CONCEPT OF DECISION

SUPPORT SYSTEMS
Presented by,
INDU
 Definition
• Scott Morton first articulated major
concepts of DSS
• He defined DSS as “interactive
computer-based systems, which help
decision-makers utilize data and
models to solve unstructured
problems”
 Definition
• Decision support system couple the
intellectual resources of individuals with
the capabilities of the computer to improve
the quality of decisions.
• It is a computer-based support system for
management decision makers who deal
with semi structured problems.
 Definition
• DSS encompasses the following in an
organization
– A knowledge management system to guide
personnel through problem solving
– A separate DSS for marketing, finance and
accounting
– A supply chain management (SCM) system
for production
– Expert systems for product repair and
diagnosis and help desks
 Why Use a DSS?
• Companies work in an unstable and
rapidly changing economy
• There are difficulties in tracking the
numerous business operations
• Competition has increased
• Electronic commerce
• Existing systems do not support decision-
making
 Why Use a DSS?
• The Information systems department is too
busy and cannot address all management
inquiries
• Special analysis of profitability and
efficiency is needed
• Accurate information is needed
• DSS is viewed as an organizational winner
• New information is added
 Why Use a DSS?
• Management mandates a DSS
• Higher decision quality
• Improved communication
• Improved customer and employee
satisfaction
• Timely information is provided
• Cost reduction is achieved
 Characteristics of DSS
• Support for decision-makers, mainly in
semi structured and unstructured
problems
• Support for all managerial levels
• Support for individuals as well as to
groups
• Support for interdependent and sequential
decisions
 Characteristics of DSS
• Support in phases of the decision-making
process
• Adaptivity over time
• Aims to support and not to replace the
decision-maker
 Components of DSS
• Data-management subsystem
– Includes a database that contains relevant
data for the situation and is managed by a
software called DBMS.
– Can be inter connected with corporate data
warehouse
– Data are stored or accessed via a database
Web server
• Model management subsystem
– Software package
– Includes financial, statistical, management
science, or other quantitative models that
provide the system’s analytical capabilities
and appropriate software management
– Also called model based management system
(MBMS)
– Also connected to corporate or external
storage of models
– Implemented in Web development systems to
run on application servers
• User interface subsystem
– Used by user to command and communicate
with the DSS
– Web browser provides a familiar, consistent
GUI structure for most DSS
• Knowledge-based management
subsystem
– Can support any of the other subsystems
– Act as an independent component also
– Provides intelligence to augment decision-
maker’s own
– Interconnected with organizational KB
• The components form DSS application
system
• Connected to the corporate intranet, to an
extranet, or to the internet
• Components communicate via internet
• Web browsers provide the user interface
 Schematic View of DSS
Other Internet,
Data: computer-based Intranets,
External systems extranets
And
Internal
Data Model External
management management models

Knowledge-based
subsystems

User
interface

Organizational
Manager [user]
KB
 Data Management
Subsystem Internal data
sources
External data
sources Finance Marketing Production Personnel Others

Private
Organizational KB Extraction personal
data
Decision
Support Corporate
Query
database data
facility
warehouse
Database
Management Interface
System management
Data •Retrieval Model
directory •Inquiry management
•Update
•Report generation Knowledge-based
•Delete
subsystem
 Data Management Subsystem
• Composed of
– DSS database
– Database management system
– Data directory
– Query facility
 Database
• Collection of interrelated data organized to meet
the needs and structure of the organization and
can be used by more than one person for more
than one application.
• Data are ported from the data warehouse
through a database Web server
• Data are extracted from internal and external
data sources, as well as from personal data
belonging to one or more users.
 Database
• Internal data – come mainly from the
organization’s transaction processing system.
Made available over intranet.
• External data – include industry data, marketing
research data, census data, regional
employment data, government regulation. Made
available over internet.
• Private data – include guidelines used by
specific decision-makers and assessments of
specific data or situations.
 Extraction
• To create a DSS database or a data warehouse,
it is often necessary to capture data from several
sources. This operation is called extraction.
• Consists of importing of files, summarization,
standardization filtration, and condensation of
data.
• It also occurs when the user produces reports
from data in the DSS database.
• Managed by DBMS.
Database Management System
• A database is created, accessed and
updated by DBMS.
• It supports many managerial activities like
general navigation among records,
support for creating and maintaining a
diverse set of data relationships, and
report generation.
 The Query Facility
• It performs the task of accessing,
manipulating and querying data.
• It accepts requests for data from other
DSS components, determines how the
requests can be filled, formulates the
detailed requests, and returns the results
to the issuer of the request.
• Includes use of a special query language
(e.g., SQL)
 The Directory
• The data directory is a catalog of all the
data in the database.
• It contains data definitions.
• Its main function is to answer questions
about the availability of data items, their
source and their exact meaning.
• Supports decision-making process by
helping to scan data and identify problem
areas and opportunities.
Model Management Subsystem
• Compose of
– Model base
– Model base management system
– Modeling language
– Model directory
– Model execution, integration, and command
processor.
Model Management Subsystem

