Decision Support Systems

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vikramthadeshvar@hotmail. com Tax Decision Support System Vikram B. Thadeshvar (44) Sailendra Sharma (55)

Transcript of Decision Support Systems

Page 1: Decision Support Systems

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Tax Decision Support System

Vikram B. Thadeshvar (44)

Sailendra Sharma (55)

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A Decision Support System (DSS) is an interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions.

It is a general term for any computer application that enhances a person or group’s ability to make decisions.

What is a DSS?

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Process

Mainframes OperationalSystems

Online AnalyticalSystems

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Changing Business Needs

ACTION

WHY

WHAT

PredictionForecastBusiness

Need

Complexity

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Challenges before tax administrators

Readily access and analyze the tax information

Effectively and accurately identify the area of non-compliance

Better understand the taxpayers

Formulate better legislative policies

Achieve higher degree of accuracy in revenue forecast

Optimize the operational cost

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Typical analysis a Decision Maker may perform

by Business Typeby Tax Typeby Tax Periodby Locationby its distribution across the various income groups of the taxpayers

Compare the revenue collected and balance due for the past 5 years

Evaluate the effectiveness of audit programs in identifying non-filers and under reporters

Trends in the collected and due amounts in the various Payment Plans at various stages and defaulters

Evaluate the productivity of various departments in handling cases over the years

Evaluate the effectiveness of external data in identifying non-filers by showing the number of such taxpayers

by the payment plan typeby the tax periodby the income groupby the tax type

by tax periodby locationby business type

by tax periodby locationby business type

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Tax Collection

Analyze the trends in tax revenue for revenue enhancementEvaluate uncollected tax revenue

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Problems in Transactional Applications

• Designed for real-time data entry and editing

• Data maintained is constantly changing

• Limited historical data is available for on-line comparisons

• Running Decision Support queries degrades the performance of the Transactional Application

• Complexity in achieving Comparisons, Aggregations, Rankings, Running totals etc.

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Tax DSS Architecture

Tax Compliance

Data Mart

Tax DataWarehouse

Data Warehouse

Data Extraction,Scrubbing

andTransformation

OLAP toolsEISQuery & ReportingStatistical AnalysisData Mining

LANWAN

InternetMeta Cube

Internal Data

Sources

External Data Sources

External Sources

Indv. / Corp.Tax App.

Un-employment Tax App.

WithholdingTax App.

A/RSystem

“A Data Warehouse is a subject-oriented, integrated, time variant and non-volatile

collection of data in support of management’s decision-making process.”

A Data-Mart contains a subset of the dataavailable in an enterprise-wide data warehouse.

Data Mining is Discovering meaningful new correlations, Patterns and trends Using Pattern recognition technologies, Statistical and mathematical techniques

On-Line Analytical Processing (OLAP)Is a process to assist decision making by using tools to facilitate the analysis

of multi-dimensionally structured business information.

Source Data Validation

Data Scrubbing

Data Migration

Data Transformation

Data Warehouse

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Decision Support Methodology (DSM)

Decision Support Analysis

DSS Software Evaluation & Selection

Operational Deployment and Support

Prototype Development

Rev

isio

n &

En

han

cem

ents

Scoping of Prototype

Project Evaluation Criteria

Detailed Design

System Construction

Testing

Demonstration

Evaluation

Functional Orientation

Operational Training

Deployment

Maintenance

Structured Interviews

Decision Analysis

Data Analysis

Technical Analysis

Conceptual DSS Orientation

Plans & Prioritization

Ad

apta

tion

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Common Subject Areas

• Taxpayer Profiling

• Tax Collection

• Fraud Detection & Tax Non-compliance

• Legislative Change Impact

• Revenue Forecasting

These Subject Areas can be viewed w.r.t to various common perspectives Business Type Location (States, City) Taxpayer (Demographic) Tax Type Tax Period (Year, Quarter, Months) Time (Year, Months, Events, Seasons)

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Why Tata Infotech for Tax DSS?

Large poolof resources

Expertise in theArea

Superior Solution

Tax DSS Methodology

Understand DSS Technology

Make Things Happen

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Revenue Forecasting

Ability to formulate reasonable fiscal policies

Incorporate the historical revenue trends and other governing estimate

variables

Provide the highest degree of accuracy in revenue forecasting

Use of econometric models to improve the accuracy of forecasts

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Advantages • Tangible BenefitsTangible Benefits

• Improvement in non-compliance will increase tax revenue

• More cost effective decisions are enabled

• Better business intelligence is enabled

• Enhanced taxpayer Services

Intangible BenefitsIntangible Benefits Improved productivity Reduced redundant processing and support Ability to focus on business processes through complete analysis

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Conclusion

Tax DSS holds great potential for dramatic business benefitsTax DSS holds great potential for dramatic business benefits

Capitalizes on the potential value of the organization’s informationCapitalizes on the potential value of the organization’s information

Provide decision makers access to consistent, reliable and timely dataProvide decision makers access to consistent, reliable and timely data

Still much more to explore and enhanceStill much more to explore and enhance

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Thank You