DECISION SUPPORT SYSTEM

The Decision Support System are interactive information

system, that rely on an integrated set of user-friendly hardware &
software tools to produce & present information that is targeted to
support management in decision making process.
The DSS assists management decision making by combining
data, sophisticated analytical modals & user friendly software into a
single powerful system that can support semi structured or
unstructured decision making. The DSS is under user control, from
early inception to final implementation & daily use. DSS helps to
close the information gap to enable manager to improve quality to
their decision.
• Decision Support System Components.
1)The Database.
2)A Model base.
3)The DSS Software System.

1)The Database.
The DSS database is a collection of current or historical data from
a number of applications or groups. It is organised in such a
manner that it provides easy access for a range of applications.
DSS do not create or update data, but rather use live
organisational data so that the decision could be taken based
upon actual conditions.
2)A Model base:- A model can be physical model, a mathematical
model or verbal model. This can classified in to 3 types.

Decision Support System

Behavioral model Management Sci. model Operational research

model
a)Behavioral model:- These models of DSS is on studying/
understanding the behavior/trends of market.
Trend analysis, forecasting, co-relation are the ex. of this
model of DSS.
b)Management Science model:- These model are developed on the
principles of management, management accounting.
Budgetary system, Cost accounting, inventory management
are examples.
c)Operational research model:- Operations research is basically
application of mathematical formulae for arriving at optimum
solutions. As such operations research models are mainly
mathematical models. These model represents real life
problems/situations in terms of variables & parameters
expressed in algebraic equations form.
ex. Linear programming, mathematical prog. techniques.

3)The DSS software system:- The DSS software system permits easy
interaction between users of the system & the DSS database &
model base. The DSS software system also provides a graphic,
easy to use, flexible user interface that supports the dialogue
between the user & the DSS.
Difference between MIS & DSS
MIS DSS

1 Focus is on structured task & Focus is on nonstructured tasks

routine decisions which requires managerial
judgment.
2 Identifies information requirement. Establishes tools to be used for
decision process.
3 Emphasis is on data storage. Emphasis is on data manipulation.

4 Provides only indirect access to Managers have direct access to

data by managers. data.
5 Reliance on computer expert. Reliance on managerial judgement.
6 Access to data possibly requiring a Direct access to computers & data
wait for manager turn. hence no wait.
7 MIS manager may not completely Manager knowing nature of
understand the nature of decision. decision & decision making
enviroment.
Group Decision Support System. (GDSS)
In this decision makers have to increasingly work in groups as
Group-working. Group decision making has certain advantages
like.
1)More comprehensive consideration of the problems & related
issues.
2)Better group understanding of the problem for the decision.
3)Greater group commitment to the decision.
4)Improved communication to/with the implementers ensuring
better implementation.

“GDSS in an interactive computer based system that facilitates the

solution of unstructured problems by a set of decision makers
working together as a group.
GDSS Components:-
1)Hardware :-input/output devices.
-Audio visual instruments.
-Electronic display board screens.
-Computer equipments.
-Conferencing infrastructure.
2)Software or :-Database & DBMS
workgroup -Dialogue management with multiple user
software access.
-Specialized application programmes to
facilitate group access.
3)People & :-Trained facilitators.
Procedure -Decision making participants.
-Support staff.
GDSS Configuration :--

Model
database
base

GDSS GDSS
Processor
Software

Access to internet, External

External
network & comp. database
database
system access
Dialogue
Manager

User
The GDSS Features/advantages

1)Anonymous inputs without identifying the source of inputs to

enable group decision makers to concentrate on the materials of
the input without considering who gave it.
2)Improved pre planning to make meetings more effective.
3)Incerased participation.
4)Open, collaborative atmosphere- feel free to contribute (without
fear or favor)
5)Criticism free idea generation.
6)keep focus on objective.
7)Setting priorities & making decisions accordingly.
8)Documentation or record keeping meeting.
9)Access to external information, if & when required.
Executive Information System (EIS)/
Executive Support System (ESS)
According to EIS/ESS has become vital due to various factors both
internal & external factors, obtaining in the corporate operating
environment world wide.
Internal Factors.
1) Need for timely information.
2) Need for improved communication.
3) Need for access to operational data.
4) Need for more accurate information.
External Factors.
1) Increased & intensifying global competition.
2) Rapidly changing business environment.
3) Need to access external database.
4) Increasing government regulations.
EIS/ESS is developed to support decision making action or
process at the top executive/management. EIS/ESS is
required & used at senior level including members of board of
directors & executive with the titles of CEO, COO, CFO etc.
The primary goal of EIS/ESS is to obtain data from a variety of
sources, integrate & aggregate that data & display the
resulting information in as easy to use comprehensible
format.

EIS/ESS Definition :- It is computer based system that serves the

information needs to top executives. It provides rapid access
to timely information & direct access to management report.
It is very user friendly & it is supported by the graphics.
Architecture of EIS/ESS.

Central
Processing
Internal Data

MIS, Financial Data.

Office data.
Production/sales analysis
data.

