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Dr. Satish Jangra (2009A229M)

Jyoti Goyal (2009A233M)
Neha Goyal (2009A241M)
Decision Support
System (DSS)

 Decision Support System is a system that

provides tools to managers to assist them in
solving semi-structured and structured
 A DSS is not intended to make decisions for
 A DSS supports the human decision-making
• Systems that replace human decision making- rather than
support it are called programmed decision systems.

• A writer, a selected group of journal and text resources at a
local library – and a strategy for using those resources – may
serve as part of a decision support system.
DSS Goals and Applications

• Decision support systems are characterized by at

least three properties:
• They support semi-structured or un-structured
decision making.
• They are flexible enough to respond to the
changing needs of decision makers.
• They are easy to use.
Structured Decisions
• Structured decisions are those that are easily make from a
given set of inputs.
• E.g; issue a reminder notice if a bill is overdue or deciding to
sell a stock under a given set of market conditions, can be
programmed fairly easily.
Semi-structured and unstructured

• Semi-structured and unstructured

decisions are decisions for which
information obtained from a computer
system is only a portion of the total
knowledge needed to make the
Steps in solving a problem with a DSS

Define and formulate problem

Frame problem into DSS model

Use Model to obtain results

Reformulate problem
A DSS provides support for decision
maker at all management levels
It supports all phases of decision making
process-intelligence-design and choice
It promotes learning.
It is adaptable by the user over time to
deal with changing condition
Properties of Decision Support System

• Support for semi-structured and un-

structured decision making.
• Flexibility in specifying output
• Ease of use and ease of development for
• Fast response.
Properties of DSS (cont.)

• Middle or top management focus.

• Use of models
• Focus on managerial effectiveness, rather
than efficiency.

DATABASE: Current & Historical Data

from Many Sources, as Required
MODEL BASE: Collection of
Mathematical & Analytical Building
 USER INTERFACE ;Communication
between a DSS and user
 USER: The person faced with the
Components of a DSS

DSS Model
Software Base
Data Base -Financial
-Statistical analysis
Graphical -Graphical
Interface -Project managment

Maker User
 A database is an organized collection of data for
one or more multiple uses .
 Databases consist of software-based "containers"
that are structured to collect and store information
so users can retrieve, add, update or remove
such information in an automatic fashion
 A graphical user interface (GUI) (sometimes
pronounced gooey is a type of user interface item
that allows people to interact with programs in
more one ways
Types of DSS
 Status inquiry system
 Data analysis system
 Information analysis system
 Accounting system
 Model based system
Example of DSS types
Decision Type of system
• Selection of vendor Inquiry System
•Procurement Inquiry system
•Pricing Data analysis
•Selection of vendor based on Information analysis system
price , quality, performance
•Selection of capital Asset Return on investment
analysis system
•Inventory rationalization Valuation of inventory and
accounting system
Putting A DSS at work

• The tasks commonly performed by

decision support systems are;
• Information retrieval
• Data reconfiguration
• Calculator activities
• Analysis
Information Retrieval

• Information retrieval in a DSS

environment refers to the act of
extracting information from a
database, or from data files for the
purpose of making decision.
Selection and Projection
• Two common types of retrieval are;
- Selection
- Projection
Selection: Selection involves separating out
records that have specific characteristics.
e.g. identifying all males over age 64 in
employee file or database.
Projection: obtaining only certain fields of
e.g. extracting all names and phone numbers
from an employee file or database.
Data reconfiguration
State City Name
Original data:
Punjab Multan M. Rashid
Punjab Lahore Irfan Khalid
Name City State Punjab jranwla Asad Bashir
Sindh Karachi Ahmad Rza
M. Rashid Multan Punjab Blchstan Kohlu Zahid Ali
Irfan Khalid Lahore Punjab
(b) Exchanging fields (columns)
Asad Bashir Jranwla Punjab
Ahmad Raza Karachi Sindh
Name City State Zip
Zahid Ali Kohlu Blchstan
M. Rashid Multan Punjab 52000
Irfan Khalid Lahore Punjab 54000
Asad Bashir Jranwla Punjab 50000
Ahmad Raza Karachi Sindh 42000
Zahid Ali Kohlu Blchstan 65000

Name City State (c) Joining (with zip code data)

Ahmad Raza Karachi Sindh
Asad Bashir Jranwla Punjab
Irfan Khalid Lahore Punjab Punjab Sindh
(60%) (20%)
M. Rashid Multan Punjab
Zahid Ali Kohlu Blchstan (d) Presentation graphics
(pie chart by state)
(a) Sorting by name
Calculator Activities

• Functions
- Arithmetic and Statistical Functions
i.e. SUM, AVG, LOG etc.

