Decision Support System - Management Information System
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The document discusses Decision Support Systems (DSS), which aid in the decision-making process by providing tools and capabilities for analyzing data rather than providing explicit decisions. It highlights various types of DSS, such as model-driven and data-driven systems, along with their components, classifications, benefits, and examples like Executive Decision Support Systems (EDSS) and Group Decision Support Systems (GDSS). Overall, DSS enhances organizational efficiency, fosters effective communication, and supports strategic decision-making across different management levels.
Decision Support System - Management Information System
- 2. DECISION MAKING & INFORMATION SYSTEM Decisions are made at all levels of the firm. Some decisions are very common and routine but exceptionally valuable. IT provides new tools for managers to carryout decisions. Receiving the most concrete, up-to-date information and redistributing it to those who need to aware of it. IT does not provide any information directly, but provides some capabilities to the user to analyze the decision problem and generate some meaningful information for decision-making
- 3. DECISION SUPPORT SYSTEM Refers to class of system which supports in the process of decision making and does not always give a decision itself. Decision Support Systems supply computerized support for the decision making process. End-users actively work with the data warehouse. End-users apply models to represent, understand, and simplify the decision situation.
- 6. DSS: DECISION SUPPORT SYSTEMS sales revenue profit prior 154 204.5 45.32 35.72 163 217.8 53.24 37.23 161 220.4 57.17 32.78 173 268.3 61.93 47.68 143 195.2 32.38 41.25 181 294.7 83.19 67.52 Sales and Revenue 1994 Jan Feb Mar Apr May Jun 0 50 100 150 200 250 300 Legend Sales Revenue Profit Prior Database Model Output
- 7. FRAMEWORK FOR DEVELOPING DSS Intelligence Phase Design Phase Choice Phase REALITY Implementation of Solution SUCCESS FAILURE Verification, Testing of Proposed Solution Validation of the Model Examination
- 8. CHARACTERISTICS AND CAPABILITIES OF DSS Support decision makers at all managerial levels Support several interdependent and/or sequential decisions Support all phases of decision making and a variety of decision-making processes and styles Can be adapted over time to deal with changing conditions Easy to construct Utilizes models and links to data- and knowledge bases Execute sensitivity analysis
- 9. DSS ANALYSIS Sensitivity Analysis The study of the effect that changes in one or more parts of a model have on other parts of the model What-if Analysis Checks the impact of a change in the assumptions or other input data on the proposed solution Goal-seeking Analysis Find the value of the inputs necessary to achieve a desired level of output
- 10. COMPONENTS AND STRUCTURE OF DSS
- 11. COMPONENTS AND STRUCTURE OF DSS Data Management Includes the database(s) containing relevant data for the decision situation User Interface Enables the users to communicate with and command the DSS Model Management Includes software with financial, statistical, management science, or other quantitative models Knowledge Management Provides knowledge for solution of the problem; supports any of the other subsystems or act as an independent component
- 12. DSS – CLASSIFICATIONS -RELATIONSHIP WITH THE USER Passive DSS System that aids the process of decision making, but that cannot bring out explicit decision suggestions or solutions. Active DSS Can bring out such decision suggestions or solutions. Cooperative DSS Allows the decision maker to modify, complete, or refine the decision suggestions provided by the system, before sending them back to the system for validation. The system again improves, completes, and refines the suggestions of the decision maker. Repeat this process.
- 13. DSS – CLASSIFICATIONS -MODE OF ASSISTANCE Model-driven DSS Use data and parameters provided by users to assist decision makers in analyzing a situation Eg :- Dicodess is an example of an open source model-driven DSS generator . o Communication-driven DSS Supports more than one person working on a shared task Eg:- Microsoft's NetMeeting or Groove o Data-driven DSS Emphasizes access to and manipulation of a time series of internal company data and, sometimes, external data.
