DECISION SUPPORT

SYSTEM
Prepared by:
Diana Rose Balictar

What is DSS?
Decision Support System
is a computer-based information system
that supports business or organizational
decision-making activities.
is an interactive software-based system
intended to help decision makers compile
useful information from a combination of
raw data, documents, and personal
knowledge, or business models to identify
and solve problems and make decisions.

What is DSS?
provides tool to manager to assist
them in solving semi- structured and
unstructured problems in their own.
is an information system that
support to managers for decision
making.

A brief History?
Academic Researchers from many disciplines has
been studying DSS for approximately 40 years.
According to Keen and Scott Morton (1978), the
concept of decision support has evolved from
two main areas of research: the theoretical
studies of organizational decision making done
at the Carnegie Institute of Technology during
the late 1950s and early1960s, and the technical
work on interactive computer systems, mainly
carried out at the Massachusetts Institute of
Technology in the 1960s.

A brief History..
It is considered that the concept of DSS
became an area of research of its own in
the middle of the 1970s, before gaining in
intensity during the 1980s.
In the middle and late 1980s, Executive
Information Systems (EIS), group decision
support
systems
(GDSS),
and
organizational decision support systems
(ODSS) evolved from the single user and
model-oriented DSS.

EVOLUTION OF DSS
CONCEPTS
1960S
MIS & Structured
Reports

1970S
Brand Aid

1980S

1990S

Keyboard

Data
Warehouse

Interactive System MDS

Research

EIS

OLAP

Theory
Development

Expert Systems

Data Mining

RDBMS

TYPES OF DSS
1. MODEL- DRIVEN DSS
. includes system that use
accounting, financial models, and
representational models.
2. DATA DRIVEN DSS
. file drawer & management
reporting system, data warehousing,
geographical information.

TYPES OF DSS
3. KNOWLEDGE DRIVEN DSS
are computer systems with
specialized problem solving
expertise.
4. DOCUMENT DRIVEN DSS
is evolving to help manager
retrieves & manage unstructured
document.

TYPES OF DSS
5. COMMUNICATION DRIVEN GROUP DSS
includes communication, collaboration

and DSS technologies that do not fit

within those DSS type hybrid.
6. INTRA ORGANIZATIONAL DRIVEN DSS
are design for use by individuals to a
company as standalone DSS or use
group of managers in a company.

TYPES OF DSS
7. INTER ORGANIZATION DRIVEN DSS
provide stakeholders with access to a
companys intranet and authority or
privileges to use specific DSS capabilities.
8. FUNCTIONS OR SPECIFIC ON

GENERAL PURPOSE
help a person to accomplish specific
decision task.
help support broad task like project
management, decision analysis and
business planning.

TYPES OF DSS
9. WEB BASED DSS
is a computerized system that
delivers
decision
support
information or decision support
tools to a manager or business
analyst using their client web
browser like internet explorer and
mozilla firefox.

CHARACTERS AND CAPABILITIES OF DSS

1. Provide support in semi- structured and
unstructured solutions, includes human
judgement and computerized
information.
2. Support for various managerial levels.
3. Support to individuals and group.
4. Support to interdependent and/or
sequential decisions.
5. Support all phases of the decisionmaking process.

CHARACTERS AND CAPABILITIES OF

DSS
6. Support a variety of decision making
process of styles.
7. Are Adaptive
8. Have user friendly interfaces.
9. Goal improve effectives of decision
making.
10. The decision maker controls the
decision making process.
11. End users can build simple
systems.

CHARACTERS AND CAPABILITIES OF

DSS

12. Utilizers models for analysis.

13. Provides access to a variety of
data sources format and types.
14. Can be employed as a
standalone tool used by an
individual decision maker in one
location in distributed throughout
an organization and in several
organizations along supply chain.

OBJECTIVES OF DSS:
1. Create allows the decision makers to
make or create a much better or
consistent decision in a timely manner.
2. Helps a single person on group or
group to come up with a decision.
3. Inter dependent
4. Decision making has its own
phrases that should be followed step
by step procedure.

OBJECTIVES OF DSS:
5. Data warehousing.
6. Can easily adopt to the different
changes.
7. Can easily be understand on the
sequences of the DSS.
8. Computer proficiency.
9. Improve the decisions for lesser
mistakes.
10. Decision maker can be individual
or group.

OBJECTIVES OF DSS:
11. End users can create a simple
system for himself even if or a
manual system.
12. Can use the models to analyze
decisions.
13. All the information in any
types of decision can be provided.
14. Either a standalone of webbased format can be used.

