Decission Support System

A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance.

DSSs include knowledge-based systems. 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.

  Types of Decision Support System

Status inquiry system: the number of decisions in the operational management and same at the middle management is such that they are based on one or two aspects of a decision-making situation. It does not call for any elaborate computations, analysis, choice, etc. for decision-making. If the status is known, the decision is automatic

Data analysis system: these decision systems are based on cooperative analysis, and use of a formulae or an algorithm. But, these processes are not structured and, therefore vary. The cash flow analysis, the inventory analysis and the personal inventory systems are examples of the analysis systems. The use of simple data processing tools and business rules are required to develop this system.

Information analysis system: in this system, the data is analyzed and information reports are generated. The reports might be having exemptions as a feature. The decision makers use these reports for assessment of the situation for decision-making. The sales analysis, the account receivable system, the market research analysis, the MRP systems are examples of this system.

Accounting systems: these systems are not necessarily for decision making but they are desirable to keep track of the major aspects of the business as a function. The contents of these systems are more data processing leading to formal reporting, with exemptions, if necessary. These systems account items such as cash, inventory, and personnel and so on and relate it to a norm or norms developed by the management, for control and decision.

Model based systems: these systems are simulation models or optimization models for decision making. These decisions, generally, are onetime and infrequent and provide general guidelines for operation or management. The product mix decision, the material mix, the job scheduling rules, and the resource or asset or facilities planning system.

Types of DSS models

Communication-driven DSS: Most communications-driven DSSs are targeted at internal teams, including partners. Its purpose are to help conduct a meeting, or for users to collaborate. The most common technology used to deploy the DSS is a web or client server. Examples: chats and instant messaging software, online collaboration and net-meeting systems.

Data-driven DSS : Most data-driven DSSs are targeted at managers, staff and also product/service suppliers. It is used to query a database or data warehouse to seek specific answers for specific purposes. It is deployed via a main frame system, client/server link, or via the web. Examples: computer-based databases that have a query system to check (including the incorporation of data to add value to existing databases.

Document-driven DSS: Document-driven DSSs are more common, targeted at a broad base of user groups. The purpose of such a DSS is to search web pages and find documents on a specific set of keywords or search terms. The usual technologies used to set up such DSSs are via the web or a client/server system.

Knowledge-driven DSS: Knowledge-driven DSSs or 'knowledgebase' are they are known, are a catch-all category covering a broad range of systems covering users within the organization setting it up, but may also include others interacting with the organization - for example, consumers of a business. It is essentially used to provide management advice or to choose products/services. The typical deployment technology used to set up such systems could be silent/server systems, the web, or software running on stand-alone PCs.

Model-driven DSS: Model-driven DSSs are complex systems that help analyze decisions or choose between different options. These are used by managers and staff members of a business, or people who interact with the organization, for a number of purposes depending on how the model is set up - scheduling, decision analyses etc. These DSSs can be deployed via software/hardware in stand-alone PCs, client/server systems, or the web.

Decision Making Process

Defining the Problem: The first step towards a decision-making process is to define the problem. Obviously, there would be no need to make a decision without having a problem. So, the first thing one has to do is to state the underlying problem that has to be solved. We also have to clearly state the outcome or goal that you desire after we have made the decision.

Develop Alternatives: The situation of making a decision arises because there are many alternatives available for it. Hence, the next step after defining the main problem would be to state out the alternatives available for that particular situation. This is important because sometimes solutions can come out from these out-of-the-box ideas. We would also have to do adequate research to come up with the necessary facts that would aid in solving the problem.

Evaluate the Alternatives: This can be said to be one of the most important stages of the decision-making process. This is the stage where we have to analyze each alternative we have come up with. We have to find out the advantages and disadvantages of each option. At this stage, we can also filter out the options that we think are impossible or do not serve our purpose. Rating each option with a numerical digit would also help in the filtration process.

Make the Decision: This is the stage where the hard work we have put in analyzing would lead to. The evaluation process would help us in looking at the available options clearly and we have to pick which we think is the most applicable. We can also club some of the alternatives to come out with a better solution instead of just picking out any one of them.

Implement the Solution: The next obvious step after choosing an option is implementing the solution. Just making the decision would not give the result one wants. Rather, we have to carry out on the decision we have made. This is a very crucial step because all the people involved in the implementation of a solution should know about the implications of making the decision. This is very essential for the decision to give successful results.

Monitor the Solution: Just making the decision and implementing it is not the end of the decision-making process, it is very important to monitor our decision regularly. At this stage, we have to keep a close eye on the progress of the solution taken and also whether it has led to the results we expected.

(Thankx Mr. Prakash Dhakal for providing this article)