6.4.3

DECISION SUPPORT SYSTEM

interactive system that provides the user with EASY ACCESS TO DECISION MODEL AND DATA from a wide range of sources

in order to SUPPORT SEMI-STRUCTURED DECISION MAKING TASK typically for business purposes.

It is an informational application that is designed to assist an organization in making decisions THROUGH DATA PROVIDED BY BUSINESS INTELLIGENCE TOOLS

(in contrast to an operational application that collects the data in the course of normal business operations)

Typical information that a decision support application might gather and present would be:

• Comparative sales figures between one week and the next

• Projected revenue figures based on new product sales assumptions

• The consequences of different decision alternatives given past experience in the described context

may present information graphically and may include an expert system or AI.

may be aimed at business executives or some othergroup of knowledge workers

Characteristics of a DSS include:

• It is aimed at solving LESS STRUCTURED,, UNDER-SPECIFIED PROBLEM THAT SENIOR MANAGEMENT FACES.

• It combines the use of models or analytic techniques with TRADITIONAL DATA ACCESS AND RETRIEVAL FUNCTIONS.

• It emphasizes flexibility and ADAPTABILITY TO ACCOMMODATE CHANGES in the environment and the decision-making approach of the users.

A principle of DSS design is to concentrate LESS ON EFFICIENCY (i.e., performing tasks quickly and reducing costs) and MORE ON EFFECTIVENESS (i.e., performing the right task)

Design and Development

Prototyping is the most popular approach to DSS design and development. Prototyping usually bypasses the usual requirement definition.

SYSTEM REQUIREMENTS EVOLVE THROUGH USER'S LEARNING PROCESS .

benefits of prototyping include the following:

• LEARNING is explicitly incorporated INTO DESIGN PROCESS because of the iterative nature of the system design.

• FEEDBACK FROM DESIGN ITERATIONS is rapid to maintain an effective learning process for the user.

• The USER'S EXPERTISE in the problem area helps the user SUGGEST SYSTEM IMPROVEMENTS

• The INITIAL PROTOTYPE must be INEXPENSIVE to create.

Implementation and Use

Implementing a DSS is an exercise in changing an organization’sbehavior.

The main challenge is to get the users to accept the use of software.

steps involved in changing behavior:

Unfreezing

This step alters the forces acting on individuals such that the individuals are distracted sufficiently to change.

Unfreezing is accomplished either through increasing the pressure for change or by reducing some of the threats of or resistance to change.

Moving—

This step presents a direction of change and the actual process of learning new attitudes.

Refreezing—

This step integrates the changed attitudes into the individual’s personality.

Risk Factors

  1. Nonexistent or unwilling users
  1. Multiple users or implementers
  1. Disappearing users, implementers or maintainers
  1. Inability to specify purpose or usage patterns in advance
  1. Inability to predict and cushion impact on all parties
  1. Lack or loss of support
  1. Lack of experience with similar systems
  1. Technical problems and cost-effectiveness issues

Implementation Strategies

To plan for risk and prevent it from occurring:

• Divide the project into manageable pieces.

• Keep the solution simple.

• Develop a satisfactory support base.

• Meet user needs and institutionalize the system.

Assessments and Evaluation

Using an incremental approach to DSS development reduces the need for evaluation.

By developing one step at a time and achieving tangible results at the end of each step, the user does not need to make extensive commitments of time and money at the beginning of the development process.

The DSS designer and user should USE BROAD EVALUATION CRITERIA . These criteria should include:

• Traditional cost-benefit analysis

• Procedural changes,

• Evidence of improvement in decision-making

• Changes in the decision process

more alternatives examined and less time consumed in making the decision

DSS Common Characteristics

• Oriented toward decision making

• Usually based on 4GL

• Surfable

• Linkable

• Drill-down

• Semaphores (signals to automatically alert when a decision needs to be made)

• Time series analysis

• What if (refers to scenario modeling, such as determining the end result of a changing variable or variables)

• Sensitivity analysis

• Goal-seeking

• Excellent graphic presentations

• Dynamic graphic, data editing

• Simulation