BUILDING DECISION SUPPORT SYSTEMS

Introduction
In this lesson we will discuss how to build a DSS. In this lesson, we learn about the components of
a DSS, issues to address when building a DSS, methodologies as well as software tools for building
a DSS.

DSS components
Traditionally, academics and practitioners have discussed building Decision Support Systems in
terms of four major components:
1. the user interface
2. the database
3. the software
4. the models analytical tools
This traditional list of components remains useful because it identifies similarities and differences
between categories or types of DSS and it can help managers and analysts build new DSS. The DSS
framework discussed earlier is based on the different emphases placed on DSS components when
systems are constructed.
Data-Driven, Document-Driven and Knowledge-Driven DSS need specialized database
components. A Model-Driven DSS may use a simple flat-file database with fewer than 1,000
records, but the model component is very important. Experience and some empirical evidence
indicate that design and implementation issues vary for Data-Driven, Document- Driven, Model-
Driven and Knowledge-Driven DSS. Multi-participant systems like Group and Inter- Organizational
DSS also create complex implementation issues. For instance, when implementing a Data-Driven
DSS a designer should be especially concerned about the user's interest in applying the DSS in
unanticipated or novel situations.

In creating an accounting or financial DSS simulation model, a developer should attempt to verify
that the initial input estimates for the model are thoughtful and reasonable. In developing a
representational or optimization model, the analyst should be concerned about possible
misunderstandings of what the model means and how it can or cannot be used. Today architecture
and networking issues are increasingly important in building DSS. DSS should be built or
implemented using an appropriate process.

Many small, specialized Model-Driven DSS are built quickly. Large, Enterprise-Wide DSS are built
using sophisticated tools and systematic and structured systems analysis and development
approaches. Communications-Driven and Group DSS are often purchased as off-the-shelf software.
Creating Enterprise-Wide DSS environments remains an iterative and evolutionary task. An
Enterprise Wide DSS grows and inevitably becomes a major part of the overall information systems
infrastructure of an organization. Despite the significant differences created by the specific task and
scope of a DSS, all DSS have similar technical components and share a common purpose,
supporting decision-making.

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A Data-Driven DSS database is often a collection of current and historical structured data from
many of sources that have been organized for easy access and analysis. We expand the data
component to include unstructured documents in Document-Driven DSS and "knowledge" in the
form of rules in Knowledge-Driven DSS.

Large databases of structured data in Enterprise-Wide DSS are often called data warehouses or data
marts. DSS usually use data that has been extracted from all relevant internal and external databases.
Managing information often means managing a database. Supporting management decision making
means that computerized tools are used to make sense of the structured data or documents in a
database.

Mathematical and analytical models are the major component of a Model-Driven DSS. DSS models
should be used and manipulated directly by managers and staff specialists. Each Model- Driven
DSS has a specific set of purposes and hence different models are needed and used. Choosing
appropriate models is a key design issue. Also, the software used for creating specific models needs
to manage needed data and the user interface.

In Model-Driven DSS the values of key variables or parameters are changed, often repeatedly, to
reflect potential changes in supply, production, the economy, sales, the marketplace, costs, and/or
other environmental and internal factors. Information from the models is then analyzed and
evaluated by the decision-maker. The DSS architecture and networking design component refers
to how hardware is organized, how software and data are distributed in the system, and how
components of the system are integrated and connected. A major issue today is whether DSS should
be available using a Web browser on a company intranet and also available on the Global Internet.
Managers and MIS staff both need to develop an understanding of the technical issues and the
security issues related to DSS architectures, networks and the Internet. Networking is the key
driver of Communications- Driven DSS.
Managers and DSS analysts both need to emphasize the user interface component. In many ways,
the user interface is the most important component. The tools for building the user interface are
sometimes termed DSS generators, query and reporting tools, and front-end development packages.
Much of the design and development effort should focus on building the user interface. We need to
remember that the screens and displays in the user interface heavily influence how a manager
perceives a DSS.

Issues to be addressed when building a DSS

An effective DSS provides you with unbiased data analysis, real time monitoring and rich
reporting, supporting you make an informed decision in the least possible time span. A
meticulously designed DSS makes use of analytical models, various statistical and econometric
tools and of course, human intelligence and insights to support decision making.

