CONCEPT OF DECISION SUPPORT SYSTEMS

Presented by,INDU

Definition

• Scott Morton first articulated major concepts of DSS

• He defined DSS as “interactive computer-based systems, which help decision-makers utilize data and models to solve unstructured problems”

Definition

• Decision support system couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions.

• It is a computer-based support system for management decision makers who deal with semi structured problems.

Definition

• DSS encompasses the following in an organization– A knowledge management system to guide

personnel through problem solving– A separate DSS for marketing, finance and

accounting– A supply chain management (SCM) system

for production– Expert systems for product repair and

diagnosis and help desks

Why Use a DSS?

• Companies work in an unstable and rapidly changing economy

• There are difficulties in tracking the numerous business operations

• Competition has increased• Electronic commerce• Existing systems do not support decision-

making

Why Use a DSS?

• The Information systems department is too busy and cannot address all management inquiries

• Special analysis of profitability and efficiency is needed

• Accurate information is needed• DSS is viewed as an organizational winner• New information is added

Why Use a DSS?

• Management mandates a DSS• Higher decision quality• Improved communication• Improved customer and employee

satisfaction• Timely information is provided• Cost reduction is achieved

Characteristics of DSS

• Support for decision-makers, mainly in semi structured and unstructured problems

• Support for all managerial levels• Support for individuals as well as to

groups• Support for interdependent and sequential

decisions

Characteristics of DSS

• Support in phases of the decision-making process

• Adaptivity over time• Aims to support and not to replace the

decision-maker

Components of DSS

• Data-management subsystem– Includes a database that contains relevant

data for the situation and is managed by a software called DBMS.

– Can be inter connected with corporate data warehouse

– Data are stored or accessed via a database Web server

• Model management subsystem– Software package– Includes financial, statistical, management

science, or other quantitative models that provide the system’s analytical capabilities and appropriate software management

– Also called model based management system (MBMS)

– Also connected to corporate or external storage of models

– Implemented in Web development systems to run on application servers

• User interface subsystem– Used by user to command and communicate

with the DSS– Web browser provides a familiar, consistent

GUI structure for most DSS• Knowledge-based management

subsystem– Can support any of the other subsystems– Act as an independent component also– Provides intelligence to augment decision-

maker’s own– Interconnected with organizational KB

• The components form DSS application system

• Connected to the corporate intranet, to an extranet, or to the internet

• Components communicate via internet• Web browsers provide the user interface

Other computer-based

systems

Internet,Intranets,extranets

Data management

Modelmanagement

Externalmodels

Knowledge-basedsubsystems

Userinterface

OrganizationalKB Manager [user]

Data:ExternalAnd Internal

Schematic View of DSS

Internal datasources

External datasources Finance Marketing Production OthersPersonnel

Organizational KB Extraction Privatepersonal

data

DecisionSupport

database

DatabaseManagement

System

•Retrieval•Inquiry•Update

•Report generation•Delete

Corporatedata

warehouse

Interfacemanagement

Modelmanagement

Knowledge-basedsubsystem

Queryfacility

Datadirectory

Data Management Subsystem

Data Management Subsystem

• Composed of– DSS database– Database management system– Data directory– Query facility

Database

• Collection of interrelated data organized to meet the needs and structure of the organization and can be used by more than one person for more than one application.

• Data are ported from the data warehouse through a database Web server

• Data are extracted from internal and external data sources, as well as from personal data belonging to one or more users.

Database• Internal data – come mainly from the

organization’s transaction processing system. Made available over intranet.

• External data – include industry data, marketing research data, census data, regional employment data, government regulation. Made available over internet.

• Private data – include guidelines used by specific decision-makers and assessments of specific data or situations.

Extraction

• To create a DSS database or a data warehouse, it is often necessary to capture data from several sources. This operation is called extraction.

• Consists of importing of files, summarization, standardization filtration, and condensation of data.

• It also occurs when the user produces reports from data in the DSS database.

• Managed by DBMS.

Database Management System

• A database is created, accessed and updated by DBMS.

• It supports many managerial activities like general navigation among records, support for creating and maintaining a diverse set of data relationships, and report generation.

The Query Facility

• It performs the task of accessing, manipulating and querying data.

• It accepts requests for data from other DSS components, determines how the requests can be filled, formulates the detailed requests, and returns the results to the issuer of the request.

• Includes use of a special query language (e.g., SQL)

The Directory

• The data directory is a catalog of all the data in the database.

• It contains data definitions.• Its main function is to answer questions

about the availability of data items, their source and their exact meaning.

• Supports decision-making process by helping to scan data and identify problem areas and opportunities.

Model Management Subsystem

• Compose of– Model base– Model base management system– Modeling language– Model directory– Model execution, integration, and command

processor.

Modeling commands : creationMaintenance : update

Database interfaceModeling language

ModelDirectory

Model execution,integration, and

Command processor

Datamanagement

Interfacemanagement

Knowledge-basedsubsystem

Models (Model Base)

Model Base Management

•Strategic, tactical, operational•Statical, financial, marketing•Model building blocks

Model Management Subsystem

Model Base• A model base contains routine and special

statistical, financial, forecasting, management science, and other quantitative models that provide the analysis capabilities in a DSS.

• The models in the model base are divided into:– Strategic– Tactical– Operational– Analytical

• Also there are model building blocks and routines.

• Strategic models – Used to support top management’s strategic

planning responsibilities.• Tactical models

– Used mainly by middle management to assist in allocating and controlling the organization’s resources.

• Operational models– Used to support the day-to-day working

activities of the organization.• Analytical models

– Used to perform some analysis on the data.

Model Base Management System

• Model creation using programming languages (C++, Java) , DSS tools and subroutines (OLAP)

• Generation of new routines and reports• Model updating and changing• Model data manipulation

Model Directory

• Similar to database directory• It is a catalog of all the models and other

software in the model base• Contains model definitions• Main function is to answer questions about

the availability and capability of the models

Model Execution, Integration, and Command

• Model execution – Process of controlling the actual running of the model

• Model integration – Combining the operations of several models when needed

• Model command processor – Used to accept and interpret modeling instructions from the user interface component and route them to MBMS model execution, or integration functions

• These activities are controlled by MBMS

User Interface Subsystem

• Covers all aspects of communication between a user and DSS

• Includes not only the hardware and software, but also factors that deal with ease of use, accessibility, and human - machine interactions

• It is the only part of the system that the user sees

User Interface SystemData Management

And DBMSModel Management

And MBMSKnowledge-based

subsystem

User InterfaceManagement System

(UIMS)

Natural languageprocessor

Printers, Plotters

Users

InputAction Language

OutputDisplay Language PC

display

User Interface Management System (UIMS)• It manages the user interface subsystem• Also called dialog generation and management

systemUser Interface Process• The user interacts with the computer via and

action language processed by UIMS.• Provides a GUI• Supports input and output devices• Provides interactions with model base &

database

Knowledge Management Subsystem

• Supplies the required expertise for solving some aspects of the problem and provide knowledge that can enhance the operation of other DSS components.

• Consist one or more intelligent systems and such a system is called intelligent DSS, or knowledge-based DSS.

The User

• The person faced with the decision that a DSS is designated to support is called the user, the manager, or the decision – maker.

• The user can be an individual or a group.• The user provides the human intellect –

provides expertise in guiding the development and use of a DSS

The User• Two broad classes of users

– Managers– Staff specialists

• Managers expect systems to be user-friendly • Staff specialists tend to be more detail-oriented.• Intermediary – allows the manager to benefit

from the DSS without actually having to use it.– Staff assistants– Expert tool users– Business (system) analysts– Facilitators in a group support system