An Introduction to Decision

Support Systems

Information Requirements by Management

Level
Strategic
Management

Tactical
Managemen
t
Operational
Managemen
t

Decision Support System

A Decision Support System (DSS) is an interactive
computer-based system or subsystem intended to help
decision makers use communications technologies, data,
documents, knowledge and/or models to identify and
solve problems, complete decision process tasks, and
make decisions.
Decision Support System is a general term for any
computer application that enhances a person or groups
ability to make decisions.
Also, Decision Support Systems refers to an academic
field of research that involves designing and studying
Decision Support Systems in their context of use.

Structured vs. Semi-Structured

For each decision you make, the
decision will fall into one of the
following categories:
Structured Decisions
Unstructured
Semi-Structured

Structured Decisions
Often called programmed decisions because
they are routine and there are usually specific
policies, procedures, or actions that can be
identified to help make the decision
This is how we usually solve this type of
problem

Unstructured Decisions
Decision scenarios that often involve new or
unique problems and the individual has little
or no programmatic or routine procedure for
addressing the problem or making a decision

Semi-structured Decisions
Decision scenarios that have some structured
components and some unstructured
components.

The Role of the Decision Maker

Decision makers can be

Individuals
Teams
Groups
Organizations

All of these types of decision makers will differ in their knowledge

and experience; therefore, there will be differences in how they
will react to a given problem scenario

The Decision Making Process

Regardless of the type of decision
maker, all decisions involve the following
steps
Intelligence
Design
Choice
Decision
Implementation

Strategies for Making Decisions

Optimization
Satisficing
Elimination by Aspects
Incrementalism
Mixed Scanning
Analytic Hierarchy Process

Types of Models
Deterministic: linear programming and
production planning
Stochastic: queuing theory and regression
analysis
Simulation: transportation analysis and
production modeling
Domain-specific: meteorological models,
geologic models, economic models

Conceptual Models
Formal approaches are not always feasible
Most all problem is always completely new
Decision makers can therefore recall and
combine a variety of past experiences to
create a model of the current situation
The Garbage can approach to decision making

How can IT be used to support

decision makers?
By supporting various individual and team activities
and roles:

Communication and team interaction

The assimilation and filtering of data
Assist with problem recognition
Assist with problem solving
Putting together the results into a cohesive package

Data is turned into information, but the

decision maker also needs Knowledge to
make decisions
Types of knowledge:
Descriptive Knowledge
Procedural Knowledge
Reasoning Knowledge

Knowledge Management Tools

Text and Forms management
Database and Reporting management
Spreadsheet, Solvers and Charts
management
Programming management.
Rules management

The IS Toolbox
Types of organizational systems
Transaction Processing Systems
Management Support Systems
Decision Support Systems
Executive Information Systems

So, how does a DSS benefit decision

makers
Supplements the decision maker
Allows improved intelligence, decision, and
choice activities
Facilitates problem solving
Provides assistance with non-structures
decisions
Assists with knowledge management

Specific DSS Technologies

Expert Systems
Executive Information Systems
Management Support Systems
Communication Support Systems
Group DSS

Personal Support System

Decision Support System

A Decision Support System is an interactive
information system which is intended to be
used to assist in making an informed decision
based on a set of specific criteria which has
been set by the user.

 The Decision Support System enables the user

to input data so that the Decision Support
System can organise, process and analyse it to
enable the user to retrieve the information
output to determine possible solution(s) to
the problem. Decision Support Systems uses
software written specifically to test the data.

Examples of everyday Decision

Support Systems
A recruitment company may use a Decision
Support System to help match their clients
with suitable employees

 Disaster relief organisations may use Decision

Support Systems to identify the best ways to
enable the rescuers to find survivors, to
provide food and water appropriately, and to
help make decisions as to where, how and
when supplies are sent and who is assisted
first

 Companies may use spreadsheet models of

their business to make what - if decisions
to help make their business more profitable.

 Decision Support Systems are not required to

provide the final solution to a problem.
However, they are used to assist the user in
the decision making process. They improve
the effectiveness of the decision making and
they use models and incorporate and
manipulate data to help change the data into
valuable and useable information

The Role of a Decision Support

System
The main role of the Decision Support System
is to create a model of a particular situation
for the user, using an appropriate software
package. Software such as databases,
spreadsheets, knowledge based systems and
neural networks are examples. Through
the information processes, the Decision
Support System best assists the user to
achieve some solution to the problem at hand

A SIMPLE EXAMPLE: Year 12

Formal Committee
Year 12 students need to decide which venue,
what colours, what food and entertainment
are needed for the Year 12 Formal. A Formal
Committee is formed and decides that the
best way to gather the data would be through
surveys and interviews (Collecting). Students
then use a software package such as a
Database Management System (DBMS)

A SIMPLE EXAMPLE
This enables the data to be entered
(Organised) and saved for future use (Stored
and Retrieved). Once the data has been saved
then it can be manipulated (Analysed and
Processed). It is at this point that the user may
need to ask a query through a search facility in
the database and this would then show
(Display) a result from the query

A SIMPLE EXAMPLE
The resulting information produced could then be
shown to the Formal Committee to identify the best
possible way for all Year 12 students to have a good
time at the Formal. Another method of analysing the
data the Formal Committee could have used would
be a spreadsheet model. They could have considered
the results by extracting and reprocessing the data
into graphs and charts for the whole of Year 12 to
look at and respond to

A SIMPLE EXAMPLE
The interaction between the user and the Decision
Support System enables the input of data from the
user to be organised, analysed, stored and retrieved,
processed, and then displayed. Depending on the
data, it may also need to be transmitted and
received, depending on the source of the data and
quantity. A Decision Support System enables
interactivity with the user and what if questions to
be posed. To be effective, Decision Support Systems
needs to be thorough and a good model of the real
problem

Main components of a Decision

Support System
A Decision Support System can be composed
of different sub-systems. These sub-systems
include
Data Management,
Model Management,
Knowledge-base Management and
the User Interface.

Data Management
Data Management collects and organises the data.
Data Management requires the use of a database
and a database management system (DBMS). It also
needs storage which holds the data until is it
required to be used and manipulated. It assists the
decision-making processing of the data. It enables
data to be entered into the appropriate sections of
the model for it to function correctly under the
expectations of the user

Model Management
Model Management utilizes software such as
a spreadsheet to develop the statistical or
quantitative models in order to analyse the
data. The software used for this is usually
called a model base management system
(MBMS

Model Management
Model Management allows the user to create a
model to represent a problem, and enables data
to be processed into information. The inputs,
outputs for the DSS need to be identified, and
the relationships between the variables
established. The model enables input variables
that will change the output depending on the
model, prototype or simulation utilised

Knowledge-based Management
Knowledge-based Management supports the
other systems as it acts as an independent
component to provide the intelligence to
augment the solution for a decision to be
made. This sub-system can also be known as
organisational knowledge base

User Interface
The final component is called the User
Interface. This enables the user to
communicate with the Decision Support
System and to extract the information that is
derived from the modelling of the given
situation. It enables the users to be informed
throughout the process to help make a
decision.

User Interface
The interface can report the functioning of the
model and what is happening at anytime
during the operation of the model. This will
finally give the user an informed response or
responses to the stimulus given and the user
can then make a decision based on the
response from the Decision Support System

 Describe the function of the Decision Support System

Briefly explain the role of a Decision Support System.
What are the sub-systems of a Decision Support
System