DECISION SUPPORT SYSTEM

Decision support systems (DSS) are interactive software-based

systems intended to help managers in decision-making by accessing
large volumes of information generated from various related
information systems involved in organizational business processes,
such as office automation system, transaction processing system, etc.
DSS uses the summary information, exceptions, patterns, and trends
using the analytical models. A decision support system helps in
decision-making but does not necessarily give a decision itself. The
decision makers compile useful information from raw data,
documents, personal knowledge, and/or business models to identify
and solve problems and make decisions.

Programmed and Non-programmed

Decisions
There are two types of decisions - programmed and non-programmed
decisions.
Programmed decisions are basically automated processes, general
routine work, where −
 These decisions have been taken several times.
 These decisions follow some guidelines or rules.
For example, selecting a reorder level for inventories, is a
programmed decision.
Non-programmed 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 judgment.
For example, investing in a new technology is a non-programmed
decision.
Decision support systems generally involve non-programmed
decisions. Therefore, there will be no exact report, content, or format
for these systems. Reports are generated on the fly.

Attributes of a DSS
 Adaptability and flexibility
 High level of Interactivity
 Ease of use
 Efficiency and effectiveness
 Complete control by decision-makers
 Ease of development
 Extendibility
 Support for modeling and analysis
 Support for data access
 Standalone, integrated, and Web-based


Characteristics of a DSS
 Support for decision-makers in semi-structured and unstructured
problems.
 Support for managers at various managerial levels, ranging from
top executive to line managers.
 Support for individuals and groups. Less structured problems
often requires the involvement of several individuals from
different departments and organization level.
 Support for interdependent or sequential decisions.
 Support for intelligence, design, choice, and implementation.
  Support for variety of decision processes and styles.
 DSSs are adaptive over time.


Benefits of DSS
 Improves efficiency and speed of decision-making activities.
 Increases the control, competitiveness and capability of futuristic
decision-making of the organization.
 Facilitates interpersonal communication.
 Encourages learning or training.
 Since it is mostly used in non-programmed decisions, it reveals
new approaches and sets up new evidences for an unusual
decision.
 Helps automate managerial processes.


Components of a DSS

Following are the components of the Decision Support System −

 Database Management System (DBMS) − To solve a problem
the necessary data may come from internal or external
database. In an organization, internal data are generated by a
system such as TPS and MIS. External data come from a
variety of sources such as newspapers, online data services,
databases (financial, marketing, human resources).
 Model Management System − It stores and accesses models
that managers use to make decisions. Such models are used
for designing manufacturing facility, analyzing the financial
health of an organization, forecasting demand of a product or
service, etc.
Support Tools − Support tools like online help; pulls down
menus, user interfaces, graphical analysis, error correction
mechanism, facilitates the user interactions with the system.

Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone
classifies DSS as follows −
 Text Oriented DSS − It contains textually represented
information that could have a bearing on decision. It allows
documents to be electronically created, revised and viewed as
needed.
 Database Oriented DSS − Database plays a major role here; it
contains organized and highly structured data.
 Spreadsheet Oriented DSS − It contains information in spread
sheets that allows create, view, modify procedural knowledge
and also instructs the system to execute self-contained
instructions. The most popular tool is Excel and Lotus 1-2-3.
 Solver Oriented DSS − It is based on a solver, which is an
algorithm or procedure written for performing certain
calculations and particular program type.
 Rules Oriented DSS − It follows certain procedures adopted as
rules.
 Rules Oriented DSS − Procedures are adopted in rules oriented
DSS. Export system is the example.
 Compound DSS − It is built by using two or more of the five
structures explained above.


Types of DSS
Following are some typical DSSs −
 Status Inquiry System − It helps in taking operational,
management level, or middle level management decisions, for
example daily schedules of jobs to machines or machines to
operators.
 Data Analysis System − It needs comparative analysis and
makes use of formula or an algorithm, for example cash flow
analysis, inventory analysis etc.
 Information Analysis System − In this system data is analyzed
and the information report is generated. For example, sales
analysis, accounts receivable systems, market analysis etc.
  Accounting System − It keeps track of accounting and finance
related information, for example, final account, accounts
receivables, accounts payables, etc. that keep track of the
major aspects of the business.
 Model Based System − Simulation models or optimization
models used for decision-making are used infrequently and
creates general guidelines for operation or management.

Database Management System

o Database management system is a software which is

used to manage the database. For
example: MySQL, Oracle, etc are a very popular
commercial database which is used in different
applications.
o DBMS provides an interface to perform various
operations like database creation, storing data in it,
updating data, creating a table in the database and a lot
more.
o It provides protection and security to the database. In
the case of multiple users, it also maintains data
consistency.

DBMS allows users the following tasks:

o Data Definition: It is used for creation, modification,

and removal of definition that defines the organization of
data in the database.
o Data Updation: It is used for the insertion,
modification, and deletion of the actual data in the
database.
 o Data Retrieval: It is used to retrieve the data from the
database which can be used by applications for various
purposes.
o User Administration: It is used for registering and
monitoring users, maintain data integrity, enforcing data
security, dealing with concurrency control, monitoring
performance and recovering information corrupted by
unexpected failure.

