1. Introduction to DSS Flashcards
dss def..n
– DSS is coined by Mortons(And also developed a two dimensional framework for comp support of managerie)
A Decision Support System (DSS) is a computer-based information system that supports business or organizational decision-making activities
–B S S is interactive software based systems intended to help Managers in decision making by accessing large volumes of information generated from various related information systems involved in organisational business processes such as office automation system transition processing system etc
1. Set of tools, data, models and other resources that managers and analysts use to understand evaluate and solve problems in unstructured problem domains
2. Dss is interactive computer based Systems which help decision makers utilise data and models to solve unstructured/semi prblm
3. DSS coupled intellectual resources of individuals with capabilities of computer to improve the quality of decisions it is a computer based support system for management decision makers who deal with semi structured problems
DSS benefits`
- Makes workflow and descision making more efficient by reducing errors
- Helps in planning and management
- Determines potential outcomes
- Facilitates interpersonal communication.
- Encourages learning or training.
- Since it is mostly used in non-programmed decisions, it reveals new approaches and sets up new evidences for an unusual decision.
- Helps automate managerial processes.
types of decisions
-
Programmed decisions
-These decisions have been taken several times
-follow some guidelines or rules -
Non - programmed decisions
* It would be a new decision
* there will not be any rules to follow
* these decisions are made based on the available information
* These decisions are based on managers discretion instinct perception and judgement
characteristics of dss
- Support for decision makers in semi structured and unstructured problems
- Support for managers at various managerial levels ranging from top executive to line managers
- Support for individuals and groups less structured problems often requires the involvement of several individuals from different departments and organisation levels
- Support of independent and sequential decisions
- support for intelligence design choice and implementation
- Support for variety of decision process and styles
- DSS are adaptive overtime
attri or props of DSS
- Adaptability and flexibility
- High level of interactivity
- Ease of use
- Efficiency and effectiveness
- complete control by decision makers
- ease of development
- extendability
- support for modelling and analysis
- support for data access
- standalone integrated and web based
components of DSS
Framework of DSS
-
DBMS
to solve the problem the necessary data may come from external or internal basis
– Internal data generated by a system such as TPS and MIS
– External Data comes from variety of sources such as newspapers online data devices databases (financial marketing human resources) -
Model management system
its stores and accesses models that managers use to make decisions
– Such models are used for designing manufacturing facility, analysing financial health of organisation, forecasting demand of product or service etc -
Support tools
Support tools like online help pulls down menus, User interfaces, graphical analysis, error correction mechanism, facilitates the user interaction with the system -
User Interface Component
This component provides the interface through which users interact with the DSS. It includes tools for data entry, query formulation, model execution, and result presentation. The user interface should be intuitive and user-friendly to facilitate effective decision-making.
types of DSS
-
status inquiry sys
it helps in taking operational, management level, or middle level management decisions, for example daily schedules of jobs to machines or machines to operators. -
data analysis sys
It needs comparative analysis and makes use of formula or an algorithm, for example cash flow analysis, inventory analysis etc. -
information analysis sys
In this system data is analyzed and the information report is generated. For example, sales analysis, accounts receivable systems, market analysis etc. -
accounting sys
It keeps track of accounting and finance related information, for example, final account, accounts receivables, accounts payables, etc. that keep track of the major aspects of the business. -
model based sys
Simulation models or optimization models used for decision-making are used infrequently and creates general guidelines for operation or management.