ALTERNATIVES OF DSS
NEEDS OF DSS: DSS have become
necessary for todays manager
because of the following reason:
1. FAST COMPUTATION
. A decision maker can perform a
large number of computation very
quickly and that too at a low cost
with the help of computer support
system.

ALTERNATIVES OF DSS
2. ENHANCED PRODUCTIVITY
Decision support system can
enhance the productivity of support
staff and also enable the group
members to disclose the problems
among themselves as distance.
3. BETTER DECISION
Computer support system can help a
decision maker in arriving at a better
decision.

ALTERNATIVES OF DSS
4. DATA TRANSMISSION
Sometimes the data, which may
be stored at different locations,
may be required to be
transmitted quickly from distant
locations. Computer support
system can be search, stored
and transmitted the required
data quickly and economically.

ROLE OF DSS IN BUSINESS

DSS is computer based information for management
decision maker who deal with the semi- structure
problems. DSS play an important role in business, it
performs various activities. The role of DSS is
explained as follows:
1. WHAT IF ANALYSIS
. this is the process of accessing the impart of
variables. This helps manager to be proactive rather
that reactive in their decision making. This analysis
is critical for semi- structured and unstructured
problem because the data necessary to make such
decision are not available.

ROLE OF DSS IN BUSINESS

2. GOAL ORIENTED
it is a process of determining
the input values required to
achieve a certain goal.
3. RISK ANALYSIS
risk is the important factor
which affects the business
enterprise. DSS allows manages
to the risk associate with various

ROLE OF DSS IN BUSINESS

4. MODEL BUILDING
DSS allows decision maker to
identify the most appropriate model
for solving the problems.
5. GRAPHICAL ANLYSIS
this help managers to quick digest
large volumes of data and visualize
the impacts of various because
courses of action.

ROLE OF DSS IN BUSINESS

They recommends the use of graph
when:
a. Seeking quick summary of data
b. Forecasting activities
c. Detecting trends over time
d. Composing points and patterns at
different variables

STEPS IN CONSTRUCTNG DSS

1. IDENTIFICATION OF THE PROBLEM
. in this stage the developer and the knowledge
engineer interact to identify problems. The
following points are discussed:
a. The scope and intent are analyzed.
b. The return of investment analysis is done.
c. The amount of resources needed is identified.
d. Areas in the problems that can give much trouble
are identified and conceptual solution of the
problem is found.
e. Overall specification is made.

STEPS IN CONSTRUCTNG
DSS
2. DEVELOPMENT OF PROTOTYPE
before the development of a prototype we
decide the knowledge level to solve the
particular problem. For this we adopted some
methods in sequence . After this the taste of
knowledge of Engineer and developer which
interact frequently and domain specific
knowledge is entrance. When knowledge
representation scheme and knowledge is
available a prototype is constructed.

STEPS IN CONSTRUCTNG
DSS
3. DECISION ABOUT MODE OF DEVELOPMENT
once the problem is identified, the
immediate step would be to decide about
the vehicle for development. He can
develop shell for development by any
programming language. In this stage,
various shell and tools are identified and
analyzed for their suitability. These tools
whose features fit the characteristic of the
problem are analyzed in details.

STEPS IN CONSTRUCTNG
DSS
4. PROTOTYPE VALIDATION
the prototype under goes the process of
testing for various problems and revision of
the prototype takes place. It is very
important step of DSS.
5. PLANNING FOR FULL SCALE SYSTEM
in prototype construction, the area in the
problem that can be implemented with
negative case is first choice intensive
planning is done.

STEPS IN CONSTRUCTNG
DSS
6.FINAL
IMPLEMENTATION,
MAINTENANCE AND EVALUATION
This is the final stage of DSS Life
Cycle. The full scale system
developed is implemented at the
basic resources requirement are
fulfilled and parallel conversion.

GROUP DECISION SUPPORT SYSTEM

(GDSS)
is a decision support system that
facilitates decision making by a team
of decision markers working as a
group.
is an interactive computer based
system that facilitates solution of
unstructured problem by a set of
decision makers by working together
as a group.

GROUP DECISION SUPPORT SYTEM

a GDSS is a DSS that facilitates
decision making by a team of
decision maker working as a group.
a GDSS is an interactive computer
based system that facilitates solution
of unstructured problem by a set of
decision makers working together as
a group.

