DECISSION SUPPORT SYSTEMDECISSION SUPPORT SYSTEM

DECISIONDECISION

Making decisions concerning complex systems often strains our cognitive capabilities.

Predicting how the system will react to an external manipulation such as a policy decision is often difficult.

DECISSION MAKING PROCESSDECISSION MAKING PROCESS

INTELLIGENCEINTELLIGENCE

DESIGNDESIGN

CHOICECHOICE

PROCESS VIEW OF DECISION MAKING

Decision support system•Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities .

•A properly designed 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.

WHY DSS Because decision-making involves a complex

sequence of activities over time, it implies there are at least three functions that should be assigned to DSSs:

1) The capability of capturing and saving

information from previous activities; 2) Data processing capability;

3) Data retrieval capability.

COMPONENTS OF DSSCOMPONENTS OF DSS

There are three fundamental components of DSS :

DATA BASE MANAGEMENT SYSTEM (DBMS)

MODEL BASED MANAGEMENT SYSTEM (MBMS)

DIALOG GENERATION &MANAGEMENT SYSTEM (DGMS)

THE ARCHITECTURE OF DSSTHE ARCHITECTURE OF DSS

Types of DSS Types of DSS DS systems can be separated into seven broad

categories, each aiding decision making by different methods:

DATA DRIVEN DSS. MODEL-DRIVEN DSS. KNOWLEDGE DRIVEN DSS. DOCUMENT DRIVEN DSS. Communication Driven DSS. INTER & INTRA-ORGANIZATIONAL DSS. NEW BREED OF DSS

DSSDSS

IN-HOUSEIN-HOUSEPROPRIETARYPROPRIETARY

DATABASEDATABASE

KNOWLEDGE KNOWLEDGE DATABASEDATABASE

DATADATA

PROCESSING MODELSPROCESSING MODELSFINANCIALFINANCIAL

ACOUNTINGACOUNTINGECONOMICALECONOMICAL

EXTERNAL ANDEXTERNAL AND

INTERNALINTERNAL ENVIRONMENT ENVIRONMENT

PROCESSING BY MANAGER, USING KNOWLEDGE,PROCESSING BY MANAGER, USING KNOWLEDGE,EXPERIENCE AND INTUITIONEXPERIENCE AND INTUITION

QUALITY DECISIONQUALITY DECISION

PROCESING MODEL FOR DSSPROCESING MODEL FOR DSS

NEW BREEDS OF DSS

HYBRID SYSTEMHYBRID SYSTEM

Eg.-WEB BASED DSSEg.-WEB BASED DSS

On-line Analytical Processing (OLAP)On-line Analytical Processing (OLAP)

MANAGEMENT REQUIREMENT MANAGEMENT REQUIREMENT OF DSSOF DSS

ALLOCATING RESOURCES PREPARING BUDGETS OBSERVATION OF RESULTS EVALUATION OF RESULT MODIFICATION OF ACTIVITES AND

RESOURCES

Intangible payoffs DSSIntangible payoffs DSS Improved internal control.Improved internal control.

Enhances long term profitability by Enhances long term profitability by improving quality of decision making.improving quality of decision making.

Faster response to changes in Faster response to changes in business environmentbusiness environment .

Cont …. Better management awareness of

internal strength and weaknesses and external threats and opportunities.

Allows managers’ to record experience and use it in future for similar scenarios that may arise within the organization.