What is decision support system in management information system?

A decision support system (DSS) is an interactive information system that analyzes large volumes of data for informing business decisions. A DSS supports the management, operations, and planning levels of an organization in making better decisions by assessing the significance of uncertainties and the tradeoffs involved in making one decision over another.

A DSS leverages a combination of raw data, documents, personal knowledge, and/or business models to help users make decisions. The data sources used by a DSS could include relational data sources, cubes, data warehouses, electronic health records (EHRs), revenue projections, sales projections, and more.

The concept of decision support systems grew out of research conducted at the Carnegie Institute of Technology in the 1950s and 1960s, but really took root in the enterprise in the 1980s in the form of executive information systems (EIS), group decision support systems (GDSS), and organizational decision support systems (ODSS). These says, as organizations become increasingly focused on data-driven decision making, is on the rise, and decision scientists may be the key to unlocking the potential of decision science systems. Bringing together applied data science, social science, and managerial science, design science focuses on selecting between options to reduce the effort required to make higher-quality decisions.

Decision support systems vs. business intelligence

Decision support systems and are often conflated. Some experts consider BI a successor to DSS. Decision support systems are generally recognized as one element of business intelligence systems, along with data warehousing and data mining.

Whereas BI is a broad category of applications, services, and technologies for gathering, storing, analyzing, and accessing data for decision-making, DSS applications tend to be more purpose-built for supporting specific decisions. For example, a business DSS might help a company project its revenue over a set period by analyzing past product sales data and current variables. Healthcare providers use clinical decision support systems to make the clinical workflow more efficient: computerized alerts and reminders to care providers, clinical guidelines, condition-specific order sets, and so on.

Categories of decision support systems

In the book Daniel J. Power, professor of management information systems at the University of Northern Iowa, breaks down decision support systems into five categories based on their primary sources of information.

Data-driven DSS. These systems include file drawer and management reporting systems, executive information systems, and geographic information systems (GIS). They emphasize access to and manipulation of large databases of structured data, often a time-series of internal company data and sometimes external data.

Model-driven DSS. These DSS include systems that use accounting and financial models, representational models, and optimization models. They emphasize access to and manipulation of a model. They generally leverage simple statistical and analytical tools, but Power notes that some OLAP systems that allow complex analysis of data may be classified as hybrid DSS systems. Model-driven DSS use data and parameters provided by decision-makers, but Power notes they are usually not data-intensive.

Knowledge-driven DSS. These systems suggest or recommend actions to managers. Sometimes called advisory systems, consultation systems, or suggestion systems, they provide specialized problem-solving expertise based on a particular domain. They are typically used for tasks including classification, configuration, diagnosis, interpretation, planning, and prediction that would otherwise depend on a human expert. These systems are often paired with data mining to sift through databases to produce data content relationships.

Document-driven DSS. These systems integrate storage and processing technologies for document retrieval and analysis. A search engine is an example.

Communication-driven and group DSS. Communication-driven DSS focuses on communication, collaboration, and coordination to help people working on a shared task, while group DSS (GDSS) focuses on supporting groups of decision makers to analyze problem situations and perform group decision-making tasks.

Decision support system examples

Decision support systems are used in a broad array of industries. Example uses include:

  • GPS route planning. A DSS can be used to plan the fastest and best routes between two points by analyzing the available options. These systems often include the capability to monitor traffic in real-time to route around congestion.
  • Crop-planning. Farmers use DSS to help them determine the best time to plant, fertilize, and reap their crops. Bayer Crop Science has to every element of its business, including the at its corn manufacturing sites.
  • Clinical DSS. These systems help clinicians diagnose their patients. Penn Medicine has created .
  • ERP dashboards. These systems help managers monitor performance indicators. Digital marketing and services firm Clearlink uses a which agents need extra help.

Components of a decision support system

According to

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, decision support systems consist of three key components: the database, software system, and user interface.

