Decision Support System

Vikram B. Thadeshvar Rohan Tamrkar Pune

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What is a DSS?
A Decision Support System (DSS) is an interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions. It is a general term for any computer application that enhances a person or groups ability to make decisions.

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Process

Mainframes

Operational Systems

Online Analytical Systems

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Changing Business Needs

ACTION

Business Need

WHY WHAT

Prediction Forecast

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Complexity

Challenges before tax administrators

Readily access and analyze the tax information Effectively and accurately identify the area of non-compliance Better understand the taxpayers Formulate better legislative policies Achieve higher degree of accuracy in revenue forecast Optimize the operational cost
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Typical analysis a Decision Maker may perform

Compare the revenue collected and balance due for the past 5 years
by Business Type Evaluate the effectiveness of audit programs in identifying non-filers and by Tax Type under reporters by Tax Period by tax period by Location by location by its distribution across thetype by business various Trends in the collected and due amounts in the various Payment Plans at income groups of the taxpayers various stages and defaulters by the payment plan type by the tax period by the income group Evaluate the effectiveness of external data in identifyingthe tax type by by non-filers

showing the number of such taxpayers Evaluate the productivity of various departments in the years
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by tax period by location handling cases by business type

over

Tax Collection
Analyze the trends in tax revenue for revenue enhancement
Evaluate uncollected tax revenue

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Problems in Transactional Applications

Designed for real-time data entry and editing Data maintained is constantly changing

Limited historical data is available for on-line comparisons

Running Decision Support queries degrades the performance of the Transactional Application Complexity in achieving Comparisons, Aggregations, Rankings, Running totals etc.

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Tax DSS Architecture

Indv. / Corp. Tax App.

Source

Un-employment Tax App.

A Data Warehouse is a subject-oriented, integrated, Data Validation time variant and non-volatile Data Migration collection of data in support of Data Scrubbing managements decision-making process.

Withholding Tax App.

A/R System

Data Extraction, Scrubbing and Transformation

Tax Data Data A Data-Mart contains a subset of the data Transformation Warehouse available in an enterprise-wide data warehouse. LAN Data Mining is Data Warehouse Mart Discovering meaningful new correlations, Patterns and trends Meta Cube Using Pattern recognition technologies, Tax Statistical and mathematical techniques Compliance
Data

WAN Internet

Internal Data Sources

External Sources Is a process to assist decision making by using tools to facilitate the analysis

On-Line Analytical Processing (OLAP)

of multi-dimensionally structured business information. External Data Sources

Data Warehouse vikramthadeshvar@hotmail.com

OLAP tools EIS Query & Reporting Statistical Analysis Data Mining

Decision Support Methodology (DSM)

Structured Interviews Decision Analysis Scoping of Prototype Data Analysis Project Evaluation Criteria Technical Analysis Detailed Design Conceptual DSS Orientation System Construction Plans & Prioritization Testing Functional Demonstration Orientation

Decision Support Analysis

DSS Software Evaluation & Selection

Operational Training Evaluation Deployment

Prototype Development
Operational Deployment and Support
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Maintenance

Common Subject Areas

These Subject Areas can be viewed w.r.t to various common perspectives
Business Type Location (States, City) Taxpayer (Demographic) Tax Type Tax Period (Year, Quarter, Months) Time (Year, Months, Events, Seasons)

Taxpayer Profiling Tax Collection

Fraud Detection & Tax Non-compliance Legislative Change Impact Revenue Forecasting
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Tata Infotech for Tax DSS

Understand DSS Technology Tax DSS Methodology Expertise in the Area Superior Solution Large pool of resources Make Things Happen
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Revenue Forecasting
Ability to formulate reasonable fiscal policies Incorporate the historical revenue trends and other governing estimate variables Provide the highest degree of accuracy in revenue forecasting Use of econometric models to improve the accuracy of forecasts

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Advantages
Tangible Benefits Improvement in non-compliance will increase tax revenue More cost effective decisions are enabled Better business intelligence is enabled Enhanced taxpayer Services

Intangible Benefits Improved productivity Reduced redundant processing and support

Ability to focus on business processes through complete analysis

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Conclusion

Tax DSS holds great potential for dramatic business benefits Capitalizes on the potential value of the organizations information

Provide decision makers access to consistent, reliable and timely data Still much more to explore and enhance

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Thank You

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