Module 11

Decision Support System

September 08, 2013

Definition | Overview of the Decision Support System | Architecture | Components

Classification | Characteristics | Capabilities | Benefits of Decision Support System
 Decision Support System Module 11
DEFINITION

Decision Support System (DSS) is a type

of Information System that provides support for
problem-specific decision making and problem
solving activities.

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 Decision Support System Module 11
DEFINITION

Decision Support System (DSS) serves

the management, operations and planning levels
of an organization and help to make decisions,
which may be rapidly changing and not easily
specified in advance.

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Decision Support System Module 11
OVERVIEW

Example of Decision Support System for John Day Reservoir 4

 Decision Support System Module 11
OVERVIEW

Decision Support System (DSS) offers

potential to generate higher profits, lower costs,
and better products and services.

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 Decision Support System Module 11
OVERVIEW

Typical information that a decision support

application might gather and present includes:

Inventories of information assets (including

legacy and relational data sources, cubes, data
warehouses and data marts.)

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 Decision Support System Module 11
OVERVIEW

Typical information that a decision support

application might gather and present includes:

Comparative sales figures between one period

and the next.

Projected revenue figures based on product

sales performance.
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 Decision Support System Module 11
ARCHITECTURE

There are three fundamental components

of a DSS architecture:

1. The Database (knowledge base)

2. The Model Base
3. The Dialogue Manager (user interface)

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Decision Support System Module 11
ARCHITECTURE

Database Model base

DBMS MMS

Access to the
External
Internet and
Database
External
corporate intranet, Database
Access
networks, and other
computer systems Dialogue
Manager

Conceptual Model of a DSS

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 Decision Support System Module 11
ARCHITECTURE

The Database

The database management system allows

managers and decision makers to perform
qualitative analysis on the companys vast stores
of data in the databases, data warehouses and
data marts.

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 Decision Support System Module 11
ARCHITECTURE

The Model Base

Model Base is a part of a DSS that

provides decision makers access to a variety of
models and assists them in decision making.

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 Decision Support System Module 11
ARCHITECTURE

The Model Base

Model Management Software (MMS) is

the software that coordinates the use of models
in a DSS. It includes financial, statistical
analysis, graphical, and project management
models.

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 Decision Support System Module 11
ARCHITECTURE

The Model Base

Model Type Description
Financial Provides cash flow, internal rate of
return, and other investment analysis.
Statistical Provides summary statistics, trend
projections. Hypothesis testing and
more.
Graphical Assists decision makers in designing,
developing and using graphical
displays of data and information.
Project Handles and coordinates large
Management projects; also used to identify critical
activities and tasks that could delay or
jeopardize an entire project if they are
Application Software
Spreadsheet such as Excel
Statistical program such as
SPSS, SAS or Minitab
Graphics program such as
PowerPoint
Project Management Software
such as Project

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not completed in a timely and cost-
effective fashion.
 Decision Support System Module 11
ARCHITECTURE

The Dialogue Manager

Dialogue Manager is the user interface

that allows decision makers to easily access and
manipulate the DSS and to use common business
terms and phrases.

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 Decision Support System Module 11
COMPONENTS

DSS components can be classified as:

1. Input: Factors, numbers and characteristics to

analyze.
2. User Knowledge and Expertise: Inputs requiring
manual analysis by the user.
3. Output: Transformed data from which DSS decisions
are generated.
4. Decisions: Results generated by the DSS based on
user criteria. 15
 Decision Support System Module 11
CLASSIFICATION

There are several ways to classify a DSS

application. Not every DSS fits neatly into one
of the categories, but may be a mix of two or
more architectures.

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 Decision Support System Module 11
CLASSIFICATION

There are several ways to classify a DSS

application. Not every DSS fits neatly into one
of the categories, but may be a mix of two or
more architectures.

Communication-driven DSS supports

more than one person working on a shared task;
examples include integrated tools like
Microsofts NetMeeting or Groove.
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 Decision Support System Module 11
CLASSIFICATION

There are several ways to classify a DSS

application. Not every DSS fits neatly into one
of the categories, but may be a mix of two or
more architectures.

Data-driven or Data-oriented DSS

emphasizes access to and manipulation of a time
series of internal company data and, sometimes
external data.
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 Decision Support System Module 11
CLASSIFICATION

There are several ways to classify a DSS

application. Not every DSS fits neatly into one
of the categories, but may be a mix of two or
more architectures.

