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DSSDSS--

DecisionDecision Support System:Support System:Concept And Philosophy, Artificial Intelligence System,

Knowledge Based Expert System

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Decision Support SystemDecision Support System

y They are an application of Herbert Simon

Model.

y The model has 3 phases:

Intelligence

Design

Choice

y Two types of decisions:-

Programmable and

Non-programmable

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Types of DSSTypes of DSS

y Status inquiry systems

y Data analysis systems

y

Information analysis systemsy Accounting systems

y Model Based systems.

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Ex. Material Management FunctionEx. Material Management Function

Decision Type of System required

Finding and selection of vendor Inquiry System

Procurement Performance analysis system

Pricing Data Analysis

Selection of vendors based on price or

quality, performance

Information analysis system

Selection of order quantity Model Based system

Inventory rationalisation Valuation of inventory and accounting

system

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Facts about DSSFacts about DSS

y The DSSs are developed by the users and

system analysts jointly

y The DSS uses the principles of economics,

science, and engineering and also the

tools & techniques of Management

y The data used in the DSS is drawn from

the information systems developed in thecompany

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Facts about DSSFacts about DSS

y The DSS are developed in isolation and forman independent system subset of the MIS

y The most common use of the DSS is to test

the decision alternatives and also to test thesensitivity of the result to the change in thesystem and assumptions

y The data and information for the DSS are

used from the internal sources such as thedatabase and the conventional files, and fromthe external sources.

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Facts about DSSFacts about DSS

y The DSS are developed in isolation and forman independent system subset of the MIS

y The most common use of the DSS is to test

the decision alternatives and also to test thesensitivity of the result to the change in thesystem and assumptions

y The data and information for the DSS are

used from the internal sources such as thedatabase and the conventional files, and fromthe external sources.

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Types of DSS & their UsersTypes of DSS & their Users

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DSS can be based on three differentDSS can be based on three different

approaches:approaches:

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Artificial IntelligenceArtificial Intelligence

y Intelligence when supported by

knowledge & reasoning abilities becomes

Artificial Intelligence

y When such an artificial intelligence is

packed into a database as a system, then

what we have is AI System.

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Basic CategoriesBasic Categories

y Expert Systems

y Natural Language Systems

y Perception Systems

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Application of AIApplication of AI

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Knowledge ManagementKnowledge Management

y It is the ability of a person to understand

the situation and act effectively.

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Knowledge Management ProcessKnowledge Management Process

y Define, Capture, manipulate, store & develop

y Develop information systems for knowledge

creation

y Design applications for improving

organisations effectiveness

y Create knowledge set

y Keep IC continuously on upgrade to use itas central resource

y Distribute and share to concerned.

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Knowledge management systemsKnowledge management systems

y The knowledge over a period getsdeveloped in the organisation and itresides in people, information files,

databases.y To bring knowledge as critical input in the

management process, it is necessary tohave knowledge management systems.

y It deals with definition, acquisition,construction, storage, delivery andapplication of knowledge.

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Knowledge based Expert SystemKnowledge based Expert System

y It is defined as a mix of theory of the

subject, knowledge of its application,

organised information and the data of

problems and its solutions, and an abilityto generate new avenues to solve the

problem.

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KBES ModelKBES Model

User Control Mechanism

Knowledge Base Inference Mechanism

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MIS & DSS?MIS & DSS?