This proves the importance of technology, methodology and approach behind designing and
development of a decision support system. As a decision maker, you need to be extremely careful
in selecting the DSS technology and developmental methodology. You need to get the basics
right, in order to get a reliable tool to support diverse information and decision-making needs.
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Because designing and development of a decision support system is a complex process, you may
face a number of issues, such as:

a) Mismatch between the perspectives of the programmer and decision maker

Decision makers, on one hand, have very little knowledge about what it takes to design and develop
a decision support system. On the other hand, a programmer or developer may not have a fair idea
of how complex business decision making has become in today’s highly turbulent times.

Technology selection may seem puzzling and ambiguous to decision maker while the preferences,
needs and expectations of a decision maker may not fit the process of system design and
development. This mismatch between perspectives leads to complexities. But at the same time,
this increases the likelihood of creation of an effective and apt DSS.

b) Identification of specific requirements

Most of the times, even decision makers have no clue about what to expect from a decision support
system. This is especially the case when managers need a tool to aid in resolving ill-structured or
unstructured problems. It is easy to decide what functionality a DSS must possess when problems
are routine and structured. Managers can seek help from their team members and conduct
brainstorming sessions, in order to chart out the functions and benefits of a decision support system.

c) Technology selection

In today’s highly competitive business environment, you need an interactive and responsive
decision support system that maximizes your performance. In such a scenario, the selection of
technology plays a crucial role. However, it’s not always necessary to use the latest version of a
particular platform. It completely depends on the objectives you wish to achieve. However, a DSS
development company may push you for the latest technology, which will certainly add to your
expenses. The rule of thumb is to ask for price quotes from different companies.

d) Approach to software design and development

As said earlier, there is no standard approach or methodology to design the best decision support
system. There are three main approaches to system design and development:

the traditional system development life cycle (SDLC) approach;

rapid prototyping and
end-user approach.

You may want to choose a methodology that ensures that the final product accomplishes your
objectives. But each approach has its pros and cons, making it difficult to choose the best one.

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Solving DSS Design Issues
Most of these issues can be resolved by:

 Identifying clear agendas

 Brainstorming with team members
 Communicating the expectations clearly to the programmers
 Educating yourself about various technologies used in DSS development
 Trying to reach at a common platform with the developers

DSS development methodologies

We need to secure the right DSS developmental methodology by using a pre-design diagnosis of a
decision-making process and feasibility study of a DSS concept. This will help us gain clarity.

Diagnosis and feasibility testing are two different processes but are intertwined. Depending upon
how decisions are made in an organization, a programmer carries out the feasibility testing of the
idea on which a DSS is to be developed.

Diagnosis of a Decision-Making Process

A diagnostic study of decision making process in an organization helps gain clarity on:

 Problem identification process

 Data collection techniques
 How decisions are made
 Who all are involved in decision making
 Norms pertaining to decision making in an organization

The study involves:

 Defining the types of decisions

 Charting out the formal decision making process basis observation
 Identifying the primary role of decision maker
 Interviewing decision makers
 Assessing the effectiveness of data collection techniques
 Evaluating the performance of decision making process
 Need for computerized aid to support these decisions
 Identifying what needs to be improved
 Determining what will remain unchanged

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Feasibility Study
Testing the decisional, economical and technological feasibility of a proposed decision support
system succeeds the diagnostic study of a decision making process. The feasibility study aims to:

 Uncover viability or achievability of a proposed DSS
 Discover the target users of a proposed decision support system software
 Identify opportunities and threats to a proposed DSS
 Determine if a proposed DSS with desired features falls within the budget of the organization
 Determine the technologies that can possible be used to develop a DSS
 Measure how well a proposed DSS will be able to solve problems
 Identify time available to build the system
 Uncover the amount of resources required to build the system
 Identify the limitations and risks associated with the proposed system

Both decision maker and programmer attain clarity on whether to go ahead with the system
development or not, once these factors are assessed.

Choosing a System Development Approach

Choosing a system development approach is an underlying issue. This is because there is no single
methodology that can be termed as ‘best’. What development approach you choose depends upon
the results of feasibility study and a mutual agreement between decision maker and programmer.

However, you will need to choose a developmental approach only when you decide to make a
custom decision support system. If you decide to buy a packaged solution, you simply consult the
expert, choose a suitable software system and implement it. It is less expensive than making a
support system.

