What is a DSS ?

 is an Information System that Supports Business or

Organizational Decision-Making Activities.
 is a computer program application that analyzes business data
and presents it so that users can make business decisions more
easily.
 is a Computer-Based Application (Software Program) that
Collects, Organizes, and Analyzes Business Data to Facilitate
Quality Business Decision-Making for Management, Operations,
and Planning
 Management Support Systems (MSS)

 are Specific type of Information System (IS) that consists of many parts:
 Decision Support Systems (DSS),
 Group Decision Support Systems (GDSS/GSS),
 Expert Systems (ES) and,
 Executive Information Systems (EIS/ESS).

 DSS can be either Fully Computerized or Human Powered, or a

Combination of both
 So, DSS is an Interactive Computer-based System 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.

 Geographic Information Systems (GIS),

 Enterprise Information Systems (EIS),
 Expert Systems (ES),
 On-line Analytical Processing (OLAP),
 Software Agents,
 Knowledge Discovery Systems
 and Group Decision Support Systems (GDSS)
 can all be grouped into the Category of Systems we call as
DSS.
 Characteristics of DSS

 A decision support system is an internal business element

that provides owners, executives, and other employees with
information for making informed decisions.
 Common characteristics of decision support systems
include facilitation, interaction, task-oriented activities
and ancillary within the system.
A. Facilitation

 Facilitation helps ensure the system provides the correct data

and information for upcoming decisions.
 A decision process typically defines the individual activities
one must use when making decisions.
 The support system facilitates information through each
individual activity so that the decision maker does not spend
too much time gathering data.
 Multiple individuals can also use the support system to pass
information through the pipeline in order to shorten the lead
time spent on making decisions.
B. Interaction

 DSS are computer-based systems designed for interactive use

by decision makers or staff users who control the sequence of
interaction and the operations performed.
 Many of these systems in current businesses make extensive
use of technology, primarily personal computers and decision-
making software.
 When multiple individuals are able to access the software and
input information for the decision-making process, interaction
occurs.
 C. Task-oriented activities

 This element means that the support system can handle more
than one activity at a time, which is essential.
 Many companies provide inputs for multiple outcomes related
to one or a few different decisions. Therefore, the multiple tasks
in the system must be able to handle all this information.
 The choice among the various alternatives here can represent
the decision one must make for a company.c
D. Ancillary
• Ancillary: DSS can support decision makers at any
level in an organization.
• They are NOT intended to replace decision makers.
 Benefits of DSS Use
 Increases the speed and efficiency of decision-making activities. It
is possible as a DSS can collect and analyze real-time data.
 Increases the control, competitiveness, and capability of
futuristic decision-making of the organization.
 Improves interpersonal communication within the organization.
 Promotes learning or training within the organization, as
specific skills must be developed to implement and run a DSS within an
organization.
 Helps automate managerial processes.
 Support for decision-makers in semi-structured and
unstructured problems
 Support for managers at various managerial levels.
 Limitations (Disadvantages) of DSS Use
 The cost to develop and implement a DSS is a huge capital investment, which
makes it less accessible to smaller organizations.
 A company can develop a dependence on a DSS, as it is integrated into daily decision-
making processes to improve efficiency and speed. However, Managers tend to rely
on the system too much, which takes away the subjectivity aspect of
decision-making.
 A DSS may lead to information overload because an information system tends to
consider all aspects of a problem. It creates a dilemma for end-users, as they are
left with multiple choices.
 Implementation of a DSS can cause fear and backlash from lower level
employees. Many of them are not comfortable with new technology and
are afraid of losing their jobs to technology
 Types of Decision Support Systems
 Decision Support Systems can be broken down into categories, each
based on their primary sources of information.
1. Data-driven Dss.
2. Model-driven Dss.
3. Communication-driven And Group Dss.
4. Knowledge-driven Dss.
5. Document-driven Dss.
6. Web-based Dss.
 1. Data-driven Dss

 A Data-Driven DSS is a Computer Program that makes decisions

based on Data from internal or external databases.

 Typically, a Data-Driven DSS uses data mining techniques to

discern trends and patterns, enabling it to predict future events.

 Businesses often use Data-Driven DSS to help make decisions

about inventory, sales and other business processes.

