factors that impact organizational
success. It is especially important to continue examining when and under what circumstances DSS should be
built and used. We must continue to ask if the decision situation is appropriate for using any type of DSS and
if a specific DSS is or remains appropriate to use for making or informing a specific decision.

2) Assumption of relevance. According to Winograd and Flores (1986), "Once a computer system has been
installed it is difficult to avoid the assumption that the things it can deal with are the most relevant things
for the manager's concern." The danger is that once DSS become common in organizations, that managers
will use them inappropriately. There is limited evidence that this occurs. Again training is the only way to
avoid this potential problem.

3) Transfer of power. Building DSS, especially knowledge-driven DSS, may be perceived as transferring
decision authority to a software program. This is more a concern with decision automation systems (check
DecisionAutomation.com) than with DSS. I advocate building computerized decision support systems because
I want to improve decision making while keeping a human decision maker in the "decision loop". In general, I
value the "need for human discretion and innovation" in the decision making process.

4) Unanticipated effects. Implementing decision support technologies may have unanticipated consequences.
It is conceivable and it has been demonstrated that some DSS reduce the skill needed to perform a decision
task. Some DSS overload decision makers with information and actually reduce decision making
effectiveness. I'm sure other such unintended consequences have been documented. Nevertheless, most of
the examples seem correctable, avoidable or subject to remedy if and when they occur.

5) Obscuring responsibility. The computer doesn't make a "bad" decision, people do. Unfortunately some
people may deflect personal responsibility to a DSS. Managers need to be continually reminded that the
computerized decision support system is an intermediary between the people who built the system and the
people who use the system. The entire responsibility associated with making a decision using a DSS resides
with people who built and use the system.

6) False belief in objectivity. Managers who use DSS may or may not be more objective in their decision
making. Computer software can encourage more rational action, but managers can also use decision support
technologies to rationalize their actions. It is an overstatement to suggest that people using a DSS are more
objective and rational than managers who are not using computerized decision support.

7) Status reduction. Some managers argue using a DSS will diminish their status and force them to do clerical
work. This perceptual problem can be a disadvantage of implementing a DSS. Managers and IS staff who
advocate building and using computerized decision support need to deal with any status issues that may
arise. This perception may or should be less common now that computer usage is common and accepted in
organizations.

8) Information overload. Too much information is a major problem for people and many DSS increase the
information load. Although this can be a problem, DSS can help managers organize and use information. DSS
can actually reduce and manage the information load of a user. DSS developers need to try to measure the
information load created by the system and DSS users need to monitor their perceptions of how much
information they are receiving. The increasing ubiquity of handheld, wireless computing devices may
exacerbate this problem and disadvantage.

Classification
There are several ways to classify DSS applications. Not every DSS fits neatly into one category,
but may be a mix of two or more architectures.

Holsapple and Whinston[13] classify DSS into the following six frameworks: Text-oriented DSS,
Database-oriented DSS, Spreadsheet-oriented DSS, Solver-oriented DSS, Rule-oriented DSS,
and Compound DSS.
A compound DSS is the most popular classification for a DSS. It is a hybrid system that includes
two or more of the five basic structures described by Holsapple and Whinston[13].

The support given by DSS can be separated into three distinct, interrelated categories[14]:
Personal Support, Group Support, and Organizational Support.

DSS components may be classified as:

1. Inputs: Factors, numbers, and characteristics to analyze

2. User Knowledge and Expertise: Inputs requiring manual analysis by the user
3. Outputs: Transformed data from which DSS "decisions" are generated
4. Decisions: Results generated by the DSS based on user criteria

DSSs which perform selected cognitive decision-making functions and are based on artificial
intelligence or intelligent agents technologies are called Intelligent Decision Support Systems
(IDSS).[citation needed]

The nascent field of Decision engineering treats the decision itself as an engineered object, and
applies engineering principles such as Design and Quality assurance to an explicit representation
of the elements that make up a decision.