Decision Support Systems

Jeremy Leishman

Brigham Young University

Decision Support Systems

• What are Decision Support Systems?

• Why Decision Support Systems?

• Benefits of a DSS

• Components of DSS

• Examples of DSS

Presentation overview

Decision Support Systems:

• Interactive computer-based systems• Support decision-making activities• Aid users interpret raw data in a useful format• Special class of Information System• Typically used for strategic and tactical decisions

facing upper management.• Developed for decisions that occur infrequently

and carry high potential consequences

Decision Support System

• The essential flow of information in a DSS.

`

Raw Data

Decision Support Software

Useful Information

Decision makers

Why Decision Support Systems?

• Data is easily stored and retrieved.• Prioritize decisions.• Anticipate upcoming decisions.• Remember and evaluate past decisions.• Provide consistency to decision making.• Combines the expertise of human and

computer decision making.

Humans and Decision Making

• Usually based on intuition rather than complete rational processing.

• Humans interpret identical data differently.• Use both quantitative and qualitative information.• Emotions play a role in decision making.• Flexible and adaptable.• Vary greatly based on levels of expertise.

Computers and Decision Making

• Quickly sort, filter, and process large quantities of data.

• Logical and predictable.• Ability to incorporate vast amount of inputs

when making complex decisions.• Favor quantifiable variables.• Users need to be trained to use them.• Inflexible

Making Better Decisions

• Combine strengths of human and computer decision making.

• DSS’s support, not replace, managers.

• Increase decision effectiveness not necessarily decision efficiency.

Varying degrees of Automation

• Data retrieval and storage.• Report creation.• Estimate decision consequences.• Propose decisions.• Make decisions.

Low level

of Automation

High level

of Automation

Decision Support Systems can be used for:

Benefits of computer-aided decision making

• Computers are capable of incorporating more data when computing decisions.

• Becomes more effective over time.• Automation of non-risk decisions enables

managers to dedicate more time to complex decisions.

• Complex decisions are made using human intuition as a well as automated optimization.

Anticipatory ManagementCompetitive advantages with Decision Support Systems

• Scan and monitor competitors• Track industry trends• Forecast duration, direction, acceleration, and

amplitude of trends or signals• Conduct vulnerability audits• Prioritize issues• Evaluate relative performance• Provide strategic recommendations

Situations were DSS can be used:

• Inventory control• Sales forecasting• Cost-benefit analysis• Problem diagnosis• Option prioritization• Resource allocation

• Business cycle control• Performance evaluation• Value analysis• Target marketing• Supply Chain integration• Customer tracking• Knowledge management

What about your organization?

• What decisions do you make?• Can routine decisions benefit from more

automation?• Are there large amounts of raw data stored that are

impossible to sort through?• What information will help you make more

effective decisions?• Can some decisions be completely automated?

Components of a DSS

• Database management system (DBMS)

• Model-base management system (MBMS)

• Dialog generation and management

system (DGMS)

Three fundamental components

Database management system DBMS

• Data storage

• User access

• Organizes data into types

• Provides logical data structure

• Lets user know the type of data that is available

Model-base management system MBMS

• Transforms data from DBMS into useful information

• Prepare information for decision making

Raw Data

DBMS MBMS

Extract raw data Useful Information

Dialog generation and management system DGMS

• User interface for DSS

• How users extract desired information from DSS.

How DSS’s are being used

Automotive– Emissions testing

Health care-- Diagnosing patients

How DSS’s are being used

Agriculture-- Crop yield

Airline– Flight scheduling

Examples of Decision Support Systems

• OutlookSoft

• webFocus

• SYBASE

• ERGO

• ERGOV

• TESS

Conclusions

• Decision Support Systems can help all types of organizations.

• DSS’s use the advantages of computers and humans in decision making.

• DSS’s should be customized to fit the specific needs of your organization.

Related Readings

Druzdel, Marek J., Roger R. Flynn. “Decision Support Systems.” Encyclopedia of Library and Information

Science. New York: Marcel Dekker, Inc., 2002.

Cummings, M.L., S. Bruni. (2005) “Collaborative Human-Computer Decision Making in Network Centric

Warfare.” Paper presented at the TTCP HUM TP7 Workshop on Aerospace Human Factors Issues in Network-

Centric Warfare., Salisbury, UK.Sage, Andrew P. Decision Support Systems Engineering. New York: John Wiley & Sons, Inc., 1991

Holsapple, Clyde W., Andrew B. Whinston. Decision Support Systems – A Knowledge-Based Approach. New

York: West Publishing Company, 1996

Holtzman, Samuel. Intelligent Decision Systems. Reading: Addison-Wesley, 1989.