Document-driven DSS manages, retrieves,

and manipulates unstructured information in a
variety of electronic formats.
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 Decision Support System Module 11
CLASSIFICATION

There are several ways to classify a DSS

application. Not every DSS fits neatly into one
of the categories, but may be a mix of two or
more architectures.

Knowledge-driven DSS provides

specialized problem-solving expertise stored as
facts, rules, procedures or in similar structures.
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 Decision Support System Module 11
CLASSIFICATION

There are several ways to classify a DSS

application. Not every DSS fits neatly into one
of the categories, but may be a mix of two or
more architectures.

Model-driven DSS emphasizes access and

manipulation of a statistical, financial,
optimization or simulation model.
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 Decision Support System Module 11
CHARACTERISTICS

Characteristics of a Decision Support System

Handle large amounts of data.

Obtain and process data from different
sources.
Provide report and presentation flexibility.
Have both textual and graphical orientation.

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 Decision Support System Module 11
CHARACTERISTICS

Characteristics of a Decision Support System

Perform complex, sophisticated analysis, and

comparisons using advanced software packages.
Support optimization, satisficing and heuristic
approaches.
Perform What-if and goal-seeking analysis.

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 Decision Support System Module 11
CHARACTERISTICS

Characteristics of a Decision Support System

Perform What-if and goal-seeking analysis.

What-if analysis is the process of making
hypothetical changes to problems data and observing
the impact on the result.
Goal-seeking analysis is the process of
determining the problem data required for a given
result.
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 Decision Support System Module 11
CAPABILITIES

1. Support for problem-solving phases

The objective of most decision support

systems is to assist decision makers with the
phases of the problem-solving process. These
phases include intelligence, design, choice,
implementation and monitoring. A specific DSS
might support only one or a few problem-solving
phases.
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 Decision Support System Module 11
CAPABILITIES

2. Support for different decision frequencies

Decision can range on a continuum from

one-of-a-kind to repetitive decisions. One-of-a-
kind decisions require flexible, efficient, and
cost-effective computer support.

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 Decision Support System Module 11
CAPABILITIES

3. Support for different problem structures

Decision can range from highly structured

and programmed to unstructured and non-
programmed.
Highly structured problems are those that are
straightforward, requiring known facts and
relationships.

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 Decision Support System Module 11
CAPABILITIES

3. Support for different problem structures

Decision can range from highly structured

and programmed to unstructured and non-
programmed.
Semi-structured or unstructured problems are
more complex. The relationships among the data are
not always clear, the data may be in a variety of
formats, and the data is often difficult to manipulate
or obtain. 28
 Decision Support System Module 11
CAPABILITIES

4. Support for various decision-making levels

Decision support systems can offer help

for managers at different levels within the
organization.
Operational-level managers can be
assisted with daily and routine decision-making.

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 Decision Support System Module 11
CAPABILITIES

4. Support for various decision-making levels

Decision support systems can offer help

for managers at different levels within the
organization.
Tactical-level managers can be assisted
with tools that assist in proper planning and
control.
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 Decision Support System Module 11
CAPABILITIES

4. Support for various decision-making levels

Decision support systems can offer help

for managers at different levels within the
organization.
Strategic-level managers can be provided
with analysis for long-term decision requiring
decisions requiring both internal and external
information. 31
 Decision Support System Module 11
BENEFITS

Benefits from a Decision Support System

1. Improves personal efficiency

2. Speed up the process of decision making
3. Increases organizational control
4. Encourages exploration and discovery on the
part of the decision maker.

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 Decision Support System Module 11
BENEFITS

Benefits from a Decision Support System

5. Speeds up problem solving in an

organization.
6. Facilitates interpersonal communication
7. Promotes learning or training
8. Generates new evidence in support of a
decision.
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 Decision Support System Module 11
BENEFITS

Benefits from a Decision Support System

9. Creates an advantage over competitors.

10. Reveals new approaches to thinking about
the problem space .
11. Helps automate managerial processes.

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 Decision Support System Module 11

---END---
Prepared by:

Engr. AARON Q. ORIJUELA

Certified Industrial Engineer; Registry: 00058-2010
BS Industrial Engineering; Southern Luzon State University, 2010
MS Industrial Engineering Operations Research; University of the Philippines, On-going

Copyright 2012

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