DECISION SUPPORT SYSTEM

EMERGENCE OF DSS:
Decision support started when people began applying computer technology to the work being
done on group decision making in the 1970's when it was described as "a computer based system
to aid decision-making". Then we had what-if spreadsheets and rules based software which
allowed for a major leap forward. In 1990 data warehousing and online analytical processing
widened scope of DSS, and later applications to analyse Information available on web were
introduced.

As the various-technologies improved DSS found their way into the fields of management,
education, agriculture and medicine.

Definition:
A decision support system (DSS) is a computer-based application that collects, organizes and
analyzes, business data to facilitate quality business decision-making for management,
operations and planning. A well-designed DSS aids decision makers in compiling a variety of
data from many sources: raw data, documents, personal knowledge from employees,
management, executives and business models. DSS analysis helps companies to identify and
solve problems, and make decisions

Decision support system are an application of Herbert Simon Model. This model has three
phases Ire intelligence, design and choice. The decision support system basically help the
information system In the intelligence phase where the objective is to Identify the problem and
then go to the design phase for solution. The choice of selection criterion varies from problem to
problem. It is therefore, required to go through these phases cycle, you may use inquiry, analysis,
and models or accounting system to come to rational solution.
For example: a national on-line book seller wants to begin selling its products internationally
but first needs to determine If that will be a wise business decision. The vendor can use a DSS to
gather information from its own resources to determine If the company has the ability or
potential ability to expand Its business and also from external resources,, such as Industry data,
to determine if there Is indeed a demand to meet. The DSS will collect and analyze the data and
then present It in a way that can be Interpreted by humans. Some decision support systems come
very close to acting as artificial Intelligence agents.

CHARACTERISTICS OF DSS
The following is my list of the characteristics of a DSS.
1. Facilitation. DSS facilitate and support specific decision-making activities and/or decision
processes.
2. Interaction. DSS are computer-based systems designed for interactive use by decision makers
or staff users who control the sequence of interaction and the operations performed.
3. Ancillary. DSS can support decision makers at any level in an organization. They are NOT
intended to replace decision makers.
4. Repeated Use. DSS are intended for repeated, use. A specific DSS may be used routinely or
used as needed for ad hoc decision support tasks.
5. Task-oriented. DSS provide specific capabilities that support one or more tasks related to
decision-making,, including: intelligence and data analysis; identification and design of
alternatives; choice among alternatives; and decision implementation;
6. Identifiable. DSS may be independent systems that collect or replicate data from other
information systems OR subsystems of a larger, more integrated information system.
7. Decision Impact DSS are intended to improve the accuracy, timelines, quality and overall
effectiveness of a specific decision or a set of related decisions.

TYPES OF DECISION SUPPORT SYSTEM

There are a number of Decision Support Systems. These can be categorized as:
• 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’s,
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 technology used to set up such DSSs are via the web or a client/server system.-
Examples:
• Knowledge-driven DSS:
Knowledge-driven DSSs or 'knowledgebase' are they arc 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 heip analyse 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.
• Inter-organisational or intra-organisational DSS:
A relatively new targeted user group for DSS made possible by new technologies and rapid
growth of internet is customers and suppliers. We can call DSS targeted for external users an
inter organizational DSS. The public internet is creating communication links for many types of
inter organizational DSS. The public internet is creating communication links for many types of
inter organizational systems including DSS, An Inter organizational DSS provides stakeholders
with access to a company's Intranet and authority or privileges to use specific DSS capabilities.
• Function-specific or general purpose DSS:
Many DSS are designed to support specific business functions cr types of businesses and
industries. We can sell such a DSS a function-specific or industry-specific DSS. DSS support
functional areas of business like marketing or finance. Some DSS are designed to support
decision tasks in a specific industry like crew scheduling DSS for an airline. A task-specific DSS
has an important purpose in solving routine or recurring decision task. This type of DSS is
categorised by purpose. Function -specific DSS help person or group accomplish a specific
decision task. General purpose DSS software helps support board tasks like project management,
decision analysis, or business planning.

