Decision support systems are a class of computer-based information systems
including knowledge based systems that support decision
making activities.
Definitions
Because there are many approaches to decision-making and because of the wide range of domains in which decisions are made, the
concept of decision support system (DSS) is very broad. A DSS can take many different forms. In general, we can say that a
DSS is a computerized system for helping make decisions. A decision is a choice between alternatives based on estimates of the
values of those alternatives. Supporting a decision means helping people working alone or in a group gather intelligence,
generate alternatives and make choices. Supporting the choice making process involves supporting the estimation, the evaluation
and/or the comparison of alternatives. In practice, references to DSS are usually references to computer applications that
perform such a supporting role.[1]
The term decision support system has been used in many different ways (Alter 1980, Power, 2002) and has been defined in
various ways depending upon the author's point of view [2].
Finlay [3] and others define a DSS rather broadly as "a
computer-based system that aids the process of decision making." Turban [4] defines it more specifically as "an interactive, flexible, and
adaptable computer-based information system, especially developed for supporting the
solution of a non-structured management problem for improved decision making. It utilizes data, provides an easy-to-use interface, and allows for the decision maker's own insights."
Other definitions fall between these two extremes. For Little [5], a DSS is a "model-based set of procedures for processing data and judgments to assist a manager in
his decision-making." For Keen and Scott Morton [6], a DSS couples the intellectual resources of individuals with the capabilities of the
computer to improve the quality of decisions ("DSS are computer-based support for management decision makers who are dealing with
semi-structured problems"). Moore and Chang [7] define DSS
as extendible systems capable of supporting ad hoc data analysis and decision modeling, oriented toward future planning, and used
at irregular, unplanned intervals. For Sprague and Carlson [8], DSS are "interactive computer-based systems that help
decision makers utilize data and models to solve unstructured problems." In contrast, Keen [9] claims that it is impossible to give a precise definition including all the
facets of the DSS ("there can be no definition of decision support systems, only of decision support").
Nevertheless, according to Power [10],
the term decision support system remains a useful and inclusive term for many types of information systems that support
decision making. He humorously adds that every time a computerized system is not an on-line transaction processing system
(OLTP), someone will be tempted to call it a DSS. As you can see, there is
no universally accepted definition of DSS. [11]
Recommended reading: Druzdzel and Flynn (1999), Power (2000), Sprague and Watson (1993), the first chapter of Power
(2002), the first chapter of Marakas (1999), the first chapter of Silver (1991), the first two chapters of Sauter (1997), and
Holsaple and Whinston (1996).
A brief history
In the absence of an all-inclusive definition, we focus on the history of DSS (see also Power[11]). According to Keen and Scott Morton [6], the concept of decision
support has evolved from two main areas of research: the theoretical studies of organizational decision making done at the
Carnegie Institute of Technology during the late 1950s and early 1960s,
and the technical work on interactive computer systems, mainly carried out at the Massachusetts Institute of Technology in the 1960s. It is considered that the
concept of 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. 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.
It is clear that DSS belong to an environment with multidisciplinary foundations, including (but not exclusively)
database research, artificial intelligence,
human-computer interaction, simulation
methods, software engineering, and telecommunications.
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
helping decision makers in particular.
Taxonomies
As with the definition, there is no universally accepted taxonomy of DSS either. Different
authors propose different classifications. Using the relationship with the user as the criterion, Haettenschwiler [12] 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 the decision maker (or its advisor) to modify, complete, or refine the
decision suggestions provided by the system, before sending them back to the system for validation. The system again improves,
completes, and refines the suggestions of the decision maker and sends them back to her for validation. The whole process then
starts again, until a consolidated solution is generated.
Using the mode of assistance as the criterion, Power [13] differentiates communication-driven DSS, data-driven DSS, document-driven
DSS, knowledge-driven DSS, and model-driven DSS.
- 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 [14].
- A communication-driven DSS supports more than one person working on a shared task; examples include integrated tools
like Microsoft's NetMeeting or Groove [15].
- 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.[13]
Using scope as the criterion, Power [10] 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
systems that runs on an individual manager's PC.
