This is the third post in the series Decision Support Systems.
If you wish you can read the last two posts:
In this post we look at the features & characteristics of a DSS as well as introduce the types of decisions that are actually supported.
While extensive, the key features and characteristics of a DSS can be briefly summarized as:
- Adaptability and flexibility
- High levels of Interactivity DSS are computer-based systems designed for interactive use by decision makers or staff users who control the sequence of interaction and the operations performed.
- Ease of use
- Efficiency and effectiveness DSS are intended to improve the accuracy, timeliness, quality and overall effectiveness of a specific decision or a set of related decisions. It provides a single platform that allows all users to access the same information and access the same version of truth, while providing autonomy to individual users and development groups to design reporting content locally. DSSs are intended to improve the accuracy, timeliness, quality and overall effectiveness of a specific decision or a set of related decisions.
- Complete control by decision-makersThey are not intended to replace decision makers, instead a DSS can support decision makers at any level in an organization.
- Ease of development As a standalone, integrated, and Web-based systems, a DSS delivers an interactive, scalable platform for rapidly developing and deploying projects. Multiple projects can be created within a single shared meta-data. Within each project, development teams create a wide variety of re-usable meta-data objects. Most DSSs will allow for extendability ,support for modelling and analysis and support for data access
So far we have described a system to support decision making. It is important to then look at the types of decisions that anyone in a managerial position will be faced with in order to understand exactly what kind of support a DSS provides.
One way of looking at a decision is in terms of its key components. The first component is the data collected by a decision maker to be used in making the decision. The second component is the process selected by the decision maker to combine this data. Finally, there is an evaluation or learning component that compares decisions and examines them to see if there is a need to change either the data being used or the process that combines the data. These components of a decision interact with the characteristics of the decision that is being made.
Decisions can be categorized as ‘structured’ ‘semi-structured’ or ‘unstructured’.
Below is a brief description of each, subsequent posts will look at them in detail.
Structured decisions are those which are made according to specified set of procedures or rules. A structured decision as one in which all three components of a decision—the data, process, and evaluation—are determined. Since structured decisions are made on a regular basis in business environments, it makes sense to place a comparatively rigid framework around the decision and the people making it.
For instance, deciding to send a reminder notice to a customer for an overdue balance is considered to be structured decision.
Semi-structured decisions are those for which information obtained from a computer system or information system is only a portion of the total knowledge (information) needed to make decision.
For instance the decision to advertise a new product may be informed by several factors that are outside the scope of a DSS.
These, types of decisions often , involve a high degree of freedom- many ways to try and solve the problem. They may require a lot of creativity and intuitions from the decision maker to tell what factors will come into play in an unstructured play.
Example: Equity Bank’s decision to start agent banking.
Unstructured decisions occur in unusual and non-addressed situations, so:
- It would be a new decision
- There will not be any rules to follow
- These decisions are made based on the available information.
- These decisions are based on the manger’s discretion, instinct, perception and judgement.
For example, investing in a new technology is, unstructured decision.
As mentioned earlier, this was just a brief intro the next few posts discuss the decision types in detail.
DSS MIS 