Decision Support System &

Group Decision Support System

Presented By : Himesh Soni: Jenish Patel: Naresh Rupareliya: Kishan Patel

Decision Support System

Content Description Types of Decision Support System

Status Inquiry SystemsData Analysis SystemInformation Analysis SystemAccounting SystemModel Based System

Decision and Types of system required Facts of Decision Support System

Description› Decision support system are an application of Herbert Simon Model.› The model has three phases, Intelligence, Design and Choice.› The decision support system basically helps the information system in

the intelligence phase where the objective is to identify the problem and then go to the design phase for solution.

› The choice of selection criterion varies from problem to problem

Description› The decision support system helps in making a decision and also in its

performance evaluation. These system can be used to validate the decision by performing sensitivity analysis on various parameters of the problem

› In decision making, there are two types of decision- Programmable and Non-Programmable.

› The programmable decision, because of its rule base structure, can be computerized, as inputs, processing methodology, analysis and choice of decision-making are predetermined. Decision support systems can be built around the rule in case of programmable decision situation.

› While in non-programmable decisions, the rule are not fixed or predetermined, and requires every time the user to go through the decision-making cycle as indicated in the Herbert Simon Model.

Types of Decision Support System1. 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 aspects of a decision making situation.

› It does not call for any elaborate computations, analysis,choice,etc. for decision making. If the status is known, the decision is automatic, i.e., the status and solution is unique relation.

Types of Decision Support System2. Data Analysis Systems› These decision systems are based on comparative analysis, and use of a

formula or an algorithm. But, these processes are not structured and, therefore, vary.

› Examples :- The cashflow analysis- The inventory analysis- The personal inventory systems

› The use of simple data processing tools and business rules are required to develop this system.

Types of Decision Support System3. Informtion Analysis Systems› In this system, the data is analysed and information reports are

generated. The reports might be having exception as a feature.› The decision makers use these reports for assessment of the situation

for decision-making.› Examples :

- The sales analysis- The account receivable systems- The market research analysis- The MRP systems

Types of Decision Support System4. Accounting Systems› These systems are not necessarily fro decision-making but they are

keep to track of the major aspects of the business or a function.› The contents of these systems is more data processing leading to formal

reporting, with exceptions, if necessary.› These systems account items such as cash, inventory, personnel and so

on and relate it to a norm or norms developed by the management, for control and decision.

Types of Decision Support System5. Accounting Systems› These systems are simulation models or optimisation models for

decision making. These decisions, generally, are one time and infrequent and provide general guidelines for operation or management.

› Examples :- The product mix decision- The material mix decision- The job scheduling rules decision- The resource or asset or facilities planning system

Decision & Types of system requiredDecision Type of system requiredFinding and Selection of vendor Inquiry systemPricing Data analysisSelection of vendor based on price, quality, performance

Information analysis system

Inventory rationalization Accounting systemManagement of inventory within various financial and stocking constraints

Inventory optinisation model

Facts of Decision Support System› The decision support systems are developed by the users and system

analysts jointly.› The decision support system uses the principles of economics, science

and engineering, and also the tool and techniques of management.› The data used in the decision support system is drawn from the

information systems developed in the company.› The decision support system are developed in isolation and form an

independent system subset of the management information system.› The most common use of the decision support system is to test the

decision alternatives and also to test the sensitivity of the result to the change in the system and assumptions.

Group Decision Support System

Description› Decision Support Systems which we discussed so far are designed for a

manager who is a sole decision maker. However, many decision-making situations call for involvement of a number of persons, each contributing towards the decision process. Information technology supports such decision-making where there is a group participation. Such decision support system is called GDSS.

› GDSS has also same components as in DSS, namely Database, Models, DSS Tools and something more which group needs to work together.

Configurations of GDSS› If GDSS is a group responsibility then the group needs a platform to

conduct the process. Four configurations of group members are possible as listed below.

a) Group members in one room operating on network with common display screen to share the display for all members. GDSS process is transparent.

b) Group members sit at their respective locations and use their desktop and LAN to interact with other members. GDSS process is not transparent as in case of ‘a’;

c) Group members are in different cities and they come together through teleconferencing with prior planning for GDSS operations.

d) Group members are at remote locations may be in different countries and they come together through long distance telecommunication network.

Configurations of GDSS› In all four configurations, GDSS support software is available on server

for members to use. Disregarding the configuration model of the group and the type of network they use, following activities are common.

Sending the receiving information in all forms, types across the network.

Display of notes, graphic, drawings, pictures. Sharing ideas, choices, and indicating preferences. Partcipate in decision-making process with inputs, help and so on.

Group Decision Support System› In all configuration models, the group members together in a

collaborative manner. Collaborative work management tools support GDSS. Also GroupWare software is Used to accomplish a set of group activities.

› GDSS support tools help in- Calendaring and Scheduling- Project Management- Workflow and Workgroup Activities- Knowledge Management

Group Decision Support System› In GDSS, group members interact, debate, communicate and conclude

using different tools and techniques. This process may not happen in real time in continuous manner.

› The process may run for sometime online, then stop and wait for response(s), then react on response till the problem is solved.

› The goal of GDSS is to improve the productivity od decision makers, either by speeding up the decision making process or by improving the quality of the resulting decisions, or both. This is accomplished by providing the support for exchange of ideas, opinions and preferences within the group.

Group Decision Support System› Groupware is the hardware, software platform of GDSS which supports group

work.› Groupware applications make group member more efficient and smart in

decision-making.› Groupware and GDSS have the following features and service capabilities : Supports parallel processing of information Permits the group or individual members to use tools, techniques or models of

decision-making of their choice Offers rapid and easy access to external information Enables several users to interact simultaneously Automatically records all information that passes through the system for future

analysis

Examples of GDSS in the e-business enterprises› Leave application processing› Credit rating approval› Pricing negotiations and order processing › Work order processing : Acknowledgement to delivery and billing› Group interviewing of candidate› Contract document processing for multiple signatories

Thank You