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UNIVERSITAS MALIKUSSALEH
Industrial Engineering Program with Service Systems Engineering Paradigm

Decision Support
System: An Introduction

Julya Ade Jhora, S.T., M.T.

Department of Industrial Engineering
[email protected], [email protected]

Where the Science of Engineering and Management Blends

Agenda

• Introduction of DSS
• The Traits of Managerial Works
• Decision Making of Managerial & Information
System
• Group Support System (GSS)
Decision Making

Decision making is done by the

leadership to solve the problems
faced in the organization that is led
in a choice of the best alternative to
solve the problem based on certain
considerations/criteria.

Decision making must be done

systematically by collecting facts, the
existence of a mature determination of
the alternatives faced, and then taking
appropriate action after the calculation
has been done.
Evolution of DSS Discipline Clumps

(Source: Saintika, 2018)

Attributes of The Evolution of DSS

(Source: Saintika, 2018)

The Objectives of DSS
Increase the effectiveness and support the manager in their work, especially
in the decision-making problems.

Identify information processing as the foundation of managerial work and

identify which media are more suitable for supporting it.

Describe decision-making/problem solving system in organizations and

decision-support content of different types of information system.

Discuss models of decision making and describe the decision-making

process.
The Advantages of DSS

Improve management
Save cost
control and performance

Improve managerial
The decision is more effectiveness, making
correct managers able to work
shorter and with less effort

Increase analytical
productivity
Agenda

• Introduction of DSS
• The Traits of Managerial Works
• Decision Making of Managerial & Information
System
• Group Support System (GSS)
Traits of Managerial Work

Help managers to make decisions in

solving semi-structured problems

Support the manager's judgment, not

try to replace it

Improve the effectiveness of manager

decision making rather than efficiency

The classic study from Mintzberg (1980), that managers perform 10 main
roles which can be classified in three main categories:
• Interpersonal
• Information
• Decision
Mintzberg’s 10 Managerial Roles
Agenda

• Introduction of DSS
• The Traits of Managerial Works
• Decision Making of Managerial & Information
System
• Group Support System (GSS)
Decision Making of Managerial &
Information System

Management is a process for achieving organizational goals by using

various resources.

These resources include various inputs, and the achievement of objectives

is seen as the output of the process.

The level of organizational success and the work of managers is often

measured by the ratio between output and input. The ratio is an indication of
company productivity.

Managers must be sophisticated (smart/up-to-date): Using new tools and

techniques in their field
Determinants of Decision Making
New technology and improved information distribution provide many
alternatives for management.

Many complex activities cause errors that result in increased costs.

The changing global economy, which produces uncertainty and requires a

faster response to maintain competitive advantage.

Government regulations and political stability that are full of uncertainties need
quick decisions.
Trends: Determinants in Decision
Making
Factor Trend Result
Computer and Information More alternatives to
Increase
Technology choose from
The Complexity of the Competition The greater cost to
Increase
Structure correct errors
International Market Increase
Political Stability Decrease The more unclear for
Consumerism Increase the future

Government Policy Increase

Change, Fluctuation Increase Need a soon decision

DSS Tech
• Decision Support System (DSS) • CASE tools
• Management Science • Group Support System
• Environmental Resources • Supply Chain Management
Management (ERM) • Knowledge Management
• Enterprise Resource Planning (ERP) System
• Business Analytics • Knowledge Management Portal
• Customer Relationship Management • Expert System
(CRM) • Artificial Neural Network
• Data Mining • Executive Information System
• Data Warehouse • Intelligent Agents
• Business Intelligence • Enterprise Information Portal
• OLAP • E-commerce DSS
Types of Decision

Structured decision
• Made according to customs, rules,
procedures; also not written
• Are routine, repetitive

Unstructured decision
• Relates to special, typical, unusual
problems
• Policy that has not been answered
• e.g. Resource allocation
Structured Decision Technique

Traditional
• Habits
• Follow standard
procedures
• Information channels are
well organized

Modern
Using the "operation
research" technique:
• Mathematical formulas
• Computer simulation
• Based on computer-aided
data processing
Unstructured Decision Technique

Traditional
• Intuition policies based on
creativity
• Trying
• Selection and training of
implementers

Modern
Problem solving techniques
that are applied to:
• Decision making practice
• Compilation of empirical
computer programs
DSS as "an interactive computer-based system, which helps decision makers
to use data and various models to solve unstructured problems" (Gorry and
Scott Morton, 1971).

DSS combines the intellectual resources of individuals with computer

capabilities to improve decision quality. DSS is a computer-based system for
management decision makers who deal with unstructured problems (Keen
and Scott Morton, 1978).

DSS uses data, models and knowledge that allow for the solution of semi-
structured and unstructured problems.
Why Using DSS?

• The company works in an unstable and rapidly changing economy

• There are difficulties in tracking various business operations
• Increased competition
• E-Commerce
• The existing system does not support decision making
• New information is needed
• Management requires a DSS
• Higher Decision Quality
• The existence of information which is generally limited by time, etc.
Expert System
It is a decision-making or problem-solving software package that can achieve
an equivalent level of performance - or even more - with human experts in
several specific fields and usually narrow down the problem area.
Agenda

• Introduction of DSS
• The Traits of Managerial Works
• Decision Making of Managerial & Information
System
• Group Support System (GSS)
Group Support System (GSS)
• The group makes many decisions in the organization.
• Various efforts to improve group work with the help of information technology
• An example of implementation is Total Quality Management (TQM)
The Advantages of GSS
• Greater knowledge
• Broader search for alternative decisions
• There is a wide frame of view
• The risk of the decision is borne by the group
• Because of group decisions, every individual is motivated to implement
• The realization of broader creativity can be realized, due to various views
Examples of GSS

Cloud software that helps

organizations make better
decisions by leveraging
Stakeholder Intelligence.

Leading maker of dynamic online

meeting solutions that support project
management, risk management,
quality management, requirements
specification and business continuity
management.

Real-time group collaboration software enables breakthrough

group brainstorming, problem solving, prioritization, consensus
building, strategic alignment, and decision-making.