Decision Support System (MIS 31.05.2021)

Decision Support System

Decision support systems (DSS) are interactive software-based systems intended to help managers in decision-making by accessing large volumes of information generated from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc.

 

DSS uses the summary information, exceptions, patterns, and trends using the analytical models. A decision support system helps in decision-making but does not necessarily give a decision itself. The decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

 

A decision support system is that system which helps the management in taking the business decisions.

 

It is a system which allow human-machine interface whereby, the decision-maker possess control throughout the decision-making process.

 

It has one primary objective that is to provide the managers with the necessary information for making intelligent decisions. This approach not only helps in bringing decision-making information directly to the executives, but also goes one step further than typical management information systems by allowing decision-maker to interact with the computer.

 

In this way, the computer is simply a tool, which helps the executives in evaluation of the alternatives so that they may reach on an effective decision. The ability of an individual to retail control over the decision-making process is not only useful to solve well-structured problems but also helps in solving semi structured and unstructured problems.

 

Thus, Decision Support System (DSS) is a specialized MIS designed to support an executives’ skills at all stages of decision making i.e. problem identification, selecting relevant data, picking the approach to be used in decision making and evaluating the alternative courses of action.

 

A decision support system must generate information in such a form that executives may understand and at a time when such an information is needed and place the information under the direct control of the executives. Thus, the DSS enables the business executives to take the efficient, effective and economic decisions.

 

Decision making is an important part managing organizations successfully. Decision support systems (DSS) is a computer-based software application system where the business data is analysed in the form of information and presents it to the user so that the user can take meaningful business decisions more easily. It is intended to help managers in decision-making by accessing large volumes of information produced from various related information systems involved in organizational business processes, such as office automation system, transaction processing system, etc.

 

DSS uses the summary information, exceptions, patterns, and trends using the models analytically. A decision support system helps in decision-making it doesn’t mean that it does necessarily give a proper decision itself. The decision makers or managers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make right decisions.

 

Programmed and Non-programmed Decisions

There are two types of decisions - programmed and non-programmed decisions.

Programmed decisions are basically automated processes, general routine work, where −

·      These decisions have been taken several times.

·      These decisions follow some guidelines or rules.

For example, selecting a reorder level for inventories, is a programmed decision.

 

 

Non-programmed decisions occur in unusual and non-addressed situations, so −

·      It would be a new decision.

·      There will not be any rules to follow.

·      These decisions are made based on the available information.

·      These decisions are based on the manager's discretion, instinct, perception and judgment.

For example, investing in a new technology is a non-programmed decision.

 

Decision support systems generally involve non-programmed decisions. Therefore, there will be no exact report, content, or format for these systems. Reports are generated on the fly.

 

Attributes of a DSS

·      Adaptability and flexibility

·      High level of Interactivity

·      Ease of use

·      Efficiency and effectiveness

·      Complete control by decision-makers

·      Ease of development

·      Extendibility

·      Support for modelling and analysis

·      Support for data access

·      Standalone, integrated, and Web-based

 

Characteristics of a DSS

·      Support for decision-makers in semi-structured and unstructured problems.

·      Support for managers at various managerial levels, ranging from top executive to line managers.

·      Support for individuals and groups. Less structured problems often requires the involvement of several individuals from different departments and organization level.

·      Support for interdependent or sequential decisions.

·      Support for intelligence, design, choice, and implementation.

·      Support for variety of decision processes and styles.

·      DSSs are adaptive over time.

Features of Decision Support System:

(a) It is a way to organize information intended for use in decision-making. It envelope the use of a database for a specific decision making process. A decision support system does not automate transformation performed on data nor simply provide output in the form of report rather it supports the decision makers problem solving approach.

 

(b) A DSS allow the decision-maker to interact in a natural manner due to the careful design of the user interface.

 

(c) Decision support systems are designed to help support decisions that are formulated as semi structured, complex problem. These problems remain resistant to complete computerization.

 

(d) A DSS may be constructed to support one-time decision, those that are infrequent; however, the type of problem or opportunity best addressed through use of a DSS is one that requires human judgment.

 

(e) A decision support system is typically designed for either a particular decision-maker or a group of decision-makers. This allows the system designer to customize important system features to adapt to the type of representations.

 

(f) Rather than building a specific DSS from scratch, a system analyst can use a package of interrelated hardware and software called a DSS generator.

 

(g) A decision support system is best conceptualized as a process instead of a product.