- Financial Functions
PV, FV, NPV, PMT etc.

- Conditional Functions

- Data Functions
• Four widely used types of DSS analysis tools:
• Statistical Tools
• Optimizing Tools
• What-if Analysis
• Intelligence routines.
These models are useful in understanding the
behavior amongst the business variables.
Examples :
 regression analysis
Time series analysis
Market research methods
Ratio analysis for financial assessment
Management science models
These models are developed on the principles
of business management, accounting,
Examples :
Budgeting models
Break-even analysis model
Return on investment analysis
Procedural models
Operational research models
• These models are mathematical models .
These represent the real life problems situation
in terms of the variables, constraints,
parameters expressed in algebraic equations.
• Examples:
 Mathematical programming techniques
 Linear programming model
 Inventory control model
DSS Development
• The DSS development process in many instances, after
decision-making needs are identified and an initial prototype
developed, several evaluation/ modification iterations may be
needed before the DSS is ready for use.
• DSS development tools:
=> Spreadsheets
=> User Interface
=> Command Interfaces
=> Templates
=> Physical Modification
Figure: DSS Development Process
DSS Examples
• A contract negotiation DSS
• An Oil Executive’s DSS
• An Environmental DSS
DSS Examples
• DSS For Education Decisions
• School Match (elementary/secondary school
search, school match)
• Official MBA Guide (screen and rank MBA
• DSS for Financial Decisions
• Financenter (customizable calculators)
• Prudential Securities ( advice, strategies,
DSS Examples
• DSS for Health Decisions
• Almond Board (personalized fitness & nutrition
• AFAA (health evaluation, tips, news, answers)
• Health Grades (alternatives, evaluators, tips)
• DSS for Information Technology Decisions
• Avantsoft (ROI calculation for technology
• Developer.com (advice, tips, tutorials, news, online
DSS Examples
• DSS for Insurance Decisions
• Insure.com (alternatives, ratings, guidance)
• Quotesmith (insurance quotes)
• MarketTrak (neural net and genetic algorithm
forecasts, performance, comparison)
• NEOS (online demo of portfolio optimizer)
• DSS for Natural Resource Decisions
• Ag Canada (online DSS for manure management)
• IMP (online DSS for pest management)
DSS Examples
• DSS for Purchasing Decisions
• CompareNet (comparisons)
• mySimon (shopping agent)
• Consumers Digest (product reviews, shopping tips)
• DSS for Real Estate Decisions
• CyberHomes (search for home alternatives)
• Countrywide (financing calculators, mortgage
• GetSmart (mortgage finder)

DSS Examples
• Geographic DSS
• Leeds (online demo for radioactive waste disposal)
• SUNY-Buffalo (tutorial, course, materials)
Group Decision Support Systems

Group of managers could also use a DSS as

well on a common task or issue
To facilitate this a GDSS (Group Decision
Support System) application is provided to
multiple users on various computer and on
multiple networks
Is the requirement in the organization that
believe in team-based working environment
What is a Transaction Processing
 Transaction Processing Systems are computerised systems
that perform and record the daily routine transactions
necessary to conduct the business.
 A Transaction Processing System consists of TP monitor,
databases, and transactions
 Transaction execution is controlled by a TP monitor. It
Creates the abstraction of a transaction, analogous to the
way an operating system creates the abstraction of a
 It’s an information system designed to process routine
business transactions.
 Seeks time- and cost-efficiency by automating repetitive
operations in large volumes.
What is a Transaction Processing
• Interfaces with an organization’s other information
systems, such as IRS, DSS, EIS.
• Centers around accounting and finance transactions.
• Example: Airline Reservation Systems, order
entry/processing systems, bank’s account processing
Transaction Processing System

