Decision Support Systems: Concept, Constructing a DSS, Executive Information System, (EIS), Artifical Intelligence System (AIS), knowledge Based Expert System (KBES), Enterprise Management System (EMS), Decision Support Management System (DSMS).

1. Management Information System
MBA/107
(Unit -IV)
Decision Support System:
Concept of DSS, Constructing a DSS
Executive Information System (EIS)
Artificial Information System (AIS)
Knowledge Based Expert System (KBES)
Expertise Management System (EMS)
Decision Support Management System (DSMS)

2. Management Information SystemManagement Information System
MBA/107MBA/107
Lecture – 1
Decision Support System
(Concept, Meaning, Definition and Design)

3. Decision Support SystemsDecision Support Systems
(DSS)(DSS)
Decision Support Systems (DSS) are a
specific class of computerized information
system that supports business and
organizational decision-making activities.

4. A decision support system (DSS) is a computer-
based application that collects, organizes and
analyzes business data to facilitate quality
business decision-making for management,
operations and planning.

5. A well-designed DSS aids decision makers
in compiling a variety of data from many
sources: raw data, documents, personal
knowledge from employees, management,
executives and business models. DSS
analysis helps companies to identify and
solve problems, and make decisions.

6. Def: A DSS is a specialized kind of information
system, which is an interactive system that
support in decision-making process of a
manager in an organization, specially in semi-
structured and un-structured situations. The
system utilizes information, models and data
manipulation tools to help make decision in
semi-structured to un-structured situations.”

7. Typical information gathered by a DSS may
include:
Projected revenue and sales figures, some
based on new product sales projections
Comparative sales figures between selected
time periods
Inventory data organized into relational
databases for timely analysis

8. DSS applications are used in many diverse
fields, including –
– Medical diagnosis,
– Credit loan verification,
– Evaluating bids on engineering projects,
– Business and business management,
– Agricultural production at the farm and
Policy levels,
– forest management and
– Railroad (for evaluation of defective
rails).

9. Components of DSSComponents of DSS
Data Base:
•Organizational Information
•External Information
•Personal Information
Model Base:
•What if Model
•Optimization Model
•Goal seeking Model
•Statistical Model
Dialogue Base/
User Interface :
Question
User

10. i. Organizational information: Any
information available in the organization for
Decision Support System.
Information to be used depends on what we
need for decision making and whether it is
available.
Decision Support System may access this
information directly from your company’s
database and data warehouse.
1. Database

11. ii. External information: Some decisions
require input from external sources of
information. Various branches of
government, Private research agencies.
iii. Personal information:
Personal information through experience
into your Decision Support System.

12. 2. Modelbase2. Modelbase
i.i. "what"what ifif"" modelmodel
A spreadsheet "what if" model is just like a
spreadsheet “ if ” formula for decision
making. It has the same elements as other
spreadsheets (formula ,value, value).
A "what if" model is a spreadsheet that
calculates a result based on some variable
input.

13. ii. Optimization Modelii. Optimization Model
Optimization refers to a branch of applied
mathematics concerned with the
minimization or maximization of a certain
function, possibly under constraints.
Optimization has evolved towards the study
and application of algorithms to solve
mathematical problems on computers.
Ex: A car sells pries Rs.5,00,000, & 10,00,000 .
How many cars are to be sold to earn profit of
10 lakhs. If profit margin on cars is 10% and
15% respectively.

14. A statistical model is a class of
mathematical model, which embodies a set
of assumptions concerning the generation of
some sample data, and similar data from
a larger population.
iii. Statistical model

15. Characteristics of DSSCharacteristics of DSS
Three major characteristics of DSS:
1. DSS are designed specifically to facilitate
decision processes,
2. DSS should support rather than automate
decision making, and
3. DSS should be able to respond quickly to
the changing needs of decision makers.

16. Other characteristics of a DSSOther characteristics of a DSS
Facilitation: DSS facilitate and support
specific decision-making activities and/or
decision processes.
Interaction: DSS are computer-based
systems designed for interactive use by
decision makers or staff users who control
the sequence of interaction and the
operations performed.

