DECISSION SUPPORT SYSTEM DECISSION MAKING PROCESS CHOICE INTELLIGENCE

DECISSION SUPPORT SYSTEM

DECISSION MAKING PROCESS CHOICE INTELLIGENCE DESIGN

DECISION o Making decisions concerning complex systems often strains our cognitive capabilities. o Predicting how the system will react to an external manipulation such as a policy decision is often difficult.

PROCESS VIEW OF DECISION MAKING

Decision support system • Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. • A properly designed DSS is an interactive softwarebased system intended to help decision makers compile useful information from raw data, documents, personal knowledge, and/or business models to identify and solve problems and make decisions.

WHY DSS o Because decision-making involves a complex sequence of activities over time, it implies there at least three functions that should be assigned to DSSs: 1) The capability of capturing and saving information from previous activities; 2) Data processing capability; 3) Data retrieval capability.

COMPONENTS OF DSS o There are three fundamental components of DSS : o DATA BASE MANAGEMENT SYSTEM (DBMS) o MODEL BASED MANAGEMENT SYSTEM (MBMS) o DIALOG GENERATION &MANAGEMENT SYSTEM (DGMS)

THE ARCHITECTURE OF DSS

Types of DSS o DS systems can be separated into seven broad categories, each aiding decision making by different methods: o o o o DATA DRIVEN DSS. MODEL-DRIVEN DSS. KNOWLEDGE DRIVEN DSS. DOCUMENT DRIVEN DSS. Communication Driven DSS. INTER & INTRA-ORGANIZATIONAL DSS. NEW BREED OF DSS

PROCESING MODEL FOR DSS DATA KNOWLEDGE DATABASE IN-HOUSE PROPRIETARY DATABASE DSS PROCESSING MODELS EXTERNAL AND INTERNAL ENVIRONMENT FINANCIAL ACOUNTING ECONOMICAL PROCESSING BY MANAGER, USING KNOWLEDGE, EXPERIENCE AND INTUITION QUALITY DECISION

NEW BREEDS OF DSS o HYBRID SYSTEM Eg. -WEB BASED DSS o On-line Analytical Processing (OLAP)

MANAGEMENT REQUIREMENT OF DSS o o o ALLOCATING RESOURCES PREPARING BUDGETS OBSERVATION OF RESULTS EVALUATION OF RESULT MODIFICATION OF ACTIVITES AND RESOURCES

Intangible payoffs DSS ü Improved internal control. ü Enhances long term profitability by improving quality of decision making. ü Faster response to changes in business environment.

Cont …. Ø Better management awareness of internal strength and weaknesses and external threats and opportunities. Ø Allows managers’ to record experience and use it in future for similar scenarios that may arise within the organization.