  1. DSS database. The database draws on a variety of sources, including data internal to the organization, data generated by applications, and external data purchased from third parties or mined from the Internet. The size of the DSS database will vary based on need, from a small, standalone system to a large data warehouse.
  2. DSS software system. The software system is built on a model (including decision context and user criteria). The number and types of models depend on the purpose of the DSS. Commonly used models include:
    • Statistical models. These models are used to establish relationships between events and factors related to that event. For example, they could be used to analyze sales in relation to location or weather.
    • Sensitivity analysis models. These models are used for “what-if” analysis.
    • Optimization analysis models. These models are used to find the optimum value for a target variable in relation to other variables.
    • Forecasting models. These include regression models, time series analysis, and other models used to analyze business conditions and make plans.
    • Backward analysis sensitivity models. Sometimes called goal-seeking analysis, these models set a target value for a particular variable and then determine the values other variables need to hit to meet that target value.
  3. DSS user interface. Dashboards and other user interfaces that allow users to interact with and view results.

Decision support system software

According to

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, the popular decision support system software includes:

  • . This data and analytics platform is geared for enterprise and mid-market companies that need to integrate and embed data across applications. It offers cloud, multi-cloud, on-prem, and hybrid options.
  • {{#url}}QlikView{{/url}}{{^url}}QlikView{{/url}}

    . QlikView is Qlik’s classic analytics solution, built on the company’s Associative Engine. It’s designed to help users with their day-to-day tasks using a configurable dashboard.
  • {{#url}}SAP BusinessObjects{{/url}}{{^url}}SAP BusinessObjects{{/url}}

    . BusinessObjects consists of reporting and analysis applications to help users understand trends and root causes.
  • {{#url}}TIBCO Spotfire{{/url}}{{^url}}TIBCO Spotfire{{/url}}

    . This data visualization and analytics software helps users create dashboards and power predictive applications and real-time analytics applications.
  • This AI-driven, cloud-based analytics solution is built on Salesforce.com’s platform to help organizations spot opportunities and predict outcomes.
  • {{#url}}Powernoodle{{/url}}{{^url}}Powernoodle{{/url}}

    . Powernoodle is a cloud-based decision engagement platform that leverages cognitive, behavioral, and decision science. It offers pre-built templates that address common decision types, and support for modeling the workflows of multiple stakeholder groups.
  • . 1000minds is an online suite of tools and processes for decision-making, prioritization, and conjoint analysis. It is derived from research at the University of Otago in the 1990s into methods for prioritizing patients for surgery.
  • {{#url}}Briq{{/url}}{{^url}}Briq{{/url}}

    . Briq is a predictive analytics and automation platform built specifically for general contractors and subcontractors in construction. It leverages data from accounting, project management, CRM, and other systems, to power AI for predictive and prescriptive analytics.

A decision support system (DSS) is an information system that supports business or organizational decision-making activities. DSSs serve the management, operations and planning levels of an organization (usually mid and higher management) and help people make decisions about problems that may be rapidly changing and not easily specified in advance—i.e. unstructured and semi-structured decision problems. Decision support systems can be either fully computerized or human-powered, or a combination of both.

What is decision support system in management information system?

Example of a decision support system for John Day Reservoir.

While academics have perceived DSS as a tool to support decision making processes, DSS users see DSS as a tool to facilitate organizational processes.[1] Some authors have extended the definition of DSS to include any system that might support decision making and some DSS include a decision-making software component; Sprague (1980)[2] defines a properly termed DSS as follows:

  1. DSS tends to be aimed at the less well structured, underspecified problem that upper level managers typically face;
  2. DSS attempts to combine the use of models or analytic techniques with traditional data access and retrieval functions;
  3. DSS specifically focuses on features which make them easy to use by non-computer-proficient people in an interactive mode; and
  4. DSS emphasizes flexibility and adaptability to accommodate changes in the environment and the decision making approach of the user.

DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, and personal knowledge, or business models to identify and solve problems and make decisions.

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

  • inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts),
  • comparative sales figures between one period and the next,
  • projected revenue figures based on product sales assumptions.

The concept of decision support has evolved mainly from the theoretical studies of organizational decision making done at the Carnegie Institute of Technology during the late 1950s and early 1960s, and the implementation work done in the 1960s.[3] DSS became an area of research of its own in the middle of the 1970s, before gaining in intensity during the 1980s.

