Figure 2-2

A Symbolic Representation for a Payroll TPS

Figure 2-3

Management Information Systems (MIS) (continued)

Figure 2-5

Decision-Support Systems (DSS) (Continued)

Voyage-estimating decision-support system

Figure 2-7

Model of a Typical Executive Support System

Figure 2-8

THE DIFFERENCE BETWEEN MIS AND DSS

SYSTEMS FOR DECISION SUPPORT

Management Information Systems (MIS) Primarily address structured problems Typically provide fixed, scheduled reports based on data extracted and summarized from firms underlying TPS Assist managers in monitoring and controlling the business

The Difference between MIS and DSS (continued)

SYSTEMS FOR DECISION SUPPORT

Decision Support Systems (DSS) Support semi structured and unstructured problems Greater emphasis on models, assumptions, ad-hoc queries, display graphics Emphasize change, flexibility, and a rapid response

The Difference between MIS and DSS (continued)

DSS Philosophy provide integrated tools, data, models and language to users DSS Systems Analysis establish what tools are needed in the decision process Design iterative process

The Difference between MIS and DSS (continued)

MIS Philosophy provide structured information to end users MIS Systems Analysis identify information requirements up front Design deliver system based on frozen requirements

Business Value of DSS

Providing fine-grained information for decisions that enable the firm to coordinate both internal and external business processes much more precisely Helping with decisions in Supply chain management Customer relationship management Pricing Decisions Asset Utilization

Business Value of DSS

Data Visualization: Presentation of data in graphical forms, to help users see patterns and relationships Geographic Information Systems (GIS): Special category of DSS that display geographically referenced data in digitized maps

DECISION SUPPORT SYSTEM

A decision support system (DSS) is a computer-based information system that supports business or organizational decisionmaking activities. DSSs serve 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.

DSS APPLICATION AREA

Comparative sales figures between one week

and the next.

Projected revenue figures based on new

product sales assumptions.

DSS APPLICATION AREA

decision support systems designed to

manage inventory Use DSS for sales optimization and sales projections DSS to optimize industry-specific systems Land Allocation Decision Support System Clinical decision support system WebFOCUS reporting software

DSS APPLICATION AREA

Simplify Access to Data Needed To Make

Decisions Provide Reminders and Prompts Assist in Order Entry Assist in Diagnosis Review New Clinical Data; Alert When Important Patterns Are Recognized

DSS APPLICATION AREA

Examples of Successful Computer Decision

Support Systems
HIV Guidelines at Boston Beth Israel Antimicrobial Use in the ICU

DECISION

A decision is choice out of several

alternatives (options) made by the decision maker to achieve some objective s in a given situation.

DECISION TYPES

Strategic decision Tactical decision Operation decision

DECISION TYPES
1. Strategic Decision: these are known as

major decision influence whole or major part of the organization. Such decisions contribute directly to the achievement of common goals of the organization; have long range effect upon the organization.

DECISION TYPES
2.

Tactical Decision: tactical decision relate to the implementation of strategic decisions, directed towards developing divisional plans, structuring workflows, establishing distribution channels, acquisition of resources such as men, materials and money. These decisions are taken at the middle level of management.

DECISION TYPES
3.

Operational Decision: operational decisions relate to day-to-day operations of the enterprise having a short-term horizon and are always repeated. These decisions are based on facts regarding the events and do not require much of business judgments. Operational decisions are taken at lower level of management.

CATEGORIES OF DECISION M AKING

Structured Situations:

decisions are automated decision support systems are not required

Examples: Allocate resources to

managers; develop a marketing plan

CATEGORIES OF DECISION M AKING

Semistructured Situations: there is

a method to follow requirements are clear cut

Examples: Restock inventory; determine

special offers to customers

CATEGORIES OF DECISION M AKING

Unstructured Recognised Situations:

there is no method to reach the decision judgments are required requires insights into the problem

Examples: Approve capital budget;

decide corporate objectives

CATEGORIES OF DECISION M AKING

TYPES OF DECISION MAKING

Types Of Decision-Making Systems There are two types of systems based on the

managers knowledge about the environment. Closed Decision-Making System Open Decision-Making System

TYPES OF DECISION MAKING

closed decision-making system. If the manager operates in a known

environment then it is a closed decisionmaking system.

Open Decision-Making System If the manager operates in an environment not known to him, then the decision-making

system is termed as an Open DecisionMaking System

DSS COMPONENTS
Inputs: Factors, numbers, and characteristics

to analyze User Knowledge and Expertise: Inputs requiring manual analysis by the user Outputs: Transformed data from which DSS "decisions" are generated Decisions: Results generated by the DSS based on user criteria

DSS COMPONENTS
1. Data Management Subsystem 2. Model Management Subsystem 3. Knowledge Management Subsystem 4. User Interface Subsystem 5. The User

DECISION-MAKING PROCESS
The decision-making process can be divided into three main phases: (a) Intelligence: searching the environment for condition calling for decisions. The phase consists of determining that a problem exists. (b) Design: during this phase a set of alternative solution is generated and tested for feasibility. (c) Choice: in this phase, the decision-maker

select one of the solution identified in the design phase.

