WHAT IS A DSS ?

Gorry and Scott-Morton’s:

“A model based set of procedures for processing data and judgment

to assist a manager in his decision making.”

According to them, to be successful, such system must be:

- Simple
- Robust
- Easy to control
- Adaptive
- Complete on important issues
- Easy to communicate with
Implicit in the definition is the assumption that :
- The system is computer-based.
- The system serves as an extension of the user’s problem solving
capabilities.

Gorry and Scott-Morton’s definition was accepted throughout most

of the 1970’s by practitioners and researchers.
Several other definitions emerged from the literature :
Alter (1980), Moore and Chang (1980), Bonczek, Holsapple, and
Whinston (1980), Keen (1980)
The tableau below provides a good summary of their various views:

Source DSS defined in term of

________________________________________________________________________________________________________________________________________

Gorry and Scott-Morton Problem Type, System Function(support)

Little System Function, Interface Characteristics

Alter Usage Pattern, System Objectives

Moore and Chang Usage Pattern, System Capabilities

Bonczek et al System Component

Keen Development Process

 Working definition of an ideal DSS:
A DSS is an interactive, flexible, and adaptable CBIS that utilizes
decision rules, models, and model base coupled with a comprehensive
database and the decision maker own’s insights, leading to specific,
implementable decisions in solving problems that would not be
amenable to management science optimization models per se. Thus, a
DSS supports complex decision making and increases its
effectiveness.
Type of Control
Type of Decision Operational Managerial Control Strategic Planning Support Needed
Control
Structured Accounts
Recievable, Order
Budget Analysis,
Short-term
Financial
management
MIS Operations,
Research models,
Entry forecasting, personnel (investment), transaction
reports, warehouse location, processing
Make-or-buy analysis distribution systems

Semi – Production
scheduling,
Credit evaluation,
budget preparation,
Building new plant,
mergers and
DSS

Structured inventory control plant layout, project

scheduling, reward
acquisitions, new
product planning,
systems design compensation
planning, quality
assurance planning
Unstructured Selecting a cover for
a magazine, buying
Negotiating, recruiting R&D planning, new
an executive, buying technology
DSS, ES, Neural
Networks
software, approving hardware, lobbying development, social
loans responsibility
planning

Support MIS, Management

science
Management science,
DSS, ES, EIS
EIS, ES, Neural
Networks
Needed
 Intelligence Phase
Organizational Objectives
Examination Search and scanning procedures
Reality
Data collection
Problem Identification
Problem classification
Problem statement

Validation of the model Design Phase

Formulate a model
Set criteria for choice
Search for alternatives
Predict and measure outcomes
Success
Verification, testing of Choice Phase
proposed solution Solution to the model
Sensitive analysis
Selection of best alternative
Plan for implementation
Design of a control system
Implementation of
solution

Failure
 Some Characteristics and Capabilities of DSS-I

1. DSS provides support for decision makers mainly in unstructured and

semi structured situations. DSS is different from EDP, TP and MIS.

2. Support is provided for various managerial levels

3. Support is provided to individuals as well as groups - GDSS.

4. DSS provides support for interdependent as well as sequential

decisions

5. DSS supports all phases of decision making process : Intelligence

design, choice and implementation

6. Support is provided for a variety of decision problems.

Some Characteristics and Capabilities of DSS - Contd.

8. DSS should be easy to use.

9. DSS improves the effectiveness of decision making (accuracy,

timeliness and quality) rather than efficiency (computer time close
form solution).

