Cabutotan Irene Marie

Bsais 3C

 It is a interactive software (computer software program) used to improve a company's decision

making capabilities.

EXPN:

A decision support system is a software that helps the company formulating best decisions and best
course of action in a complex problem. Used to gather and analyze data to inform decision making.
There are many different types of decision support systems, from modern business intelligence which
uses AI and machine learning to suggest insights and analyses for humans to perform, to model-based
DSS systems which use predefined criteria to perform automated calculations and deliver best-case
decisions. For all types, DSS is used in timely problem solving to improve efficiency and streamline
operations, planning and company management.

 Traditional DSS: Historically, DSS and BI tools relied on preconfigured, historical data with no
ability to drive real-time decisions and action.

EXPN: a traditional DSS are based on past data. With this approach, decisions are made based on the
past. It makes it a manual DSS which is it hard. The decision process would be base on the past actions.

 Modern DSS: New tools and processes allow for “active intelligence”, a state of continuous
intelligence with an end-to-end analytics data pipeline delivering real-time, up-to-date
information designed to trigger immediate insights and actions.

EXPN: a modern DSS was a combination of much modern tools, up to date and modern DSS is
everyday update every second every minute causing it to give immediate insights to the user of the
information.

 Programmed Decision, Automated Process, General work routine. Decision have been taken
several times

EXPN: Programmed decision is automated which means its an everyday course of action it doesn’t
need a complex data or create complex decisions just to decide. Because programmed decisions had
been taken several times it follow some guidelines and rules. For example, selecting a reorder level
for inventories, is a programmed decision.

 Non-Programmed Decision, Occur in an unusual and non addressed situation

EXPN: a non programmed decisions are decisions doesn’t occur in the regular course of a business.
It doesn’t follow rules and the decisions are based on the present information. These decisions are
based on the manger's discretion, instinct, perception and judgment. For example, investing in a new
technology is a non-programmed decision.
• Is an informational application

EXPN: because DSS  Informational applications provide users with relevant information based on a
variety of data sources to support better-informed decision-making.

• Generally involve non programmed decisions

EXPN: it is because decision support system uses when the data needed are already big and its too
many. Therefore, there will be no exact report, content, or format for these systems. Reports are
generated on the fly.

 Components of decision support system. Knowledge Base-Integral Part of DSS. It contains

data bases information both external and internal Sources. Software System-Composed of
model Management system. Simulation of a real world system with the goal of understanding
how the system works. User Interface-Enables easy system navigation. The goal is to make it
easy for the user to manipulate the data stored in it

EXPN: Prior to decision support systems, organizational leaders relied heavily on a combination of their
experience and professional training, and applied those to thoughtful use of the advanced insights
generated by a data analytics platform. Decision support systems systematize that by taking
organizational data, analyzing it, and presenting it for use in company decision making.

This DSS approach enables powerful augmented analytics or modeling to make analysis
recommendations and game play the outcomes of different scenarios. By varying considerations,
outcomes can be more accurately predicted and business decisions made based on the best available
information. In this way, DSS supports both predictive and prescriptive analytics.
Three key elements that characterize a decision support system framework are model management,
organizational data (your knowledge base) and user interface.

Organizational Data or Knowledge Base: Before any DSS can be used, raw data must be
transformed into clean, accurate, and up-to-date information. The data is then stored in a repository
such as a data lake or data warehouse using a governed data catalog.

Model Management: To make effective decisions, especially those made on an ongoing basis, it’s
crucial for companies to develop key performance indicators (KPI’s) from which to evaluate
performance against goals, and measure improvements over time. These KPI’s then form the
decision criteria for the information models used to guide decision making. Having models provides
the backbone of consistency every business needs to sustain success. Models can be leveraged by
formally coded rules in DSS or prescriptive analytics software or by analysis using a BI platform

KPI stands for key performance indicator, a quantifiable measure of performance over time for a
specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and
insights that help people across the organization make better decisions. From finance and HR to
marketing and sales, key performance indicators help every area of the business move forward at the
strategic level

User Interface: You’ve stared at enough dense tables of numbers to appreciate why it’s so
necessary to have a more digestible and user-friendly way to consume data. A user interface,
complete with digital dashboards, tables, graphs, widgets or other tools to present information,
enables users to better interact with, view, and use the data at their disposal.

 TYPES OF DSS Communication Driven- Allows companies to support tasks that require
more than one person to work with the tasks. Model Driven-Allows access to and the
management of financial, organizational, and statistical model. Knowledge driven-Provides
information to the uses that is consistent with the company's business process and
knowledge .Document Driven-Manages unstructured information in different electronic. Data
Driven- Helps companies to store, analyze internal and external data
EXPN: Communication driven is just like collaborative work with one person to another. A
communication-driven and group decision support system uses a variety of communication tools --
such as email, instant messaging or voice chat -- to allow more than one person to work on the same
task. The goal behind this type of DSS is to increase collaboration between the users and the system
and to improve the overall efficiency and effectiveness of the system.

Model Driven These DSS software solutions enable decision makers to access and manage
statistical models used to run the business. Data is collected, and parameters are determined using
the information provided by users. The information is created into a decision-making model to analyze
situations. An example of a model-driven DSS is Dicodess – an open-source model-driven DSS.

Knowledge Driven. Provides factual and specialized solutions to situations using stored facts,
procedures, rules, or interactive decision-making structures like flowcharts

Document Driven. a type of information management system that uses documents to retrieve data.
Document-driven DSS enable users to search webpages or databases, or find specific search terms.
Examples of documents accessed by a document-driven DSS include policies and procedures,
meeting minutes and corporate records.

Data Driven. A data-driven DSS is a computer program that makes decisions based on data from
internal databases or external databases. Typically, a data-driven DSS uses data mining techniques
to discern trends and patterns, enabling it to predict future events. Businesses often use data-driven
DSS to help make decisions about inventory, sales and other business processes. Some are used to
help make decisions in the public sector, such as predicting the likelihood of future criminal behavior.

 Advantages of a Decision Support System

 A decision support system increases the speed and efficiency of decision-making activities.

EXPN: decision support system helps the managers to decide but the final decision would be from
managers or anyone who uses the system

 It promotes training within the organization, as specific skills must be developed to implement
and run a DSS within an organization.

EXPN: it creates opportunity because DSS needs to be updated anytime and anywhere.

 It automates monotonous managerial processes, which means more of the manager’s time
can be spent on decision-making.

EXPN:

 It improves interpersonal communication within the organization.

EXPN:

 Disadavantage
 The cost to develop and implement a DSS is a huge capital investment, which makes it less
accessible to smaller organizations.
EXPN: implementation of a dss is expensive because it composes of many branches of information
system. Only large companies will take to administer this kind of system. It would be hard to the small
time business.

 Managers tend to rely on the system too much, which takes away the subjectivity aspect of
decision-making.

EXPN: some decisions are on behalf of the managers assessment when the manager is relying too
much on the system he or she cannot exercise his decision skills because the dss are already
provided decisions. Yung manager is din a siya mag iisip pa nang ibang solution

 A DSS may lead to information overload because an information system tends to consider all
aspects of a problem.

EXPN: it cause dilemma because it considers all aspects creating problems choosing with the
multiple solutions generated.

 Implementation of a DSS can cause fear and backlash from lower-level employees.

EXPN: It is because implementing the dss system might be a threat to the employee because of
technology.  Many of them are not comfortable with new technology and are afraid of losing their jobs
to technology. And also natatakot silang mawalan nang trabaho.