DBMS database

DBMS database

TP Monitor
TPS, MIS/DSS, and Special-
Purpose Information Systems
Transaction Processing Activities
 Data collection: Capturing data necessary for the
 Data editing: Check validity and completeness
 Ex: 400 hours/week instead of 40 hours/week
 Data correction: Correct the wrong data
 Data manipulation: Calculate, summarize
 Data storage: Update transactions
 Document production and reports: Create end
results (paychecks)
Transaction Processing Activities
Transaction Processing Cycle


Transaction Input Process Update Master

Input Validation Transaction Master File File

Invalid Transaction
Correction and Control Control Log
Objectives of TPS
 Process data generated by and about transactions
 Maintain a high degree of accuracy
 Ensure data and information integrity and accuracy
 Produce timely documents and reports
 Increase labour efficiency
 Help provide increased and enhanced service
 Help build and maintain customer loyalty
 Achieve competitive advantage
ACID test
 Atomicity: all steps involved in transaction completed
successfully as a group

 Consistency: transaction successfully transforms the

system and database from one valid state to another

 Isolation: transaction is processed concurrently with

other transactions. As if only transaction executing the

 Durability: all changes transaction makes to database

become permanent
The Major Characteristics of TPS
 TPS handles data which shows the results of various
activities on historical basis ie, activities which have
already happened.
 It is relevant to all the four functional areas ie,
production, marketing, finance and human resources
because each area has some kind of transaction.
 TPS helps to assess the organizational performance.
 Large amounts of data are processed.
 The sources of data are mostly internal, and the output is
intended mainly for an internal audience.
 The TPS processes information on a regular basis: daily,
weekly, monthly, etc.
Accounting TPS

Cost of assets
Accounts Accounts
receivable payable

Amounts owed by customers Amounts owed by company

Amounts paid by customers Amounts paid by company

Labour costs General

ledger Asset depreciation

Paycheques Expense

Customer Budget
Components Of TPS
• There are four components of a Transaction
Processing System
• Input- These are source documents such as
customer orders, purchase orders etc. They help in,
1. Capturing data.
2. Indicates what data is required for recording and
what actions need to be taken.
• Processing- It involves the use of journals and
registers for chronological recording of data.
Journals are used for financial accounting
transactions and registers for other type of data.
Components Of TPS
• Storage- The computer stores various records in
files are of two types, transaction file and master file.
• Output- The outputs generated are in the form of
documents such as trial balance, profit and loss
account, balance sheet etc.
Components Of TPS

Input Data
Processing Output

Transaction Processing Methods
On-line transaction processing (OLTP) - method of
computerized processing in which each transaction is
processed immediately and the affected records are
On-line Schematic

Terminal Terminal


of each

Transaction Processing Methods
Batch processing – method of computerized processing
in which business transactions are accumulated over a
period of time and prepared for processing as a single
Batch Schematic

Data entry
of accumulated Output
transactions (batched)
Transaction Processing Methods
On-line analytic processing (OLAP) – method of
computerized processing in which data is entered on-
line and validated but, their processing is done on
periodic batch basis. It is basically used for making
management decisions by analysis of the data.
Control for TPS
• Control in the system is required to ensure that the
system is achieving the objectives.
• Audit Trails- It’s the chronology of activities that
can be traced from beginning to the end or vice
versa. This is important as it tells us what went
wrong in the transaction.

• Ensuring Processing of All Transactions- Control

in TPS also ensures that all transactions have been
processed. Problems such as interruptions in
computer operation, carelessness of personnel etc
results into non processing of some transactions.
TPS Applications
 Order Processing
 Purchasing
 Accounts Receivables & Accounts Payables
 Receiving & Shipping
 Inventory on Hand
 Payroll
 General Ledgers
• James A. O’Brien (Introduction to Information
• Laudon and Laudon (Management Information
• J. O'Brien and G. Marakas ( Enterprise
Information Systems)
• http//:wikipedia.com