Last updated on April 11th, 2024 at 01:13 am
Every organization needs to make decisions regarding its future endeavors. These decisions are vital and have a significant impact on the business. Hence, when making such decisions, organizations use several tools and techniques. One of those tools are the decision support systems.
The organization uses such tools to help them improve its decision quality. The decision support systems are a supporting tool for decision-making.
What are the Decision Support Systems?
Decision support systems: DSS are interactive computer-based software used by businesses to enhance their decision-making process. DSS helps understand and use data and models to solve unstructured problems.
The decision support systems integrate a person’s resources and computer proficiency to enhance the quality of decisions taken.
Characteristics
- DSS provides an interactive surface for sessions.
- It is adaptive to changes.
- It is computer-based software.
- DSS offers new and creative solutions for unstructured problems.
- It can keep up with problems based on each other or in a sequence.
- All level managers use DSS for the decision-making process.
- DSS helps solve both – semi-structured and unstructured problems.
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Types of Decision Support Systems
1. According to Alter’s Output
These are classified based on the limit of the decision support systems action.
File Drawer System
This DSS system is used to provide the whereabouts of data. As the name suggests, it works as a drawer where all the data is stored separately. You can pull the drawer of whichever data you want.
Data Analysis System
A data analysis system is used to make a comparative study. It is used to organize data with the use of different tools.
Analysis Information System
This system helps to analyze a set of information. It analyses information related to specific situations and provides the report. This report contains data about the situation, which can help make a decision.
Accounting and Financial Support System
They calculate and analyze the outcomes of different decisions. It helps to predict the outcome and choose the perfect option to keep track of capital and investments. This type of decision support systems counters the “what if” problems.
Representation Model
This system is used to represent the predicted outcomes and help make decisions in some specific fields. This system also answers the “What if analysis” question.
Optimisation Model
This model helps to make the decision based on optimization models. These optimization models have their mathematical solution programs.
Suggestion Model
The suggestion system is used when a decision has to be taken based on well-structured data.
2. According to Holsapple and Whinston
Text Oriented DSS
In this system, the data used is in textual format. The system records textual data and uses it to assist in the decision-making process. Hypertext, a web-based document, can also be used.
Database Oriented DSS
In this system, relational database configurations are used. The information used is descriptive and structured in nature. It creates a robust report and query capability.
Spreadsheet Oriented DSS
User-developed decision support systems use spreadsheets. Excel, statistical packages, linear programming packages, and financial packages are used in decision support systems. It is also helpful in What if analysis.
Solver Oriented DSS
A solver-oriented decision support systems are a computer program that uses algorithms to perform calculations and assist in the decision-making process. It is used for making decisions about EOQ – economic order quantity.
Rule Oriented DSS
This system has a pre-established set of rules and regulations. These policies are used for decisions making process.
Compound DSS
As the name suggests, a compound DSS uses several decision support systems together.
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3. According to Donovan and Madnick
Institutional DSS
In this type of decision support systems, the system supports progress and recurring decisions.
Ad Hoc
It is used to support the same kind of decisions.
4. According to Hackathorn and Keen
Personal DSS is a small scaled information system used for decision-making.
Group DSS: A GDSS is a system where the whole team can interact with each other and arrive at a decision.
Organizational DSS – this system supports decision-making in organizations by processing massive amounts of data. It processes the data and makes reports that represent it in an organized form.
5. Communication Driver DSS
Communication Driven decision support systems use communication networks to support decision-making. The purpose of this system is to facilitate meetings or help collaborate. One of the most commonly used technology is a client-server.
6. Data-Driven DSS
This system is targeted at managers, suppliers, and employees. It is used to understand a database or data warehouse for a specific purpose. It is installed in the system’s mainframe or the client’s server.
7. Document-Driven DSS
Document Driven decision support systems to store document-related data in documents, pictures, audio files, videos, and hypertexts. Document-driven DSS searches keywords on web pages and finds the needed document. The technology used to deploy this DSS is through the web or client-server.
8. Knowledge-Driven DSS
A knowledge-driven DSS has a broad range. It can search for a database within the organization or any organization-connected clients. This system can help choose a product or service and provide management advice.
9. Model-Driven DSS
A model-driven DSS is used for a limited database. It is a complex system that helps to evaluate alternatives and decide on a path. It provides decisions about scheduling, decision analysis, planning, and so on. This system is installed through software/hardware of the pc, client-server, or the web.
FAQs
What is decision support system?
Decision support systems – DSS are interactive computer-based software businesses use to enhance their decision-making process. DSS helps understand and use data and models to solve unstructured problems.
What are the 5 types of decision support system?
Model based DSS
Communication based DSS
Data-based DSS
Document based DSS
Knowledge-based DSS
What are 4 main components of DSS?
Data management subsystem
Model base management subsystem
User interface subsystem
Knowledge-based management subsystem
Closing Statement
The organization has shifted to the Information System – IS or IT world. Every aspect of a business is carried out on computer softwares. In the same way, even decision-making techniques have shifted to computer mode. The decision support system does the same thing.
The DSS provides several systems that help decision-making for all fields. These systems gather and store data. The stored data is then used to create alternatives and select the best.
I hope this article about decision support systems is informative to you. If you have any doubts or additions, use DSS and post them in the comment box.
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