Decision Support Systems
Jeremy Leishman
Brigham Young University
Decision Support Systems
Presentation overview
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What are Decision Support Systems?
Why Decision Support Systems?
Benefits of a DSS
Components of DSS
Examples of DSS
Decision Support Systems:
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Interactive computer-based systems
Support decision-making activities
Aid users interpret raw data in a useful format
Special class of Information System
Typically used for strategic and tactical decisions
facing upper management.
• Developed for decisions that occur infrequently
and carry high potential consequences
Decision Support System
• The essential flow of information in a DSS.
Useful Information
Raw Data
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Decision Support Software
Decision makers
Why Decision Support Systems?
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Data is easily stored and retrieved.
Prioritize decisions.
Anticipate upcoming decisions.
Remember and evaluate past decisions.
Provide consistency to decision making.
Combines the expertise of human and
computer decision making.
Humans and Decision Making
• Usually based on intuition rather than complete
rational processing.
• Humans interpret identical data differently.
• Use both quantitative and qualitative information.
• Emotions play a role in decision making.
• Flexible and adaptable.
• Vary greatly based on levels of expertise.
Computers and Decision Making
• Quickly sort, filter, and process large quantities
of data.
• Logical and predictable.
• Ability to incorporate vast amount of inputs
when making complex decisions.
• Favor quantifiable variables.
• Users need to be trained to use them.
• Inflexible
Making Better Decisions
• Combine strengths of human and computer
decision making.
• DSS’s support, not replace, managers.
• Increase decision effectiveness not
necessarily decision efficiency.
Varying degrees of Automation
Low level
of Automation
Decision Support Systems can be used for:
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High level
of Automation
Data retrieval and storage.
Report creation.
Estimate decision consequences.
Propose decisions.
Make decisions.
Benefits of computer-aided decision making
• Computers are capable of incorporating more data
when computing decisions.
• Becomes more effective over time.
• Automation of non-risk decisions enables
managers to dedicate more time to complex
decisions.
• Complex decisions are made using human
intuition as a well as automated optimization.
Anticipatory Management
Competitive advantages with Decision Support Systems
• Scan and monitor competitors
• Track industry trends
• Forecast duration, direction, acceleration, and
amplitude of trends or signals
• Conduct vulnerability audits
• Prioritize issues
• Evaluate relative performance
• Provide strategic recommendations
Situations were DSS can be used:
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Inventory control
Sales forecasting
Cost-benefit analysis
Problem diagnosis
Option prioritization
Resource allocation
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Business cycle control
Performance evaluation
Value analysis
Target marketing
Supply Chain integration
Customer tracking
Knowledge management
What about your organization?
• What decisions do you make?
• Can routine decisions benefit from more
automation?
• Are there large amounts of raw data stored that are
impossible to sort through?
• What information will help you make more
effective decisions?
• Can some decisions be completely automated?
Components of a DSS
Three fundamental components
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Database management system (DBMS)
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Model-base management system (MBMS)
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Dialog generation and management
system (DGMS)
Database management system DBMS
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Data storage
User access
Organizes data into types
Provides logical data structure
Lets user know the type of data that is available
Model-base management system MBMS
• Transforms data from DBMS into useful
information
• Prepare information for decision making
Extract raw data
Raw Data
DBMS
Useful Information
MBMS
Dialog generation and management system DGMS
• User interface for DSS
• How users extract desired information from
DSS.
How DSS’s are being used
Health care-- Diagnosing patients
Automotive– Emissions testing
How DSS’s are being used
Agriculture-- Crop yield
Airline– Flight scheduling
Examples of Decision Support Systems
• OutlookSoft
• ERGO
• webFocus
• ERGOV
• SYBASE
• TESS
Conclusions
• Decision Support Systems can help all types
of organizations.
• DSS’s use the advantages of computers and
humans in decision making.
• DSS’s should be customized to fit the
specific needs of your organization.
Related Readings
Druzdel, Marek J., Roger R. Flynn. “Decision Support Systems.” Encyclopedia of Library and
Information Science. New York: Marcel Dekker, Inc., 2002.
Cummings, M.L., S. Bruni. (2005) “Collaborative Human-Computer Decision Making in Network
Centric Warfare.” Paper presented at the TTCP HUM TP7 Workshop on Aerospace Human Factors
Issues in Network-Centric Warfare., Salisbury, UK.
Sage, Andrew P. Decision Support Systems Engineering. New York: John Wiley & Sons, Inc., 1991
Holsapple, Clyde W., Andrew B. Whinston. Decision Support Systems – A Knowledge-Based
Approach. New York: West Publishing Company, 1996
Holtzman, Samuel. Intelligent Decision Systems. Reading: Addison-Wesley, 1989.