17.  Ancillary: DSS can support decision makers
at any level in an organization. They are NOT
intended to replace decision makers.
 Repeated Use: DSS are intended for repeated
use. A specific DSS may be used routinely or
used as needed for ad-hoc decision support
tasks.
Task-oriented. DSS provide specific
capabilities that support one or more tasks
related to decision-making, including:
intelligence and data analysis; identification
and design of alternatives; choice among
alternatives; and decision implementation.

18. Identifiable: DSS may be independent
systems that collect or replicate data from
other information systems OR subsystems
of a larger, more integrated information
system.
Decision Impact: DSS are intended to
improve the accuracy, timeliness, quality
and overall effectiveness of a specific
decision or a set of related decisions.

19. ThanksThanks

20. Lecture - 2Lecture - 2
Developing/Constructing/Designing
Decision Support Systems

21. Decision Support SystemDecision Support System
DevelopmentDevelopment
 How to develop a DSS?
 DSS must usually be custom tailored

22. System Development MethodsSystem Development Methods
 System development life cycle (SDLC)
 Prototyping

23. The traditionalThe traditional SystemSystem
Development Life CycleDevelopment Life Cycle (SDLC)(SDLC)
This approach considers identification of user
requirement, analysis of existing system, designing
overall system and its designing, development (with
simultaneous implementation) and testing. Each of
these steps calls a written document, reviewed and
approved before starting next step. The basic
advantage of this approach is that it covers all the
areas and maintains a record of them. On the other
hand it is too rigid for a system that is frequently
changing or updating.

24. 1. Traditional Systems Development1. Traditional Systems Development
Life Cycle (SDLC) (Waterfall)Life Cycle (SDLC) (Waterfall)
Design
Implementation
Analysis
Need
Planning
System

25. PlanningPlanning
Why Build the System?Why Build the System?
Minor Step Deliverable
1. Identify business value System request
2. Analyze feasibility Feasibility study
3. Develop work plan Work plan
4. Staff project Staffing plan,
Project charter
5. Control and direct project Project management tools
CASE tool
Standards list
Project binders / files
Risk assessment

26. AnalysisAnalysis
Who, What, When, Where?Who, What, When, Where?
Minor Step Deliverable
6. Analyze problem Analysis plan
7. Gather information Information
8. Model process(es) Process model
9. Model data Data model

27. DesignDesign
How Will the System Work?How Will the System Work?
Minor Step Deliverable
10. Design physical system Design plan
11. Design architecture Architecture design,
Infrastructure design
12. Design interface Interface design
13. Design database and files Data storage design
14. Design program(s) Program design

28. ImplementationImplementation
System DeliverySystem Delivery
Minor Step Deliverable
15. Construction Test plan,
Programs,
Documentation
16. Installation Conversion plan,
Training plan

29. Problems faced inProblems faced in
Implementation stageImplementation stage
 No project team or management support
 Hazy purpose; no defined schedule; ballooning scope
 Unclear aspects of make vs. buy decisions
 Few project integrations are functional out of the box
 Qualitative benefits
 No user buy in
 Poor project management skills
 No accountability / no responsibility

30. 2. Alternative Development2. Alternative Development
MethodologiesMethodologies
Prototype Approach:
Performing analysis, design, and implementation
phases concurrently, and repeatedly
Users see system functionality quickly and
provide feedback
Decision maker learns about problem
But can lose gains in repetition

31. PrototypingPrototyping
Performing analysis, design, and
implementation phases concurrently, and
repeatedly
Users see system functionality quickly
and provide feedback
Decision maker learns about problem
But can lose gains in repetition

32. PrototypingPrototyping
Design
Implementation
Analysis
Need
Planning
Prototype
System
Prototype Not OK
Prototype OK

33. Prototyping for DSSPrototyping for DSS
DevelopmentDevelopment
Problems are semi-structured or un-structured
Managers and developers may not completely
understand problem
Use prototyping

34. Prototyping TermsPrototyping Terms
Iterative design
Evolutionary development
Middle-out process
Adaptive design
Incremental design

35. Advantages of PrototypingAdvantages of Prototyping
Short development time
Short user reaction time
Improved user understanding
Low cost

36. Disadvantages of PrototypingDisadvantages of Prototyping
Gains may be lost in.
Needs thorough understanding of IS’s
benefits and costs
Detailed description of information needs
– Easy to maintain IS design
– Well-tested IS
– Well-prepared users

37. Model DSS ArchitectureModel DSS Architecture

38. ThanksThanks

39. Executive Information Systems /Executive Information Systems /
Executive Support SystemsExecutive Support Systems

40. Layers of Executive Decision Making

41. EIS / ESSEIS / ESS
• A computer based system
• Serves the information to the executives.
• Provides very rapid access to the timely
information
• Offers the direct access to the different
management reports.
• Helps to achieve strategic goals.
• Normally features graphical displays on an
easy-to-use interface.

