3. INTRODUCTION
The term Decision Support System (DSS) refers
to a class of system which support the process
of making decisions. It is an interactive
computer based system which facilitates
solution to semi-structured problems. The
main application areas of DSS are
Management and planning in business, health
care, the Military and any area in which
Management will encounter complex decision
making.
4. DEFINITION
According to Freyenfeld, “a Decision support
System is an interactive data processing and
display system which is used to assist in a
concurrent decision making process and subject
to the following chracteristics:
It is sufficiently user-friendly system
It displays its information in a format and
terminology which is familiar to the user
It is selective in its provision of information and
avoids information load of user”.
5. EVOLUTION OF DSS
The idea of DSS was firstly coined by G.Antony
Gorry & Michael S Scott Morton.
They want to introduce framework to channel
the computer applications toward management
decision making and developed a grid known
as ‘Gorry& Scott Morton Grid’.
The grid is based on Simon’s concept of
programmed non-programmed decisions and
Robert N Antony’s Management levels. The
decision types are described in terms of
problem structure ranging from structured to
semi-structured and to un-structured
6. EVOLUTION
Gorry & Scot Morton entered types of business
problems into their Grid. The horizontal dotted
line through the middle of the Grid is
significant. It separates the problem that had
been successfully solved with computer
assistance from those problems that had not
been subjected to computer processing. The
upper area was named Structured Decision
System and the lower area was named
Decision Support System.
7. OBJECTIVES
DSS should achieve mainly three objectives.
Assist managers
Support managers
Improve decision making.
8. CHARACTERISTICS
Ability to support complex problems.
DSS is designed for either a particular decision
maker or a group of decision makers
Consistent and objective decisions
Cost savings.
It contain mainly a database.
9. CHRACTERISTICS Contd…
Improving managerial efficiency.
It is a way to organize information.
Facilitates communication.
Support semi-structured decision making.
Permits managers to test the probable results.
10. COMPONENTS
There are 4 components for DSS.
Database
Decision models
Statistics & manipulation
Display
11. FUNCTIONS
DSS has mainly 5 functions.
Model building
What-if analysis
Goal seeking
Risk analysis
Graphical analysis.
12. FUNCTIONS
Model building
Model building is the process of
identifying the most appropriate model for
solving the problem.
What-if analysis
It is the process of assessing the impact of
changes to model variables, the values of the
variables, or the relationship among the
variables.
Goal seeking
It is the process of determining the input
values required to achieve certain goal.
13. FUNCTIONS Contd…
Risk analysis
Risk analysis is a function of DSS that
allows managers to assess the risk associated
with various alternatives.
Graphical analysis
Graphical analysis helps managers to
quickly digest large volume of data and
visualize the impact of various course of
action.
14. CLASSIFICATION OF DSS
There are seven categories of DSS.
a. File drawer system
b. Data analysis system
c. Analysis information system
d. Accounting models
e. Representational models
f. Optimization models &
g. Suggestion models
15. MODERN
CLASSIFICATION OF DSS
Model Driven DSS
Data Driven DSS
Communication Driven DSS
Document Driven DSS &
Knowledge Driven DSS.
16. DSS USERS
S.A Alter identified four distinct usage patterns
for DSS.
Subscription Mode
Terminal Mode
Clerk Mode &
Intermediary Mode
17. METHODS FOR
DEVELOPING DSS
In order to develop a DSS 3 methods are used.
1.
2.
3.
DSS generator
DSS shells
Custom-made software
18. METHODS Contd…
1. DSS generator
Software that help users to build Decision
Support System are termed as DSS generators.
2. DSS shells
A DSS shells is a program used to build a
customized DSS.
3. Custom-made software
It is developed by an organization, which is
committed to DSS technology.
19. GROUP DECISION
SUPPORT SYSTEM(GDSS)
DSS that support the group decision making are
called Group Decision Support System.
GDSS are computer based information system
that facilitate the exchange of ideas and
information among group members.
20. FACTORS FOR ACHIEVING
SUCCESSFUL DSS
Commitment
from the top management
Availability of accurate and reliable data
Careful problem selection
A clear link to business objective
Management of organizational resistance.
21. APPLICATIONS OF DSS
Applications of DSS can be classified into three
categories.
• Independent problems
• Dependent /interrelated problems &
• Organizational problems.
22. CONCLUSION
Decision Support Systems are a class of
subsystem of the Management Information
system which support analysts , planners and
managers in the decision making process.
Now DSS are used all over the world by
public, private and government agencies to
solve complex and data intensive problems.
