Decision Support System DSS Meaning Features And Users
Article shared by : Read this article to learn about Decision Support System (DSS). After reading this article you will learn about: 1. Meaning of Decision Support System (DSS) 2. Features of Decision Support System 3. Elements 4. Users 5. Role in MIS.
Meaning of Decision Support System (DSS):
A decision support system is that system which helps the management in taking the business decisions.
It is a system which allow human-machine interface whereby, the decision-maker possess control throughout the decision making process.
It has one primary objective that is to provide the managers with the necessary information for making intelligent decisions. This approach not only helps in bringing decision-making information directly to the executives, but also goes one step further than typical management information systems by allowing decision-maker to interact with the computer.
In this way, the computer is simply a tool, which helps the executives in evaluation of the alternatives so that they may reach on an effective decision. The ability of an individual to retail control over the decision making process is not only useful to solve well structured problems but also helps in solving semi structured and unstructured problems.
Thus, Decision Support System (DSS) is a specialized MIS designed to support an executives’ skills at all stages of decision making i.e. problem identification, selecting relevant data, picking the approach to be used in decision making and evaluating the alternative courses of action.
A decision support system must generate information in such a form that executives may understand and at a time when such an information is needed and place the information under the direct control of the executives. Thus, the DSS enables the business executives to take the efficient, effective and economic decisions.
Features/Characteristics of Decision Support System:
Features & characteristics of decision support system are:
(a) It is a way to organize information intended for use in decision-making. It envelope the use of a database for a specific decision making process. A decision support system does not automate transformation performed on data nor simply provide output in the form of report rather it supports the decision makers problem solving approach.
(b) A DSS allow the decision-maker to interact in a natural manner due to the careful design of the user interface.
(c) Decision support systems are designed to help support decisions that are formulated as semi structured, complex problem. These problems remain resistant to complete computerization.
(d) A DSS may be constructed to support one-time decision, those that are infrequent; however, the type of problem or opportunity best addressed through use of a DSS is one that requires human judgment.
(e) A decision support system is typically designed for either a particular decision-maker or a group of decision-makers. This allows the system designer to customize important system features to adapt to the type of representations.
(f) Rather than building a specific DSS from scratch, a system analyst can use a package of interrelated hardware and software called a DSS generator.
(g) A decision support system is best conceptualized as a process instead of a product.
Elements of Decision Support System:
Decision support systems were initially designed as data base management systems combined with mathematical modeling systems to provide powerful, flexible tools for quantitative analysis of management decisions.
More recently, the DSS concept has been extended by incorporating ideas from expert systems and cognitive psychology, which deals with how people solve problems and make decisions. Data are prerequisite for making managerial decisions but data alone is not sufficient to make the decision. There are various other factors that are to be taken into consideration while making managerial decisions.
The sum total factors are:
1. Data
2. Decision rules
3. Mathematical models
4. Managerial knowledge
5. Human judgement.
Decisions based on set of decision rules by a data base system, since the rules depend on a data item in a data base : net profit Note, however, that it is up to the manager to decide which rules applies, since a conventional data base system does not know whether net profit is normal, above normal, or below normal.
Selection of the appropriate decision rule depends on the manager’s judgement on whether last year’s net profit was normal or not (of course, precise rules could be established for determining this as well).
The set of decision rules is considerably different because it requires a forecast of net profit for the next year. The kinds of data base systems contain historical and current data, not forecasts. Of course, forecasts are often based on mathematical or statistical models that require historical Data.
Thus, a data base system can provide the Data on which to base such forecasts. The modeling component of the DSS provides the forecasting model.
Mathematically based forecasts are not without error, however, and they may not take all relevant factors into account. Thus, human judgement must be used to interpret and adjust the forecast. Managerial judgements such as these are based on knowledge of the organisation and its environment. This knowledge is not included in data base systems and is seldom found in computer systems at all.