Architectures
Once again, different authors identify different components in a DSS. Sprague and Carlson [8] identify three
fundamental components of DSS: (a) the database management system
(DBMS), (b) the model-base management system (MBMS), and (c) the dialog generation and management system
(DGMS).
Haag et al. [16] describe these three components
in more detail: The Data Management Component stores information (which can be further subdivided into that derived from an
organization's traditional data repositories, from external sources such as the Internet, or
from the personal insights and experiences of individual users); the Model Management Component handles representations of
events, facts, or situations (using various kinds of models, two examples being optimization models and goal-seeking models); and
the User Interface Management Component is of course the component that allows a user to interact with the system.
According to Power [13], academics
and practitioners have discussed building DSS in terms of four major components: (a) the user interface, (b) the database, (c) the model and
analytical tools, and (d) the DSS architecture and network.
DSS Architecture
Architecture
The Database The database contains information about internal data and external data that will contribute to the decision
making process. This data is in most cases more extensive than traditional relational models
The Model Base This module contains a set of algorithms that makes decisions based on the information in the database. This
information is then summarized and displayed as tables or graphs.
The Interface This is what the user will use to interface with the system. This is complimented with an interactive help and
navigation screen.
Framework DSS systems are not entirely different to other systems and require a structured approach. A framework was provided
by Sprague and Watson (1993). The framework has three main levels. 1. Technology levels 2. People involved 3. The developmental
approach
1. Technology Levels Sprague has suggested that there are three levels of hardware and software that has been proposed for
DSS. a) Level 1 – Specific DSS This is the actual application that will be used to by the user. This is the part of the
application that allows the decision maker to make decisions in a particular problem area. b) Level 2 – DSS Generator This level
contains Hardware/software environment that allows people to easily develop specific DSS applications. This level makes use of
case tools or systems like Crystal c) Level 3 – DSS Tools
Contains lower level hardware/software. DSS generators including special languages, function libraries and linking modules
2. People Involved Sprague suggests there are 5 roles involved in a typical DSS development cycle. A) The end user. B) An
intermediary. C) DSS developer D) Technical supporter E) Systems Expert
3. Developmental The developmental approach for a DSS system should be strongly iterative. This will allow for the application
to be changed and redesigned at various intervals. The initial problem is used to design the system on and then tested and
revised to ensure the desired outcome is achieved.
NCC Education Limited - Management Support Systems
Hättenschwiler [12] identifies five components of DSS: (a) users with different roles or
functions in the decision making process (decision maker, advisors, domain experts, system experts, data collectors), (b)
a specific and definable decision context, (c) a target system describing the majority of the preferences, (d) a
knowledge base made of external data sources, knowledge databases, working databases,
data warehouses and meta-databases, mathematical models and methods, procedures, inference and search engines, administrative
programs, and reporting systems, and (e) a working environment for the preparation, analysis, and documentation of
decision alternatives.
Marakas [17] proposes a generalized architecture made
of five distinct parts: (a) the data management system, (b) the model management system, (c) the knowledge
engine, (d) the user interface, and (e) the user(s).
There are several ways to classify DSS applications. Not every DSS fits neatly into one category, but a mix of two or more
architecture in one.
Holsapple and Whinston [18] 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 described by Holsapple and Whinston [18].
The support given by DSS can be separated into three distinct, interrelated categories [19]: Personal Support, Group Support, and Organizational Support.
Additionally, the build up of a DSS is also classified into a few characteristics. 1) inputs: this is used so the DSS can have
factors, numbers, and characteristics to analyze. 2) user knowledge and expertise: This allows the system to decide how much it
is relied on, and exactly what inputs must be analyzed with or without the user. 3) outputs: This is used so the user of the
system can analyze the decisions that may be made and then potentially 4) make a decision: This decision making is made by the
DSS, however, it is ultimately made by the user in order to decide on which criteria it should use.
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).
Applications
As mentioned above, there are theoretical possibilities of building such systems in any knowledge domain.
Some of the examples is Clinical decision support system for
medical diagnosis. 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.
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.