Advantages of Decision Support System

(1) Time savings. For all categories of decision support, systems, research has demonstrated and
substantiated reduced decision cycle time, increased employee productivity and more timely
information for decision making. The time savings that have been documented from using
computerized decision support are of en substantial. Researchers, however, have not always
demonstrated that decision quality remained the same or actually improved.
(2) Enhance effectiveness. A second category of advantage that has been widely discussed and
examined is improved decision making effectiveness and better decisions. Decision quality and
decision making effectiveness are however hard to document and measure. Most researches have
examined soft measures like perceived decision quality rather than objective measures.
Advocates of building data warehouses identify the .possibility of more and better analysis that
can -improve decision making. '
(3) Improve interpersonal communication. DSS can improve communication and
collaboration among decision makers. In appropriate circumstances, communications-driven and
group DSS have had this impact. Model driven DSS provides a means for sharing facts and
assumptions. Data-driven DSS make "one version of the truth" about company operations
available to managers and hence can encourage fact-based decision making. Improved data
accessibility is often a major motivation for building, a data-driven DSS. This advantage has not
been adequately demonstrated for most types of DSS.
(4) Competitive advantage. Vendors frequently cite this advantage for business intelligence
systems, performance management systems, and web-based DSS. Although it is possible to gain
a competitive advantage from computerized decision support, this is not a likely outcome.
Vendors routinely sell the same product to competitors and even help with the installation.
Organizations are most likely to gain this advantage from novel, high risk, enterprise-wide,
inward facing decision support systems. Measuring this is and will continue to be difficult.
(5) Cost reduction. Some researches and especially case studies have documented DSS cost
saving from labor savings in making decisions and from lower infrastructure or technology costs.
This is not always a goal of building DSS.
(6) Increase decision maker satisfaction. The novelty of using computers has and may continue
to confound analysis of this outcome. DSS may reduce frustrations of decision makers, create
perceptions that better information is being used and/or creates perceptions that the individual is
a "better" decision maker. Satisfaction is a complex measure and researchers often measure
satisfaction with the DSS rather than satisfaction with using a DSS in decision making. Some
studies have compared satisfaction with and without computerized decision aids. Those studies
suggest the complexity and "love/hate" tension of using computers for decision support.
(7) Promote learning. Learning can occur as a by-product of initial and ongoing use of a DSS.
Two types of learning seem to occur: learning of new concepts and the development of a better
factual understanding of the business and decision making environment. Some DSS serve as "de
facto" training tools for new employees. This potential advantage has not been adequately
examined.
(8) Increase organizational control. Data-driven DSS often make business transaction data
available for performance monitoring and ad hoc querying. Such systems can enhance
management understanding of business operations and managers perceive that this is useful.
What is not always evidents the financial benefit from increasingly detailed data.
\
Regulations like Sarbanes-Oxley often dictate reporting requirements and hence heavily
influence the control information that is made available to managers. On-a more ominous note,
some DSS provide summary data about decisions made, usage of the systems, and
recommendations of the system. Managers need to be very careful about how decision-related
information is collected and then used for organizational control purposes. If employees feel
threatened or spied upon when using a DSS, the benefits of the DSS can be reduced. More
research is needed on these questions.
Conclusion:
Decision Support System is quite different from information systems of the past. Support system
is designed to supports managers information needs because managers need information to make
decisions about how to organize and control resources effectively. These decisions are
considered as the most important ones for an organization.

Case study
Indian organised Apparel Retail Sector and DSS (Decision Support System)
Indian apparel retail sector poses interesting challenges to a manager as it evolving and closely
linked to ^astiion. App?dling mainly to youth, the sector has typical information requirements to
manage its operations. DSS provide timely and accurate information and it can be viewed as an
integrated entity providing management with the tools and information to assist their decision
making. The study exploratory in nature, adopts a case study approach to understand practices of
organised retailers in apparel sector regarding application of various DSS tools. Conceptual
overview of DSS is undertaken by reviewing the literature The study describes practices and
usage ot DSS in operational decision^ m apparel sector and managerial issjes in design and
implementdtroi at -'- n u i brano la a
mult1 brand national chain of apparel was chosen for the btudy Varied toois were found to be
used b\ them, it was found that or sales forecasting and visual merchandising decisions, prior
experience rather than any DSS tool was used. The benefits realized were," help as diagnostic
tool , accuracy of records and in billing", "smooth operations". The implementation issues
highlighted by the store managers were; more initial teething problems rather than resistance on
the part of employees of the store , need 'or investment of time and money in training, due to
rapid technological advancements, time to time updation in DSS-.tools in required. Majority of
operational decisions like inventory management, CRM, campaign management were handled by
ERP (Enterprise Resource Planning )or POS (Point of Sale). Prioritization as well as
quantification of benefits was not attempted. The issues of coordination, integration with other
system in case of ERP usage, training were highlighted. Future outlook of DSS seems bright as
retailers are keen to invest in technology.