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Unit - 3 Decision Support Systems
Unit - 3 Decision Support Systems
Topics to be covered
Definition of DSS Features of DSS Components of DSS Database
Data Warehouse
MBMS KBS
Definitions of DSS
Decision Support System is an interactive computer based systems, which helps decision makers utilize data and models to solve unstructured problems. DSS couples the intellectual resources of individuals with the capabilities of the computer to improve the quality of the decisions. It is a computer based support system for management decision makers who deal with the semi structured problem.
Definitions of DSS
DSS is an effective blend of human intelligence, information technology and software which interact closely to solve complex programs. It is an information system that utilizes decision models, a database, and a decision makers own insights in an ad hoc (unplanned) basis, interactive analytical modeling process to reach specific decision by a specific decision maker.
Definitions of DSS
A DSS is an interactive, flexible, and adaptable CBIS, specially developed for supporting the solution of a nonstructured management problem for improved decision making. It utilizes data, it provides easy user interface,
Features of DSS
The key characteristics and capabilities of DSS :
Features of DSS
DSS designers must not only technically competent but also be able to observe and understand the different functional areas of business organization. The technology required by DSS is based on easy and flexible access. Thereby, reliable communication network, availability of computer terminals are more important than large scale data processing systems.
Features of DSS
Support for decision makers, mainly in semi-structured and unstructured situations, by bringing together human judgment and computerized information. Support for all managerial levels, ranging from top executives to line managers. Can be integrated with other DSS and/or applications, and it can be distributed internally and externally, using networking and Web technologies.
Features of DSS
DSS is flexible, so users can add, delete, combine, change, or rearrange basic elements; DSS can be readily modified to solve other, similar problems. Userfriendliness, strong graphical capabilities, and a natural language interactive humanmachine interface can greatly increase the effectiveness of DSS.
Features of DSS
The decision maker has complete control over all steps of the decision-making process in solving a problem. End users are able to develop and modify simple systems by themselves. Can be employed as a standalone tool used by an individual decision maker in one location or distributed throughout an organization and in several organizations along the supply chain.
Components of DSS
The five important components of a typical DSS cannot altogether be isolated from other information because all of them use common database. Thus, DSS has four major components :
Data Warehouse
Database Model Base
User interface
Knowledge Base
Components of DSS
D A T A W A R
External Data
Database
Model Component
Internal Data
Knowledge Base
User Interface Component
E
H O U E
Users
Data Warehouse
A data warehouse is a relational database that is designed for query and analysis rather than for transaction processing. It usually contains historical data derived from transaction data, but it can include data from other sources. It separates analysis workload from transaction workload and enables an organization to consolidate data from several sources.
Data Warehouse
A data warehouse is a repository of an organization's electronically stored data. Data warehouses are designed to facilitate reporting and analysis. A data warehouse consists of a computer databases responsible for the collection and storage of information for a specific organization. This collection of information is then used to manage information efficiently and
Data Warehouse
The data provided by the data warehouse for analysis provides information on a specific subject, rather than the functions of the company and is collected from varying sources into one unit having time-variant. Once entered into the warehouse, data should not change. This is logical because the purpose of a warehouse is to enable you to analyze what has
occurred.
Data Warehouse
Data warehouses have become more important in the Information Age, and they are a necessity for many large corporations, as well as some medium sized businesses. They are much more elaborate than a mere database, and they can find connections in data that cannot be readily found within most databases.
Database
Database is a pre requisite for developing any type of information system. Database in an information system is a collection of historical and current data and these data are organized for easy access by a range of applications. Since DSS
Database
Some large organization do not provide direct access to the central database to DSS because of two reasons. First, organization want to protect data from accidental or a
inappropriate changes in the database. Secondly, it is a slow and a expensive process for the DSS to search through the large database. The process affects not only the performance of the DSS but also all other systems using the database.
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These activities include updating the optimal solution in order to control the problem. In this ever-changing world, it is crucial to periodically update the optimal solution to any given optimization problem. A model that was valid may lose validity due to changing conditions, thus becoming an inaccurate representation of reality and adversely affecting
Optimization Models
Optimization, also called mathematical programming, helps find the answer that yields the best result-the one that attains the highest profit, output, or satisfaction, or the one that achieves the lowest cost, waste, or discomfort. Often these problems involve making the most efficient use of resourcesincluding money, time, machinery, staff, inventory, and more.
