A Decision Support Systems (DSS) is a class of information systems that supports business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions. Typical information that a decision support application might gather and present are:
- an inventory of all of your current information assets including legacy and relational data sources, cubes, data warehouses, and data marts.
- comparative sales figures between one week and the next.
- projected revenue figures based on new product sales assumptions.
There are four fundamental components of a DSS and are:
- 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
DSS technology levels of hardware and software may include:
- 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, AIMMS, and iThink.
- 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 for the desired outcome.
Classification of DSS frameworks:
DSS is classified into the following six frameworks:
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 frameworks
The support given by DSS can be separated into three distinct, interrelated categories:
Intelligent Decision Support Systems:
DSSs which perform selected cognitive decision-making functions and are based on artificial intelligence or intelligent agents technologies are called Intelligent Decision Support Systems
The 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.
Benefits of DSS:
Some benefits of DSS are as given below:
- Improves personal efficiency
- speed up the progress of problems solving in an organization
- Facilitates interpersonal communication
- Promotes learning or training activities
- Increases organizational control
- Generates new support for decisions
- Creates a competitive advantage over competition
- Encourages searching and discovery on the part of the decision maker
- Reveals new approaches to thinking about the problem space
- Helps mechanize the managerial processes.
This article is the topic of 7th unit from RTMNU MBA 3 rd sem IT syllabus notes.Further topics will be covered in upcoming blogs For more notes you can also refer to other links as given below: