What is System

A set of detailed methods, procedures and routines created to carry out a specific activity, perform a duty, or solve a problem.

Chapter:4

Types Of Dss

Systems
All systems have Inputs, outputs and feedback mechanisms maintain an internal steady state despite a changing external environment(homeostasis) display properties that are different than the whole but are not possessed by any of the individual elements(emergent properties) boundaries that are usually defined by the system observer

Types of System
Basically system is divided into two types

Closed System
Systems that do not interact with the environment and are not influenced by its surroundings

Open System real-world systems whose boundaries allow exchanges of energy, material and information with the larger external environment or system in which they exist.

Model
A model is basically a representation of the properties and functions of a system and, in some cases, prediction of future outcomes. Models are often used in quantitative analysis and technical analysis, and sometimes

also used in fundamental analysis

Benefits of Modeling
Modeling helps in Viewing detailed analysis of individual components of a system. Viewing system from multiple perspectives. Improving system understanding through visual analysis Discovering errors and reducing system defects

Exploring alternatives in the system lifecycle

Types Of DSS
There are seven types of Dss Systems Suggestion systems Optimization systems Representational models Accounting models Analysis information systems Data analysis systems File drawer systems

File Drawer Systems

They are the simplest type of DSS Can provide access to data items data is used to make a decision ATM Machine Use the balance to make transfer of funds decisions

Data Analysis Systems

Provide access to data Allows data manipulation capabilities Airline Reservation system No more seats available provide alternative flights you can use use the info to make flight plans

Analysis Information Systems

Provide access to multiple data sources Combines data from different sources Allows data analysis capabilities Compare growth in revenues to industry average- requires access to many sources

The characteristic of the recent data warehouse is similar

Accounting Models
Use internal accounting data Provide accounting modeling capabilities Can not handle uncertainty Use s Bill of Material calculate production cost

make pricing decisions

Representational Model
Can incorporate uncertainty uses models to solve decision problem using forecasts Can be used to augment the capabilities of Accounting models Use the demand data to forecast next years demand Use the results to make inventory decisions.

Optimization Systems
Used to estimate the effects of different decision alternative Based on optimization models Can incorporate uncertainty Assign sales force to territory Provide the best assignment schedule

Suggestion Systems
A descriptive model used to suggest to the decision maker the best action A prescriptive model used to suggest to the decision maker the best action May incorporate an Expert System Applicant applies for personal loan use the system to recommend a decision

Model-Driven Dss
A model-driven DSS emphasizes access to and manipulation of a statistical, financial, optimization, or simulation model. Model-driven DSS use data and parameters provided by users to assist decision makers in analyzing a situation; they are not necessarily data intensive. Other examples: A spread-sheet with formulas in A statistical forecasting model An optimum routing model

Data Driven Dss

A data-driven DSS or data-oriented DSS emphasizes access to and

manipulation of a time series of internal company data and, sometimes,

external data. Simple file systems accessed by query and retrieval tools provides the elementary level of functionality. Data warehouses provide additional functionality. OLAP provides highest level of functionality. Examples:
Accessing of INTERPOL database for crimes

Accessing of border patrol database for all incidents in border area.

Personal, Group, and Organizational Support

DSS Categories Based on number of users personal, Organizational, Group

Benefits
Improving personal efficiency Expediting problem solving Facilitating communication Promoting learning Increasing control

Personal Organizati Group onal H H L L L M L M L H H H H H M

Institutional versus Ad-hoc

Based on the nature of the decision situation

Institutional
Culture of the organization Regularly used Used by more than one person Ad hoc One of kind One-time use Used by single individual

Chapter: 5

DSS Architecture,Hardware, and Operating System Platforms

Information systems Architecture

An information systems architecture provides a unifying framework into

which various people with different perspectives can organize and view
the fundamental building blocks of information systems.

Stakeholders have different views of the system and each has something at stake in determining the success of the system.

Stakeholders can be broadly classified into four groups:

System Owners System Users System Designers System Builders

Architecture of Dss
Decision support systems (DSS)

Offer potential to assist in solving both semi-structured and unstructured problems

Architecture of Dss
.
Decision making

Intelligence

Design Problem solving

Choice

Implementation

Monitoring

Decision Support Systems (DSS)

DSS is a part of special category of information systems that are designed to

enhance managerial decision-making.

Decision support system (DSS) is a computer-based information system that combines models and data in an attempt to solve semi-structured and unstructured problems with user involvement.

They help managers make more effective decisions by answering complex

questions such as;

Should a newer, more powerful machine replace two older pieces of equipment? Should your company sell directly to the retail market, continue to sell through distributors, or both? Should your company order parts more frequently and in smaller lots?

Decision Support Systems (DSS)

DSSs help managers make decisions that are unique, rapidly changing and not easily specified in advance. Although DSS uses internal information from TPS and MIS, it also uses

external sources, such as current stock prices or product prices of

competitors.

Decision Support Systems (DSS)

DSSs combine data and sophisticated analytical models to support semistructured and unstructured decision making. DSSs help managers better use their knowledge and help create new

knowledge.
They are essential components of knowledge management systems.

DSS Components
DSS relies on model bases and databases.

A model (in decision making) is a simplified representation of reality.

Simplified because reality is too complex to copy exactly and much of the processes complexity is irrelevant to a specific problem.

A DSS model base is a software component that contains all the models
used to develop applications to run the system. DSS uses models to manipulate data.

Ex: If you have some historic sales data, you can use many different types
of models to create a forecast of future sales.

DSS Components
DSS software is a collection of software tools that are used for data analysis or a collection of mathematical and analytical models. There can be 3 different types of modeling software for DSSs:

statistical models,
optimization models,

forecasting models.

DSS Components
To lay out a DSS architecture one must consider the spectrum of DSS that

an organization will use. To do this systematically the following should be

considered. Strategic, tactical (management control), and operational decisions.

Unstructured, semi-structured, and structured decisions

All levels of management and knowledge workers in the organization All major functional, product or line of business, and geographic divisions of the organization.

DSS Components
If the DSS architecture allows the needs in all these categories, it will be sufficiently

comprehensive and robust to stand to test of time. The DSS architecture must reflect
the following elements. Database or Databases Model or Models

Users
Software tools Software tools for administrators Hardware and operating system platforms Networking and communication capabilities The culture of the organization that will use DSS

DSS on the Central Corporate System

Every large organization has a central computer system. The hardware platform is usually a mainframe or a large minicomputer Users access the system through terminals or via desktop microcomputers which function in their own right, and handle part of the application, is called client/server computing.

DSS and Client/Server Computing

The term client/server describes any situation in which and application is

partitioned to run on two or more systems of different capabilities, using

each to best advantages. There are two extremes of the client/server computing

At one extreme the application logic is one the server and the client
does little more than display results on a screen

Open System and DSS

Open system are systems whose interfaces are not under the control of any single hardware or software supplier The advantage of open systems to user is that they permit a user organization to mix and match hardware and software products from several suppliers. Choosing the best