10. Decision maker has complete control over all steps of the decision
making process in solving the problems.

11. DSS leads to learning.

12. Should be easy to construct (?)

Should be easy to alter by its users.
Box 3.2: The Major Benefits of DSS
1. Ability to support the solution of complex problems.
2. Fast response to unexpected situations that result in changed
conditions. A DSS enables a thorough, quantitative analysis in a
very short time. Even frequent changes in a scenario can be
evaluated objectively in a timely manner.
3. Ability to try several different strategies under different
configurations, quickly and objectively.
4. New insights and learning. The user can be exposed to new insights
through the composition of the model and an extensive sensitivity
“what if” analysis. The new insights can help in training
inexperienced managers and other employees as well.
5. Facilitated communication. Data collection and model construction
experimentations are being executed with active users’ participation,

thus greatly facilitating communication among mangers. The

decision process can make employees more supportive of
organizational decisions. The “what-if” analysis can be used to
Box 3.2: The Major Benefits of DSS-continued

6. Improved management control and performance. DSS can increase

management control over expenditures and improve performance of
the organization.
7. Cost savings. Routine applications of a DSS may result in
considerable cost reduction, or in reducing (eliminating) the cost of
wrong decisions.
8. Objective decisions. The decisions derived from DSS are more
consistent and objective than decisions made intuitively.
9. Improving managerial effectiveness, allowing managers to perform a
task in less time and/or with less effort. The DSS provides managers
with more “quality” time for analysis, planning, and implementation.
Support Provided by DSS
DSS may provide several types of support. The following structure is based on
Alter(1). Each level of support contains and adds on the previous level (but may
also contribute to the previous level).

DSS Answers to
Provides Questions:
Raw data and status access What is . . . . . . ?

General analysis capabilities What is / Why . . . . .?

Representation models (financial What will be . . . . . .?
statements). Casual models (forecasting
diagnosis). What will be / Why . . . ?

Solution suggestions, evaluation What if . . . . . . . ?

Solution selection What is best / What is good
enough . . . . . . ?
 1
14 Semi structured 2
decisions For managers at
Knowledge different levels

13 3
For groups and
Modeling
individuals
12 4
Ease of Interdependent or
construction DSS sequential decisions
11 5
Evolutionary Support, intelligence,
usage design, choice

10 6
Support variety of
Humans control
decision styles
the machine
and processes
9 7
Effectiveness , 8 Adaptability and
not efficiency Flexibility
Ease of
Use
 Components of DSS
1. Data includes database(s) which contains all the relevant data for
the problem and is managed by software called database
management system.

2. Model Management
The software package that includes financial statistical, management

science, other quantitative models that provide the system analytical

capabilities, and an appropriate software management.

3. Communication(Dialog) Subsystem
The subsystem through which the user can communicate with and
command DSS

These components contribute the software portion of the DSS. Also the
Conceptual Model of DSS

Other computer -
based systems
Data: external and
internal

Data Model
Management Management

Knowledge
manager

Dialog
management

Manager (user)
and tasks
 The Capabilities of a DBMS in a DSS

- Capture/extracts data for inclusion in a database

- Quickly updates (adds, deletes, edits and changes)

- Quickly retrieves data from database for queries and reports

- Provides comprehensive data security ( protection from

unauthorized access and recovery capability)

- Handles personal and official data query

- Performs complex retrieval and data manipulation tasks based

on queries

- Tracks usage of data

 The Data Management Subsystem

- DSS database

- Database management system

- Data directory

- Query facility
 Internal data
sources

External data
sources Finance Marketing Production Personnel Other

Dialog Model Extraction Private

Management Management personal data

Knowledge Query Decision support

Management facility database

Database Management
System
Data •Retrieval
directory •Inquiry
•Update
•Report generation
•Delete
 On Data And Database System-I

- Data external, internal and personal sources

- External data are a available on thousands of online commercial
databases, dictionaries, directories, reports, etc.
- Data for DSS needs to be frequently in the field using one of the
several methods
- Data for DSS may have problems such as: incorrect data, non timely
data poorly measured and indexed data, too many data or no data
- Large online databases such as CompuServe and Dow Jones
Information service can be a major source of DSS data.
- DSS can be programmed with third-generation languages , but it is
usually programmed with fourth-generation languages.
- Fourth-generation system include many integrated features for data
management
- Data are organized either in a relational, hierarchical or network
architecture. For many MSS relational type is preferable.
 On Data And Database System - Contd.

