DESCRIPTION
Decision Support Systems (DSS) employ computer-based information systems to improve organization wide decision making.
- DSS is a process that reduces uncertainty by clarifying issues and examining alternatives using logical discipline
WHY USE DECISION SUPPORT SYSTEMS?
- support managerial judgment
- enhance the decision making process
- improve organizational effectiveness
- augment rather than replace managerial decision making
WHAT KIND OF PROBLEMS DO DSS HELP SOLVE?
- complex problems requiring analysis involving large amounts of data
- requiring large allocation of money
- having significant impact of an organization
- problems that are difficult to define
WHAT ARE APPROPRIATE USES FOR DECISION SUPPORT SYSTEMS?
- financial planning
- market models
- distribution and location models
- customer and portfolio management systems
- geodata systems analysis
CHARACTERISTICS OF DECISION SUPPORT SYSTEMS
- easier to use than to define
- conceptual systems requiring an integrated vision
- technical systems requiring a distinct methodology
- business oriented requiring friendly user access
- DSS go beyond problem solving by helping managers identify problems before they become problems
- a complete problem definition is not required provide approximate answers in a timely fashion
WHAT KIND OF ANSWERS DO DECISION SUPPORT SYSTEMS PROVIDE
- financial answers to target those who have reduced profitability
- performance answers to determine the weakest and strongest areas
- budgeting answers to determine how one is doing according to plan
- modeling answers or "what if" answers to see the impact when conditions change
- forecasting answers to estimate the future trend based on past history
- goal seeking answers to determine the cost of reaching objectives
- pro forma consolidation and allocation answers to determine what acquisitions will do to earnings considering the economies of scale
- graphical answers to trends with each other
WHY DO ORGANIZATIONS REQUIRE AN INTEGRATED DECISION SUPPORT SYSTEM
- different answers require different packages
- DSS are different from traditional information systems
- each manager may have a particular problem to solve unlike the problem of another manager
- each decision feature provides unique benefits
- complex problems requiring analysis
WHAT IS THE LEVEL OF SUPPORT PROVIDED BY DECISION SUPPORT SYSTEMS?
- identifying the objectives of a problem
- using approximate data to select the best solution
- working through alternative solutions from concept to selection
- providing access to facts via the retrieval of information
- assisting in pattern recognition by making unexpected or unrecognized connections
- making simple to complex computations, comparisons, and projections
- building complex models for management investigation
- recognizing and reviewing assumptions
WHAT DOES IT TAKE TO BUILD A DSS?
- computer hardware
- computer software
- user friendly interfaces
- graphical generators
- appropriate methodology
- activity planning and management method
- security system
THE DSS METHODOLOGY AS A ROADMAP TO SUCCESS
- populate the DSS
- prepare reports
- support heuristic processing
THE STRATEGIC DSS ARCHITECTURE
1. categories of data- sales
- market research
- competitive intelligence
- service-level performance
- early warning
- performance to budget
- personnel
- performance to long-range plan
- key correspondence among functional areas
- customer order data
2. candidates for DSS
- forecasting
- order processing
- finished product transport and warehouse to customer routing and distribution
- distribution center warehousing
- transportation from plant to distribution center
- packaging
- production planning
- plant storage
- facilities management
- procurement
3. DSS opportunities
- operational control
- management control
- strategic planning
4. central information repository supporting the DSS architecture
- freight payment system
- transportation history
- customer master activity system
- inventory
- credit file
- order status
- product movement by product and by customer
- standard costs
- customer order data
- research and development
- marketing and sales
5. measures of performance
- production planning and scheduling
- personnel
- purchasing
- general development/manufacturing
6. formal decision making process
- recognition of the changed environment
- alternative development
- criteria definition
- alternative evaluation
- decision implementation
- feedback and feedforward
- corrective action
7. information characteristics for planning, implementation & control