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Presented by Group 4:

Sanchari Satyajit Satyabrata Sayam Sameer Seba

Decision refers to a choice that individuals and group make among two or more alternatives. Decision making is a systematic process composed of three major phases: intelligence, design and choice (Simon 1977).

Strategic Tactical Operational High

Strategic-level managers involved with long-term decisions


Operational-level managers involved with daily decisions

Low Decision Frequency

TYPES OF DECISIONS
Structured Decisions : Often called programmed decisions because they are routines There are specific policies, procedures, or actions that can be identified to help make the decision

Unstructured Decisions :-

Non-programmed decisions, relevant for solving unique/unusual problems in which various alternatives cannot be decided in advance. Novel and non-recurring and therefore readymade solutions are not available.

Semi-structured Decisions:-

These decisions are partially programmable, but still requires human judgment.

DECISION MAKING AT VARIOUS MANAGEMENT LEVEL

What is a Decision Support System (DSS) ? Computer-based information systems that provide interactive information support during the decision-making process

A DSS is an interactive, flexible, and adaptable BIS, specially developed for supporting the solution of a management problem for improved decision making.

It utilizes data, it provides easy user interface, and it allows for the decision makers own insights

Components of DSS
There are three fundamental components of DSS :
DATA BASE MANAGEMENT SYSTEM (DBMS) Provides organised collection of data for analysis MODEL BASED MANAGEMENT SYSTEM (MBMS) Provides decision makers with access to a variety of models and assists them in decision making Financial Model, Statistical Model, etc. DIALOG GENERATION & MANAGEMENT SYSTEM (DGMS) Allows decision makers to easily access and manipulate the DSS
MBMS DBMS

DGMS

DSS User

Processing Model for DSS


DATA IN-HOUSE PROPRIETARY DATABASE KNOWLEDGE DATABASE

DSS
FINANCIAL STATISTICAL ECONOMICAL
MODEL BASE

EXTERNAL AND INTERNAL ENVIRONMENT

Processing by Manager, using knowledge, Experience

QUALITY DECISION

Benefits of DSS
Improves personal efficiency Speed up the process of decision making Increases organizational control Encourages exploration and discovery on the part of the decision maker Creates a competitive advantage over competition

Helps automate managerial processes


Create Innovative ideas to speed up the performance

Disadvantages of DSS
Monetary cost. The DSS requires investing in information system to collect data from many sources and analyse them to support the decision making. So huge cost is involved in hiring the specialists to setup these systems. Transfer of power. Building DSS, especially knowledge-driven DSS, may be perceived as transferring decision authority to a software program. Unanticipated effects. Implementing decision support technologies may have unanticipated consequences. Some DSS overload decision makers with information and actually reduce decision making effectiveness.

Conclusion No doubt DSS helps us in effective and efficient decision making. But before investing in the Decision Support System, a firm must compare the advantages and disadvantages of the decision support system to get valuable investment.