SINGAPOREAN JOuRNAl Of buSINESS EcONOmics, aNd maNagEmENt studiEs VOl.1, NO.

6, 2013

DECISION SUPPORT SYSTEM (DSS)

Nastaran Ghorbani Khodashahri1

Masoome Mir Hassannia Sarabi2
1-2 M.A Student of Business Management. Islamic Azad University. Rasht. Iran

Abstract:
Today’s decision making importance to manage organizations is clear as management decisions
couldn't rely on ingenuity, intuition and personal judgments but should be on the basis of scientific
and statistics studies. As know one of the main managers duties in organizations is decision
making. To make a true decision, it is necessary on time and precise information that decision
support systems help managers in this area to make true decisions even in unpredicted positions.
These systems by using data resources correctly create better realization on work area and develop
communication procedure. Due to this could express decision support systems as they are very
flexible and interactive computer systems that use to support all decision making process in
conditions that problem is semi-structured. One decision support system in fact is as a counselor
beside a decision maker and provides this possibility that could run with huge information mass
and use them arbitrarily and in suitable models frame to improve decision making.

Keywords: organizations, decision support systems, managers, semi-structured problems.

1- Introduction:

Managers as any organization main layers are decision making responsible in all issues and one
of the most important management challenges is different decisions that should make every day by
managers. These decisions have different levels such as short-term decisions that should make
every day or guiding long-term decisions that make for several years. Regarding to suitable
decision making necessity on suitable time it is useful a system to provide consultation and help
manager in decision making (10).
Decision making is all management activities substance. (2) One of the decision making
realization methods is study of decision structure. Made decisions on performance management
level more trend to structuralism, decisions on tactical levels are more semi-structured and on
strategic management level are more unstructured. Therefore, information systems should design as
produce different information products for decision maker's variable needs through organizations
(3).
Systems that only don't satisfy by information providing and participate in even simple decision
makings are called decision support systems (10).
One decision support system protects three decisions making as follow: (9).
1- Independent decision making:
Such decision making is when decision maker has general authority and complete executive
ability for made decisions. Decision support system that could do such decision making is known
personal support.
2- Sequential dependence decision making:
Such decision making is when decision maker only conducts a part of decision making and
provide his decision making results another person for future decision makings. Decision support
system that could protects such decision making is known organizational support.
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3- Convergent dependence decision making:
Such decision making is when a group as a council is decision making responsible. Decision
support system that could protects this decision making is known group support.
Regarding to three types of decisions making observes that second decision making is the most
important and usual one and therefore a decision support system should support such decision
making.
DSSs are computer based systems that use in all organizational levels to make decision and
solve semi-structured problems. They help manager in all decision making stages even play
effective role to know and evaluate displaceable solutions and select the most important ones by
manager(12).
2- Decision support systems concept and some theorist view:

There is not a common view about what is DSS. Not only expert managers but also users
provide different opinions about a decision support system organization (14). Decision support
systems are computer information systems that during decision making supply information active
support for managers and workers (3). DSSs are a sub-collection of information management
systems that help planners, analyzers and managers in decision making process. These systems
could provide a different concept from decision making and different decision making status. Main
DSS property is their concerning on computer ability to help decision making to introduce problem
and increase understanding about decision making environment through access to data and decision
making suitable models (8). Hardware and software used in DSS planning parts help DSS
enforcement (1). Decision support systems are Herbert Simon model use. This model has three
steps intelligence, design and selection. At all DSS uses in intelligence step that its aim is to know
problem and then design to find a solution (7). A DSS is an interactive, flexible, and adaptable
computer based coupled with a comprehensive database and the decision maker's own insights
leading to specific, implementable decisions in solving problems that would not be amenable to
management science models per se. thus, A DSS supports complex decision making and increases
its effectiveness (6). DSSs have designed as users could work them directly. These systems have
good software. DSS is mutual and user could changes hypotheses, arises new questions and enters
new data (11). Sprague and Carlson define DSS as such: decision support system is a system that:
- Are active in the basis of computer systems.
- Help decision makers to decision making.
- Could help to solve semi-structured problems and/or unstructured.
- Have direct interaction to user.
- Have data and analytical models.
- Are active on the basis of computer systems.