Optimization Models
Optimization models which are base on mathematical programming solve problems of determining the optimal allocations of limited resources required to meet a given objective. The objective must represent the goal of the decision-maker. For example, the resources may correspond to people, materials, money, or land. Out of all permissible allocations of the resources, it is desired to find the one or
Optimization Models
It provides guidelines for action by generating optimal solution consistent with a series of constraints. An optimal solution is one that optimizes returns to the organization as a whole either in the form of maximization of revenues or minimization of costs or both. Optimization models, by using linear and non linear programming, determine optimal resource allocation to maximize or minimize specified
Forecasting Models
Forecasting models are used to forecast an organization business prospects, particularly in terms of sales. Forecasting models use historical data and project the likely behaviour of these data in future based on the data. If the future conditions
Sensitivity Analysis
Sensitivity analysis models study the impact of distinct changes. A discrete change is one that happens on irregular basis, for example, entry of a new powerful competitor, change in excise duty structure of the government, ban on import/export of the product, etc. Sensitivity analysis, works from known or assumed conditions and allows the users to vary certain values to test results in order to achieve better
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User Interface
User interface in DSS permits easy interaction between the users and the database and model base. DSS software system manages the creation, storage, and retrieval of functions from model base and integrates them with data in the database. DSS software
provides GUI, easy to use flexible user interface that supports the
interaction between the user and DSS. Since DSS are meant for relatively higher level managers who are not experts in computer handling, the DSS interface must be easy so that relevant information is extracted without much difficulty.
Concept of GDSS
A GDSS system can be defined as a CBIS that supports the group of decision makers engaged in a common task and that provides interface to a shared environment. It is a modern way of conducting group discussions by applying new techniques like electronic meetings, brain storming, criticism free idea generation etc.
Features of GDSS
There are number of features of a GDSS because of which it can be differentiated from DSS. These features are as follows: 1.There is high level of interaction among decision makers who work collectively on a problem. This interaction is generally through computer system. The interaction is open an takes place in collaborative meeting atmosphere in which attendees from various organizational levels feel freedom to contribute positively to solve the problem.
Features of GDSS
2. Emphasis is put on criticism free idea generation creating an atmosphere where an idea will be evaluated on its merits rather than on the basis of the source of idea. Idea organization and evaluation require keeping the focus on the meeting objectives, finding efficient ways to organize ideas that can be generated, and evaluating those ideas keeping in the mind the
Features of GDSS
3. Priorities are set and decisions are made which required finding ways to encompass the thinking of all the members in making these decisions. 4. Each member of the decision making group has access to relevant internal and external information which allows the members to emphasize there own views, appreciate the views of others, and settle their differences in order to arrive at an acceptable decision within a given time frame.
Features of GDSS
5. While writing an agenda and distributing it to the team, GDSS software take this process one step further and allow to store meeting goals, agenda items and relevant files in an electronic workspace. This workspace can then be sent to participants via e-mail to review prior to the meeting. During the meeting, one can access the meeting workspace to go through agenda items.
Components of GDSS
Like a DSS a GDSS has several components which can be seen from the model of group decision support systems The principal components of GDSS consists of the following column: Decision makers Database Model base Groupware
Decision Makers
A GDSS has a number of decision makers who work collectively on a specific problem with the objective that the problem will be solved by the collective wisdom of all the decision makers. In a group rather than on the basis of their contributions taken
Groupware
Software that is used in GDSS is generally called as a groupware. In 1988, Lotus Development Corporation developed a Groupware known as Notes, keeping in view the role of communication in GDSS. Notes included a number of features such as electronic mail, fax, voice messaging, internet access, bulletin board systems, personal calendaring, group calendaring, video conferencing, task management etc.
Groupware
It incorporates brain storming software which supports the definition phase of a problem by identifying its components. Members of the decision making group generate their own ideas, exchange their ideas with others, and evaluate those ideas. The output of these exercise is a structured report containing the pros and cons of various ideas and how they are relevant for problem solution.
Groupware
Decision makers use a variety of alternatives and rate them on the basis of certain criteria or rank them on the basis of these criteria. Alternative rating and ranking software undertakes the evaluation work and combines various alternatives in the form of a table or graph. The software supports design phase of decision making.
Groupware
Consensus building is necessary in group decision making so that deadlock is broken and members arrive at an agreed decision. Consensus building software informs the decision makers about the degree of uniformity in their alternative solutions. When there is no consensus the decision makers can engage in further discussion. The software points out the issues on which decision makers disagree and supports