Decision Support System & Group Decision Support System

Decision Support System
&
Group Decision Support System
Presented By : Himesh Soni
: Jenish Patel
: Naresh Rupareliya
: Kishan Patel

Content
 Description
 Types of Decision Support System
Status Inquiry Systems
Data Analysis System
Information Analysis System
Accounting System
Model Based System
 Decision and Types of system required
 Facts of Decision Support System

Description
› Decision support system are an application of Herbert Simon Model.
› The model has three phases, Intelligence, Design and Choice.
› The decision support system basically helps the information system in
the intelligence phase where the objective is to identify the problem and
then go to the design phase for solution.
› The choice of selection criterion varies from problem to problem

Description
› The decision support system helps in making a decision and also in its
performance evaluation. These system can be used to validate the
decision by performing sensitivity analysis on various parameters of the
problem
› In decision making, there are two types of decision- Programmable and
Non-Programmable.
› The programmable decision, because of its rule base structure, can be
computerized, as inputs, processing methodology, analysis and choice
of decision-making are predetermined. Decision support systems can be
built around the rule in case of programmable decision situation.
› While in non-programmable decisions, the rule are not fixed or
predetermined, and requires every time the user to go through the
decision-making cycle as indicated in the Herbert Simon Model.

Types of Decision Support System
1. Status Inquiry Systems
› The number of decisions in the operational management and some at
the middle management are such that they are based on one or two
aspects of a decision making situation.
› It does not call for any elaborate computations, analysis,choice,etc. for
decision making. If the status is known, the decision is automatic, i.e.,
the status and solution is unique relation.

2. Data Analysis Systems
› These decision systems are based on comparative analysis, and use of a
formula or an algorithm. But, these processes are not structured and,
therefore, vary.
› Examples :
- The cashflow analysis
- The inventory analysis
- The personal inventory systems
› The use of simple data processing tools and business rules are required
to develop this system.

3. Informtion Analysis Systems
› In this system, the data is analysed and information reports are
generated. The reports might be having exception as a feature.
› The decision makers use these reports for assessment of the situation
for decision-making.
› Examples :
- The sales analysis
- The account receivable systems
- The market research analysis
- The MRP systems

4. Accounting Systems
› These systems are not necessarily fro decision-making but they are
keep to track of the major aspects of the business or a function.
› The 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 a norm or norms developed by the management, for
control and decision.

5. Accounting Systems
› These systems are simulation models or optimisation models for
decision making. These decisions, generally, are one time and
infrequent and provide general guidelines for operation or management.
› Examples :
- The product mix decision
- The material mix decision
- The job scheduling rules decision
- The resource or asset or facilities planning system

Decision & Types of system required
Decision Type of system required
Finding and Selection of vendor Inquiry system
Pricing Data analysis
Selection of vendor based on
price, quality, performance
Information analysis system
Inventory rationalization Accounting system
Management of inventory within
various financial and stocking
constraints
Inventory optinisation model

Facts of Decision Support System
› The decision support systems are developed by the users and system
analysts jointly.
› The decision support system uses the principles of economics, science
and engineering, and also the tool and techniques of management.
› The data used in the decision support system is drawn from the
information systems developed in the company.
› The decision support system are developed in isolation and form an
independent system subset of the management information system.
› The most common use of the decision support system is to test the
decision alternatives and also to test the sensitivity of the result to the
change in the system and assumptions.

Description
› Decision Support Systems which we discussed so far are designed for a
manager who is a sole decision maker. However, many decision-
making situations call for involvement of a number of persons, each
contributing towards the decision process. Information technology
supports such decision-making where there is a group participation.
Such decision support system is called GDSS.
› GDSS has also same components as in DSS, namely Database, Models,
DSS Tools and something more which group needs to work together.

Configurations of GDSS
› If GDSS is a group responsibility then the group needs a platform to conduct
the process. Four configurations of group members are possible as listed
below.
a) Group members in one room operating on network with common display
screen to share the display for all members. GDSS process is transparent.
b) Group members sit at their respective locations and use their desktop and
LAN to interact with other members. GDSS process is not transparent as in
case of ‘a’;
c) Group members are in different cities and they come together through
teleconferencing with prior planning for GDSS operations.
d) Group members are at remote locations may be in different countries and
they come together through long distance telecommunication network.

Configurations of GDSS
› In all four configurations, GDSS support software is available on server
for members to use. Disregarding the configuration model of the group
and the type of network they use, following activities are common.
 Sending the receiving information in all forms, types across the
network.
 Display of notes, graphic, drawings, pictures.
 Sharing ideas, choices, and indicating preferences.
 Partcipate in decision-making process with inputs, help and so on.

› In all configuration models, the group members together in a
collaborative manner. Collaborative work management tools support
GDSS. Also GroupWare software is Used to accomplish a set of group
activities.
› GDSS support tools help in
- Calendaring and Scheduling
- Project Management
- Workflow and Workgroup Activities
- Knowledge Management

› In GDSS, group members interact, debate, communicate and conclude
using different tools and techniques. This process may not happen in
real time in continuous manner.
› The process may run for sometime online, then stop and wait for
response(s), then react on response till the problem is solved.
› The goal of GDSS is to improve the productivity od decision makers,
either by speeding up the decision making process or by improving the
quality of the resulting decisions, or both. This is accomplished by
providing the support for exchange of ideas, opinions and preferences
within the group.

› Groupware is the hardware, software platform of GDSS which supports
group work.
› Groupware applications make group member more efficient and smart in
decision-making.
› Groupware and GDSS have the following features and service capabilities :
 Supports parallel processing of information
 Permits the group or individual members to use tools, techniques or models
of decision-making of their choice
 Offers rapid and easy access to external information
 Enables several users to interact simultaneously
 Automatically records all information that passes through the system for
future analysis

Examples of GDSS in the e-business enterprises
› Leave application processing
› Credit rating approval
› Pricing negotiations and order processing
› Work order processing : Acknowledgement to delivery and billing
› Group interviewing of candidate
› Contract document processing for multiple signatories

Decision Support System & Group Decision Support System

Decision Support System & Group Decision Support System

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Decision Support System & Group Decision Support System