- SQL is a standard access to relational database

- There is a trend to have DSS (and other MSS) distributed via
networks
- Distributed DSS provide the benefit of a PC and the power of a
mainframe
- Many DSS are being offered on client/server systems
- Object-oriented databases are especially suitable for complex DSS
such as those in computer integrated manufacturing
- Object-oriented databases are easy to use and fast to access. They are

especially useful in distributed DSS

- Many companies are developing an enterprise-wide approach to data
management. IBM’s Information Warehouse is an example
 The model management subsystem

- Model base
- Model base management system
- Model execution , Integration and command

The ability to invoke run, change, combine and inspect models is

a key capability of DSS which differentiates it from other CBIS.
 The model base management system (MBMS)

MBMS is a software system with the following functions :

- Model creation
- Using subroutines and other building block
- Generation of new routines and reports
- Model updating and changing
- Data manipulation

The MBMS is capable of interrelating models with appropriate

linkages through a database.
 Models (Model Base)
• Strategic, tactical, operational
• Statistical, financial, marketing, management Model
science, accounting, engineering, etc. Directory
• Model building blocks

Model Base Management

• Modeling commands : creation
• Maintenance - update
Model execution,
• Database interface integration and command
• Modeling language processor.

Data Dialog Knowledge

Management Management Management
Examples of Components of Models

Area Decision Result Uncontrollable

Variables Variables Variables and
Parameters
Financial Investment Investment alternatives Total Profit Inflation rate
and amounts. Rate of return Prime rate
Period and timing of Earnings per share Competition
investment. Liquidity
Marketing Advertising budget Market share Customer’s income
Product lines Customer satisfaction Competitor’s actions
Manufacturing Products and amounts Total cost Machine capacity
Inventory levels Quality level Technology
Compensation program Employee satisfaction Materials price
Accounting Use of computers Data processing cost Computer technology
Audit schedule Error rate Tax rates
Depreciation schedule Legal requirements
Transportation Shipments schedule Total transport cost Delivery distance
Regulations

Services Staffing levels Customer satisfaction Demand for services

 The Model directory
- It is similar to the role of database directory.

- Contains the catalog of all models

- Contains models definitions

- Answers all questions about model’s capability and

availability.
 The Interface (Dialog) subsystem
The dialog component is the software and hardware that provides the
user interface for DSS.

- Deals with the human-machine interactions

- Uses action language to allow communication between user(s) and
machine.
- Uses presentation language - with graphic screen display…etc.
- Uses knowledge base including information that the user must know.
Data Management Knowledge Model Management
and DBMS Management and MBMS

Dialog Generation and

Management System-
DGMS

Natural Language Processor

Input Output Terminal

Action Display
Languages Languages

Printers, Plotters

User
 Overall Capabilities
•Create variety of DSS quickly and easily
•Facilitate iterative design process

General Capabilities

Ease of use Access to a variety of Access to a variety of analysis

For routine use, data source, types, and capabilities with some
modification and formats for a variety of “suggestion” or guidance
construction of DSS problems and contexts. available.

Component Capabilities

Dialog Data Models

1. Variety of output formats and 1. Variety of data forms and types. 1. Library of models to constitute a
Devices. model base : many types; maintain,
catalog, integrate; “canned”
(preprogrammed) library.

2. Variety of user input devices. 2. Extraction, capture, and integration. 2. Model building facility

3. Variety of dialog styles and ability to 3. Data access function : retrieval / 3. Model – manipulation and use
shift. query ; report / display ; facility

4. Support communications among 4. Database management function 4. Model base management function
users and with builder.

5. Support knowledge of users. 5. Variety of logical data view available 5. Model documentation

6. Capture, store, analyze dialogs 6. Data documentation 6. Tracking of model usage

(tracking of dialogs)

7. Flexible and adaptive dialog support. 7. Tracking of data 7. Flexible and adaptive support model

8. Flexible and adaptive data support