DECISION SUPPORT SYSTEMS An introduction…..

What concepts are involved? DECISION MAKING The nature of decision making Different types of decisions The need for quality information SUPPORT Recognition of importance of human role Which types of decision? Improve decision making quality

What concepts are involved? SYSTEM THEORY: A collection of units that work together to achieve a common purpose/ objective Info Decision making Decision (INPUTS) PROCESSES (OUTPUT )

NEED FOR COMPUTERISED DECISION SUPPORT UNSTABLE ECONOMY/ WORKPLACE- Not able to rely on past habits and choices EXPANDING NATURE OF BUSINESS OPERATIONS - unmanageable tracking tasks The Benefits : SPEED IMPROVED STORAGE (MEMORY CAPABILITIES) EASED COMMUNICATION AND COORDINATION QUALITY COMPETITIVE EDGE COST?

DSS DEFINITIONS: “Decision support systems are interactive computer based systems which help decision makers utilise data and models to solve unstructured problems” ( Gorry and Scott Morton 1971) “ DSS couple the intellectual resources of individuals of individuals with the capabilities of the computer to improve the quality of decisions. It is a computer based support system for management decision makers who deal with semi structured problems” (Keen and Scott Morton 1978) No universally accepted definition DSS as an evolving concept DSS as an umbrella term

WORKING DEFINITION OF A DSS “ A DSS is an interactive, flexible and adaptable CBIS specially developed for supporting the solution of a non structured management problem for improved decision making. It uses data, provides an easy user interface and can incorporate the decision maker’s own insights. In addition, a DSS may use models, is built by an interactive process (often by end users), supports all phases of decision making and may include a knowledge component.” (Efraim Turban & Jaye Aronson, 2001)

THE DDM PARADIGM Sprague and Carlson – 1982 A move towards a consistent and practical definition……… The technology for a DSS must consist of 3 sets of capabilities in the areas of: Data Dialog Modelling

THE DDM PARADIGM Variety of Analysis and modelling data capabilities Database Model base management management system (DBMS) system (MBMS) Dialog generation management system (DGMS) USERS

Source: Oz “Management Information Systems” Text

EVOLUTION OF DSS DECISION SUPPORT SYSTEMS (DSS)- 1980s Data Processing -1960s Management Science- 1970s Management Information Systems (MIS)- 1970s DECISION SUPPORT SYSTEMS (DSS)- 1980s Expert systems (ES)- 1980s/ 1990s Executive information systems (EIS)- 1980s/ 1990s Group decision support systems (GDSS)- 1990s Neural networks (ANNs)- 1990s More intelligence/ better connectivity/ integrated architecture/ document data – 2000s

OVERVIEW OF MANAGEMENT SUPPORT SYSTEMS Management Science Decision Support Systems (DSS) Group Decision Support Systems (GDSS) Executive Information Systems (EIS) Expert Systems (ES) knowledge Management Systems (KMS) Management Information Systems (MIS)