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Decision Support Systems

The document discusses decision support systems (DSS), which are intended to help managers in decision-making by providing access to large volumes of information. There are two types of decisions: structured decisions that follow routines or rules, and unstructured decisions that occur in new situations without clear rules. DSS generally involve unstructured decisions, so they have no set report format and generate reports dynamically. DSS have characteristics like supporting individuals and groups in semi-structured problems at various levels of the organization. The benefits of DSS include improving efficiency, control, and future decision-making capabilities of an organization.
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0% found this document useful (0 votes)
42 views21 pages

Decision Support Systems

The document discusses decision support systems (DSS), which are intended to help managers in decision-making by providing access to large volumes of information. There are two types of decisions: structured decisions that follow routines or rules, and unstructured decisions that occur in new situations without clear rules. DSS generally involve unstructured decisions, so they have no set report format and generate reports dynamically. DSS have characteristics like supporting individuals and groups in semi-structured problems at various levels of the organization. The benefits of DSS include improving efficiency, control, and future decision-making capabilities of an organization.
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Decision Support

Systems
Name
Title
Company Name

Let us agree on DSS concept


Decision Support Systems

accessing large
volumes of
information

intended to help
managers in decisionmaking

interactive
software

Programmed and Nonprogrammed Decisions


2 types of decisions we confront
Structured
Unstructured

Structured Decisions
decisions are basically automated
processes, general routine work
These decisions have been taken several
times.
These decisions follow some guidelines
or rules.

Unstructured Decisions
decisions occur in unusual and nonaddressed situations
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.

Where DSS is involved


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.

Bar Chart Example


5
4
3
2
1
0

Series 1
Series 2
Series 3

Pie Chart Example


Chart Title
10% 9%
23%

59%

1st Qtr
2nd
Qtr
3rd Qtr

Line Chart Example


6
5
4
3
2
1
0

Series
Series
Series
Series

1
2
3
4

Area Chart Example


14
12
10
8
6
4
2
0

Series
3
Series
2

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.

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

Database Management
System (DBMS)

Model Management
System

Support Tools

Classification
of DSS

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 selfcontained 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.

Types of DSS

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.

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