Two last elements include decision support system technology base. Such two indicators are
three elementary elements of decision support system. Converse, data and model (DDM). Sprague
and Carlson believed that a good decision support system has balance among above three elements.
Using decision support system should be easy for each unfamiliar user with computer and this
necessity is a suitable interaction and in term user-desirable decision support system. One who uses
decision support system deals with high data volume. This system should meet this availability. In
addition decision support system should conduct analyzes and modeling by different methods.
Many systems say that are a powerful decision support system. This is when they only in one
presented axis from Sprague are strong but in other axis have not high power. Regarding to
Sprague statements could express decision support system in another form: decision support
system is a conversational computer system to use data and models to solve unstructured and/or
semi-structured problems that helps decision makers to make decision aiming to increase their
efficiency (9).
Early 1981 keen has summarized DSS as: decision support systems have designed to help
efficiency and out put improvement of managers and expert individuals. They are mutual systems
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that use frequently by individuals that have little experience in computer and analytical methods
and have more supportive dimension rather than displacement. One DSS is an assistant worker that
manager gives him activities including recovery, calculation and report making (8).

3- Decision support systems history:

Along with development of using management information system in organizations, some

scientists of information science in Massachusetts Institute of Technology (MIT) followed another
procedure and designed decision support system that produces information to solve a certain
problem (15). DSS has a long history (1). At first in 1970, management decision systems concept
introduced by Missile Scot. Then in middle 1970's decision support system introduced by peter
keen and et al, in MIT University to express a system that supports managers decision but does not
displace by managers. Very soon this concept became common and produced different software’s
for decision support system. First these software packets made for mainframe systems but by
providing PCs and IBM PC using decision support system became very common and enforced its
using motivations (9).

4- Decision Support System and its place in related to information systems:

Information System (IS) is a collection of related elements that collects handles and disperses
data and in formation and provides a purpose access feedback. One branch of information systems
especially in management decision is affective through meeting needed information and data is
business information system that this system includes TPS, MIS and DSS. From this classification
this paper concerns on management decision support system. This system supplies manager needed
information and data by using outputs obtained from Transaction Process Systems (TPS) and
Management Information Systems (MIS). Using information systems in order to add value to
organization, this is affected by cultural structure, and organizational changing. Information
systems role is important in two field's continuous improvement and reengineering (4).

5- Comparing decision support systems and other information process systems:

Decision support systems to support organizational decisions process combine in other
information systems such as management information systems and provide middle managers
possibility to examine problems solving by provided information and make necessary decision (5).

Figure 1: problem structuring grades and using decision support systems

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Table 1: examples of decision support systems and their using

Application Decision support systems

Pricing and direction select American Airlines Company
Planning and prediction American Petrofina
Central and Southwest Corporation
Champlain Petroleum
Gifford-Hill Company
Investments evaluation First United Bank Corporation
Pricing, advertisements and rising select Frito-Lay, Inc
Price evaluation General Dynamics
Also among different and common information process systems such as transaction process
system, office automation system, management information system and executive support system
they have designed for middle manager using that comparing to them decision support systems use
to help semi-structured, single and quick changing decisions. This subject has shown in figure (2)
(5).

Figure 2: different organizational levels support by different information process systems

DSSs have advanced analytical abilities over others that allow users to use different decision
makers' models to analyze information. They obtain information from transaction process systems
and management information systems and return to managers as reports frame. Decision support
systems are user friendly and easy information access (5).

Table 2: Comparing information process systems

Users Output info Processing Input info system type

networks, graphs
executive response to total data executive
and interactional
managers searches (inside, outside) support systems
simulation
special reports,
experts, decisions interactional
decision support
institutional analyzes and simulation low mass data
systems
managers response to analyzes
searches
middle summary and repetitive summary, mass management
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managers especial reports reports, simple and simple information

models, low transaction data systems
analyzes
documents, documents office
Tellers work scheduling management and documents automation
and email communication systems
supervisors, ordering, listing,
expand reports, transactions, transaction
practical combining,
lists, summaries events, accidents process systems
personnel updating

