decision support system - management information system
DESCRIPTION
Refers to class of system which supports in the process of decision making and does not always give a decision itself. Decision Support Systems supply computerized support for the decision making process.TRANSCRIPT
DECISION SUPPORT SYSTEM
by
NIJAZ N
DECISION MAKING & INFORMATION SYSTEM
Decisions are made at all levels of the firm.
Some decisions are very common and routine but exceptionally valuable.
IT provides new tools for managers to carryout decisions.
Receiving the most concrete, up-to-date information and redistributing it
to those who need to aware of it.
IT does not provide any information directly, but provides some
capabilities to the user to analyze the decision problem and generate some
meaningful information for decision-making
DECISION SUPPORT SYSTEM
Refers to class of system which supports in the process of decision
making and does not always give a decision itself.
Decision Support Systems supply computerized support for the decision
making process.
End-users actively work with the data warehouse.
End-users apply models to represent, understand, and simplify the
decision situation.
TYPES OF DECISION
DECISION MAKING CONCEPTS
DSS: DECISION SUPPORT SYSTEMS
sales revenueprofit prior154 204.5 45.32 35.72163 217.8 53.24 37.23161 220.4 57.17 32.78173 268.3 61.93 47.68143 195.2 32.38 41.25181 294.7 83.19 67.52
Sales and Revenue 1994
Jan Feb Mar Apr May Jun0
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100
150
200
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LegendSalesRevenueProfitPrior
Database
Model
Output
data
to a
nalyze
results
FRAMEWORK FOR DEVELOPING DSS
Intelligence PhaseIntelligence Phase
Design PhaseDesign Phase
Choice PhaseChoice Phase
REALITY
Implementationof Solution
Implementationof Solution
SUCCESS
FAILURE
Verification, Testing of Proposed Solution
Validation of the Model
Examination
CHARACTERISTICS AND CAPABILITIES OF DSS
Support decision makers at all managerial levels
Support several interdependent and/or sequential decisions
Support all phases of decision making and a variety of decision-making
processes and styles
Can be adapted over time to deal with changing conditions
Easy to construct
Utilizes models and links to data- and knowledge bases
Execute sensitivity analysis
DSS ANALYSIS
Sensitivity Analysis
The study of the effect that changes in one or more parts of a model
have on other parts of the model
What-if Analysis
Checks the impact of a change in the assumptions or other input data
on the proposed solution
Goal-seeking Analysis
Find the value of the inputs necessary to achieve a desired level of
output
COMPONENTS AND STRUCTURE OF DSS
COMPONENTS AND STRUCTURE OF DSS
Data Management
Includes the database(s) containing relevant data for the decision
situation
User Interface
Enables the users to communicate with and command the DSS
Model Management
Includes software with financial, statistical, management science, or
other quantitative models
Knowledge Management
Provides knowledge for solution of the problem; supports any of the
other subsystems or act as an independent component
DSS – CLASSIFICATIONS -RELATIONSHIP WITH THE USER
Passive DSS
System that aids the process of decision making, but that cannot bring out
explicit decision suggestions or solutions.
Active DSS
Can bring out such decision suggestions or solutions.
Cooperative DSS
Allows the decision maker to modify, complete, or refine the decision
suggestions provided by the system, before sending them back to the
system for validation. The system again improves, completes, and refines
the suggestions of the decision maker. Repeat this process.
DSS – CLASSIFICATIONS -MODE OF ASSISTANCE
Model-driven DSS
Use data and parameters provided by users to assist decision makers in
analyzing a situation
Eg :- Dicodess is an example of an open source model-driven DSS
generator .
o Communication-driven DSS
Supports more than one person working on a shared task
Eg:- Microsoft's NetMeeting or Groove
o Data-driven DSS
Emphasizes access to and manipulation of a time series of internal company
data and, sometimes, external data.
DSS – CLASSIFICATIONS -MODE OF ASSISTANCE
Document-driven DSS
Manages, retrieves and manipulates unstructured information in a
variety of electronic formats.
