DECISION SUPPORT SYSTEM

What is DSS?

 The system that supports decision is called DSS.

Definition of DSS

 Itdefine as interactive computer based

system and subsystem that help people use
computer communication, data, documents,
knowledge, and models to solve problems
and make decision.
 CHARACTERISTICS AND CAPABILITIES
OF DSS

1. Facilitation : DSS designed to specifically to facilitate decision process.

2. It provide support only to managers.

3. Meant for higher level management.

4. Interaction : problems are solved in an interactive mode between the

computer and user.
 CHARACTERISTICS AND CAPABILITIES
OF DSS

5. Computer as well as judgement.

6. Task oriented : it provide specific capabilities that support one or more task
related to decision making.

7. Repeated use : used routinely.

8. Quick response : able to respond quickly to the changing need of decision

makers.

9. Technology : computer and communication technology required.

COMPONENTS OF DSS

1. Data base : collection of current or historical data from number of

applications. It contains data from internal and external source.

2. Model base : collection of mathamatical and analytical model that can be

made available to DSS. Accounting model.

3. DSS softwares : software packages. It contains tools for day analysis.

4. People resources : managers and exicutives and users.

FUNCTIONS OF DSS

1. Model Building -
DSS aids in the decision-making process by identifying the most appropriate model for solving
problems. It considers the input variables, inter relationship among the variables, problem
assumption and constraints to design a suitable model.
2. Risk Analysis -
DSS especially helpful while taking medium or high risks decision. Decision can be low, medium or
high risks. DSS helps in assessment of risks of various alternatives by managers in a business
enterprise which helps in making decisions.
3. Goal Oriented -
This activity refers to the procedure of determining the value of input that is required to succeed a
particular goal.
FUNCTIONS OF DSS

4. Graphical Analysis -
It provides large volume of data in graphical format to visualise it easily and quickly.
Managers can also view the impact of various courses of action. The use of graph is
recommended when :
i) Forecasting
ii) Detecting Trends over time
iii) A quick summary of data is required
iv) Composing points and patterns at different variables

5. What-if Analysis -
If this activity, an end user will make changes to variables or relationship among them to
notice the resulting changes in other variables
 TYPES OF DSS

1. MODEL DRIVEN : a model driven DSS emphasizes access to and manipulation of financial, optimization
and or simulations models.

2. DATA DRIVEN : a data driven DSS empjazises access to manipulation of a time series of internal company
data and sometimes external and real time data

3. COMMUNICATION DRIVEN : communication driven DSS use network and communications technologies
for facilitate decision relevent collaboration and communication.

4. DOCUMENT DRIVEN : document driven DSS uses computer storage and processing technologies to
provide documents retrieval and analysis.

5. KNOWLEDGE DRIVEN : knowledge driven DSS can suggest or recommend actions to managers. This DSS
are man machine systems with specialized problem solving expertise.
Advantages of a Decision Support
System

1.It Saves Time by speeding up the process of decision making.

2.It Improves communication between people through jn meetings, brainstorming
sessions, etc.
3.Reports generated by the Decision Support can be used as evidence.
4.It helps to automate processes.
5.Reduction of cost
Disadvantages of a Decision Support
System

1.Overload Information
2.Reduction of status
3.Unanticipated effects
4.Cost in Monetary
5.Too much DSS dependency
THANK YOU