6- Obtaining information methods from decision support system:

These methods are grouped in 3 sets that the most important are such as: (5).
6-1- Reports: the oldest method of obtain information is reporting. Reports could make as
regular daily, weekly, monthly … and provide managers. Also could make them especially for
certain subjects and issues as summary or expand. Expanding reports use in low levels and
summary reports use in high management levels.
6-2- Data base search: it's possible through question plan and transfer. Questions could post by
terminal and their response that is similar to a report could receive terminal.
6-3- Simulation: it uses to provide real behavior and using models. Through simulated model
could know and evaluate model type, how and behavioral or practical processes during different
assumptions determine and effects. Simulation plan could enter through terminal and receive its
results in same terminal or print by printer and provide manager.

7- Decision support system duties:

Decision support system should conduct following duties (13):
7-1- Prepare results quickly to provide suitable model on the base of aims relationships to
provided variable.
7-2- By using flexibility in using system causes to create different models to decision and
commercial decisions suitable decreasing.
7-3- By preparing different positions to solve problem enables managers to create subjects to u
se "what if" variables.

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8- Decision support system aims:

Each decision support system has three aims: (10):

8-1- Help manager to decide about semi-structured problems.
8-2- Supporting made decision by manager not its displacement.
8-3- Decision efficiency improvement and attention to its effectiveness.

9- Types of Decision support systems:

In general uses three kinds of decision support system organizational, generator and tool DSS.
(16).

9-1 Organizational DSS:

They are complete practical systems. Such systems construct by information system expert
individuals and include many Facilities. Organizational DSS aim is that uses permanently. So they
design as include equipments that to be useful in different and variable conditions (16).

9-2- Generator DSS:

Generator DSSs have designed as use to create or produce quick using. They are not complete
using such as organizational DSS and have not especial language. It includes different languages,
user interface, reporting ability, graphical equipments and some same facilities to use. When need,
it could create a new DSS. These systems making does not need programming. When consider
needs generator DSS do works(16).

9-3- Tool DSS:

Tool DSS is a certain item from generator DSS. Its aim is making using DSS but has limitations
and concern points and certain power (16).

10- Decision support system components:

Despite of management information systems, decision support systems in addition data station
rely on model stations as system life resources. A model station for DSS is software that uses
models in calculations and usual analyzes and variables relationships introduce mathematically.
DSS software’s include analytical modeling problems. Many DSS packets now are available in
sub-computers and web versions (3).
At all DSS includes three mechanisms element user connector, subsystems models and
subsystems data.

10-1-User connector:

User connector provides a method to do mutual act by system by user. One simplest user
connector is lines and wide pages columns. This is a tool to enter data in to system and model
characteristics. User should collect a computer program including orders, their run rank and
describe through this model and consider processing (11).

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10-2- Subsystems models:

Subsystem models manage main part of decision support system, saving models and recovery
and also help users to make models. In a wide page environment models include one or more wide
page including variables and parameters and formula that relate them to each other models allow
user to define system and save wide page (11).

10-3- Subsystems Data:

Subsystems data include a tool to recovery and process data from formal information banks to
manage data. Some data that are needed have produced by other systems. Other data from outside
resources could describe competitor activity, economic horizons or future predictions of a certain
industry (1).

11- Decision support system software:

Often sub-computer software such as Microsoft Excel, Lotus 123, FoxPro visual, Analytical
Hierarchy Process (AHP) and other interactive software are in this group. (5).

12-Conclusion:

Decision support systems process mass data and provide managers a decision options. DSS does
not decide and manager judgments are important. These systems use to run complex statistical,
mathematical models, data analyzes and support decisions. In this paper mentions to comparing
decision support systems and other information processing systems that observed decision support
systems use to help semi-structured decisions and single and having quick change and use by
managers in user friendly and easy access to information.
Decision support system has tools to support that these tools groups into software and hardware
parts that these tools combining help managers to decide in certain practical fields.
Decision support system should help decision maker in all levels, supports decision makers in
all management levels individually and group and in semi-structured decisions, provide simulating
and analyzes tools for decision maker to relate into general data station and has sufficient flexibility
to coordinate different management methods.

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