WELCOME

SEMINAR ON DECISION SUPPORT SYSTEM

Presented by

SARITHA.S

Mcom 1st sem

INTRODUCTION

The term Decision Support System (DSS) refers to a class of system which support the process of making decisions. It is an interactive computer based system which facilitates solution to semi-structured problems. The main application areas of DSS are Management and planning in business, health care, the Military and any area in which Management will encounter complex decision making.

DEFINITIONAccording to Freyenfeld, “a Decision support System is

an interactive data processing and display system which is used to assist in a concurrent decision making process and subject to the following chracteristics:

It is sufficiently user-friendly system It displays its information in a format and

terminology which is familiar to the user It is selective in its provision of information and

avoids information load of user”.

EVOLUTION OF DSSThe idea of DSS was firstly coined by G.Antony Gorry

& Michael S Scott Morton.They want to introduce framework to channel the

computer applications toward management decision making and developed a grid known as ‘Gorry& Scott Morton Grid’.

The grid is based on Simon’s concept of programmed non-programmed decisions and Robert N Antony’s Management levels. The decision types are described in terms of problem structure ranging from structured to semi-structured and to un-structured

EVOLUTION

Gorry & Scot Morton entered types of business problems into their Grid. The horizontal dotted line through the middle of the Grid is significant. It separates the problem that had been successfully solved with computer assistance from those problems that had not been subjected to computer processing. The upper area was named Structured Decision System and the lower area was named Decision Support System.

OBJECTIVES

DSS should achieve mainly three objectives. Assist managers Support managers Improve decision making.

CHARACTERISTICS

Ability to support complex problems.

DSS is designed for either a particular decision maker or a group of decision makers

Consistent and objective decisions

Cost savings.

It contain mainly a database.

CHRACTERISTICS Contd…

Improving managerial efficiency.

It is a way to organize information.

Facilitates communication.

Support semi-structured decision making.

Permits managers to test the probable results.

COMPONENTS

There are 4 components for DSS. Database Decision models Statistics & manipulation Display

FUNCTIONSDSS has mainly 5 functions.

Model building

What-if analysis

Goal seeking

Risk analysis

Graphical analysis.

FUNCTIONSModel building

Model building is the process of identifying the most appropriate model for solving the problem.

What-if analysisIt is the process of assessing the impact of

changes to model variables, the values of the variables, or the relationship among the variables.

Goal seekingIt is the process of determining the input

values required to achieve certain goal.

FUNCTIONS Contd…Risk analysis

Risk analysis is a function of DSS that allows managers to assess the risk associated with various alternatives.

Graphical analysis

Graphical analysis helps managers to quickly digest large volume of data and visualize the impact of various course of action.

CLASSIFICATION OF DSS

There are seven categories of DSS.

a. File drawer system

b. Data analysis system

c. Analysis information system

d. Accounting models

e. Representational models

f. Optimization models &

g. Suggestion models

MODERN CLASSIFICATION OF

DSS Model Driven DSS Data Driven DSS Communication Driven DSS Document Driven DSS & Knowledge Driven DSS.

DSS USERS

S.A Alter identified four distinct usage patterns for DSS.

Subscription Mode Terminal Mode Clerk Mode & Intermediary Mode

METHODS FOR DEVELOPING DSS

In order to develop a DSS 3 methods are used.

1. DSS generator

2. DSS shells

3. Custom-made software

METHODS Contd…1. DSS generator

Software that help users to build Decision Support System are termed as DSS generators.

2. DSS shells

A DSS shells is a program used to build a customized DSS.

3. Custom-made software

It is developed by an organization, which is committed to DSS technology.

GROUP DECISION SUPPORT

SYSTEM(GDSS)

DSS that support the group decision making are called Group Decision Support System.

GDSS are computer based information system that facilitate the exchange of ideas and information among group members.

FACTORS FOR ACHIEVING

SUCCESSFUL DSS

Commitment from the top management Availability of accurate and reliable data Careful problem selection A clear link to business objective Management of organizational resistance.

APPLICATIONS OF DSS

Applications of DSS can be classified into three categories.

• Independent problems• Dependent /interrelated problems &• Organizational problems.

CONCLUSION

Decision Support Systems are a class of subsystem of the Management Information system which support analysts , planners and managers in the decision making process.

Now DSS are used all over the world by public, private and government agencies to solve complex and data intensive problems.

THANK YOU