DECISION SUPPORT SYSTEMS

CONTENTS
1.
2.
3.
4.

Definition
Components of decision support systems (DSS)
Software tools for DSS application developments
Advantages and possible drawbacks of DSS usage

Decision support systems (DSS) are computer programs that

provide information in a given domain of application by means of
analytical decision models and access to databases,
in order to support a decision maker in making decisions effectively in
complex and ill-structured tasks.
well-structured problems: routine and repetitive
ill-structured problems: no known and clear methods of obtaining
solution

 Characteristics of ill-structured problems:

the preferences, judgements, intuition and experience of the
decision maker are essential
the search for a solution implies a mixture of:
search for information
formalisation (problem definition and structuring)
computation
data manipulation
the sequence of the above operations is not known in advance:
it can be function of data
it can be modified
it can be a function of the user preferences
criteria for the decision are numerous, in conflict, and
dependent on the perception of the user
the solution must be achieved in limited time
the problems evolves rapidly
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Characteristics and Capabilities of DSS

Provide support in semi-structured and unstructured situatio

Support to individuals and groups
Support all phases of the decision-making process
Are adaptive
Have user friendly interfaces
Goal is to improve the effectiveness of decision making
The decision maker controls the decision-making process
End-users can build simple systems
Utilizes models for analysis
Provides access to a variety of data sources, formats, and ty

Decision makers can make better, more consistent decision

a timely manner.
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Components of DSS

 Data management subsystem includes the database, which contains

relevant data for the situation and is managed by software called
the database management system (DBMS).
Model management subsystem includes financial, statistical, management
science, or other models and usually contains a modelling language
for building custom models. It is managed by software called
the model base management system (MBMS).
Knowledge management subsystem provides intelligence to augment the
operations of the other DSS components.
User interface subsystem enables the user to communicate with
the DSS.

1. Data Management Subsystem

 Database - a collection of interrelated data organised to meet

the needs and structure of an organisation
Data warehouse - combines various data sources into a single resource
Internal data
transaction information systems
Intranet - internal web-based system
External data
Internet
Private data
Extraction - to capture data from several sources
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Database Management System (DBMS)

Solves two problems:
centralisation, coordination, and diffusion of information
logical independence between data and DSS application
Functions of the DBMS:
Data definition
describes the data entities and their relationships
Data manipulation
updates data records and files (adds records, deletes, modifies)
Data integrity
integrity constraints - rules to maintain the integrity of the database
Control of access rights
subsets of data must be used only by authorised persons

Functions of the DBMS (continued):

Concurrency control
users may access the same information in the database at the same time
Transaction recovery
to restart the system when the hardware failure has been corrected
Retrieves data from the database for queries and reports
Captures/extracts data for inclusion in a DSS database
Interrelates data from different sources
Tracks data use within the DSS
Manages data through a data dictionary
catalogue of all the data in database

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2. Model Management Subsystem

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 Model base contains routine and special statistical, financial, forecasting,

management science and other quantitative models.
Four major categories:
Strategic models
support top-management's strategic planning responsibilities
Managerial (tactical) models
assist in allocating and controlling the organisational resources
Operational models
supports the day-to-day activities of the organisation
Model Building Blocks and Routines
random number generator routine
regression analysis
Other classifications:
by functional areas
by discipline

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Types of models

Deterministic
no variable can take
more than one value at
the same time
Static
a model which does not
take time explicitely into
account
Linear

Stochastic
at least one variable is
uncertain and described
by a probability function
Dynamic
deals with time-lagging
interactions between
variables
Non-linear

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Model Base Management System (MBMS)

MBMS: capabilities similar to that of DBMS
But, there are no comprehensive model base management packages.
Each organization uses models somewhat differently.
There are many model classes.
Functions of the MBMS:
Create models
Manipulation of the models (experiments, sensitivity analysis, etc.)
Uses multiple models to support problem solving
Maintains the model base (stores, retrieves and manages
different types of models)
Accesses and integrates the model building blocks
Model directory
catalogue of all the modules in the model base
Interrelates models with the database and integrates them
within the DSS
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Modelling languages

3. Knowledge Management Subsystem

Terms: intelligent DSS, knowledge-based DSS, DSS/ES
Provides expertise for solving some aspects of the problem and
provides knowledge that can enhance the operation of other
DSS components.
support the steps of the decision process unaddressed by mathematics
help user to build, apply and manage libraries of models
integrate methods to handle uncertainty

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4. User Interface Subsystem

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 Covers all aspects of communication between a user and the DSS.

User Interface Management Subsystem (UIMS)
Functions of the UIMS:
Provides graphical user interface
Provides interactions with the database and the model base
Store input and output data
Display forms to input data needed to solve the problem
Display and print reports
Obtain the decision criteria
Help him/her select between alternatives
Store the decision and monitor it
Gives users help capabilities
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Software Tools for DSS Applications Developments

1. General programming languages
require time and competence to learn
do not provide subsystems
difficult for the application to evolve
Appropriate if:
the DSS application does not evolve too much
performance is crucial
there is no severe time constraint on implementation delay

2. Spreadsheets
do not provide a satisfactory readability of decision models
do not provide a way to represent easily complex data structure
evolution of the application is difficult due to the non-separation between
data management, models, forms and reports
Good for simple personal applications!
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3. DSS generator

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 Database management systems (DBMS)

provides a link to the database using SQL
Modelling subsystems
a modelling language
a library of algorithms for solving the problems modelled by
decision models
an interface to manage the model base

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 Report definition and management

a language to manage the report base
a graphical interface to define reports
Form definition and management
test the input data (type, value taken in an interval, etc.)
a language to manage the form base
an interface to manage the form base
Graphics
curves, barcharts, piecharts, Gantt charts, etc.
Library of useful algorithms
statistical and/or management science models
statistical analysis
short-term forecasting
operational research methods

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 Communication between users

e-mail
PC-based video-conferencing
Exchange of data in a distributed environment
to support decision process involving several persons

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Advantages of DSS generators

designed for end-users or domain specialist
provide the resources for application development
allow development of complex applications

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Improvements Expected from DSS Usage

greater effectiveness of decision making
improved efficiency
better communication among decision makers
improving the learning process of users

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Possible Drawbacks of DSS Usage

1. Tendency to overemphasise the decision making aspect
criticism: DSS denies the communication in decision making process
2. Assumption of relevance
decision must belong to the class that the DSS was built to support
3. Unintended transfer of power
decision process is only assisted by DSS
4. Obscuring responsibility
risk that a DSS is used in a way which does not fit the assumptions
of the designer
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References:
1.

(a) Decision Support Systems and Intelligent Systems, Fifth Edition

E.Turban, Jay Aronson,
Prentice Hall, 1998.
(b) Decision Support Systems and Expert Systems,
Management Support Systems, E.Turban, Fourth Edition,
Prentice Hall, 1995.

2.

Knowledge-based Decision Support Systems, With Applications

in Business, 2nd Edition, M. Klein, L. Methlie,
Wiley, 1995.

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SUMMARY
DSS is composed of the following subsystems:
data management subsystems,
model management subsystem,
knowledge management subsystem,
user interface subsystem.
DSS support all the phases in the decision making process.
DSS applications have been developed using:
general programming languages
spreadsheets
DSS generators
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