EDP
- Electronic data processing
- Process of using electronic devices such as computers servers or calculators to gather information
- Also involves analysing data and summarising and recording the output in the usable form
MIS
- Management information system
- A computer based system that provides managers with the tools to run their department effectively
decision making process in DSS
DSS are designed to help users make decisions based on data analysis and models
1.Problem identification
2.Data collection
3.Data analysis
4.Model development
5.Alternative generation
6.descion making
7.implementation
8.monitoring and evaluation
Types of decisions in dss
-
Structured decisions
-Well defined and can be Made using predefined rules of procedures
- They Are typically repetitive and routine in nature
eg:
- Inventory record levels
- Employee scheduling
- Pricing decisions based on cost-pus formulas -
semi-struc descision
- These decisions are partially defined and requires some degree of judgment and analysis
- they do not have any predefined solution and often involve evaluating multiple alternatives
eg:
- Supplier selection
- new product development
- resource allocation for new projects -
unstruc descision
- These decisions are complex and do not have a clear cut solution
- They often require creative thinking and judgment based on incomplete or ambiguous information
eg:
- Strategic planning
- Crisis Management
- Major investment decisions -
Operational decisions
These decisions are made frequently and relate to day-to-day operations of an organisation
- These are aimed in improving efficiency and effectiveness
eg:
- Inventory management
- Production scheduling
- resource allocation -
Tactical decisions
- These decisions are more specific than operational decisions and focus on achieving specific objectives within defined time frame
- They involve allocation of resources and implementing of strategies to achieve organizational goals
eg:
- Budget planning
- Project management
- workforce planning -
Strategic decisions
- These decisions are high level and are made by top level management
- They are long term decisions that have significant impact on organization
- They are Complex and involve analyzing various factors such as market trends, competitor actions and internal capabilities
eg:
- Market entry strategies
- Merges and Acquisitions
- Long term investment decisions
descision making process
Intelligence
design
choice
implentation
D S S as Information System
A Decision Support System (DSS) can be seen as a specific type of Information System (IS) that is designed to support decision-making activities within an organization. Here’s how DSS fits within the broader context of information systems:
Information System (IS): An Information System is a system that collects, processes, stores, analyzes, and disseminates information for a specific purpose. It includes hardware, software, data, procedures, and people.
Decision Support System (DSS): A Decision Support System is a type of IS specifically designed to support decision-making processes. It provides users with access to data, tools for analysis, and models for decision-making.
Components of a DSS as an IS:
Data Management: DSSs manage large amounts of data from various sources, including internal databases and external sources.
Modeling and Analysis Tools: DSSs use various models and analytical tools to help users analyze data and make informed decisions.
User Interface: DSSs provide user-friendly interfaces to allow users to interact with the system, input data, and view results.
Decision Support Component: This component integrates data, models, and the user interface to provide decision support capabilities.
Role within an Organization: DSSs play a crucial role in helping organizations make better decisions by providing access to relevant information and analytical tools. They are used across various functions, including finance, marketing, operations, and strategic planning.
Integration with Other Systems: DSSs are often integrated with other IS within an organization, such as Enterprise Resource Planning (ERP) systems, Customer Relationship Management (CRM) systems, and Business Intelligence (BI) systems, to provide a comprehensive decision-making environment.
Overall, a Decision Support System can be viewed as a specialized Information System that focuses on supporting decision-making processes by providing the right information, tools, and models to users.
types of DSS
(individual and grp)
Decision Support Systems (DSS) can be classified into two main types based on the intended users: individual and group decision support systems. These systems are designed to support decision-making at different levels within an organization and for different types of decisions. Here’s a brief overview of each type:
-
Individual Decision Support Systems (IDSS):
- Definition: IDSS are designed to support the decision-making needs of individual users, such as managers or analysts, within an organization.
-
Characteristics:
- Focus on providing decision support to a single user.
- Tailored to the specific needs and preferences of the user.
- Provide tools for data analysis, modeling, and information retrieval.
- Often used for operational and tactical decisions.
- Examples: Personal productivity tools, such as spreadsheet software, that help individuals analyze data and make decisions.
-
Group Decision Support Systems (GDSS):
- Definition: GDSS are designed to support decision-making by groups of users, such as teams or committees, within an organization.
-
Characteristics:
- Focus on facilitating communication, collaboration, and consensus-building among group members.
- Provide tools for group brainstorming, discussion, and decision-making.
- Support for multiple users to access and interact with the system simultaneously.
- Often used for strategic decisions and problem-solving that require input from multiple stakeholders.
- Examples: Groupware applications, such as video conferencing software or collaborative document editing tools, that help teams work together to make decisions.
Both IDSS and GDSS are valuable tools for improving decision-making within an organization. IDSS are well-suited for individual users who need to analyze data and make decisions independently, while GDSS are designed to facilitate group decision-making processes, particularly for complex or strategic decisions that require input from multiple stakeholders.