In the middle and late 1980s, executive information systems (EIS), group decision support systems (GDSS), and organizational decision support systems (ODSS) evolved from the single user and model-oriented DSS. According to Sol (1987),[4] the definition and scope of DSS have been migrating over the years: in the 1970s DSS was described as "a computer-based system to aid decision making"; in the late 1970s the DSS movement started focusing on "interactive computer-based systems which help decision-makers utilize data bases and models to solve ill-structured problems"; in the 1980s DSS should provide systems "using suitable and available technology to improve effectiveness of managerial and professional activities", and towards the end of 1980s DSS faced a new challenge towards the design of intelligent workstations.[4]

In 1987, Texas Instruments completed development of the Gate Assignment Display System (GADS) for United Airlines. This decision support system is credited with significantly reducing travel delays by aiding the management of ground operations at various airports, beginning with O'Hare International Airport in Chicago and Stapleton Airport in Denver Colorado.[5] Beginning in about 1990, data warehousing and on-line analytical processing (OLAP) began broadening the realm of DSS. As the turn of the millennium approached, new Web-based analytical applications were introduced.

DSS also have a weak connection to the user interface paradigm of hypertext. Both the University of Vermont PROMIS system (for medical decision making) and the Carnegie Mellon ZOG/KMS system (for military and business decision making) were decision support systems which also were major breakthroughs in user interface research. Furthermore, although hypertext researchers have generally been concerned with information overload, certain researchers, notably Douglas Engelbart, have been focused on decision makers in particular.

The advent of more and better reporting technologies has seen DSS start to emerge as a critical component of management design. Examples of this can be seen in the intense amount of discussion of DSS in the education environment.

DSS can theoretically be built in any knowledge domain. One example is the clinical decision support system for medical diagnosis. There are four stages in the evolution of clinical decision support system (CDSS): the primitive version is standalone and does not support integration; the second generation supports integration with other medical systems; the third is standard-based, and the fourth is service model-based.[6]

DSS is extensively used in business and management. Executive dashboard and other business performance software allow faster decision making, identification of negative trends, and better allocation of business resources. Due to DSS, all the information from any organization is represented in the form of charts, graphs i.e. in a summarized way, which helps the management to take strategic decisions. For example, one of the DSS applications is the management and development of complex anti-terrorism systems.[7] Other examples include a bank loan officer verifying the credit of a loan applicant or an engineering firm that has bids on several projects and wants to know if they can be competitive with their costs.

A growing area of DSS application, concepts, principles, and techniques is in agricultural production, marketing for sustainable development. Agricultural DSSes began to be developed and promoted in the 1990s.[8] For example, the DSSAT4 package,[9] The Decision Support System for Agrotechnology Transfer[10] developed through financial support of USAID during the 80s[citation needed] and 90s, has allowed rapid assessment of several agricultural production systems around the world to facilitate decision-making at the farm and policy levels. Precision agriculture seeks to tailor decisions to particular portions of farm fields. There are, however, many constraints to the successful adoption of DSS in agriculture.[11]

DSS is also prevalent in forest management where the long planning horizon and the spatial dimension of planning problems demand specific requirements. All aspects of Forest management, from log transportation, harvest scheduling to sustainability and ecosystem protection have been addressed by modern DSSs. In this context, the consideration of single or multiple management objectives related to the provision of goods and services that are traded or non-traded and often subject to resource constraints and decision problems. The Community of Practice of Forest Management Decision Support Systems provides a large repository on knowledge about the construction and use of forest Decision Support Systems.[12]

A specific example concerns the Canadian National Railway system, which tests its equipment on a regular basis using a decision support system. A problem faced by any railroad is worn-out or defective rails, which can result in hundreds of derailments per year. Under a DSS, the Canadian National Railway system managed to decrease the incidence of derailments at the same time other companies were experiencing an increase.

