Decision Support System

Hari Raghava
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 Application of IS in Business Organization
Most Commonly Used Enterprise Applications

Multitude of applications comes under the definition of Enterprise Applications.

Management information system (MIS)

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 DSS in Business Organization
Decision support systems (DSS) are interactive software-based systems intended to help
managers in decision-making by accessing large volumes of information generated from various
related information systems involved in organizational business processes such as office
automation system, transaction processing system, etc.
DSS uses the summary information, exceptions, patterns, and trends using the analytical models.
A decision support system helps in decision-making but does not necessarily give a decision
itself. The decision makers compile useful information from raw data, documents, personal
knowledge, and/or business models to identify and solve problems and make decisions.
Programmed and Non-programmed Decisions
There are two types of decisions - programmed and non-programmed decisions.
Programmed decisions are basically automated processes, general routine work, where:
These decisions have been taken several times.
These decisions follow some guidelines or rules.
Non-programmed decisions occur in unusual and non-addressed situations, so:
It would be a new decision.
There will not be any rules to follow.
These decisions are made based on the available information.
These decisions are based on the manger's discretion, instinct, perception and judgment.
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DSS in Business Organization cont…

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 DSS in Business Organization cont…
Attributes of a DSS
Adaptability and flexibility
High level of Interactivity
Ease of use
Efficiency and effectiveness
Complete control by decision-makers
Ease of development
Extendibility
Support for modelling and analysis
Support for data access
Standalone, integrated, and Web-based
Characteristics of a DSS
Interactive in nature
Support for decision-makers in semi-structured and unstructured problems.
Support for managers at various managerial levels, ranging from top executive to line
managers.
Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization level.
Support for interdependent or sequential decisions.
Support for intelligence, design, choice, and implementation.
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Support for variety of decision processes and styles.
 DSS in Business Organization cont…
Components of a DSS
Following are the components of the Decision Support System:
Database Management System (DBMS): To solve a problem the necessary data may come from
internal or external database. In an organization, internal data are generated by a system such as
TPS and MIS. External data come from a variety of sources such as newspapers, online data
services, databases (financial, marketing, human resources).
Model Management System: It stores and accesses models that managers use to make decisions.
Such models are used for designing manufacturing facility, analyzing the financial health of an
organization, forecasting demand of a product or service, etc.
Support Tools: Support tools like online help; pulls down menus, user interfaces, graphical
analysis, error correction mechanism, facilitates the user interactions with the system.

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DSS in Business Organization cont…

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 DSS in Business Organization cont…
Types of DSS
Communication Driven – Communication with internal teams,
vendors, partners
Data Driven – To query a database or mostly data warehousing to
seek specific answers for specific purpose
Model Driven DSS – Model based on how it is set up. It helps to
choose between different available options
Knowledge Driven DSS – Provide specialized problem solving
expertise stored as facts, rules, procedures etc
Document Driven DSS – Helps in managing unstructured
information

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 Business Intelligence
The term 'Business Intelligence' has evolved from the decision support systems and gained
strength with the technology and applications like data warehouses, Executive Information
Systems and Online Analytical Processing (OLAP).
Business Intelligence System is basically a system used for finding patterns from existing
data from operations
Characteristics of BIS Benefits of BIS
It is a combination of skills, processes, technologies, Improved Management Processes.
applications and practices. Planning, controlling, measuring
It contains historical and current data along with the and/or applying changes that results
reporting tools. in increased revenues and reduced
It is a combination of a set of concepts and methods costs.
strengthened by fact-based support systems.
Improved business operations.
It is an extension of Executive Support System or
Fraud detection, order processing,
Executive Information System.
purchasing that results in increased
It collects, integrates, stores, analyzes, and provides
access to business information. revenues and reduced costs.
It is an environment in which business users get Intelligent prediction of future.
reliable, secure, consistent, comprehensible, easily
manipulated and timely information.
It provides business insights that lead to better, faster,
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more relevant decisions.