Decision support systems definition

A decision support system (DSS) is an interactive information

system that analyzes large volumes of data for informing business
decisions. A DSS supports the management, operations, and
planning levels of an organization in making better decisions by
assessing the significance of uncertainties and the tradeoffs
involved in making one decision over another.

A DSS leverages a combination of raw data, documents, personal

knowledge, and/or business models to help users make decisions.
The data sources used by a DSS could include relational data
sources, cubes, data warehouses, electronic health records
(EHRs), revenue projections, sales projections, and more.
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The concept of decision support systems grew out of research

conducted at the Carnegie Institute of Technology in the 1950s and
1960s, but really took root in the enterprise in the 1980s in the form
of executive information systems (EIS), group decision support
systems (GDSS), and organizational decision support systems
(ODSS). These says, as organizations become increasingly
focused on data-driven decision making, decision science (or
decision intelligence) is on the rise, and decision scientists may be
the key to unlocking the potential of decision science systems.
Bringing together applied data science, social science, and
managerial science, design science focuses on selecting between
options to reduce the effort required to make higher-quality
decisions.

Decision support systems vs. business

intelligence
Decision support systems and business intelligence (BI) are often
conflated. Some experts consider BI a successor to DSS. Decision
support systems are generally recognized as one element of
business intelligence systems, along with data warehousing and
data mining.
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Whereas BI is a broad category of applications, services, and

technologies for gathering, storing, analyzing, and accessing data
for decision-making, DSS applications tend to be more purpose-
built for supporting specific decisions. For example, a business DSS
might help a company project its revenue over a set period by
analyzing past product sales data and current variables. Healthcare
providers use clinical decision support systems to make the clinical
workflow more efficient: computerized alerts and reminders to care
providers, clinical guidelines, condition-specific order sets, and so
on.

Categories of decision support systems

In the book Decision Support Systems: Concepts and Resources
for Managers, Daniel J. Power, professor of management
information systems at the University of Northern Iowa, breaks
down decision support systems into five categories based on their
primary sources of information.

Data-driven DSS. These systems include file drawer and

management reporting systems, executive information systems,
and geographic information systems (GIS). They emphasize access
to and manipulation of large databases of structured data, often a
time-series of internal company data and sometimes external data.

Model-driven DSS. These DSS include systems that use

accounting and financial models, representational models, and
optimization models. They emphasize access to and manipulation
of a model. They generally leverage simple statistical and analytical
tools, but Power notes that some OLAP systems that allow complex
analysis of data may be classified as hybrid DSS systems. Model-
driven DSS use data and parameters provided by decision-makers,
but Power notes they are usually not data-intensive.
Knowledge-driven DSS. These systems suggest or recommend
actions to managers. Sometimes called advisory systems,
consultation systems, or suggestion systems, they provide
specialized problem-solving expertise based on a particular domain.
They are typically used for tasks including classification,
configuration, diagnosis, interpretation, planning, and prediction that
would otherwise depend on a human expert. These systems are
often paired with data mining to sift through databases to produce
data content relationships.

Document-driven DSS. These systems integrate storage and

processing technologies for document retrieval and analysis. A
search engine is an example.

Communication-driven and group DSS. Communication-driven

DSS focuses on communication, collaboration, and coordination to
help people working on a shared task, while group DSS (GDSS)
focuses on supporting groups of decision makers to analyze
problem situations and perform group decision-making tasks.

Decision support system examples

Decision support systems are used in a broad array of industries.
Example uses include:

 GPS route planning. A DSS can be used to plan the

fastest and best routes between two points by analyzing
the available options. These systems often include the
capability to monitor traffic in real-time to route around
congestion.

 Crop-planning. Farmers use DSS to help them

determine the best time to plant, fertilize, and reap their
crops. Bayer Crop Science has applied analytics and
decision-support to every element of its business,
including the creation of “virtual factories” to perform
“what-if” analyses at its corn manufacturing sites.
  Clinical DSS. These systems help clinicians diagnose
their patients. Penn Medicine has created a clinical DSS
that helps it get ICU patients off ventilators faster.

 ERP dashboards. These systems help managers

monitor performance indicators. Digital marketing and
services firm Clearlink uses a DSS system to help its
managers pinpoint which agents need extra help.

Components of a decision support system

According to Management Study HQ, decision support systems
consist of three key components: the database, software system,
and user interface.

1. DSS database. The database draws on a variety of

sources, including data internal to the organization, data
generated by applications, and external data purchased
from third parties or mined from the Internet. The size of
the DSS database will vary based on need, from a small,
standalone system to a large data warehouse.

2. DSS software system. The software system is built on a

model (including decision context and user criteria). The
number and types of models depend on the purpose of
the DSS. Commonly used models include:

o Statistical models. These models are used to

establish relationships between events and
factors related to that event. For example, they
could be used to analyze sales in relation to
location or weather.

o Sensitivity analysis models. These models

are used for “what-if” analysis.

o Optimization analysis models. These models

are used to find the optimum value for a target
variable in relation to other variables.
 o Forecasting models. These include regression
models, time series analysis, and other models
used to analyze business conditions and make
plans.

o Backward analysis sensitivity

models. Sometimes called goal-seeking
analysis, these models set a target value for a
particular variable and then determine the
values other variables need to hit to meet that
target value.

3. DSS user interface. Dashboards and other user

interfaces that allow users to interact with and view
results.

Decision support system software

According to Capterra, the popular decision support system
software includes:

 Information Builders WebFOCUS. This data and analytics

platform is geared for enterprise and mid-market
companies that need to integrate and embed data across
applications. It offers cloud, multi-cloud, on-prem, and
hybrid options.

 QlikView. QlikView is Qlik’s classic analytics solution, built

on the company’s Associative Engine. It’s designed to
help users with their day-to-day tasks using a
configurable dashboard.

 SAP BusinessObjects. BusinessObjects consists of

reporting and analysis applications to help users
understand trends and root causes.

 TIBCO Spotfire. This data visualization and analytics

software helps users create dashboards and power
 predictive applications and real-time analytics
applications.

 Salesforce Analytics Cloud. This AI-driven, cloud-based

analytics solution is built on Salesforce.com’s platform to
help organizations spot opportunities and predict
outcomes.

 Powernoodle. Power noodle is a cloud-based decision

engagement platform that leverages cognitive, behavioral,
and decision science. It offers pre-built templates that
address common decision types, and support for
modeling the workflows of multiple stakeholder groups.

 1000minds Decision Making. 1000minds is an online suite

of tools and processes for decision-making, prioritization,
and conjoint analysis. It is derived from research at the
University of Otago in the 1990s into methods for
prioritizing patients for surgery.

 Briq. Briq is a predictive analytics and automation

platform built specifically for general contractors and
subcontractors in construction. It leverages data from
accounting, project management, CRM, and other
systems, to power AI for predictive and prescriptive
analytics.

 1.Features of tally software are as follows-

 Tally accounting software provides a solution to
all the problems real businesses have to
encounter. Single software takes care of all tasks
required for enterprise management. 2.
Accounting task such as records keeping,
accounts receivable and payable management
and bank reconciliation are made simple through
tally.
 3.Financial management is also made simpler
under Tally software. The software allows
management of finances across multiple
locations can handle multiple currency
transactions, manage cash flow and interest
payment.
 Thus, Tally software is flexible, reliable, secure,
easy to use and affordable.