A decision support system (DSS) is a computer program application that analyzes business data and presents it so that users can make business decisions.

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Presentation transcript:

A decision support system (DSS) is a computer program application that analyzes business data and presents it so that users can make business decisions more easily. It is an "informational application" (to distinguish it from an "operational application" that collects the data in the course of normal business operation).Typical information that a decision support application might gather and present would be:

Comparative sales figures between one week and the next. Projected revenue figures based on new product sales assumptions. The consequences of different decision alternatives, given past experience in a context that is described.

A decision support system may present information graphically and may include an expert system or artificial intelligence. It may be aimed at business executives or some other group of knowledge workers.

According to Keen (), the concept of decision support has evolved from two main areas of research: The theoretical studies of organizational decision making done at the Carnegie Institute of Technology during the late 1950s and early 1960s, and the technical work on Technology in the 1960s. It is considered that the concept of DSS became an area of research of its own in the middle of the 1970s, before gaining in intensity during the 1980s. In the middle and late 1980s, executive information systems (EIS), group decision support systems (GDSS), and organizational decision support systems (ODSS) evolved from the single user and model-oriented DSS.

In 1987, Texas Instruments completed development of the Gate Assignment Display System (GADS) for United Airlines. This decision support system is credited with significantly reducing travel delays by aiding the management of ground operations at various airports, beginning with O'Hare International Airport in Chicago and Stapleton Airport in Denver Colorado.

Solve semi-structured & Unstructured problems Support To Managers At All Levels support Individual and groups Inter dependence and Sequence Decision. Support Intelligence, Designee, Choice. Adaptable & Flexible Interactive and ease of use Interactive and efficiency Human control the process Ease of development by end user Modeling and Analysis Data Access Stand alone Integration & Web Based Support Varieties Of Decision Process

DSS systems are not entirely different from other systems and require a structured approach. Such a framework includes people, technology, and the development approach. DSS technology levels (of hardware and software) may include: The actual application that will be used by the user. This is the part of the application that allows the decision maker to make decisions in a particular problem area. The user can act upon that particular problem. Generator contains Hardware/software environment that allows people to easily develop specific DSS applications. This level makes use of case tools or systems such as Crystal, Analytical and think. Tools include lower level hardware/software. DSS generators including special languages, function libraries and linking modules An iterative developmental approach allows for the DSS to be changed and redesigned at various intervals. Once the system is designed, it will need to be tested and revised where necessary for the desired outcome.

There are several ways to classify DSS applications. Not every DSS fits neatly into one of the categories, but may be a mix of two or more architectures. Hollsopple and Whinstone classify DSS into the following six frameworks: Text-oriented DSS, Database-oriented DSS, Spreadsheet-oriented DSS, Solver-oriented DSS, Rule-oriented DSS, and Compound DSS. A compound DSS is the most popular classification for a DSS. It is a hybrid system that includes two or more of the five basic structures described by Hollsopple and Whinstone. The support given by DSS can be separated into three distinct, interrelated categories: Personal Support, Group Support, and Organizational Support.

DSS components may be classified as: Inputs: Factors, numbers, and characteristics to analyze User Knowledge and Expertise: Inputs requiring manual analysis by the user Outputs: Transformed data from which DSS "decisions" are generated Decisions: Results generated by the DSS based on user criteria DSSs which perform selected cognitive decision-making functions and are based on artificial intelligence or intelligent agents technologies are called Intelligent Decision Support Systems (IDSS). The nascent field of Decision engineering treats the decision itself as an engineered object, and applies engineering principles such as Design and Quality assurance to an explicit representation of the elements that make up a decision.

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.