A growing area of DSS application, concepts, principles, and techniques is in agricultural production, marketing for
sustainable development. For example, the DSSAT4 package[20][21], developed through
financial support of USAID during the 80's and 90's, has allowed rapid assessment of several agricultural production systems
around the world to facilitate decision-making at the farm and policy levels. There are, however, many constraints to the
successful adoption on DSS in agriculture[22].
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, CN managed to decrease the incidence of derailments at
the same time other companies were experiencing an increase.
DSS has many applications that have already been spoken about. However, it can be used in any field where organization is
necessary. Additionally, a DSS can be designed to help make decisions on the stock market, or deciding which area or segment to
market a product toward.
DSS Architecture
Architecture
The Database The database contains information about internal data and external data that will contribute to the decision
making process. This data is in most cases more extensive than traditional relational models
The Model Base This module contains a set of algorithms that makes decisions based on the information in the database. This
information is then summarized and displayed as tables or graphs.
The Interface This is what the user will use to interface with the system. This is complimented with an interactive help and
navigation screen.
Framework DSS systems are not entirely different to other systems and require a structured approach. A framework was provided
by Sprague and Watson (1993). The framework has three main levels. 1. Technology levels 2. People involved 3. The developmental
approach
1. Technology Levels Sprague has suggested that there are three levels of hardware and software that has been proposed for
DSS. a) Level 1 – Specific DSS This is the actual application that will be used to by the user. This is the part of the
application that allows the decision maker to make decisions in a particular problem area. b) Level 2 – DSS Generator This level
contains Hardware/software environment that allows people to easily develop specific DSS applications. This level makes use of
case tools or systems like Crystal c) Level 3 – DSS Tools
Contains lower level hardware/software. DSS generators including special languages, function libraries and linking modules
2. People Involved Sprague suggests there are 5 roles involved in a typical DSS development cycle. A) The end user. B) An
intermediary. C) DSS developer D) Technical supporter E) Systems Expert
3. Developmental The developmental approach for a DSS system should be strongly iterative. This will allow for the application
to be changed and redesigned at various intervals. The initial problem is used to design the system on and then tested and
revised to ensure the desired outcome is achieved.
NCC Education Limited - Management Support Systems
Characteristics and Capabilities of DSS
Because there is no exact definition of DSS, there is obviously no agreement on the standard characteristics and capabilities
of DSS. Turban, E.,Aronson, J.E., and Liang, T.P. [23]
constitute an ideal set of characteristics and capabilities of DSS. The key DSS characteristics and capabilities are as
follows:
- Support for decision makers in semistructured and unstructured problems.
- Support managers at all levels.
- Support individuals and groups.
- Support for interdependent or sequential decisions.
- Support intelligence, design, choice, and implementation.
- Support variety of decision processes and styles.
- DSS should be adaptable and flexible.
- DSS should be interactive and provide ease of use.
- Effectiveness balanced with efficiency (benefit must exceed cost).
- Complete control by decision-makers.
- Ease of development by (modification to suit needs and changing environment) end users.
- Support modeling and analysis.
- Data access.
- Standalone, integration and Web-based.
References
- ^ Alter, S. L. (1980). Decision support systems: current practice and
continuing challenges. Reading, Mass., Addison-Wesley Pub.
- ^ Druzdzel, M. J. and R. R. Flynn (1999). Decision Support Systems.
Encyclopedia of Library and Information Science. A. Kent, Marcel Dekker, Inc.
- ^ Finlay, P. N. (1994). Introducing decision support systems. Oxford, UK
Cambridge, Mass., NCC Blackwell; Blackwell Publishers.
- ^ Turban, E. (1995). Decision support and expert systems: management support
systems. Englewood Cliffs, N.J., Prentice Hall. ISBN 0-024-21702-6
- ^ Little, J.D.C.(1970, April). "Models and Managers:The Concept of a Decision
Calculus." Management Science, Vol.16,NO.8
- ^ a b Keen, P. G. W. (1978). Decision support systems: an organizational
perspective. Reading, Mass., Addison-Wesley Pub. Co. ISBN 0-201-03667-3
- ^ Moore, J.H.,and M.G.Chang.(1980,Fall)."Design of Decision Support Systems."
Data Base,Vol.12, Nos.1 and 2.
