DSS AS AN UMBRELLA TERM

 The term DSS can be used as an umbrella term

to describe any computerized system that
supports decision making in an organization
 E.g.,
an organization wide knowledge management
system; a decision support system specific to an
organizational function (marketing, finance,
accounting, manufacturing, planning, SCM, etc.)
WHAT IS A DSS
 A decision support system is a computer
program that makes it easier to make a
decision. A simple example would be a
spreadsheet.
 Typically, however, a DSS is considered to be
an interactive computerised system that
analyses data and presents it so that
knowledge workers can make business
decisions more easily in environments which
are rapidly changing and not easily
predictable.
WHAT IS A DSS
 It may include expert systems or artificial
intelligence and helps managers and planners
to extract useful information from data
gathered from a wide range of sources,
including documents in a variety of
electronic formats, personal knowledge,
business models, industry data etc., so that
they can identify and solve problems.
DSS DESCRIPTION
 An early definition of DSS
A system intended to support managerial decision
makers in semistructured and unstructured
decision situations
 meant to be adjuncts to decision makers
(extending their capabilities but not replacing their
judgment)
 aimed at decisions that required judgment or at
decisions that could not be completely supported
by algorithms
 would be computer based; operate interactively;
and would have graphical output capabilities…
TYPES OF PROBLEMS
 Structured: situations where the procedures to follow when a
decision is needed can be specified in advance
 Repetitive
 Standard solution methods exist
 Complete automation may be feasible
 Unstructured: decision situations where it is not possible to
specify in advance most of the decision procedures to follow
 One-time
 No standard solutions
 Rely on judgment
 Automation is usually infeasible
 Semi-structured: decision procedures that can be pre
specified, but not enough to lead to a definite recommended
decision
 Some elements and/or phases of decision making process have
repetitive elements
TYPES OF DECISIONS
 Programmed Decisions
A decision that is a fairly structured decision or
recurs
with some frequency or both.
 Example: Starting your car in the morning.
 Non programmed decisions
A decision that is relatively unstructured
and occurs much less often a programmed
decision.
 Example: Choosing a vacation destination.

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reserved. 9–6
DSS DESCRIPTION
 A DSS is typically built to support the
solution of a certain problem (or to evaluate
a specific opportunity). This is a key
difference between DSS and BI applications
 BIsystems monitor situations and identify
problems and/or opportunities, using variety of
analytic methods
 The user generally must identify whether a
particular situation warrants attention
 Reporting/data warehouse plays a major role in BI
 DSS often has its own database and models
DSS DESCRIPTION
 DSS is an approach (or methodology) for
supporting decision making
 uses an interactive, flexible, adaptable computer-
based information system (CBIS)
 developed (by end user) for supporting the solution
to a specific nonstructured management problem
 uses data, model and knowledge along with a
friendly (often graphical; Web-based) user interface
 incorporate the decision maker's own insights
 supports all phases of decision making
 can be used by a single user or by many people
DEFINITIONS OF DECISION
SUPPORT SYSTEMS
 Interactive computer-based systems, which help
decision makers utilize data and models to solve
unstructured problems" Gorry and Scott-Morton, 1971

 Decision support systems couple the intellectual

resources of individuals with the capabilities of
the computer to improve the quality of
decisions. It is a computer-based support system
for management decision makers who deal with
semistructured problems Keen and Scott-Morton, 1978
DSS AS A SPECIFIC
APPLICATION

 In a narrow sense DSS refers to a process for

building customized applications for
unstructured or semi-structured problems
 Components of the DSS Architecture
 Data, Model, Knowledge/Intelligence, User, Interface
(API and/or user interface)
 DSS often is created by putting together loosely
coupled instances of these components
 DSS are used for less structured problems,
where the art of management is blended
with the science.
 DSS are an organized collection of people,
procedures, software, databases and devices
used to support problem-specific decision
making.

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DEFINITIONS OF DSS

 DSS consists of
 decision models,
 database, and
 decision maker

 DSS are used for less structured problems

 DSS is ideal for problem-specific decision making

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DEFINITIONS OF DSS

 There are many definitions of a DSS, but all have

three themes: (1) applied to unstructured
problems, (2) supports but does not replace the
decision process, and (3) is under the user’s
control.

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CHARACTERISTICS OF DSS
 DSS are information systems
 DSS are used by knowledge workers
 DSS are used in making decisions
 DSS are used to support, not to replace, people
 DSS are used when the decision is semi-
structured or unstructured
 DSS incorporate a database of some sort
 DSS incorporate models

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1. Knowledge workers include management and nonmanagement staff.
Anyone who makes decisions, in business, in government, in the
nonprofit sector, or in personal living areas is a potential DSS user.
2. Making decisions is the foundation of corporate success, DSS can
therefore have an enormous impact on an organization’s bottom line.
3. DSS are not decision-making systems, therefore human intervention
and review is a necessary element of DSS.
4. Lack of structure means essentially that we can’t program a computer
to make a decision to our total satisfaction in all cases. A decision that
is not structured is a decision that requires some human judgment.
That is a DSS.
5. All decisions are based on information that the system stores in a
database.
6. A model is a computer representation of a real-life system that lets us
investigate the impact of a possible decision affecting that system.
7. The first four characteristics are true of all DSS, whereas the last three
are typical of most DSS but may not apply to a particular one.
WHY DECISION SUPPORT SYSTEMS
MATTER: EFFICIENCY VS. EFFECTIVELY

 Generally IS are used to reduce cost

 Example: accounting information systems,
academic information systems
 But DSS has high impact for organization’s
life in the future!
 It allows the organization to do strategic
moves…
WHY DSS?
 Increasing complexity of decisions
 Technology
 Information:
 “Data, data everywhere, and not the time to
think!”
 Number and complexity of options
 Pace of change
 Increasing availability of computerized
support
 Inexpensive high-powered computing
 Better software
 More efficient software development process
 Increasing usability of computers
NEED FOR DSS…
 Holsapple & Whinston stated that purpose of
DSS is to improve the decision making ability
of managers by allowing more or better
decisions within the constraints of
cognitive,time & economic limits.
 Supplement decision maker
 Facilitating problem solving
 Providing aid for non structured decisions
 Managing knowledge.
BENEFITS OF DSS
 Improving Personal Efficiency
 Improving Problem Solving
 Facilitating Communication
 Promoting Learning or Training
 Increasing Organizational Control

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 WHAT A DSS CAN AND CANNOT DO
 The DSS is expected to extend the decision
maker’s capacity to process information.
 The DSS solves the time-consuming portions of a
problem, saving time for the user.
 Using the DSS can provide the user with
alternatives that might go unnoticed.
 It is constrained, however, by the knowledge
supplied to it.
 A DSS also has limited reasoning processes.
 Finally, a “universal DSS” does not exist.
Marakas: Decision Support
Systems, 2nd Edition © 2003,
Chapter 1 - 22 Prentice-Hall
DRAWBACKS OF DSS
 Power of DSS is limited to computer system
on which it is running.

 DSS cannot be designed to contain distinct

human decision making talents like
creativity,imagination,intuition.

 DSS require sophisticated hardware and

software

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A COMPARISON OF DSS AND MIS

Comparison of DSSs and MISs

A COMPARISON OF DSS AND MIS
(CONTINUED)

Comparison of DSSs and MISs

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 Decision support systems are computer-based
support systems for management decision
makers who deal with ________ problems.
 A DSS is an approach for supporting decision
making. It uses an interactive, flexible,
adaptable computer-based information
system (CBIS) developed to support the
solution to a specific, ________ management
problem.
 A) easy
 B) problematic
 C) nonstructured
 D) hard