CHARACTERISTICS OF GDSS
The goal of GDSSs is to improve the
productivity of decision-making meetings,
either by speeding up the decision-making
process or by improving the quality of the
resulting decisions, or both. This is
accomplished by providing support for the
exchange
of
ideas,
opinions,
and
preferences within the group.
1.
Supporting
parallel
processing
of
information
and
idea
generation
by
participants.
2. Enabling larger groups with more

CHARACTERISTICS OF GDSS
3.Permitting the group to use structured or
unstructured techniques and methods of
arriving at decisions.
4. Offering rapid and easy access to external
information.
5. Allowing nonsequential computer discussion.
(Unlike oral discussions, computer discussions
do not have to be serial or sequential.)
6. Producing instant, anonymous voting results.

CHARACTERISTICS OF GDSS
7. Providing structure to the planning
process, which keeps the group on
track.
8. Enabling several users to interact
simultaneously.
9.
Automatically
recording
all
information that passes through the
system for future analysis (it develops
organization memory

CHARACTERISTICS OF GDSS
7. Providing structure to the planning
process, which keeps the group on track.
8. Enabling several users to interact
simultaneously.
9. Automatically recording all information
that passes through the system for future
analysis (it develops organization memory.)
10. A GDSS is specially designed
information system .

CHARACTERISTICS OF GDSS
11. A GDSS is easy to learn and to use.
12. A GDSS is designed with the goal
of supporting group of decision makers
in their work.
13. The GDSS is designed to
encourage activities such as idea
generation, conflict resolution and
freedom of expression.

TYPES OF GDSS
1. DECISION NETWORK
. this type helps the participants to
communicate each other through network
or through a central database. Application
software may used commonly shared
models to provide support. The common
implementation using local area network
and microcomputer. The technology filters
out many group dynamics of participative
meeting.

TYPES OF GDSS
2. DECISION ROOM
Participants are located at one place
i.e. the decision room. The purpose
of this is to enhance participants
interaction and decision making by
computerized within a fixed period of
time using a facilitators.

TYPES OF GDSS
3. TELE CONFERENCING
groups are composed of numbers or
groups that are geographically
disordered teleconferencing provides
interactive connection within two or
more decision rooms. This interaction
will
involved
transmission
of
computerized
audio
visual
information.

ADVANTAGES OF GDSS
1.
2.
3.
4.
5.

Take better decision.

To solve the problem.
To minimize the risks.
To collect the amount of information.
To improve interactive
communication.
6. Improve the decision making
process.
7. To make coordination in various

ADVANTAGES OF GDSS
1. TAKE BETTER DECISION
.through the GDSS we can take
better decision because under GDSS,
the decision are taken by group.
2. TO SOLVE THE PROBLEM
.
GDSS
provides
solution
to
unstructured
problems.
GDSS
collects various types of information
at various sources.

ADVANTAGES OF GDSS
3. TO MINIMIZE THE RISK
GDSS allows managers to assess the risks
associated with various alternatives. This
helps managers to be proactive rather than
reactive.
4. TO COLLECT THE AMOUNT OF INFORMATION
GDSS collect information at various sources
for decision making. This information
minimizes the risk.

ADVANTAGES OF GDSS
5. TO PROVIDE INTERACTIVE COMMUNICATION
GDSS provide interactive information. It takes
better decision through the interactive
communication.
6. TO IMPROVE THE DECISION MAKING PROCESS
GDSS improve the decision making process
because GDSS is a goal-oriented when the
GDSS is designed, the goal is considered.

ADVANTAGES SOF GDSS

7. TO MAKE COORDINATION IN
VARIOUS ACTIVITIES

GDSS decision are taken by a

group GDSS. The work is divided
into different parts then each
DSS performs own work.

DISADVANTAGES OF GDSS
1. More chances for clash of opinions
are there.
2. Very large group bring work
complex.
Application and Uses of Group Decision
Support System:
3. For meeting
4. Marketing

DISADVANTAGES OF GDSS
3. Banking Sector
4. Stock Exchange/foreign market
5. Brainstorming
6. Maintaining records
7. Assessing the judgement task
8. Office automation
9. Documentation
10. Engineering firms

COMPONENTS OF GDSS
1. HARDWARE
. it includes single PC and keypads, a decision
room distributed GDSS audio visual aids,
network equipment, etc.
2.SOFTWARE
. GDSS software includes modules to support the
individual, the group, the process and scientific
tasks. The software allows each individual o do
private work, the usual collection of text and file
creation, graphics, spread sheets and DBMS.

COMPONENTS OF GDSS
4. PROCEDURE
it enables ease of operation and
effective use of the technology
by group members.
5. PEOPLE
users and stakeholders