What is a DSS?

• “A model-based set of procedures for processing

data and judgments to assist a manager in his
Decision Support Systems Concepts, decision making”
Methodologies, and Technologies: An Overview – Little, 1970
• “A DSS is typically built to support the solution of a
certain problem or to evaluate an opportunity.”
• “It uses an interactive, flexible, adaptable computer-
based information system especially developed for
Chapter 3 supporting the solution to a specific nonstructured
management problem.
– Turban & all, 2011

The DSS Application What is a DSS?

• A Decision Support System is an approach • We can also define a DSS by:
for supporting decision-making – Goals: what do we want a DSS to
accomplish?
• This approach is realized in specific DSS – Characteristics: what are the
applications broad ideas behind a DSS?
– Custom applications to support unique – Functions: what does a DSS need
decision situations to do?
– Types: can DSS be grouped by
– Common applications to support repetitive common characteristics?
decision situations – Components: what subsystems are
contained in a DSS?

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DSS Goals DSS Goals
• Decision Quality: • New Insights & Learning:
– Improve decision making effectiveness of – Allow decision makers to experiment with
unstructured, nonprogrammed decisions. different strategies or alternatives.
– Improve chances of a positive decision – Allow decision makers to examine changes in
outcome. decision making conditions (what-if).
– Faster decision making to take advantage of – Allow decision makers to track consequences
sudden opportunities. of current or past decisions.
– Ability to apply wider range of modeling and
analysis tools than manually possible.
– Enforcement of objectivity & consistency.

DSS Goals DSS Characteristics

• Improved Management of Decisions: • Semi-structured & unstructured decisions
– Enhance implementation by communicating • Support managers at all levels
decision aspects. • Support individuals and groups
– Provide for monitoring progress of decision • Interdependent or sequential decisions
outcomes.
• Support intelligence, design, choice,
– Empower managers by providing access to
implementation
wider array of data and information.
• Support various decision processes & styles
• Adaptable & flexible

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DSS Characteristics DSS Functions
• Interactive, ease of use • Communication with the decision maker
• Effectiveness, not efficiency • Assimilation of knowledge from decision
• Humans control the process/machine maker and other sources
• Ease of development by end users • Problem Recognition by monitoring
• Modeling and analysis environment or reporting exceptions
• Data access • Problem Solving and decision making
• Standalone, integration, and web-based • Packaging of the decision for presentation

DSS Types DSS Types

• Communications-driven & Group DSS • Document-driven DSS
– Focus on collaboration and communication – Support decision-making by providing access
among team members to a variety of documents
– Commonly known as Group Support Systems – Minimal use of models
• Data-driven DSS • Knowledge-driven DSS
– Focus is on developing and maintaining a – Usage of knowledge-based systems and
large collection of data artificial intelligence
– Models are relatively simple – Referred to as intelligent DSS or automated
– Often tied to data warehouse development decision-making systems

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DSS Types DSS Types
• Model-driven DSS • Permanent / Institutional DSS
– Focus is on developing and maintaining a – Developed for an on-going decision situation. May be
refined or updated as needed.
large collection of sophisticated models
• Ad-Hoc DSS
– Data collection usually not as extensive
– Built for one specific decision requiring immediate
• Compound DSS support. Often rapidly assembled using DSS
– Combination or hybrid of several DSS types generators & tools. May eventually result in
permanent DSS.

DSS Types DSS Components

• Specific DSS • 1970: The IBM Research Laboratory in
– Developed for supporting one particular type of San Jose published a framework in which
decision. includes three sets of capabilities in the
• DSS Generators areas of:
– Programs which decision makers and programmers – Dialog - it should be easy to and interact
can use to quickly build a specific DSS application. with non-programmers.
– Spreadsheets with templates are commonly used – Data - it should have access to a wide variety
• DSS Tools of data.
– Languages, development tools, text editors, etc., – Modeling - it should utilize and provide
which require more technical sophistication before analysis and modeling in a variety of ways
they can become specific DSS. suited for the individual user.

