PRESENTATION: DECISION SUPPORT SYSTEM

Group Members:

Ahmad Raza Roll no. 007 M. Rashid Roll no. 067 Asad Bashir Roll no. 019 Irfan Khalid Roll no. 136

COMSATS INSTITUTE OF INFORMATION TECHNOLOGYLAHORE.

DECISION SUPPORT SYSTEM (DSS)

Decision Support System is a system that provides tools to managers to assist them in solving semi-structured and structured

problems.A DSS is not intended to make decisions

for managers.A DSS supports the human decision-

making process.

Systems that replace human decision making- rather than support it are called programmed decision systems.

EXAMPLE A writer, a selected group of journal and

text resources at a local library – and a strategy for using those resources – may serve as part of a decision support system.

Decision support systems are characterized by at least three properties:

They support semi-structured or un-structured decision making.

They are flexible enough to respond to the changing needs of decision makers.

They are easy to use.

DSS Goals and Applications

Structured decisions are those that are easily make from a given set of inputs.

E.g; issue a reminder notice if a bill is overdue or deciding to sell a stock under a given set of market conditions, can be programmed fairly easily.

Structured Decisions

Semi-structured and unstructured decisions are decisions for which information obtained from a computer system is only a portion of the total knowledge needed to make the decision.

Semi-structured and unstructured decisions

Figure: Steps in solving a problem with a DSS

Define and formulate problem

Frame problem into DSS model

Use Model to obtain results

Reformulate problem

CAPABILITIES OF DSS

A DSS provides support for decision maker at all management levels

It supports all phases of decision making process-intelligence-design and choice

It promotes learning.It is adaptable by the user over time to

deal with changing condition

PROPERTIES OF DECISION SUPPORT SYSTEM

Support for semi-structured and un-structured decision making.

Flexibility in specifying output requirements.

Ease of use and ease of development for non-professionals.

Fast response.

PROPERTIES OF DSS (CONT.)

Middle or top management focus. Use of models Focus on managerial effectiveness,

rather than efficiency.

MAJOR COMPONENTS OF A DSS

DSSSoftware

ModelBase

GraphicalInterface

UserDecisionMaker

Data BaseModels- Financial- Statistical analysis- Graphical- Project managment

COMPONENTS OF DSS

DATABASE: Current & Historical Data from Many Sources, as Required

MODEL BASE: Collection of Mathematical & Analytical Building Blocks

USER INTERFACE ;Communication between a DSS and user

USER: The person faced with the problem

A database is an organized collection of data for one or more multiple uses .

Databases consist of software-based "containers" that are structured to collect and store information so users can retrieve, add, update or remove such information in an automatic fashion

A graphical user interface (GUI) (sometimes pronounced gooey is a type of user interface item that allows people to interact with programs in more one ways

MODEL BASE Financial

e.g.: Cash Flow (discounted payback) Spreadsheet

Statistical Analysis

Graphical Project Management

Management Science

THE DATA MANAGEMENT SUBSYSTEM OF A DSS The data management subsystem allows the

user to create DSS databases by extracting data from other and, in some systems, databases that are external to the organization.

Figure; data management subsystem of a DSS.

External Databases

Electronic InformationServices

Databases of OtherStrategically linked companies

Personal, workgroup,And subunit databases

Finance

Marketing

Operations

Transactionprocessing

Personnel

DatabaseManagementcomponent

DSSdatabase

Data extraction

Database management• Data modification• Data retrieval• Report generation

DialogueManagemen

tsubsystem

ModelManagemen

tsubsystem

The model management software makes it possible for users to create, maintain, and use models needed to make decisions.

The model database may contain a wide variety of models, depending on the needs of decision makers.

Model Management Subsystem of a DSS

FIGURE: MODEL MANAGEMENT SUBSYSTEM OF A DSS

DataManagemen

tsubsystem

• Model creation• Model

modification• Model use• Model

maintenance

Dialogue managemen

tsubsystem

• Calculator functions

• Economic models• Financial models• Forecasting

models• Management-

science ….models• Marketing models• Operations models• Sensitivity analysis• Simulation models• Statistical models• Transportation/

logistics …models

Model management software

THE DIALOGUE MANAGEMENT SUBSYSTEM

The dialogue management system provides users with a flexible, interactive interface for input, processing and output.

FIGURE; DIALOGUE MANAGEMENT SUBSYSTEM

Model management

subsystem

DataManagemen

tsubsystem

DeviceSuppo

rtSoftwar

e

Input modules that support:_________________________________________

• Command language• Direct data entry;

o Keyboardo Lightpeno Mouseo Pen=based tableto Scanner, and so on

• Graphical user interface• Natural language

interface• On-screen menus• On-screen templates• Programming language

interface

Output modulesThat support;

-------------------------------• Graphics• On-screen display• Multidemensional

dispalys• On-screen windows• Report generation• Printers, plotters

etc.

