DECISSION SUPPORT SYSTEM

DECISION
 Making decisions concerning complex
systems often strains our cognitive
capabilities.

 Predicting how the system will react

to an external manipulation such as a
policy decision is often difficult.
DECISSION MAKING PROCESS

CHOICE INTELLIGENCE

DESIGN
PROCESS VIEW OF DECISION MAKING
Decision support system
•Decision Support Systems (DSS) are a specific class
of computerized information system that supports
business and organizational decision-making
activities .

•A properly designed DSS is an interactive software-

based system intended to help decision makers
compile useful information from raw data,
documents, personal knowledge, and/or business
models to identify and solve problems and make
decisions.
WHY DSS
 Because decision-making involves a complex
sequence of activities over time, it implies
there are at least three functions that should
be assigned to DSSs:

1) The capability of capturing and saving

information from previous activities;

2) Data processing capability;

3) Data retrieval capability.

COMPONENTS OF DSS
 There are three fundamental
components of DSS :

 DATA BASE MANAGEMENT SYSTEM (DBMS)

 MODEL BASED MANAGEMENT SYSTEM (MBMS)

 DIALOG GENERATION &MANAGEMENT SYSTEM

(DGMS)
THE ARCHITECTURE OF DSS
Types of DSS
 DS systems can be separated into seven broad
categories, each aiding decision making by
different methods:

 DATA DRIVEN DSS.

 MODEL-DRIVEN DSS.
 KNOWLEDGE DRIVEN DSS.
 DOCUMENT DRIVEN DSS.
 Communication Driven DSS.
 INTER & INTRA-ORGANIZATIONAL DSS.
 NEW BREED OF DSS
 PROCESING MODEL FOR DSS

DATA

IN-HOUSE KNOWLEDGE
PROPRIETARY DATABASE
DATABASE

DSS
PROCESSING MODELS EXTERNAL AND
FINANCIAL INTERNAL
ACOUNTING ENVIRONMENT
ECONOMICAL

PROCESSING BY MANAGER, USING KNOWLEDGE,

EXPERIENCE AND INTUITION

QUALITY DECISION
NEW BREEDS OF DSS
 HYBRID SYSTEM
Eg.-WEB BASED DSS

 On-line Analytical Processing (OLAP)

MANAGEMENT REQUIREMENT
OF DSS
 ALLOCATING RESOURCES
 PREPARING BUDGETS
 OBSERVATION OF RESULTS
 EVALUATION OF RESULT
 MODIFICATION OF ACTIVITES AND
RESOURCES
Intangible payoffs DSS
 Improved internal control.

 Enhances long term profitability by

improving quality of decision making.

 Faster response to changes in

business environment .
Cont ….
 Better management awareness of
internal strength and weaknesses and
external threats and opportunities.

 Allows managers’ to record

experience and use it in future for
similar scenarios that may arise
within the organization.