External Data

EIS/ESS workstation
Government regulations.
Menu
Market research data.
Graphics
Industry data
Report
EIS/ESS Capabilities:-

1)It provides access to global information.

2)It enables to use external data extensively.
3)It shows trends, ratios, & deviation (variation) .
4)It provides access to historical as well as latest data.
5)It highlights problem indicators & support open-ended problem
explanations.
6)It filters, compresses & tracks critical data & also provide
forecasting capability.
Benefits of EIS/ESS
1) Increase the managements span of control as decision making
becomes decentralised.
2) Improve management performance:- as manager can immediately
access the data.
3) Provides grater clarity & insight into data than the paper based
system.
4) It has ability to analyse, compare & highlight trends.
5) Facilitates better strategic planning & control.
6) It provides competitive advantage.
7) EIS/ESS also helps in providing answers to question like,
i) What business the organisation should be in.
ii) What are the competitors doing.
iii) What new activities would protect the organisation from
business cycles/swings.
8) Facilitates finding the cause of a problem in a “Root –cause
analysis” mode rather than “fix it” mode.
Expert System & Knowledge Based Expert System.
Expert System is a technology basically derives from the research
discipline of Artificial Intelligence, a branch of computer science
concerned with the design & implementation of programmes which
are capable of following human analytical (cognitive) skills such as
problem solving, visual perception & language understanding.
Def.:-An Expert System is a computer programme that represents &
reasons with knowledge of some specialist subject with a view to
solving problems or giving advice.
According to Bruce & Reid ES is computer program that,
1)Specific knowledge that is symbolic as well as numerical.
2)Specific methods that are believable (plausible) as well as following
procedures that are algorithmic (certain).
3)Performs well in the problem area.
4)Explains or makes understandable both that it knows & the reasons
for its answers.
Knowledge Based System:-
System that depends on rich base (various department/all) of
expert knowledge to perform complex task. KBS gets its power
from the expert knowledge that has been coded into facts, rules &
procedures. Like all DBMS knowledge is stored in KBS as a separate
entity from control programs component.
Domain
Non Expert
Expert
Taking a
Inputs
decision

Numeric & Knowledge Base

Symbolic
Knowledge

Rules
Main part of Expert System are
* Knowledge representation- How the facts have been recorded
* Memory organisation- Storage of knowledge.
* Manipulation of knowledge- Control program used.

General Structure of KBS

Input Output Control

Knowledge
unit unit
base.
Characteristics of Expert System.
1)Uses knowledge rather than data for reasoning process & usually
it is reasonable.
2)Knowledge is coded & maintained as an entity separate from the
control program.
3)Expert system are capable of explaining how a particular solution
is arrived at.
4)Expert System use symbolic representations for knowledge i.e.
rules, network, frames.
5)Ability to draw conclusions from complex relations.

Expert System Applications.

1)Aerospace Technology 2)Airlines(Scheduling & routing)
3)Banking & finance 4)Criminology
5)Education 6)Security analysis
 Artificial Intelligence:-
AI is basically a technology which helps the application of
computers to areas that require knowledge, view, reasoning,
understanding which distinguish the human behavior from
machine like Computer.

AI would be describe to compare and understand the attributes of

Natural (Human) intelligence & Artificial (Machine) intelligence.
No. Attributes N.I. A.I.

1. Ability to use sensors. (eyes, ears, smell, touch) High Low

2. Ability to creative & imaginative. High Low

3. Ability to learn from past experience. High Low
4. Ability to adaptive. High Low
5. Ability to use a verity of information sources. High Low
6. Ability to acquire a large amount of external info. High Low
7. Ability to make complex calculation. Low High
8. Ability to transfer the information. Low High
9. Ability to make series of calculations, rapidly & Low High
accurately.
Pre-requisites of AI:-

To be artificially intelligent & also be able to come out with human

like response computer must posses the following pre-requisite
features.
1)Understand what is ‘common sense’.
2)Underatand ‘facts’ & relationships among ‘facts’.
3)Be able to manipulate ‘qualitative’ data.
4)Be able to deal with exceptions.
5)Be able to deal with new situations based on previous learning.
Def.:- AI is a branch of computer science that is concerned with the
automation of intelligent behavior.
George & William.
AI is a series of related technologies that attempt to simulate &
reproduce human behavior, including thinking, speaking, feeling &
reasoning.
Hussein Bidgoli.
AI system are expected to do tasks such as,
a) Learn Languages.
b) Do a co-ordinated physical task—Robotics.
c) Understand vision & voice– Visual & oral perception (i.e. Vision
recognition system & speech recognition system.)
d) Emulate human expertise & decision making- Expert System.
 Scope of AI

Natural
Language

Robotics
Intelligent
system
AI

Expert System
Perceptive
system
AI Applications :-

1) Manufacturing/production planning.
2) Project management.
3) Factory management.
4) Diagnosis & trouble shooting.
5) Currency/ Interest rates swaps.
6) Criminology.
7) Geology (Drilling/ oil exploration sites)

AI system are not to replace human decision making completely.

They are made to replicate emulate human decision making for
certain types of clearly & well defined problems. The chess
match between natural & artificial intelligence is class example
of AI…..