DSS has been used for risk assessment to interpret monitoring data from large engineering structures such as dams, towers, cathedrals, or masonry buildings. For instance, Mistral is an expert system to monitor dam safety, developed in the 1990s by Ismes (Italy). It gets data from an automatic monitoring system and performs a diagnosis of the state of the dam. Its first copy, installed in 1992 on the Ridracoli Dam (Italy), is still operational 24/7/365.[13] It has been installed on several dams in Italy and abroad (e.g., Itaipu Dam in Brazil),[14] and on monuments under the name of Kaleidos.[15] Mistral is a registered trade mark of CESI. GIS has been successfully used since the ‘90s in conjunction with DSS, to show on a map real-time risk evaluations based on monitoring data gathered in the area of the Val Pola disaster (Italy). [16]

 

Design of a drought mitigation decision support system

Three fundamental components of a DSS architecture are:[17][18][19][20][21]

  1. the database (or knowledge base),
  2. the model (i.e., the decision context and user criteria)
  3. the user interface.

The users themselves are also important components of the architecture.[17][21]

Using the relationship with the user as the criterion, Haettenschwiler[17] differentiates passive, active, and cooperative DSS. A passive DSS is a system that aids the process of decision making, but that cannot bring out explicit decision suggestions or solutions. An active DSS can bring out such decision suggestions or solutions. A cooperative DSS allows for an iterative process between human and system towards the achievement of a consolidated solution: the decision maker (or its advisor) can modify, complete, or refine the decision suggestions provided by the system, before sending them back to the system for validation, and likewise the system again improves, completes, and refines the suggestions of the decision maker and sends them back to them for validation.

Another taxonomy for DSS, according to the mode of assistance, has been created by D. Power:[22] he differentiates communication-driven DSS, data-driven DSS, document-driven DSS, knowledge-driven DSS, and model-driven DSS.[18]

  • A communication-driven DSS enables cooperation, supporting more than one person working on a shared task; examples include integrated tools like Google Docs or Microsoft SharePoint Workspace.[23]
  • A data-driven DSS (or data-oriented DSS) emphasizes access to and manipulation of a time series of internal company data and, sometimes, external data.
  • A document-driven DSS manages, retrieves, and manipulates unstructured information in a variety of electronic formats.
  • A knowledge-driven DSS provides specialized problem-solving expertise stored as facts, rules, procedures or in similar structures like interactive decision trees and flowcharts.[18]
  • A model-driven DSS emphasizes access to and manipulation of a statistical, financial, optimization, or simulation model. Model-driven DSS use data and parameters provided by users to assist decision makers in analyzing a situation; they are not necessarily data-intensive. Dicodess is an example of an open-source model-driven DSS generator.[24]

Using scope as the criterion, Power[25] differentiates enterprise-wide DSS and desktop DSS. An enterprise-wide DSS is linked to large data warehouses and serves many managers in the company. A desktop, single-user DSS is a small system that runs on an individual manager's PC.

Similarly to other systems, DSS systems require a structured approach. Such a framework includes people, technology, and the development approach.[19]

The Early Framework of Decision Support System consists of four phases:

  • Intelligence – Searching for conditions that call for decision;
  • Design – Developing and analyzing possible alternative actions of solution;
  • Choice – Selecting a course of action among those;
  • Implementation – Adopting the selected course of action in decision situation.

DSS technology levels (of hardware and software) may include:

  1. The actual application that will be used by the user. This is the part of the application that allows the decision maker to make decisions in a particular problem area. The user can act upon that particular problem.
  2. Generator contains Hardware/software environment that allows people to easily develop specific DSS applications. This level makes use of case tools or systems such as Crystal, Analytica and iThink.
  3. Tools include lower level hardware/software. DSS generators including special languages, function libraries and linking modules

An iterative developmental approach allows for the DSS to be changed and redesigned at various intervals. Once the system is designed, it will need to be tested and revised where necessary for the desired outcome.

There are several ways to classify DSS applications. Not every DSS fits neatly into one of the categories, but may be a mix of two or more architectures.

Holsapple and Whinston[26] classify DSS into the following six frameworks: text-oriented DSS, database-oriented DSS, spreadsheet-oriented DSS, solver-oriented DSS, rule-oriented DSS, and compound DSS. A compound DSS is the most popular classification for a DSS; it is a hybrid system that includes two or more of the five basic structures.[26]

The support given by DSS can be separated into three distinct, interrelated categories:[27] Personal Support, Group Support, and Organizational Support.

