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DECISION SUPPORT

SYSTEMS
OBJECTIVES
 What is Decision Support System (DSS)?
 Decision Structure

 Decision Support System Characteristics

 Components of DSS

 Classification of DSS

 Benefits of DSS
WHAT IS DECISION SUPPORT SYSTEM?

An interactive, flexible
computerized
information system
that enables managers
to obtain and
manipulate
information as they are
making decisions.
WHAT IS DECISION SUPPORT SYSTEM?
 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.
Information required at different
management levels
Levels of Management in Decision
Making
Strategic management
 Executives develop organizational goals,
strategies, policies, and objectives
 As part of a strategic planning process

Tactical management
 Managers and business professionals in self-
directed teams
 Develop short- and medium-range plans,
schedules and budgets
 Specify the policies, procedures and business
objectives for their subunits
Levels of Management in
Decision Making
• Operational management
– Managers or members of self-directed teams

– Develop short-range plans such as weekly


production schedules
Decision Structure
• Structured Decisions – situations where the
procedures to follow when a decision is
needed can be specified in advance
• Unstructured Decisions – decision situations
where it is not possible to specify in advance
most of the decision procedures to follow
• Semi structured Decisions - decision
procedures that can be prespecified, but not
enough to lead to a definite recommended
decision
DSS SYSTEM CHARACTERISTICS

Interactive

Flexible

Discovery-Oriented
Characteristics
of a
DSS System Accessible
COMPONENTS OF DSS

DSS DATA EXTERNAL


TPS DATA
BASE

DSS SOFTWARE SYSTEM


MODELS
USER
INTERFACE OLAP TOOLS
DATAMINING TOOLS

USER
Classification of DSS
• Model-driven DSS

• Communication-driven DSS

• Data-driven DSS

• Document-driven DSS

• Knowledge-driven DSS
Model-driven DSS
• A model-driven DSS emphasizes access to
and manipulation of a statistical, financial,
optimization, or simulation model.

• Model-driven DSS use data and parameters


provided by users to assist decision makers
in analyzing a situation; they are not
necessarily data-intensive.
Communication-driven DSS

• A communication-driven DSS
supports more than one person
working on a shared task
Data-driven DSS

• A data-driven DSS or data-oriented DSS


emphasizes access to and manipulation of
a time series of internal company data
and, sometimes, external data
Document-driven DSS

• A document-driven DSS manages,


retrieves, and manipulates unstructured
information in a variety of electronic
formats.
Knowledge-driven DSS

• A knowledge-driven DSS provides


specialized problem-solving expertise
stored as facts, rules, procedures, or in
similar structures
Benefits of DSS
Improves personal efficiency

Accelerate problem solving

Facilitates interpersonal communication

Promotes learning or training

Increases organizational control

Generates new evidence in support of a decision

Creates a competitive advantage over competition

Reveals new approaches to thinking about the problem space