CHAPTER 4

Decision Support Systems:

An Overview

Jonathan S. Dela Cruz 1

Decision Support Systems

● Decision Support Methodology

● Technology Components
● Development

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Decision Support Systems:
An Overview

● Capabilities
● Structure
● Classifications

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 DSS Configurations
● Supports individuals and teams
● Used repeatedly and constantly
● Two major components: data and models
● Web-based
● Uses subjective, personal, and objective data
● Has a simulation model
● Used in public and private sectors
● Has what-if capabilities
● Uses quantitative and qualitative models

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Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition
Copyright 2001, Prentice Hall, Upper Saddle River, NJ
 DSS Definitions
● Little (1970)
“model-based set of procedures for processing
data and judgments to assist a manager in his
decision making”
Assumption: that the system is computer-based
and extends the user’s capabilities.

● Alter (1980)
Contrasts DSS with traditional EDP systems
(Table 3.1)

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● Moore and Chang (1980)
1. Extendible systems
2. Capable of supporting ad hoc data analysis and
decision modeling
3. Oriented toward future planning
4. Used at irregular, unplanned intervals

● Bonczek et al. (1980)

A computer-based system consisting of
1. A language system -- communication between the user
and DSS components
2. A knowledge system
3. A problem-processing system--the link between the
other two components

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● Keen (1980)
DSS apply “to situations where a ‘final’ system can
be developed only through an adaptive process of
learning and evolution”

● Central Issue in DSS

support and improvement of decision making

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 Working Definition of DSS
● A DSS is an interactive, flexible, and adaptable CBIS,
specially developed for supporting the solution of a
non-structured management problem for improved
decision making. It utilizes data, it provides easy user
interface, and it allows for the decision maker’s own
insights

● DSS may utilize models, is built by an interactive

process (frequently by end-users), supports all the
phases of the decision making, and may include a
knowledge component

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 Characteristics and Capabilities of
DSS (Figure 3.1)
1. Provide support in semi-structured and unstructured
situations, includes human judgment and
computerized information
2. Support for various managerial levels
3. Support to individuals and groups
4. Support to interdependent and/or sequential decisions
5. Support all phases of the decision-making process
6. Support a variety of decision-making processes and
styles
(more)

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7. Are adaptive
8. Have user friendly interfaces
9. Goal: improve effectiveness of decision making
10. The decision maker controls the decision-making
process
11. End-users can build simple systems
12. Utilizes models for analysis
13. Provides access to a variety of data sources,
formats, and types

Decision makers can make better, more consistent

decisions in a timely manner

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 DSS Components
1. Data Management Subsystem
2. Model Management Subsystem
3. Knowledge-based (Management) Subsystem
4. User Interface Subsystem
5. The User

(Figure 3.2)

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 DSS Components
User

User Interface
KBS
1

DBMS MBM
S
KBS KBS
2 3

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The Data Management Subsystem

● DSS database
● Database management system
● Data directory
● Query facility
(Figure 3.3)

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 DSS Database Issues
● Data warehouse
● Data mining
● Special independent DSS databases
● Extraction of data from internal, external, and private
sources
● Web browser data access
● Web database servers
● Multimedia databases
● Special GSS databases (like Lotus Notes / Domino
Server)
● Online Analytical Processing (OLAP)
● Object-oriented databases
● Commercial database management systems (DBMS)

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 The Model Management
Subsystem

● Analog of the database management subsystem

(Figure 3.4)

● Model base
● Model base management system
● Modeling language
● Model directory
● Model execution, integration, and command
processor

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 Model Management Issues

● Model level: Strategic, managerial (tactical), and

operational

● Modeling languages

● Lack of standard MBMS activities. WHY?

● Use of AI and fuzzy logic in MBMS

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 The Knowledge Based
(Management) Subsystem

● Provides expertise in solving complex

unstructured and semi-structured problems
● Expertise provided by an expert system or other
intelligent system
● Advanced DSS have a knowledge based
(management) component
● Leads to intelligent DSS
● Example: Data mining

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 The User Interface (Dialog)
Subsystem
● Includes all communication between a user and
the MSS
● Graphical user interfaces (GUI)
● Voice recognition and speech synthesis possible

● To most users, the user interface is the system

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 The User

Different usage patterns for the user, the

manager, or the decision maker

● Managers
● Staff specialists
● Intermediaries
1. Staff assistant
2. Expert tool user
3. Business (system) analyst
4. GSS Facilitator

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 DSS Hardware
Evolved with computer hardware and
software technologies

Major Hardware Options

● Mainframe
● Workstation
● Personal computer
● Web server system
– Internet
– Intranets
– Extranets

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 Distinguishing DSS from
Management Science and MIS

● DSS is a problem-solving tool and is

frequently used to address ad hoc and
unexpected problems
● Different than MIS
● DSS evolve as they develop

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 DSS Classifications
Alter’s Output Classification (1980)
● Degree of action implication of system outputs
(supporting decision) (Table 3.3)

● Holsapple and Whinston’s Classification

1. Text-oriented DSS
2. Database-oriented DSS
3. Spreadsheet-oriented DSS
4. Solver-oriented DSS
5. Rule-oriented DSS
6. Compound DSS

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 Intelligent DSS Categories

● Descriptive
● Procedural
● Reasoning
● Linguistic
● Presentation
● Assimilative

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 Alternate Categories of
Intelligent DSS
● Symbiotic
● Expert-system based
● Adaptive
● Holistic

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 Other Classifications

Institutional DSS vs. Ad Hoc DSS

● Institutional DSS deals with decisions of a recurring

nature
● Ad Hoc DSS deals with specific problems that are
usually neither anticipated nor recurring

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 Other Classifications (cont’d.)

● Degree of nonprocedurality (Bonczek et al., 1980)

● Personal, group, and organizational support

(Hackathorn and Keen, 1981)

● Individual versus group support systems (GSS)

● Custom-made versus ready-made systems

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 Summary

● Fundamentals of DSS

● Components of DSS

● Major capabilities of the DSS components

● Major DSS categories

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