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DSS Components Data Management Subsystem
• DSS Database:
– Decision-maker’s personal database
– Database specifically built for DSS
– Data gathered from, or access provided to other
organizational or external databases
• Database Management System:
– Software system which provides (and sometimes
prohibits) access to database contents.
• Data Dictionary / Directory System:
– Index of all data items contained in a database
• Database Query Facility

Data Management Subsystem Model Management Subsystem

• Model Base
– Collection of models
• Strategic, tactical, operational models
• Statistical, financial, marketing, management
science, accounting, engineering, etc. models
– model building blocks
• Program routines, functions, utilities, applets,
add-ons, etc.

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Model Management Subsystem Model Management Subsystem

• Model Directory
– Catalog of models, their purposes, their
requirements, their versions, etc.
• Modeling Languages
– Languages specifically developed for modeling
purposes
• Model Base Management System
– Helps user select & retrieve appropriate model
– Matches relevant or most current data from
database to selected model

User Interface /Dialog Management User Interface /Dialog Management

Subsystem Subsystem
• Provides for interaction between decision
maker and DSS.
• Modes of input
– Command Lines, menus, icons, voice, etc.
• Modes of output
– Screen, paper, digital file
• Types of output
– Text & numbers, graphs, animations, etc.

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User Interface /Dialog Management
Subsystem
Knowledge-Based Subsystems
• Interface developments • Insertion of artificial-intelligence based
– Web-based DSS have made it easier and less applications into a DSS architecture
costly to make decision-relevant information – Assist user in selecting appropriate model for
and model-driven DSS available to users in the problem
geographically distributed locations, especially – Assist user in managing model libraries
through mobile devices
– Assist user in integrating uncertainties and
heuristics into mathematical models
– Assist user in interpreting model output

Decision Maker Decision Maker Types

• The decision maker is a key component of • Manager / Actual Decision Maker
• Staff specialist – frequent user, detail-oriented
the decision making process. • Staff analyst – intermediary between managers and the system
• It is still unclear how the relationship – Staff assistant
between the decision maker and the DSS An individual who acts as an assistant to a manager
– Expert tool user
should be established: A person who is skilled in the application of one or more types of
– Should the DSS be developed to match the decision specialized problem-solving tools
maker? – Business (system) analysts
An individual whose job is to analyze business processes and the
– Should the decision maker learn to deal with the support they receive (or need) from information technology
DSS? – Facilitators (in a GSS)
– Should both be matched to the decision problem? A person who plans, organizes, and electronically controls a
group in a collaborative computing environment

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DSS Benefits & Limitations DSS Benefits & Limitations
• DSS Benefits • DSS Limitations
– Augment decision maker’s knowledge management – DSS do not replace human creativity and experience
abilities – DSS is constrained by the knowledge in its databases
– Allow decision maker to solve larger and more – DSS is constrained by the models and processes in its
complex problems model base and programming
– Make decision making faster and more reliable – DSS is limited by its computer platform
– Stimulate decision maker’s thoughts about a problem – Decision makers are required to communicate with
& reveal new ways of thinking the DSS in its language or interface mode
– Support decision maker’s decision/position with – DSS are often narrow in their area of application
computational evidence
– Organizational competitive advantage

Trends Impacting DSS Trends Impacting DSS

• Rapid innovations in personal computing, more
advanced operating systems, and increasingly
sophisticated end-user software.
• Increased capability and decreasing cost of
telecommunications.
• Increasing availability of public databases and
other sources of external data.
• Growth of AI techniques - basic expert systems
and natural language systems.

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Trends Impacting DSS
• The development of ready-made (or near-ready-
made) DSS solutions for specific market
segments has been increasing.
• GSS improvements support collaboration at the
enterprise level.
• Different types of DSS components are being
integrated more frequently.