42. Executive InformationExecutive Information
Systems (EIS)Systems (EIS)
Definition:
Information systems that provide top
executives, managers, analysts, and other
knowledge workers with immediate and
easy access to information about a firm’s
key factors that are critical to accomplishing
an organization’s strategic objectives.

43. According to Watson, EIS / ESS depends on
following factors –
1. Internal factors
a. Need for the timely information.
b. Need for the improved communications.
c.. Need for the access to the operational data.
d. Need for the rapid status updates on the
various business activities.
e. Need for the access to the corporate database.
f. Need for very accurate information.
g. Need for the ability to identify the various
historical trends.

44. 2. External Factors:
a. Increasing and intensifying the global
competition.
b. Rapidly changing the business environment.
c. Need to be more pro active.
d. Need to access the external database.
e. Increasing the various government regulations.

45. The typical EIS has four components: hardware,
software, user interface and telecommunication

46. Features of an EISFeatures of an EIS
Information presented in forms tailored to
the preferences of the executives using the
system
– Customizable graphics displays
– Exception reporting
– Trend analysis
– Drill down capability

47. Characteristics of the ESS / EISCharacteristics of the ESS / EIS
1. Informational characteristics
i. Flexibility and ease of use.
ii. Provides the timely information with the
short response time and also with the
quick retrieval.
iii. Produces the correct information.
iv. Produces the relevant information.
v. Produces the validated information.

48. 2. User interface/orientation characteristics
i. Consists of the sophisticated self help.
ii. Contains the user friendly interfaces
consisting of the graphic user.
iii. Can be used from many places.
iv. Offers secure reliable, confidential access
along with the access procedure.
v. Is very much customized.
vi. Suites the management style of the
individual executives.

49. 3. Managerial / executive characteristics
i. Supports the over all vision, mission and the
strategy.
ii. Provides the support for the strategic
management.
iii. Sometimes helps to deal with the situations
that have a high degree of risk.
iv. Is linked to the value added business
processes.
V. Supports the need/access for/ to the external
data/databases.
vi. Is very much result oriented in the nature.

50. ESS / EIS capabilitiesESS / EIS capabilities
1. Helps in accessing the aggregated or macro
or global information.
2. Provides the user with an option to use the
external data extensively.
3. Enables analysis of the address and the queries.
4. Shows the trends, the ratios and the various
deviations.
5. Helps in incorporating the graphic and the
text in the same display, which helps to have
a better view.

51. 6. It helps in the assessment of the historical as
also the latest data.
7. Problem indicators can be highlighted
with the help of the EIS / ESS
8. Open ended problem explanation with the
written interpretations can be done with the
help of the EIS / ESS
9. Offers management by the exception reports.
10. Utilizes the hyper text and the hyper media.
11. Offers generalized computing.
12. Offers telecommunications capacity.

52. Capabilities of an ESSCapabilities of an ESS
Support for
– defining overall vision
– strategic planning
– strategic organizing and staffing
– strategic control
– crisis management

53. ESS / EIS benefitsESS / EIS benefits
1. Achievement of the various organizational
objectives.
2. Facilitates access to the information by
integrating many sources of the data.
3. Facilitates broad, aggregated perspective
and the context.
4. Offers broad highly aggregated information.
5. User’s productivity is also improved to a
large extent.
6. Communication capability and the quality
are increased.

54. 7. Provides with the better strategic planning
and the control.
8. Facilitates pro active rather than a reactive
response.
9. Provides the competitive advantage.
10. Encourages the development of a more
open and active information culture.
11. The cause of a particular problem can be
founded.

55. ThanksThanks

56. Artificial Information SystemArtificial Information System
(AIS)(AIS)