Chapter -10

Decision Support Systems (DSS)

10.1 Introduction to Decision Support Systems (DSS)

A Decision Support System (DSS) is a collection of integrated software applications and
hardware that form the backbone of an organizations decision making process. Companies
across all industries rely on decision support tools, techniques, and models to help them assess
and resolve everyday business questions. The decision support system is data-driven, as the
entire process feeds off of the collection and availability of data to analyze. Business Intelligence
(BI) reporting tools, processes, and methodologies are key components to any decision support
system and provide end users with rich reporting, monitoring, and data analysis.

10.1 Information, Decision and management

High-level Decision Support System Requirements:

Data collection from multiple sources (sales data, inventory data, supplier data, market
research data. etc.)
Data formatting and collation
A suitable database location and format built for decision support -based reporting and
analysis
Robust tools and applications to report, monitor, and analyze the data

Decision support systems have become critical and ubiquitous across all types of business. In
todays global marketplace, it is imperative that companies respond quickly to market changes.
Companies with comprehensive decision support systems have a significant competitive
advantage.

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10.2 What are the levels of Management Decision Making? Explain with figure.
The levels of management decision making that must be supported by information technology
in a successful organization (independently of its size, shape, and participants), are often shown
as a managerial pyramid.
Strategic management: As part of strategic planning process top executives

develop overall organizational goals, strategies, policies, and

monitor the strategic performance of the organization and its overall direction in the political,
economic, and competitive business environment

Tactical management: Business unit managers and business professionals in self-directed teams

develop short- and medium-range plans, schedules, budgets and specify policies, procedures,
and business objectives for their sub-units of the company, and
allocate resources and monitor the performance of their organizational sub-units, including
departments, divisions, process teams, project teams, and other workgroups.

Operational management: Operating managers and members of self-directed teams

develop short-range plans (e.g. weekly production schedules), and

direct the use of resources and the performance of tasks according to procedures and within
budgets and schedules they establish for the teams and other workgroups of the organization.

Basically, MIS discuses how a person will complete the business activities effectively by using
Computer, Internet, E-commerce, and Mobile technology in the business world. Moreover MIS
helps the executives, CEO, and Chairman of companies to know the detailed information so
easily about their business organization. These systems will be user friendly, easy access to
analysis of business performance, actions of competitors and economic development to support
strategic planning.
In management hierarchy, MIS department belongs to Midlevel (Tactical Management);
Chairperson, MD, and Board of Directors (BOD) in the Upper level (Strategic Management) and
Sales persons, Data entry operators, Medical Promotion Officers (MPO) and so on are in the
Lower level (Operational Management). The MIS Manager at an organization is responsible for
Information Systems and must focus on the software development, uses, and problem solving
relating to these databases and networks. This occupation is a part of the MIS department that a
company will use to ensure the security and efficiency of its data storage and retrieval. While the
focus of this job is report generation for top level management, the manager might be required to
perform specialized duties depending upon company size and industry requirements.

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Fig 10.2

Decision makers need information products whose characteristics, attributes or quality are
having the three dimensions of time dimension, content dimension, and form dimension.

10.3 What is Decision Support Systems (DSS)? Write different types of DSS
tools with figure and example.
Decision Support Systems (DSS) is a Computer based interactive information systems. DSS are
a specific class of computer-based information systems that support your decision-making
activities. Decision Support Systems analyzes business data and provide interactive information
support to managers and business professionals during the decision-making process, from
problem recognition to implementing your decision. Decision Support Systems use (1)
Analytical models, (2) specialized databases, (3) a decision makers own insights and judgments,
and (4) an interactive, computer-based modeling process to support semi-structured business
decisions.

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A key component to any DSS is Business Intelligence reporting tools, processes, and
methodologies. These provide you with rich reporting, monitoring, and data analysis, which are
necessary for effective and fast decision-making.

10.4 Write different tools of Decision Support Systems (DSS).

What-if analysis
What-if analysis is the process of changing the values in cells to see how those changes will affect
the outcome of formulas on the worksheet. Three kinds of what-if analysis tools come with Excel:
scenarios, data tables, and Goal Seek. Scenarios and data tables take sets of input values and
determine possible results. A data table works only with one or two variables, but it can accept many
different values for those variables. A scenario can have multiple variables, but it can accommodate
only up to 32 values. Goal Seek works differently from scenarios and data tables in that it takes a
result and determines possible input values that produce that result.
In addition to these three tools, you can install add-ins that help you perform what-if analysis, such
as the Solver add-in. The Solver add-in is similar to Goal Seek, but it can accommodate more
variables. You can also create forecasts by using the fill handle and various commands that are built
into Excel. For more advanced models, you can use the Analysis Pack add-in.

Goal seeking analysis

In computing, goal seeking is the ability to calculate backward to obtain an input that would result in a
given output. This can also be called what-if analysis or back-solving. It can either be attempted
through trial and improvement or more logical means. Basic goal seeking functionality is built into
most modern spreadsheet packages such as Microsoft Excel.

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According to O'Brien and Marakas, optimization analysis is a more complex extension of goalseeking analysis. Instead of setting a specific target value for a variable, the goal is to find the
optimum value for one or more target variables, given certain constraints. Then one or more other
variables are changed repeatedly, subject to the specified constraints, until you discover the best
values for the target variables.

Optimization analysis
Optimization analysis automates the search for the optimum design. SimulationXpress allows you to vary
one design variable to find the optimal solution for one criterion. SolidWorks Simulation has additional
optimization capabilities.
The Manual Process

In searching for the optimum design, you will need to manually try different geometry configurations,
dimensions, materials, loads, and fixtures. Each time you make a change, you must rerun the analysis
and examine the results.

The Automated Process

Optimization analysis automates the manual procedure for a particular configuration. Trends
are detected quickly and the optimum solution is identified in the fewest number of test
runs. Optimization analysis requires the following input:

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