Models (Model Base)

Model
•Strategic, tactical, operational Directory
•Statical, financial, marketing
•Model building blocks

Model Base Management

Modeling commands : creation
Maintenance : update
Model execution,
Database interface
integration, and
Modeling language
Command processor

Data Interface Knowledge-based

management management subsystem
 Model Base
• A model base contains routine and special
statistical, financial, forecasting, management
science, and other quantitative models that
provide the analysis capabilities in a DSS.
• The models in the model base are divided into:
– Strategic
– Tactical
– Operational
– Analytical
• Also there are model building blocks and
routines.
• Strategic models
– Used to support top management’s strategic
planning responsibilities.
• Tactical models
– Used mainly by middle management to assist
in allocating and controlling the organization’s
resources.
• Operational models
– Used to support the day-to-day working
activities of the organization.
• Analytical models
– Used to perform some analysis on the data.
 Model Base Management System
• Model creation using programming
languages (C++, Java) , DSS tools and
subroutines (OLAP)
• Generation of new routines and reports
• Model updating and changing
• Model data manipulation
 Model Directory
• Similar to database directory
• It is a catalog of all the models and other
software in the model base
• Contains model definitions
• Main function is to answer questions about
the availability and capability of the models
 Model Execution, Integration, and
Command
• Model execution – Process of controlling the
actual running of the model
• Model integration – Combining the operations of
several models when needed
• Model command processor – Used to accept
and interpret modeling instructions from the user
interface component and route them to MBMS
model execution, or integration functions
• These activities are controlled by MBMS
 User Interface Subsystem
• Covers all aspects of communication
between a user and DSS
• Includes not only the hardware and
software, but also factors that deal with
ease of use, accessibility, and human -
machine interactions
• It is the only part of the system that the
user sees
 User Interface System
Data Management Knowledge-based Model Management
And DBMS subsystem And MBMS

User Interface
Management System
(UIMS)

Natural language
processor

Input Output
PC
Action Language Display Language
display

Printers, Plotters

Users
User Interface Management System (UIMS)
• It manages the user interface subsystem
• Also called dialog generation and management
system
User Interface Process
• The user interacts with the computer via and
action language processed by UIMS.
• Provides a GUI
• Supports input and output devices
• Provides interactions with model base &
database
 Knowledge Management
Subsystem
• Supplies the required expertise for solving
some aspects of the problem and provide
knowledge that can enhance the operation
of other DSS components.
• Consist one or more intelligent systems
and such a system is called intelligent
DSS, or knowledge-based DSS.
 The User
• The person faced with the decision that a
DSS is designated to support is called the
user, the manager, or the decision –
maker.
• The user can be an individual or a group.
• The user provides the human intellect –
provides expertise in guiding the
development and use of a DSS
 The User
• Two broad classes of users
– Managers
– Staff specialists
• Managers expect systems to be user-friendly
• Staff specialists tend to be more detail-oriented.
• Intermediary – allows the manager to benefit
from the DSS without actually having to use it.
– Staff assistants
– Expert tool users
– Business (system) analysts
– Facilitators in a group support system