MIS Decision Support System

DSS

Due to the large number of considerations involved in many decisions, computer-based decision support systems (DSS) have been developed to assist decision makers

DECISION MAKING

Decision making is the developing concepts leading to the selection of a course of action among variations. Every decision making process produces a final choice

It can be an action or an opinion. It begins when we need to do something but we do not know what

e.g. Decision to raise a Purchase Order

Herbert Simon

Herbert Simonwas a scientist whose research ranged across the fields of computer science, public administration, economics, management, and philosophy of science and a professor, most notably, at Carnegie Mellon University

He was one of the early scientists to develop software to take decisions by computer in playing chess. Thus starting the era of artificial intelligence

Decision making in business and management

In general, business and management systems should be set up to allow decision making at the lowest possible level.

Several decision making models or practices for business include:

SWOT Analysis - Evaluation by the decision making individual or organization of Strengths, Weaknesses, Opportunities and Threats with respect to desired end state or objective.

Buyer decision processes - transaction before, during, and after a purchase

Corporate finance: The investment decision

The financing decision

The dividend decision

working capital management decisions

Cost-benefit analysis - process of weighing the total expected costs vs. the total expected benefits

RDBMS

A relational database management system(RDBMS) is computer software designed for the purpose of managing databases. Typical examples of DBMSs include Oracle, IBM DB2, Microsoft Access, Microsoft SQL Server 2005, Sybase, MySQL

RDBMSs are typically used by Database administrators in the creation of Database systems

Characteristics and Capabilities of DSS

1. Support for decision makers in semi-structured and unstructured problems.

2. Support managers at all levels.

3. Support individuals and groups.

4. Support for interdependent or sequential decisions.

5. Support intelligence, design, choice, and implementation.

6. Support variety of decision processes and styles.

7. DSS should be adaptable and flexible.

Characteristics and Capabilities of DSS (CONTINUE….)

8. DSS should be interactive and provide ease of use.

9. Effectiveness balanced with efficiency (benefit must exceed cost).

10. Complete control by decision-makers.

11. Ease of development by (modification to suit needs and changing environment) end users.

12. Support modeling and analysis.

13. Data access.

14. Standalone, integration and Web-based.

EXPERT SYSTEM

An expert system, also known as a knowledge based system, is a computer programthat contains some of the subject-specific knowledge, and contains the knowledge and analytical skills of one or more human experts.

LIMITATION OF EXPERT SYSTEM

The lack of human common sense needed in some decision makings

The creative responses human experts can respond to in unusual circumstances

Domain experts not always being able to explain their logic and reasoning

The challenges of automating complex processes

The lack of flexibility and ability to adapt to changing environments as questions are standard and cannot be changed

Not being able to recognize when no answer is available

ADVANTAGES OF EXPERT SYSTEM

Provide consistent answers for repetitive decisions, processes and tasks

Hold and maintain significant levels of information

Reduces creating entry barriers to competitors

Review transactions that human experts may overlook