Decision Support System are interactive information systems that depend on a (having different things working together as one unit) set of user-friendly hardware and software tools to produce and present information that is targeted to support the management in the decision-making process. The decision support systems help management decision-making by combining data, fancy (or smart) (related to careful studying or deep thinking) models and user-friendly software into a single powerful system that can support semi-structured or (without rules, schedules, etc.) decision-making. The decision support system is under user control, from early beginning to final putting into use and daily use. Decision support system helps to close the information gap to enable managers to improve quality of their decisions. While MIS is carefully thought believed useful for structured decisions, DSS is carefully thought about to be more useful for decisions at the strategical/strategic levels, where decision-makers are often angrily stood up to with complex decisions which are beyond their human abilities to (creation/combination)e properly the factors involved. DSS refers to a class of systems, which support in the process of decision-making and does not always give a decision itself. These systems can be used to validate decision by performing sensitivity analysis on different guidelines of the problem. read more about information technology and human resources meaning
While developing decision Support System, the focus must be on identifying a problem and a set of capabilities that users consider useful in arriving at decisions about that problem. While developing DSS, therefore, care must be taken to make sure that the Decision Support Systems possess the following desirable characteristics:
1. Should aid the decision-maker in decision-making.
2. Should be able to address semi/un-structured decision-making situations.
3. Should support decision-makers particularly at tactical/strategic levels.
4. Should be able to create general-purpose models, simulation capabilities and other analytical tools available to decision-maker.
5. Should enable users to use DSS without assistance from MIS/technical professionals.
6. Should be readily adapted to meet information requirement for any decision environment.
7. Should provide mechanism to enable rapid response to a decision-maker’s request for information. 8. Should have the capability to interface with corporate database.
9. Should be flexible to accommodate variety of management styles.
10. Should facilitate communication between/among various levels of decision-making.
11 Should have in-built flexibility and ability to evolve as user-sophistication grows.
12 Using of interactive methods are better advised.
Components of Decision Support System
1. Dialogue management: It has three subsystems. The user interface subsystem manages the physical user interface. It controls the appearance of the screen, accepts input from the user and displays the results. It also checks the user commands for correct syntax. The dialogue control subsystem maintains a processing context with the user. The request translator is to translate the user command into actions for the model management or data management components into a format understandable by the user. Since flexibility and ease of use are important in DSS, GUIs are becoming the standard for DSS applications. Database is normally through SQL.
2. Model management: The command processor receives the commands from the dialogue management components and delivers those commands from the dialogue management components to either the model base management system or the mode execution system.
3. Database management: It stores and manipulates the database as directed by either the model management component or the dialogue management component. Secondly, it maintains an interface with data sources that are external to the DSS, viz., TPS database, inter-enterprise systems, external data utilities and other DSS applications.
Types of Decision Support system
1. Status inquiry systems: The number of decisions in the operational management and some at the middle management are such that they are based on one or two aspect of decision-making situations. It does not call for any elaborate computation, analysis, choice. If the status is known the decision is automatic.
2. Data analysis system: Decision systems are based on comparative analysis and make use of formula or an algorithm. These processes are not structured. The use of simple data processing tools and business rules are required to develop this system. Examples include personnel inventory system, cash flow analysis, etc.
3. Information analysis system: Data is analysed and the information reports are generated. Reports can have exceptions. These reports are used for assessment of situation. Examples include sales analysis, accounts receivable, etc.
4. Accounting system: These systems are not necessarily required for decision-making, but they are desirable to keep track of the major aspects of the business or a function. These system account items such as cash, inventory, personnel and relate it to a norm or norms developed by the management for control and decision.
5. Model-based system: These systems are simulation models or optimization models for decision-making. These decisions, generally are one time and infrequent and provide general guidelines for operation or management. Examples include product mix, job scheduling rules, etc.