DSS components may be classified as:

  1. Inputs: Factors, numbers, and characteristics to analyze
  2. User knowledge and expertise: Inputs requiring manual analysis by the user
  3. Outputs: Transformed data from which DSS "decisions" are generated
  4. Decisions: Results generated by the DSS based on user criteria

DSSs which perform selected cognitive decision-making functions and are based on artificial intelligence or intelligent agents technologies are called intelligent decision support systems (IDSS)[28]

The nascent field of decision engineering treats the decision itself as an engineered object, and applies engineering principles such as design and quality assurance to an explicit representation of the elements that make up a decision.

  • Argument map
  • Cognitive assets (organizational)
  • Decision theory
  • Enterprise decision management
  • Expert system
  • Judge–advisor system
  • Knapsack problem
  • Land allocation decision support system
  • List of concept- and mind-mapping software
  • Morphological analysis (problem-solving)
  • Online deliberation
  • Participation (decision making)
  • Predictive analytics
  • Project management software
  • Self-service software
  • Spatial decision support system
  • Strategic planning software

  1. ^ Keen, Peter (1980). "Decision support systems : a research perspective". Cambridge, Massachusetts : Center for Information Systems Research, Alfred P. Sloan School of Management. hdl:1721.1/47172. {{cite journal}}: Cite journal requires |journal= (help)
  2. ^ Sprague, R;(1980). "A Framework for the Development of Decision Support Systems." MIS Quarterly. Vol. 4, No. 4, pp.1-25.
  3. ^ Keen, P. G. W. (1978). Decision support systems: an organizational perspective. Reading, Mass., Addison-Wesley Pub. Co. ISBN 0-201-03667-3
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  14. ^ Masera, Alberto; et al. "Integrated approach to dam safety". Comitê Brasileiro de Barragens. Retrieved 16 December 2020.
  15. ^ Lancini, Stefano; Lazzari, Marco; Masera, Alberto; Salvaneschi, Paolo (1997). "Diagnosing Ancient Monuments with Expert Software" (PDF). Structural Engineering International. 7 (4): 288–291. doi:10.2749/101686697780494392.
  16. ^ Lazzari, M.; Salvaneschi, P. (1999). "Embedding a Geographic Information System in a Decision Support System for Landslide Hazard Monitoring" (PDF). Natural Hazards. 20 (2–3): 185–195. doi:10.1023/A:1008187024768. S2CID 1746570.
  17. ^ a b c Haettenschwiler, P. (1999). Neues anwenderfreundliches Konzept der Entscheidungsunterstützung. Gutes Entscheiden in Wirtschaft, Politik und Gesellschaft. Zurich, vdf Hochschulverlag AG: 189-208.
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  20. ^ Haag, Cummings, ㅊㄴㅋMcCubbrey, Pinsonneault, Donovan (2000). Management Informatㅍㅈion Systems: For The Information Age. McGraw-Hill Ryerson Limited: 136-140. ISBN 0-07-281947-2
  21. ^ a b Marakas, G. M. (1999). Decision support systems in the twenty-first century. Upper Saddle River, N.J., Prentice Hall.
  22. ^ "Decision Support Systems (DSS) Articles On-Line".
  23. ^ Stanhope, Phil (2002). Get in the Groove: Building Tools and Peer-to-Peer Solutions with the Groove Platform. ACM Digital Library. ISBN 9780764548932. Retrieved 30 October 2019.
  24. ^ Gachet, A. (2004). Building Model-Driven Decision Support Systems with Dicodess. Zurich, VDF.
  25. ^ Power, D. J. (1996). What is a DSS? The On-Line Executive Journal for Data-Intensive Decision Support 1(3).
  26. ^ a b Holsapple, C.W., and A. B. Whinston. (1996). Decision Support Systems: A Knowledge-Based Approach. St. Paul: West Publishing. ISBN 0-324-03578-0
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