Experts systems try to capture expert knowledge of the problem domain, or specific problem area, and use that knowledge to make decisions. Knowledge is stored as a separate entity called a knowledge base, which is analogous to the Data base in a data base system. In a data base system, the data base management system is a complex program that manipulates the Data base.
In an expert system, the interference engine is a complex program that manipulates the knowledge base (which is sometimes called a data base in the expert system literature). Data in data base tends to be numeric, with some character data.
Information in knowledge bases is more qualitative or textual in nature, and interference engines may use qualitative reasoning rather than quantitative models to reach decisions.
There is already a clearly observable trend toward the development of decision support systems that integrate data bases, knowledge bases, mathematical models, and expert system inference engines into integrated systems for management decision making. The potential impact of these decision-support systems is tremendous.
Users of Decision Support System:
The ultimate user of a decision support system is the decision maker; however, he may not actually run the system. Based on his research on 56 Decision Support Systems, Alter identified following four distinct usage patterns.
1. Terminal mode
2. Clerk mode
3. Subscription mode
4. Intermediary mode.
1. Terminal mode:
The decision maker is the direct user of the system through on line access.
2. Clerk mode:
The decision maker uses the system directly but offline, preparing input on a coding form. The primary difference between this mode and the terminal mode is in the technology employed (batch versus online).
3. Subscription mode:
The decision maker receives reports that are generated automatically on a regular basis. This is the typical mode of usage for management reporting systems. Although some data analysis systems or accounting models might be used in this way, it is not typical for decision support systems.
4. Intermediary mode:
The decision maker uses the system through intermediaries, who perform the analysis and interpret and report the results. The decision maker does not need to know the intermediary used the system to arrive at the requested information.
The role of an intermediary is common in the use of decision support systems and merits separate attention. It has typically been argued that decision support systems will be resisted because managers will refuse to use terminals. The job of chief executives is highly fragmented with frequent interruptions.
Such a pattern of activity is a major constraint on the use of a system requiring concentration over a period of time. The use of an intermediary allows the manager to benefit from the decision support system without actually having to execute it.
There are two types of intermediaries that reflect different types of support for the manager.
(a) Expert tool user
(b) Staff assistant or staff analyst.
(a) Expert tool user:
This person is skilled in the application of one or more types of specialised problem solving tools. The expert tool user performs tasks which the problem solver does not have the skills or training to perform.
(b) Staff assistant or staff analyst:
This person has specialized knowledge about problems and some experience with the decision support technology. The staff assistant essentially extends the manager’s capabilities by taking over many of the tasks of problem solving such as setting up the problem, obtaining data and building the initial model.
The manager can concentrate on the more unstructured portions of the problem solving task. The staff assistant performs work the manager could do if time were available.
Although more intermediaries are staff assistants, there is also frequent need for the expert tool user. The use of intermediaries permits the systems to be more sophisticated and powerful. On line, interactive systems are still desirable with intermediaries because they allow them to work more quickly and efficiently.
Role of Decision Support System in MIS:
Decision support system is a special class of system which facilitate decision making. As in an organisation, at each and every point and time, decisions are to be taken irrespective of their nature. Some decisions may be routine and programmed decisions while other may be strategic, and non-programmed decisions.
But one thing is certain that decision making is done at all level of management. Decision support system involves the packages which help the managers to take right and timely decisions.
Decision support systems use data from the general management information system and they are used by a manager or a decision maker for decision support. The basic characteristic of the decision support system is that it is based on some tool, technique or model. These systems are used sometimes for testing new alternatives, training and learning. They are also used for sensiting the various parameters of the model.
The MIS designer has to look for all such situations and design the decision support system for integration in the system. The management information system would become more useful if the decision making is made person independent and executed with well designed decision support system.
All such embedded systems cover the normal variety of decision situations. If anything outside the considered variety crops up, decision support system will bring to the notice of the decision makers that action is called for in the situation.
The decision support system plays a dominant role in the management information system as a support to decision making.