Decision Support Sys

Decision Support Systems
Decision Support Systems

Presentation overview
• What are Decision Support Systems?

• Why Decision Support Systems?
• Benefits of a DSS
• Components of DSS
• Examples of DSS
Decision Support Systems:
• Interactive computer-based systems

• Support decision-making activities
• Aid users interpret raw data in a useful format
• Special class of Information System
• Typically used for strategic and tactical decisions
facing upper management.
• Developed for decisions that occur infrequently
and carry high potential consequences
Decision Support System
• The essential flow of information in a DSS.
Useful Information
Raw Data
Decision makers
Decision Support Software
Why Decision Support Systems?
• Data is easily stored and retrieved.

• Prioritize decisions.
• Anticipate upcoming decisions.
• Remember and evaluate past decisions.
• Provide consistency to decision making.
• Combines the expertise of human and
computer decision making.
Humans and Decision Making
• Usually based on intuition rather than complete

rational processing.
• Humans interpret identical data differently.
• Use both quantitative and qualitative information.
• Emotions play a role in decision making.
• Flexible and adaptable.
• Vary greatly based on levels of expertise.
Computers and Decision Making
• Quickly sort, filter, and process large quantities
of data.
• Logical and predictable.
• Ability to incorporate vast amount of inputs
when making complex decisions.
• Favor quantifiable variables.
• Users need to be trained to use them.
• Inflexible
Making Better Decisions
• Combine strengths of human and computer

decision making.
• DSS’s support, not replace, managers.
• Increase decision effectiveness not
necessarily decision efficiency.
Varying degrees of Automation
Low level
Decision Support Systems can be used for:
of Automation
• Data retrieval and storage.
• Report creation.
• Estimate decision consequences.
• Propose decisions.
• Make decisions.
High level
of Automation
Benefits of computer-aided decision making
• Computers are capable of incorporating more data
when computing decisions.
• Becomes more effective over time.
• Automation of non-risk decisions enables
managers to dedicate more time to complex
decisions.
• Complex decisions are made using human
intuition as a well as automated optimization.
Anticipatory Management
Competitive advantages with Decision Support Systems
• Scan and monitor competitors

• Track industry trends
• Forecast duration, direction, acceleration, and
amplitude of trends or signals
• Conduct vulnerability audits
• Prioritize issues
• Evaluate relative performance
• Provide strategic recommendations
Situations were DSS can be used:
• Inventory control • Business cycle control

• Sales forecasting • Performance evaluation
• Cost-benefit analysis • Value analysis
• Problem diagnosis • Target marketing
• Option prioritization • Supply Chain integration
• Customer tracking
• Resource allocation
• Knowledge management
What about your organization?
• What decisions do you make?
• Can routine decisions benefit from more
automation?
• Are there large amounts of raw data stored that are
impossible to sort through?
• What information will help you make more
effective decisions?
• Can some decisions be completely automated?
Components of a DSS
Three fundamental components
• Database management system (DBMS)

• Model-base management system (MBMS)
• Dialog generation and management
system (DGMS)
Database management system DBMS
• Data storage
• User access
• Organizes data into types
• Provides logical data structure
• Lets user know the type of data that is available
Model-base management system MBMS
• Transforms data from DBMS into useful

information
• Prepare information for decision making
Extract raw data

Raw Data Useful Information
DBMS MBMS
Dialog generation and management system DGMS
• User interface for DSS

• How users extract desired information from
DSS.
How DSS’s are being used
Health care-- Diagnosing patients
Automotive– Emissions testing

How DSS’s are being used
Agriculture-- Crop yield
Airline– Flight scheduling

Examples of Decision Support Systems
• OutlookSoft • ERGO
• webFocus • ERGOV
• SYBASE • TESS
Conclusions
• Decision Support Systems can help all types
of organizations.
• DSS’s use the advantages of computers and
humans in decision making.
• DSS’s should be customized to fit the
specific needs of your organization.

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Decision Support Systems

Decision Support Systems

• What are Decision Support Systems?

• Interactive computer-based systems

• The essential flow of information in a DSS.

• Data is easily stored and retrieved.

• Usually based on intuition rather than complete

• Combine strengths of human and computer

• Scan and monitor competitors

• Inventory control • Business cycle control

• Database management system (DBMS)

• Transforms data from DBMS into useful

Extract raw data

• User interface for DSS

Health care-- Diagnosing patients

Automotive– Emissions testing

Agriculture-- Crop yield

Airline– Flight scheduling

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