But if you’re not convinced with the functionality of a packaged solution, it’s ideal to make it and
equip with all the functions and features that you need. Here are three approaches to system
development that you may want to learn about:

a) SDLC - System Development Life Cycle Approach

The formal SDLC is a sequential process which begins with identifying the system objectives
(needs of end users) and goes through various stages, including

 System analysis (technical components required)

 System design (architecture)
 Coding (programming)
 Testing (errors and bug fixing)

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 Implementation (execution in the organization)
 Use (end users employing DSS)
 Evaluation (verification of functions and capabilities)
 Modification (adjustments required)

It’s the most commonly used and most rigid system development approach. In complex situations,
it becomes difficult to use this approach, as the requirements of users are constantly changing. It
doesn’t promote recurring development and testing.

b) Rapid Prototyping Approach

As the name suggests, rapid prototyping is a method that promotes faster system development.
Moreover, it’s combined effort of decision maker and analyst. A DSS analyst works closely with a
decision maker, to chart out specific requirements. Though a decision maker uses general terms, the
analyst uses DMS (database management system) to support rapid development of the application.

Rapid prototyping goes through:

 Identifying objectives/ user requirements

 Developing the first model
 Evaluating the first model, identifying adjustments required and modification
 Testing the developed DSS. Go back to evaluation and modification, if needed
 Implementing

As the communication lines are always open, evaluation and modification happen at a rapid
pace. This is why it’s considered a better approach than SDLC in complex situations.

c) End-User DSS Development Approach

End-user DSS development approach promotes the designing and development of a software system
depending upon the specific or individual needs of a decision maker. It’s like customizing your
laptop. As managers make extensive use of various applications, they may want a system that
integrates all the functions that they need.

The plus side of this approach is that a decision maker makes his DSS on his own. The negative
side is that he or she may end up choosing the inappropriate software. Moreover, they may make
mistakes unknowingly when developing a decision support system because of the lack of
technical expertise. This approach is very rarely used.

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DSS Project Management
Project management is an additional overhead. It’s a common belief. No one understands the
importance of project management until they get punched in their face. The entire process,
beginning from DSS conceptualization, development and implementation needs to be closely
overseen, in order to:

 Reduce chaos
 Manage risk
 Supervise project development
 Administer quality
 Manage smooth integration of newly developed DSS with business processes
 Identify training requirements of staff
 Manage change

Projects are chaotic in nature. And when technology is involved, chaos quadruples. The process
becomes further complex when ‘change’ is included. Generally, employees resist change. They
fear technology. As a business, you must hire a DSS project manager, in order to carry out the
whole process as smoothly and hassle-free as possible.

DSS Project Participation

A decision support system development is a comprehensive project that requires diverse skills and
capabilities. Therefore, it’s essential to bring together the right talent from the fields of technology,
management, finance, project management, analytics and potential users and ensure active
participation of team members.

Remember you can’t ride on the expertise of programmers alone. It’s a combined effort and
requires active participation of everyone involved in project development. The team typically
includes sponsor, financial executives, DSS analyst, programmer, technical support professional
and decision-maker/end-user.

Software tools for building a DSS

There are a number proprietary and open source software tools for building a DSS:
SAP BusinessObjects: This application will help you optimize business performance by
connecting people, information and businesses across business networks.
QlikView: This application enables analysis capabilities along with unparalled flexibility,
performance and simplicity.
TIBCO Spotfire: This is a data visualization and analytics software that will help you
quickly uncover insights for better decision-making.
Powernoodle: This is a cloud software that helps organizations make better decisions by
leveraging stakeholder intelligence.

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 Paramount Decisions: This software provides a structured approach for making and
communicating complex decisions.
Analytica: This is a powerful, stand-alone application for visual quantitative modelling,
leading to greater insight for analysts and decision makers.
OpTEAMize: This software automates the selection and quoting IT projects by
aggregating information about cost, capacity and capability of the business.
Datawatch Desktop: This software will extract data from all types of existing reports,
customize, analyze and visualize data in a variety of views.
CART: This software is used to create an easy to use decision tree that automatically sifts
large, complex databases for significant patterns and relationships.
Decision Explorer: This software helps you make a comprehensive qualitative model
which can be analyzed to help develop a strategy, decision making and business problems.

Summary

In this lesson, we have learnt about the four components of a DSS namely the user interface, the
database, the model and DSS architecture. We have also learnt about the issues to be addressed
when building the DSS. We also looked at methodologies for developing a DSS e.g. SDLC, Rapid
Prototyping Approach, end-user DSS development approach. Finally, we discussed about
software tools we can use to develop a DSS.