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A decision support system is a computer program application that analyzes business data and presents it to so that user can make business decisions more easily. It is an Informational application that collects the data in the course of business operation
A decision support system may present information graphically and may include an expert system or artificial intelligence . It may be aimed at business executives or some other group of knowledge workers.
EXAMPLES Comparative sales figures between one week and next Projected revenue figures based on new product sales and assumptions
DECISION
INTELLIGENCE (problem identification) DESIGN CHOICE (All possible solutions) (choosing best solutions)
Components of DSS
DATABASE
Raw material, Information , Backend
MODEL BASE
Graphical layout of the information helpful in making decision
DSS SOFTWARE
Helps in various application and making decisions.
Types of Decision
PROGRAMMED DECISION
A Programmed decision is also known as structured decision and has a less risk factor. This type of decision has very less chances of failure. If a decision can be based on a rule, method or even guidelines , it is called as programmed decision. -> less risk factor -> low chances of failures -> future outcome is known to high extent
Example
UNPROGRAMMED DECISION
A decision cannot be made by using a rule or a model and has very high risk factor is called as un programmed decision. A user has a high risk and cant determine the success and failure of a decision ->Very high risk factor -> less level of certainty
Communication-driven decision support systems Data-driven decision support systems Information Analysis decision support Systems Accounting Systems decision support systems Model Based Systems decision support systems Status Inquiry decision support Systems
Most data-driven DSS are targeted at managers, staff and also product/service suppliers. It is used to query a database or data warehouse to seek specific answers for specific purposes. It is deployed via a main frame system, client/server link, or via the web. Examples: computer-based databases that have a query system to check (including the incorporation of data to add value to existing databases.
For example , loan facility availed to customer by bank manager
Knowledge-driven
Knowledge driven DSS or 'knowledgebase' are they are known, are a catch-all category covering a broad range of systems covering users within the organization setting it up, but may also include others interacting with the organization - for example, consumers of a business. It is essentially used to provide management advice or to choose products/services. The typical deployment technology used to set up such systems could be client/server systems, the web, or software runnung on stand-alone PC
Most communications-driven DSS are targeted at internal teams, including partners. Its purpose are to help conduct a meeting, or for users to collaborate. The most common technology used to deploy the DSS is a web or client server. Examples: chats and instant messaging software , online collaboration and net-meeting systems. For Examples : In a University , FEE HIKE decision cant be made stand alone. Various colleges and other board member in a meeting will discuss the need and consequences of this aim and the propose a final decision.
Mostly these decision have less risk factor. For example , High level management is facing the problem of timings in organisation
These systems are not necessarily required for decision making but they are desirable to keep track of the major aspects of the business or a contents of these systems is more data processing leading to formal reporting ,with exceptions, if Necessary. These systems account items such as cash, inventory, personnel and so on and relate it to various norms and rules.
Model-driven DSS are complex systems that help analyse decisions or choose between different options. These are used by managers and staff members of a business, or people who interact with the organization, for a number of purposes depending on how the model is set up - scheduling, decision analyses etc. These DSS can be deployed via software/hardware in stand-alone PCs, client/server systems.
Graphical representation of Data Eg : PERT , Decision Tress , Matrices ,linear programming model
Applications
Clinical decision support system for medical diagnosis. Bank loan officer verifying the credit of a loan applicant CANADIAN NATIONAL RAILWAY system which tests its equipments on a regular basis using a decision support system. A problem faced by any rail road is worn out or defective rails, which can result in hundreds of derailment per year. Under a DSS , CN managed to decrease the incidence of derailments at the same time other companies were experiencing an increase.
CIVIL DECISIONS
HYDRALUIC