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Presentation on:

Decision support system

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Decision

Decisions are made at all levels of thefirm. Some decisions are very commonand routine but exceptionally valuable.

Although the value of improving anysingle one of these decisions may besmall, improving hundreds ofthousands of these small decisions

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Decisions are classified according to type:

Unstructured decisions are those in which the

decision maker must provide judgment, evaluation,and insights into the problem definition.

Structured decisions, by contrast, are repetitiveand routine, and decision makers can follow a

definite procedure for handling them to be efficient.

Semi structured decisions are those in whichonly part of the problem has a clear-cut answerprovided by an accepted procedure. In general,

structured decisions are more prevalent at lowerorganizational levels, and unstructured decisionmaking is more common at higher levels.

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There are different types of decision-making at different levels:

Senior executives face manyunstructured decision situations, suchas establishing the firm's five or ten-year goals

Middle management faces more

structured decision scenarios but theirdecisions may include unstructuredcomponents.

Operational management and rank-and-

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There are four different stages in

decision making:

Intelligence: Consists of identifying andunderstanding a problem

Design: Involves exploring varioussolutions

Choice: Consists of choosing among

available solutions

Implementation: Involves making the

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Systems for Decision Support

Whereas MIS primarily addressstructured problems, DSS support semistructured and unstructured problemanalysis.

An MIS provides managers with reportsbased on routine flows of data and

assists in the general control of the

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A decision support system (DSS) isan interactive, user-friendly management-level computer system that combines data

and sophisticated analytical models and toolsto support semi-structured and unstructureddecision making. A DSS does not makedecisions; rather it is a powerful tool that is

used to support decision-making.

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The components of a DSS are:

The DSS database: A collection of data from anumber of applications or groups

The DSS software system: Contains the

software tools that are used for analyzing thedata, including OLAP tools, datamining tools,or a collection of mathematical or analyticalmodels

The user interface: Controls the interactionbetween the users of the system and the DSS

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OBJECTIVES OF DSDS

1.To assist managers in making decisionswhich are unstructured or semi structured .

2.To support managers in judgments rather

than replacing it.

3.To improve managers effectiveness ratherthan there efficiency .

4.To provide the users competitive edge overthere competitors.

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Thank you

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