2. Model-Driven DSS

• A Model-Driven DSS is customized according

to a predefined set of user requirements to help
analyze different scenarios that meet these
requirements.
• For example, a Model-Driven DSS may assist
with scheduling or developing financial
statements.
 3. Communication-Driven
 A Communication-Driven and Group DSS (GDSS) uses a
variety of Communication Tools - such as email, instant messaging
or voice chat - to allow more than one person to work on the
same task.
 The goal behind this type of DSS is to increase collaboration
between the users and the system and to improve the overall
efficiency and effectiveness of the system.
 4. Knowledge-Driven DSS
 A Knowledge-Driven DSS provides information to users that
is consistent with a company's business processes and
knowledge.
 Where, the data that drives the system resides in a knowledge base that
is continuously updated and maintained by Knowledge
Management System
 5.Document-Driven DSS
 A Document-Driven DSS is a type of Information Management
System that uses documents to retrieve data.
 Document-Driven DSS enable users to search webpages or
databases or find specific search terms. \
 Examples of documents accessed by a Document-Driven DSS include
policies and procedures, meeting minutes and corporate records.
6. Web-Based DSS

• Web-Based DSS is considered the most sophisticated

decision support system that extends its capabilities
by making use of world wide web and internet.
• The evolution continues with advancement in
internet technology.
 Basic Components of DSS
Typical Decision support systems has four components: data
management, model management, knowledge management and
user interface management. As shown in Figure.
1. Data Management Component

 The data management component performs the function of

storing and maintaining the information that you want your
Decision Support System to use.
 The data management component, therefore, consists of both
the Decision Support System information and the Decision
Support System database management system.
 The information you use in your Decision Support System
comes from one or more of three sources:
1. Organizational information
2. External information
3. Personal information
2. Model Management Component

 The model management component consists of both the

Decision Support System models and the Decision Support
System model management system.
 A model is a representation of some event, fact, or situation. As
it is not always practical, or wise, to experiment with reality,
people build models and use them for experimentation.
 Businesses use models to represent variables and their
relationships.
Examples

 Example 1. You would use a statistical model called analysis of

variance to determine whether newspaper, TV, and billboard
advertising are equally effective in increasing sales.

 Example 2. You would use what-if analysis to see what effect

the change of one or more variables will have on other
variables, or optimization to find the most profitable solution
given operating restrictions and limited resources.
3. User Interface or Dialogue Management Component

 The user interface management component allows you to

communicate with the Decision Support System.
 This is the component that allows you to combine your know-
how with the storage and processing capabilities of the
computer.
 The user interface is the part of the system you see through it
when enter information, commands, and models.
 If you have a Decision Support System with a poorly designed
user interface, if it is too rigid or too cumbersome to use, you
simply won’t use it no matter what its capabilities.
 The best user interface uses your terminology and methods and
is flexible, consistent, simple, and adaptable.
 Example

 Lands’ End uses a statistical model called regression analysis

to determine trends in customer buying patterns and
forecasting models to predict sales levels.
 User interface management: A user interface enables Lands’
End decision makers to access information and to specify the
models they want to use to create the information they need.
4. Knowledge Management Component

 The knowledge management component, like that in an expert

system, provides information about the relationship among data
that is too complex for a database to represent.
 It consists of rules that can constrain possible solution as well
as alternative solutions and methods for evaluating them.
 Decision Support System Examples
 Decision Support Systems are used in a broad array of
industries. Example uses include:
 GPS Route Planning.
 Crop Planning.
 Clinical DSS.
 ERP Dashboards
 GPS Route Planning: A DSS can be used to plan the fastest and best
routes between two points by analyzing the available options. These
Systems often include the capability to monitor traffic in real-time to
route around congestion.
 Crop Planning: Farmers use DSS to help them determine the best
time to plant, fertilize, and reap their crops. Bayer Crop Science has
applied analytics and decision-support to every element of its business,
including the creation of “virtual factories” to perform “what-if ” analyses
at its corn manufacturing sites.
 Clinical DSS: These Systems help clinicians diagnose their patients.
Penn Medicine has created a clinical DSS that helps it get Intensive Care
Unit (ICU) patients off ventilators faster.
 ERP Dashboards: These Systems help managers to monitor
performance indicators. Digital marketing and services firm Clear-link
uses a DSS System to help its managers to pinpoint which agents need
extra help.