STAGES IN DECISION MAKING

Decision-Making Stages
Orientation stage Conflict stage Emergence stage Reinforcement

Decision-Making Stages
Orientation stage- This phase is where

members meet for the first time and start to get to know each other. Conflict stage- Once group members become familiar with each other, disputes, little fights and arguments occur. Group members eventually work it out.

Decision-Making Stages
Emergence stage- The group begins

to clear up vague opinions by talking about them. Reinforcement stage- Members finally make a decision, while justifying themselves that it was the right decision.

DECISION-MAKING STEPS
Establishing community: Perception: Interpretation: Judgment: Motivation: Action: Reflection in action:

Reflection on action:

DECISION-MAKING STEPS
Establishing community: creating and nurturing the

relationships, norms, and procedures that will influence how problems are understood and communicated. This stage takes place prior to and during a moral dilemma Perception: recognizing that a problem exists Interpretation: identifying competing explanations for the problem, and evaluating the drivers behind those interpretations Judgment: sifting through various possible actions or responses and determining which is more justifiable

DECISION-MAKING STEPS
Motivation: examining the competing commitments which may distract from a more

moral course of action and then prioritizing and committing to moral values over other personal, institutional or social values Action: following through with action that supports the more justified decision. Integrity is supported by the ability to overcome distractions and obstacles, developing implementing skills, and ego strength Reflection in action Reflection on action

Figure 1 Decision Understanding Stages

Stage 1: DetectingWhat Has Happened?

Stage 2: MonitoringWhat Is Happening?

Stage 3: PredictingWhat Will Happen?

Figure 2 DSS Hardware Evolution

Stage 1: Mainframe and Terminals

Stage 2: Personal Computers (PCs) and Workstations

Stage 3: Locally Networked PCs

Stage 4: InternetNetworked PCs

Stage 5 Networked Devices

 DSS- Theory Development DSS Applications Development

 DSS- Theory Development

File drawer systems Data analysis systems Analysis information systems Accounting and financial models Representational models Optimization models Suggestion models

 DSS- Theory Development File drawer systems that provide access to

data items. Data analysis systems that support the manipulation of data by computerized tools tailored to a specific task and setting or by more general tools and operators. Analysis information systems that provide access to a series of decision-oriented databases and small models.

 DSS- Theory Development Accounting and financial models that

calculate the consequences of possible actions. Representational models that estimate the consequences of actions on the basis of simulation models. Optimization models that provide guidelines for action by generating an optimal solution consistent with a series of constraints. Suggestion models that perform the logical processing leading to a specific suggested decision for a fairly structured or well-understood task.

DSS Applications Development

1 Model-driven DSS 2 Data-driven DSS 3 Communications-driven DSS 4 Document-driven DSS 5 Knowledge-driven DSS 6 Web-based DSS

CHARACTERISTICS OF A DSS

Facilitation.

Interaction.
Ancillary. Task-oriented. Identifiable. Decision Impact.

CHARACTERISTICS OF A DSS
Facilitation. DSS facilitate and support specific decision-making

activities and/or decision processes.

Interaction. DSS are computer-based systems designed for

interactive use by decision makers or staff users who control the sequence of interaction and the operations performed.

Ancillary. DSS can support decision makers at any level in an Repeated Use. DSS are intended for repeated use. A specific

organization. They are NOT intended to replace decision makers.

DSS may be used routinely or used as needed for ad hoc decision support tasks.

CHARACTERISTICS OF A DSS

Repeated Use. DSS are intended for repeated use. A specific DSS may be used routinely or used as needed for ad hoc decision support tasks.

Task-oriented. DSS provide specific capabilities that support one or more tasks related to decision-making, including: intelligence and data analysis; identification and design of alternatives; choice among alternatives; and decision implementation.
Identifiable. DSS may be independent systems that collect or replicate data from other information systems OR subsystems of a larger, more integrated information system. Decision Impact. DSS are intended to improve the accuracy, timeliness, quality and overall effectiveness of a specific decision or a set of related decisions.

CLASSIFICATION OF DSS
On Use level DSS is classified as

On the conceptual level DSS is classified as

On System level DSS is classified as

CLASSIFICATION OF DSS
On Use level DSS is classified as

1. Passive DSS, 2. Active DSS, and 3. Cooperative DSS

CLASSIFICATION OF DSS

On the conceptual level DSS is classified as

1. communication-driven DSS, 2. data-driven DSS, 3. document-driven DSS, 4. knowledge-driven DSS, and 5. model-driven DSS.

CLASSIFICATION OF DSS
On System level DSS is classified as

1. enterprise-wide DSS and 2. desktop DSS

DSS VS MIS