- 14. DSS – CLASSIFICATIONS -MODE OF ASSISTANCE Document-driven DSS Manages, retrieves and manipulates unstructured information in a variety of electronic formats. Knowledge-driven DSS Provides specialized problem solving expertise stored as facts, rules, procedures
- 15. MIS V/S DSS Provide information on firm’s performance to help managers monitor and control the business Produce answers to routine questions and fixed, regularly scheduled reports Sometimes MIS reports are only exception reports (highlighting only exceptional conditions) Oriented to internal events Make use of simple methods such as summaries and comparisons Provides input to operational, tactical and strategic levels Depend on TPS for their data DSS support semi-structured and unstructured problem analysis Helps make decisions that are unique, rapidly changing and not specified in advance Bring information from external sources also DSS emphasizes change, flexibility and rapid response and works on interactive user-friendly mode Make use of mathematical models/statistical techniques Caters more to strategic decision making Uses internal information from both MIS and TPS MIS DSS
- 16. BENEFITS OF DSS Improves personal efficiency Speed up the process of decision making Increases organizational control Encourages exploration and discovery on the part of the decision maker Speeds up problem solving in an organization Facilitates interpersonal communication Promotes learning or training Generates new evidence in support of a decision Creates a competitive advantage over competition Reveals new approaches to thinking about the problem space Helps automate managerial processes Create Innovative ideas to speed up the performance
- 17. GROUP DECISION SUPPORT SYSTEM (GDSS)
- 18. GROUP DECISION SUPPORT SYSTEM An interactive computer-based system used to facilitate the solution of unstructured problems A set of decision makers working together as a group. GDSS make meetings more productive by providing tools to facilitate planning, generating, organizing, and evaluating ideas; establishing priorities; and documenting meeting proceedings for others in the firm. Originally developed for meetings in which all participants are in the same room. But nowadays used for networked meetings in which participants' are in different locations.
- 20. COMPONENTS OF GDSS Hardware: Including conference facilities and electronic hardware. Software tools: Including electronic questionnaires, brainstorming tools, idea organizers, questionnaire tools, voting tools; stakeholder identification and analysis tools; policy formation tools, and group dictionaries. People: Refers not only to the participants but also to a trained facilitator and often to a staff that supports the hardware and software.
- 21. FUNCTIONS OF GDSS APPLICATIONS Predicting decision outcomes. Identifying factors and trends. Developing models of business processes. Computing optimum mixes. Facilitating group communication, collaboration and teamwork. Determining sensitivity of results to changes in decision variables. Becoming familiar with a problem domain.
- 22. GDSS – BUSINESS VALUE Using GDSS, productivity can increase with increase in number of attendees More collaborative atmosphere by guaranteeing contributors’ anonymity GDSS software tools follow structured methods for preserving results of meetings, enabling non-attendees to locate needed info after the meeting GDSS meetings can increase number of ideas generated and quality of decisions while producing the desired results in fewer meetings Leads to more participative and democratic decision making Most useful for tasks involving idea generation, complex problems and large groups
- 23. EXECUTIVE DECISION SUPPORT SYSTEM (EDSS)
- 24. EDSS Help senior managers with unstructured problems that occur at the strategic level of the firm. Combining the internal and external sources. Helps to monitor : organizational performance, Track activities of competitors, Spot problems, Identify opportunities Forecast trends.
- 25. EDSS It is also known as Executive Support Systems(ESS) Executive Information Systems(EIS) o Benefits o Increases organizational control. o Reveals new approaches to thinking about the problem space. o Encourages exploration and discovery on the part of the decision maker. o Creates a competitive advantage over competition
- 26. EDSS CAPABILITIES Drill down-ability to go to details at several levels Critical success factors-most critical for success of business Key performance indicator Status access-latest data available on Knowledge Process (KP) Trend analysis-short , medium and long term trend on KP Adhoc analysis-analysis made anytime upon demand Exception reporting-report that highlight deviations larger than certain threshold
- 27. EDSS