PUTTING A DSS AT WORK

The tasks commonly performed by decision support systems are; Information retrieval Data reconfiguration Calculator activities Analysis

INFORMATION RETRIEVAL

Information retrieval in a DSS environment refers to the act of extracting information from a database, or from data files for the purpose of making decision.

SELECTION AND PROJECTION

Two common types of retrieval are;- Selection- Projection

Selection: Selection involves separating out records that have specific charabteristics.

e.g. identifying all males overgage 64 in employee file or database.

Projection: obtaining only certain fields of data.

e.g. extracting all names and phone numbers from an employee file or database.

FIGURE: DATA RECONFIGURATIONState City NamePunjab Multan M. RashidPunjab Lahore Irfan KhalidPunjab jranwla Asad BashirSindh Karachi Ahmad RzaBlchstan Kohlu Zahid Ali

Name City State Zip

M. Rashid Multan Punjab 52000Irfan Khalid Lahore Punjab 54000Asad BashirJranwla Punjab 50000Ahmad Raza Karachi Sindh

42000Zahid Ali Kohlu Blchstan 65000

Name City State

Ahmad Raza Karachi SindhAsad Bashir Jranwla PunjabIrfan Khalid Lahore PunjabM. Rashid Multan PunjabZahid Ali KohluBlchstan

Name City State

M. Rashid Multan PunjabIrfan Khalid Lahore PunjabAsad Bashir Jranwla PunjabAhmad Raza Karachi SindhZahid Ali KohluBlchstan

(b) Exchanging fields (columns)

(c) Joining (with zip code data)

(d) Presentation graphics(pie chart by state)

(a) Sorting by name

Original data:

Punjab(60%)

Sindh(20%)

Blchstan(20%)

CALCULATOR ACTIVITIES

Functions- Arithmetic and Statistical Functions i.e. SUM, AVG, LOG etc.

- Financial Functions PV, FV, NPV, PMT etc.

- Conditional Functions IF, CHOOSE etc.

- Data Functions TODAY, DATE etc.

ANALYSIS Four widely used types of DSS analysis

tools:Statistical ToolsOptimizing ToolsWhat-if Analysis Intelligence routines.

The DSS development process in many instances, after decision-making needs are identified and an initial prototype developed, several evaluation/ modification iterations may be needed before the DSS is ready for use.

DSS development tools:=> Spreadsheets=> User Interface=> Command Interfaces=> Templates=> Physical Modification

DSS Development

Figure: DSS Development Process

Determination of decision-making requirements

Developmetn of Initial DSS prototype

Evaluation of Prototype/DSS

Yes

Usable DSS

Completion and documentation of DSS

Modification of Prototype/DSS

Are Decision-making

requirements satisfied?

NO

Evaluation/ modification loop

Determination of decision-making requirements

Developmetn of Initial DSS prototype

Evaluation of Prototype/DSS

Yes

Usable DSS

Completion and documentation of DSS

Modification of Prototype/DSS

Are Decision-making

requirements satisfied?

NO

Determination of decision-making requirements

Developmetn of Initial DSS prototype

Evaluation of Prototype/DSS

Yes

Usable DSS

Completion and documentation of DSS

Modification of Prototype/DSS

Are Decision-making

requirements satisfied?

NO

Evaluation/ modification loop

A contract negotication DSS An Oil Executive’s DSS An Environmental DSS

DSS Examples

Group Decision Support Systems

Group of managers could also use a DSS as well on a common task or issue

To facilitate this a GDSS (Group Decision Support System) application is provided to multiple users on various computer and on multiple networks

Is the requirement in the organization that believe in team-based working environment

Characteristics of a GDSS (1)

• Special design: – Effective communication

– Group decision making

• Ease of use

• Flexibility– Accommodate different perspectives

• Anonymous input– Individuals’ names are not exposed

• Parallel communication

Characteristics of a GDSS (2)

• Decision-making support– Delphi approach: Decision makers are scattered

around the globe– Brainstorming: Say things as you think---think out

loud– Group consensus approach: The group reaches a

unanimous decision (everybody agrees)– Nominal group technique: Voting

• Reduction of negative group behavior– A trained meeting facilitator to help with sidetracking

• Automated record keeping

Examples of GDSS Software

• Lotus Notes– Store, manipulate, distribute memos

• Microsoft Exchange– Keep individual schedules

– Decide on meeting times

• NetDocuments Enterprise– Two people can review the same document

together

GDSS Alternatives

Prepared by:

IRFAN KHALID irfankhalid1@live.com

THANKYOU