Decision Support Systems, conventionally called as DSS deal with the design and the use of cognitively compatible computerized systems for-

1. Assisting the managers in taking more effective decisions concerning semi-structured and unstructured tasks.
2. Supporting, rather than replacing, managerial intuition and judgement
3. Improving the effectiveness of decision making rather than its efficiency. (K Keen and Scott-Morton [1978]

Growths in computer and information technology and the realization of the inherent limitations of individual’s capability to take effective decisions in dynamic, unstructured and semi-structured decision situations, have naturally led to the development and use of various concepts and tools for using computer in making decisions.

1. Mann and Watson [1984] observed that DSS is an interactive system that provides the user with easy access to decision models and data in order to support semi-structured and unstructured decision making tasks.
2. According to Young [1983], the distinction of DSS is that they seek to establish a symbiosis of human- mind and computer by allowing a high degree of human-computer interaction and by enabling the manager-user to maintain direct control over the computers tasks and their outcomes. Three supports that DSS provides to manager are:

1. The assistance to the manager in problem exploration and definition,
2. Help in formulating alternate solutions, and
3. Help to select strategy or a plan.

3. Blanning [1986] states that an important purpose of the research being done in DSS is to develop a framework for information management that is as independent as possible of the way in which the information is stored and processed.
4. Crescenzi and Gulden [1983] argues that DSS has emerged from the ashes of MIS’s failure to support decision-making by management in businesses, which find themselves ‘data-rich’ but ‘information-poor’.
5. According to Watson and Hill [1983] DSS supports the tough information requests that MIS has not been able to serve.
6. Sprague and Carlson [1982] observe that unfortunately the intuitive validity of the words in Decision Support System has tempted many to define DSS as any system that supports a decision or that makes some contribution to decision making, thus bringing in its fold all but transaction processing.

From the above definitions it is evident that there is no universal definition of DSS. However, a quick survey of existing literature will reveal that most authors either explicitly or implicitly believe that a DSS should have the following nine basic characteristics.

1. DSS assists managers in their decision making specifically in semi-structured and unstructured fields.
2. DSS supports and enhances, rather than replaces, managerial decisions.
3. DSS improves the effectiveness of the decision rather than its efficiency.
4. DSS combines the use of models and analytical techniques with conventional data access and retrieval functions.
5. DSS has features (including interactive features) which make its use by non-computer people easier.
6. DSS ahs enough flexibility to accommodate changes in the environment, the approach and the needs of the users.
7. DSS supports managers at all levels that take decisions.
8. DSS is user initiated and user controlled.
9. DSS supports the personal decision making styles of individual managers. [16]

The three levels of hardware/software which have been included in the label "DSS" are:

The system, which actually accomplishes the work, might be called the specific DSS.

It is an information systems "application", but with characteristics that make it significantly different from a typical data processing application. An early example is the portfolio management system [Keen & Scott Morton (1978)] and the police beat allocation system used in the city of San Jose, California [Carlson & Sutton (1974)].

The second level of technology might be called a DSS generator. This is a "package" of related hardware and software which provides a set of capabilities to quickly and easily build a Specific DSS. For example, the police beat system described above was built from the Geo-data Analysis and Display System (GADS) at the IBM Research Laboratory in San Jose [Carlson et al. (1974)]. Another example is the Executive Information System (EIS) marketed by the Boeing Computer Services.

The third and the most fundamental level of technology is called DSS tools. These are hardware or software elements, which facilitate the development of a specific DSS or a DSS Generator. For example, the GADS system described above was written in FORTRAN using an experimental graphics subroutine package as the primary dialogue handling software, a laboratory enhanced raster scan color monitor and a powerful interactive data extraction/database management system.

A DSS consists of essentially three components or modules. They are:

1. Database Management Module
2. Knowledge or model management Module
3. Dialog or User Interface Module

DSS also includes a complex software system to seamlessly integrate all these components. The software system should have interface with these three components. Generally the software system is comprised of three sets of capabilities: database management software (DBMS), model base management software (MBMS) and the software for managing the interface between the user and the system, which might be called the dialogue generation and management software (DGMS).

The following section deals with the details of individual components of DSS.

A number of activities are required before a DSS is available to support decision-making. The organization must plan and organize both computers and human resources. As with most organizational endeavors, thoughtful planning and organizing is an important key to success. Once the planning and organizing for DSS has been accomplished, the development of specific DSS can begin. After it has been created, it can be put into use. This is when the payoff from the DSS is received. It should support all phases of decision making process and enhance the decision maker(s)’ effectiveness.

Management becomes involved with a DSS in a variety of ways: as approver and administrator, as developer, as operator and as user of output. A brief description of issues relevant to management’s involvement follows.

1. As Approver and Administrator: Here the manager is functioning in a way quite consistent with other planning activities. Some expert remarks regarding this are:

• DSS planning should be incorporated into corporate planning processes- Sprague and Carlson [1982].
• In planning for implementation of the DSS into organization, the political impact on power should be examined - Ahn and Grudnitski [1985].
• Financial evaluation of DSS is difficult and infrequent- Alter [1975], Keen [1980], McCosh and Scott Morton [1978].
• DSS evaluation should be based upon both value addition and cost reduction. - Meador and Keen [1984].
• A portfolio approach should be utilized which considers risk and reward- Germillion and Pyburn [1985].

