PRESENTED BY:

ARCHANA BEHERA JACQUELINE VERONICA PAUL SIDDHARTH SANKAR CHAKRA SAMBIT MOHAPATRA SUSHANT BEHERA ABHISHEK DASH

 Meaning:

DSS are interactive, computer-based information system that use decision models & specialized databases to assist the decision making processes of managerial end users.

DSS uses :-

Analytical model Specialized models Interactive, computer based modeling process. Offer potential to assist in solving both semi-structured and unstructured problems

 Characteristic Of DSS:
Handles large amounts of data from different sources. Provides report and presentation flexibility. Offers both textual and graphical orientation. Supports drill down analysis. Performs complex, sophisticated analysis and comparisons using advanced software packages. Supports optimization, satisfying, and heuristic approaches.

 OBJECTIVE OF DECISION SUPPORT SYSTEM:

Assist Managers in decisions to solve Semi - structured
problems.

Support decision making rather than emphasizing on

automation.

Improve the managers decision making capability & effectiveness .

Problem structure. Decision support. Decision effectiveness.

These objectives correlate with three fundamental principles of DSS concept-

COMPONENT OF DSS
Model management software (MMS) Coordinates the use of models in the DSS. Model base Provides decision makers with access to a variety of models. Dialogue manager Allows decision makers to easily access and manipulate the DSS.

PROPERTIES OF DSS
Support for semi structured and unstructured decision making Flexibility in specifying output requirements Ease of use and of development for non-professionals Fast response High degree of user control and interaction Cost justifying Focus on managerial effectiveness, rather than efficiency

FUNCTIONS OF DSS
What-if analysis Sensitivity analysis Observing how changes to selected variables affect other variables. ex-what-if we cut advertising by 10%,what would happen to sales? Observing how repeated changes to a single variable affect other variables. ex-lets cut advertising by $100 repeatedly so we can see its relationship to sales.

Goal seeking analysis

Making repeated changes to selected variables until a chosen variable reaches the target value. ex-lets try increases in advertising until sales reach $1million Finding an optimum value for selected variables, given certain constraints. exwhats best amount of advertising to have, given our budget and choice of media

Optimization analysis

CLASSIFICATION OF DSS:
Classification File Drawer Systems
Type of operation Functions & examples

Access of data items

Data oriented systems. Basically on-line computerized versions of manual filing systems. E.g.: accounting balance, inventory queries

Data Analysis Systems

Ad hoc analysis of data files

Used to analyze file containing current or historical data. Eg:Analysing file for overdue accounts, bad payers.

Accounting Models

Estimating future results using Accounting rules.

Model oriented system. these generate estimates of cash,income,costs etc. based on accounting relationship and rules. Eg:cash & expenditure budgeting ,balance sheet projections.

Classification

Type of operation

Functions & examples

Representation Models

Estimating results, consequences, where the risk exists.

These generate results using probability based simulation models. E.g.: Risk analysis for new project

Optimization Models

Calculating optimal results where constraints exist

These are used for structured decisions where constraints exist & there is a clear objective. Eg: Machine loading, material usage, production planning. These compute suggested decisions for semi - structured problems. Expert system are one of the tools E.g.: Credit authorizations, insurance rate calculation.

Suggestion model

Producing suggested results where decision rules are known.

 Unstructured ( Executives & Directors) Semi-Structured ( Business unit manager & self directed teams) Structured (Operating Managers & self directed teams)

Strategic

Tactical

Operational

Decisions by the types of decision structure at different level of Management:

Decision Operational Structure Management
Unstructure Cash Management

Tactical Management
Business process Reengineering, Workgroup performance analysis. Employee performance appraisal, Capital Budgeting, Program budgeting. Program Control

Strategic Management
New e-business initiatives, Company reorganization. Product Planning, Mergers & acquisitions, Site Location.

Semistructured

Credit Management, Production Scheduling, Daily Work Assignment Inventory Control

Structured

DIFFERENCE BETWEEN MIS & DSS:

Decision Structure Management Information System Decision Support System

Decision Support Provided

Provides information about the Provides information & performance of the decision support technique to organization. analyze specific problem or opportunities.
Periodic, exception, demand and push reports and responses. Pre specified, fixed format. Interactive inquiries and responses.

Information form & Frequency Information Format Information Processing Methodology

Ad ho, flexible & adaptable format. Information produced by analytical modeling of business data.

Information produced by extraction & manipulation of business data.

LIMITATION OF DECISION SUPPORT SYSTEM:

-Its slow compared to the speed of mainframe. - DSS has definite computational constraints.