- ^ a
b Sprague, R. H. and E. D. Carlson (1982). Building
effective decision support systems. Englewood Cliffs, N.J., Prentice-Hall. ISBN 0-130-86215-0
- ^ Keen, P. G. W. (1980). Decision support systems: a research perspective.
Decision support systems : issues and challenges. G. Fick and R. H. Sprague. Oxford ; New York, Pergamon Press.
- ^ a b Power, D. J. (1997). What is a DSS? The On-Line Executive Journal for
Data-Intensive Decision Support 1(3).
- ^ a b Power, D.J. A Brief History of Decision Support Systems DSSResources.COM, World Wide Web,
version 2.8, May 31, 2003.
- ^ a b Haettenschwiler, P. (1999). Neues anwenderfreundliches Konzept
der Entscheidungsunterstützung. Gutes Entscheiden in Wirtschaft, Politik und Gesellschaft. Zurich, vdf Hochschulverlag AG:
189-208.
- ^ a b c Power, D.
J. (2002). Decision support systems: concepts and resources for managers. Westport, Conn., Quorum Books.
- ^ Gachet, A. (2004). Building Model-Driven Decision Support Systems with
Dicodess. Zurich, VDF.
- ^ Stanhope, P. (2002). Get in the Groove: building tools and peer-to-peer
solutions with the Groove platform. New York, Hungry Minds
- ^ Haag, Cummings, McCubbrey, Pinsonneault, Donovan (2000). Management
Information Systems: For The Information Age. McGraw-Hill Ryerson Limited: 136-140. ISBN 0-072-81947-2
- ^ Marakas, G. M. (1999). Decision support systems in the twenty-first
century. Upper Saddle River, N.J., Prentice Hall.
- ^ 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
- ^ Hackathorn, R. D., and P. G. W. Keen. (1981, September). "Organizational
Strategies for Personal Computing in Decision Support Systems." MIS Quarterly, Vol. 5, No. 3.
- ^ DSSAT4 (pdf)
- ^ The Decision Support System for Agrotechnology Transfer
- ^ Stephens, W. and Middleton, T. (2002). Why has the uptake of Decision
Support Systems been so poor? In: Crop-soil simulation models in developing countries. 129-148 (Eds R.B. Matthews and William
Stephens). Wallingford:CABI.
- ^ Turban, E.,Aronson, J.E., and Liang, T.P.(2005). Decision Support Systems
and Intelligent Systems. New Jersey, Pearson Education, Inc.
References not yet tagged in text
- Delic, K.A., Douillet,L. and Dayal, U. (2001) "Towards an architecture for real-time decision support systems:challenges and solutions.
- Gadomski, A.M. at al.(2001) "An
Approach to the Intelligent Decision Advisor (IDA) for Emergency Managers.Int. J. Risk Assessment and Management, Vol. 2,
Nos. 3/4.
- Gomes da Silva, Carlos; Clímaco, João; Figueira, José. European Journal of Operational Research.
- Ender, Gabriela (2005-2007) E-Book about the OpenSpace-Online® Real-Time Methodology: Knowledge-sharing, problem solving and
results-oriented group dialogs in real-time about topics that matter. Download http://www.openspace-online.com/OpenSpace-Online_eBook_en.pdf
- Jiménez, Antonio; Ríos-Insua, Sixto; Mateos, Alfonso. Computers & Operations Research.
- Jintrawet, Attachai (1995). A Decision Support System for Rapid Assessment of Lowland Rice-based Cropping Alternatives in
Thailand. Agricultural Systems 47: 245-258.
- Power, D. J. (2000). Web-based and model-driven decision support systems: concepts and issues. in proceedings of the Americas
Conference on Information Systems, Long Beach, California.
- Reich, Yoram; Kapeliuk, Adi. Decision Support Systems., Nov2005, Vol. 41 Issue 1, p1-19, 19p.
- Sauter, V. L. (1997). Decision support systems: an applied managerial approach. New York, John Wiley.
- Silver, M. (1991). Systems that support decision makers: description and analysis. Chichester ; New York, Wiley.
- Sprague, R. H. and H. J. Watson (1993). Decision support systems: putting theory into practice. Englewood Clifts, N.J.,
Prentice Hall.
See also
External links
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