Characteristics of DBMS
o It uses a digital repository established on a server to
store and manage the information.
o It can provide a clear and logical view of the process that
manipulates data.
o DBMS contains automatic backup and recovery
procedures.
o It contains ACID properties which maintain data in a
healthy state in case of failure.
o It can reduce the complex relationship between data.
o It is used to support manipulation and processing of
data.
o It is used to provide security of data.
o It can view the database from different viewpoints
according to the requirements of the user.

Advantages of DBMS
 o Controls database redundancy: It can control data
redundancy because it stores all the data in one single
database file and that recorded data is placed in the
database.
o Data sharing: In DBMS, the authorized users of an
organization can share the data among multiple users.
o Easily Maintenance: It can be easily maintainable due
to the centralized nature of the database system.
o Reduce time: It reduces development time and
maintenance need.
o Backup: It provides backup and recovery subsystems
which create automatic backup of data
from hardware and software failures and restores the
data if required.
o multiple user interface: It provides different types of
user interfaces like graphical user interfaces, application
program interfaces

Disadvantages of DBMS
o Cost of Hardware and Software: It requires a high
speed of data processor and large memory size to run
DBMS software.
o Size: It occupies a large space of disks and large
memory to run them efficiently.
o Complexity: Database system creates additional
complexity and requirements.
o Higher impact of failure: Failure is highly impacted
the database because in most of the organization, all the
data stored in a single database and if the database is
damaged due to electric failure or database corruption
then the data may be lost forever.
 DATABASE ENVIRONMENT

The term database system refers to an organization of components that

define and regulate the collection, storage, management, and use of
data within a database environment.

These are:

• Hardware

• Software

• People

• Procedures

Data

DBMS

DBMS is a collection of data. In DBMS, the user is not required to write

the procedures. A DBMS is software that allows creation, definition and
manipulation of database, allowing users to store, process and analyse
data easily.

 DBMS provides us with an interface or a tool, to perform various

operations like creating database, storing data in it, updating data,
creating tables in the database and a lot more.

 DBMS also provides protection and security to the databases.

 It also maintains data consistency in case of multiple users.

Here are some examples of popular DBMS used these days:

 MySql
 Oracle

 SQL Server

 IBM DB2

DATABASE APPLICATIONS – DBMS:

Applications where we use Database Management Systems are:

 Telecom: There is a database to keeps track of the information

regarding calls made, network usage, customer details etc.

 Industry: Where it is a manufacturing unit, warehouse or distribution

centre, each one needs a database to keep the records of ins and outs

 Banking System: For storing customer info, tracking day to day credit
and debit transactions, generating bank statements etc.

 Sales: To store customer information, production information and

invoice details.

 Airlines: To travel though airlines, we make early reservations; this

reservation information along with flight schedule is stored in database.

 Education sector: Database systems are frequently used in schools

and colleges to store and retrieve the data regarding student details,
staff details, course details, exam details, payroll data, attendance
details, fees details etc.

PURPOSE OF DATABASE SYSTEMS

 The main purpose of database systems is to manage the data.
Consider a university that keeps the data of students, teachers, courses,
books etc. To manage this data we need to store this data somewhere
where we can add new data, delete unused data, update outdated
data, retrieve data, to perform these operations on data we need a
Database management system that allows us to store the data in such a
way so that all these operations can be performed on the data
efficiently.
DATABASE ENVIRONMENT:

A database environment is a collective system of components that

comprise and regulates the group of data, management, and use of
data, which consist of software, hardware, people, techniques of
handling database, and the data also.

Here, the hardware in a database environment means the computers

and computer peripherals that are being used to manage a database,
and the software means the whole thing right from the operating
system (OS) to the application programs that include database
management software like M.S. Access or SQL Server. Again the
people in a database environment include those people who
administrate and use the system. The techniques are the rules,
concepts, and instructions given to both the people and the software
along with the data with the group of facts and information

DATA MODELS:
 Data Model is the modeling of the data description, data semantics, and
consistency constraints of the data.  It provides the conceptual tools for
describing the design of a database at each level of data abstraction .

Relational database design (RDD) models information

and data into a set of tables with rows and columns. Each row
of a relation/table represents a record, and each column
represents an attribute of data. The Structured Query
Language (SQL) is used to manipulate relational databases.
The design of a relational database is composed of four
 stages, where the data are modeled into a set of related
tables. Relational databases differ from other databases in
their approach to organizing data and performing
transactions. In an RDD, the data are organized into tables
and all types of data access are carried out via controlled
transactions. Relational database design satisfies the ACID
(atomicity, consistency, integrity and durability) properties
required from a database design. Relational database design
mandates the use of a database server in applications for
dealing with data management problems. The stages are:

 Define relations/attributes - The various tables and attributes

related to each table are identified. The tables represent
entities, and the attributes represent the properties of the
respective entities.
 Define primary keys - The attribute or set of attributes that
help in uniquely identifying a record is identified and
assigned as the primary key

Define relationships- The relationships between the various

tables are established with the help of foreign keys. Foreign
keys are attributes occurring in a table that are primary keys
of another table. The types of relationships that can exist
between the relations (tables) are:

 One to one
 One to many
 Many to many

Normalization- This is the process of optimizing the database

structure. Normalization simplifies the database design to
avoid redundancy and confusion. The different normal forms
are as follows:

 First normal form

 Second normal form
 Third normal form
 Boyce-Codd normal form
 Fifth normal form