Knowledge-driven DSS
Provides specialized problem solving expertise stored as facts, rules,
procedures
MIS V/S DSS
Provide information on firm’s performance to help managers monitor and control the business
Produce answers to routine questions and fixed, regularly scheduled reports
Sometimes MIS reports are only exception reports (highlighting only exceptional conditions)
Oriented to internal events
Make use of simple methods such as summaries and comparisons
Provides input to operational, tactical and strategic levels
Depend on TPS for their data
DSS support semi-structured and unstructured
problem analysis
Helps make decisions that are unique, rapidly
changing and not specified in advance
Bring information from external sources also
DSS emphasizes change, flexibility and rapid
response and works on interactive user-friendly
mode
Make use of mathematical models/statistical
techniques
Caters more to strategic decision making
Uses internal information from both MIS and
TPS
MISDSS
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 Speeds up problem solving in an organization Facilitates interpersonal communication Promotes learning or training Generates new evidence in support of a decision Creates a competitive advantage over competition Reveals new approaches to thinking about the problem space Helps automate managerial processes Create Innovative ideas to speed up the performance
GROUP DECISION SUPPORT SYSTEM (GDSS)
GROUP DECISION SUPPORT SYSTEM
An interactive computer-based system used to facilitate the solution of
unstructured problems
A set of decision makers working together as a group.
GDSS make meetings more productive by providing tools to facilitate
planning, generating, organizing, and evaluating ideas; establishing
priorities; and documenting meeting proceedings for others in the firm.
Originally developed for meetings in which all participants are in the same
room.
But nowadays used for networked meetings in which participants' are in
different locations.
GROUP SYSTEM TOOLS
COMPONENTS OF GDSS
Hardware: Including conference facilities and electronic hardware.
Software tools: Including electronic questionnaires, brainstorming tools,
idea organizers, questionnaire tools, voting tools; stakeholder
identification and analysis tools; policy formation tools, and group
dictionaries.
People: Refers not only to the participants but also to a trained facilitator
and often to a staff that supports the hardware and software.
FUNCTIONS OF GDSS APPLICATIONS
Predicting decision outcomes.
Identifying factors and trends.
Developing models of business processes.
Computing optimum mixes.
Facilitating group communication, collaboration and teamwork.
Determining sensitivity of results to changes in decision variables.
Becoming familiar with a problem domain.
GDSS – BUSINESS VALUE
Using GDSS, productivity can increase with increase in number of
attendees
More collaborative atmosphere by guaranteeing contributors’ anonymity
GDSS software tools follow structured methods for preserving results of
meetings, enabling non-attendees to locate needed info after the meeting
GDSS meetings can increase number of ideas generated and quality of
decisions while producing the desired results in fewer meetings
Leads to more participative and democratic decision making
Most useful for tasks involving idea generation, complex problems and
large groups
EXECUTIVE DECISION SUPPORT SYSTEM (EDSS)
EDSS
Help senior managers with unstructured problems that occur at the
strategic level of the firm.
Combining the internal and external sources.
Helps to monitor :
organizational performance,
Track activities of competitors,
Spot problems,
Identify opportunities
Forecast trends.
EDSS
It is also known as
Executive Support Systems(ESS)
Executive Information Systems(EIS)
o Benefits
o Increases organizational control.
o Reveals new approaches to thinking about the problem space.
o Encourages exploration and discovery on the part of the decision
maker.
o Creates a competitive advantage over competition
EDSS CAPABILITIES
Drill down-ability to go to details at several levels
Critical success factors-most critical for success of business
Key performance indicator
Status access-latest data available on Knowledge Process (KP)
Trend analysis-short , medium and long term trend on KP
Adhoc analysis-analysis made anytime upon demand
Exception reporting-report that highlight deviations larger than certain
threshold
EDSS
INTERRELATIONSHIPS AMONG SYSTEMS