2. As Developer: Given that th function of the DSS is to support the manager’s decision making responsibilities, and given that decision making is a difficult task to specify or structure, it should not seem illogical that the manager would need to play a substantial role in the DSS development process. Experts have made following remarks regarding this:

• Management involvement should be heavy throughout the development.- Alter [1978], Bahl and Hunt [1985], Ginzberg [1978], McCosh and Scott Morton [1978], Sprague [1980].
• Management should provide leadership in DSS development. - Keen and Scott Morton [1978], Keen and Wagner [1979].
• DSS development should include a fostering of cooperation and coordination between user/managers and technical designers. - Ahn and Grudnitski [1985].
• User led development approaches often lead to improved DSS performance. - Kasper [1985].
• The DSS should be developed to include the personal decision-making style of the manager. - Keen [1980], McCosh and Scott Morton [1978].
• The nominal level of available DSS technology has a significant impact on the extent of user and manager involvement. - Mann and Watson [1984].

3. As Operator: The actual operation of the DSS requires skills perhaps most dissimilar to those typically required to managers. There are different levels of technical sophistication in DSS, which require different amounts of ability for use. It is expected that some amount of operational ability and actual operation of the DSS may be desired by managers. Following are observations of experts:

• Managers prefer to turn operation of DSS over to their stuff – Wagner [1980].
• There are a significant number of upper managers sitting at the terminals – Keen and Wagner [1979].

4. User of Output: Last, but probably the most important part is the utilization of output by management. Experts note that:

• The DSS should be used in support of managerial decision making at all levels of the organization - Keen and Scott Morton [1978], McCosh and Scott Morton [1978], Sprague [1980].
• The DSS should support both individual and group (‘sequential interdependent’ and ‘pooled interdependent’) decision making- Keen and Scott Morton [1978], Sanders and Courtney [1985], Sprague [1980].
• The DSS should be able to assist the manager with all phases of decision-making process- Keen and Scott Morton [1978], Sprague [1980]. [12]

2.7.1  GDSS: An Overview

Decision Support Systems were a revolutionary concept in computer support for decision making when they first appeared in the 1970’s. Now they are used in a large number of organizations. DSS is not a stagnant field, and it continues to evolve.

 

Fig. 2.5 Schematic Diagram of GDSS

 

Group Decision Support Systems (GDSS) are used to improve the efficiency and effectiveness of groups of people working together. Because of the amount of item people spend in group activities, GDSS has tremendous potential value. A GDSS can broadly defined as an interactive computer-based system, which facilitates solution of unstructured problems by a set of decision-makers working together as a group. Components of a GDSS include hardware, software, people and procedures. These components are arranged to support a group of people, usually in the context of a decision related meeting. Figure 2.5 shows a schematic diagram of a typical GDSS. [12]

2.7.2  Basic Feature of GDSS

< Text and data file creation. Modification and storage for group members.

< Word processing for text editing and formatting.

< Learning facilities for naïve GDSS users.

< On-line ‘help’ facilities.

< Worksheets, spreadsheets, decision trees and other means of graphically displaying numbers and text.

<State-of-the-art database management, which can handle queries from all participants, creates sub-schemas as necessary for each participant, control access to public or corporate databases etc.




2.7.3  Categories of GDSS

Consider the following four scenarios where GDSS can be effectively used.

• Decision Room: These are traditional boardrooms where group discussions take place, with common public screen set for demonstration. GDSS can be used here as tool for interactive visual presentations etc.
• Local Decision Network: Rather than physically attending sessions, managers can have a ‘public screen’ at their terminal, which will be connected to a centralized server over a local area network (LAN). This approach offers greater flexibility in that the one-place/one-time constraint of Decision Rooms is removed.
• Teleconferencing: This type of GDSS is needed for groups whose members are geographically distant from one another but who nevertheless must come together for the purpose of making a decision.
• Remote Decision-Making: This is an emerging field where one-place/one-time constraint of teleconferencing is tried to remove.

2.7.4  Design and Implementation Issues

Existing research on the dynamics of group decision making has several implications for the design and use of GDSS. Major few are listed below:

• GDSS should encourage the active participation of all group members.
• Special accommodations are needed for groups who have no prior experience working together.
• A useful feature of a GDSS would be to aid high-level management in selecting people to serve as group members for a given decision or problem.

GDSS is still an emerging field, and have lots of potential to change the face of decision support systems.

The world-wide-web is where the action is in developing enterprise-wide decision support systems. Web-based DSS refers to a computerized system which delivers decision support information or decision support tools to a manager or business analyst using a thin-client web-browser like Netscape Navigator or Intenet Explorer.The computer server that is hosting the DSS application is linked to user’s computer by a network with the TCP/IP protocol. In many companies, a web-based DSS is synonymous with an enterprise-wide DSS that is supporting large groups of managers in a networked client-server environment with a specialized data warehouse as part of the DSS. [27]