Lecture Notes
Dr. Ir. Sudaryanto, MSc.
sudaryanto@staff.gunadarma.ac.id
sudaryanto.tugas@yahoo.com
Gunadarma University
Decision Support System

Part 1
DSS: Past, Present, Future
Dr. Ir. Sudaryanto, MSc.
sudaryanto@staff.gunadarma.ac.id
Ir. (IPB), MSc (AIT-Thailand), Dr. rer.pol. (Aachen-Germany)
Decision Support System

Global
Competition
The Background
Shorter PLC
Speed of decision
Complexity
DSS
Competitive
Intelligence
Decision Support System

Decision Support System

Decision Support System

Decision Support System

Data
Decision Support System

Decision Support System

Decision Support System

Decision Support System

Evolution of Computer based application
• 1 st generation
• Mainframe computers for transaction processing
• 2 nd generation
• MIS :management reporting
• 3 rd generation: DSS
• To help management to deal with semi structure and unstructure decision making
• Full development during 1970s and 1980s
Decision Support System

Schedule reports for well define
Information needs
MIS
Demand reports for ad hoc
Information request
The ability to query a database for specific data
The ultimate mission of information systems:
To improve the performance of information workers in organization through the application of information technology
Decision Support System

Sprague, 1980:
• Computer based systems
• Help the decision maker
• Confront ill-structure problems
• Through direct interaction
• With data and analysis model
Scenario of problem solving using DSS
Decision Support System

Procedure -based
• High volume of transaction
• Low cost/value per transaction
• Well structure procedures
• Output measures defined
• Focus on process
• Focus on efficiency
• Handling of data
• Predominantly clerical workers
• Example: back office, payroll processing
Goal -based
• Low volume of transaction
• High value (cost) per transaction
• ill structure procedures
• Output measures less defined
• Focus on problems and goals
• Focus on effectiveness
• Handling of concepts
• Managers and profesionals
• Example: loan department, planning department
Decision Support System

Basic data processing
The Data processing Evolution
• Stand alone EDP jobs
• Transaction processing
• Each program has its own files
• Data handling : sorting, classifying, summarizing
File management
DPEV
Data base management
Query,
Report generation
• Integrated EDP jobs for related function
• Sharing files across several program
• Develop software for handling files
• Software system for dealing with data separate from
Program
• MIS capability
• Reduction of program maintenance
• Addition of flexible report generator and query
Language
Decision Support System

Principles of DSS
• Conceptualization of DSS: DDM paradigm
• Three Components/ Sub system
• Dialog between the system and the user
• Data that support the system
• Model to provide analysis capabilities
• New technology continues to affect the dialog, data and models
Decision Support System

The Components of a DSS
Data Base
___________
Finance
___________
Production
___________
Marketing
___________
Personnel
______________
R&D
______________
Other
______________
Other internal data
Document based data
External data
Data Base
Management
System
Model Base
Management
System
Dialog Base
Management
System
User
Model Base
___________
Strategic
Models
___________
Tactical
Models
___________
Operational
Models
___________
Model Buildings
Blocks and
Subroutines
Decision Support System

Knowledge base
DSS
Action language
• What the user knows about
• the decision
• how to use the DSS
• How to train user ?
• one to one tutorial
• classes /lectures
• programmed an computer aided instruction
• command or sequence files
• instructions manual - online, context specific
Presentation language
Decision Support System

Knowledge base
DSS
Action language
Presentation language
• How to control DSS
• question - answer
• menu - driven / oriented
• command language
• input-output approach
• visual oriented interface - icon
• voice input
• Physical action
• Keyboard input
• touchscreen, mouse driven
Decision Support System

Knowledge base
DSS
Action language
•
•
•
•
•
Presentation language
Decision Support System

Dialog Styles
Combination or set of option for implementing the knowledge base, the action language and the presentation language
Mouse
Pull - down menu move icons
90
80
70
60
50
40
30
20
10
0
Q1 Q2 Q3 Q4
Sales year
2002
Graphical presentation
Decision Support System

The Data Component
Data source
Internal
• Internal (within organization)
• easy to generate and manage
• External
• popular as “public data base”
• In context of DSS :as information source
• documents, concept, ideas, opinions
External
Traditional EDP/MIS
__________________
Data records, files
Public Data Base
__________________
Socio-economic data
Word processing records management
____________________ records, opinions, memos, estimate
Corporate
Library
Decision Support System

The Organizational option
Traditional application development group
DSS
Institutional
Support
Operation research/management Science group
Planing department / Staff analysis group within a functional department
A stand alone, formally chartered DSS group
A DSS group within end user services
Information center
• Institutional support play a leading role in development and management of DSS system
• Support characteristics:
• Staff background
• Types of services
• DSS development methodology
Decision Support System

Development of DSS
Affecting factors
• PC revolution
• Increasing capability and reducing cost of telecomunication
• Increasing availability of public data
• Growth of artificial intelligent techniques
• Increasing knowledge and computer literacy
• Availability of hardware and software
• Incereasing availability of mobile computing and communication
Decision Support System

The Challenges
• Integrated architecture
• Connectivity
• LAN
• WAN
• Document data
• More intelligence
Decision Support System

DSS Levels
• Specific DSS
– Developed for supporting one particular type of decision.
• DSS Generators
– Programs which decision makers and programmers can use to quickly build a specific DSS application.
– Spreadsheets, IFPS, @RISK, etc.
• DSS Tools
– Languages, development tools, text editors, etc., which require more technical sophistication before they can become specific DSS.
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DSS Types
• Permanent / Institutional DSS
– Developed for an on-going decision situation.
May be refined or updated as needed.
– For repetitive use (operation)
• Ad-Hoc DSS
– Built for one specific decision requiring immediate support. Often rapidly assembled using DSS generators & tools. May eventually result in permanent DSS.
– usually for strategic planning
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– Augment decision maker’s knowledge management abilities
– Allow decision maker to solve larger and more complex problems
– Make decision making faster and more reliable
– Stimulate decision maker’s thoughts about a problem & reveal new ways of thinking
– Support decision maker’s decision/position with computational evidence
– Organizational competitive advantage
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– DSS do not replace human creativity and experience
– DSS is constrained by the knowledge in its databases
– DSS is constrained by the models and processes in its model base and programming
– DSS is limited by its computer platform
– Decision makers are required to communicate with the DSS in its language or interface mode
– DSS are often narrow in their area of application
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END
Decision Support System