Components of DSS

Decision support systems vary greatly in application and complexity, but they all share specific
features. A typical Decision support system has four components: data management, model
management,
knowledge
management
and
user
interface
management.
1. Data Management Component

The data management component performs the function of storing and

maintaining the information that you want your Decision Support System to
use. The data management component, therefore, consists of both the Decision
Support System information and the Decision Support System database
management system. The information you use in your Decision Support
System comes from one or more of three sources:
a. Organizational information; you may want to use virtually any
information available in the organization for your Decision Support
System. What you use, of course, depends on what you need and whether
it is available. You can design your Decision Support System to access this
information directly from your companys database and data warehouse.
However, specific information is often copied to the Decision Support
System database to save time in searching through the organizations
database and data warehouses
b. External information: some decisions require input from external
sources of information. Various branches of federal government, Dow

Jones, Compustat data, and the internet, to mention just a few, can
provide additional information for the use with a Decision Support System.
c. Personal information: you can incorporate your own insights and
experience your personal information into your Decision Support System.
You can design your Decision Support System so that you enter this
personal information only as needed, or you can keep the information in a
personal database that is accessible by the Decision Support System.

2. Model Management Component

The model management component consists of both the Decision Support System models and the
Decision Support System model management system. A model is a representation of some event,
fact, or situation. As it is not always practical, or wise, to experiment with reality, people build
models and use them for experimentation. Models can take various forms.
Businesses use models to represent variables and their relationships. For example, you would use
a statistical model called analysis of variance to determine whether newspaper, TV, and billboard
advertising are equally effective in increasing sales.
Decision Support Systems help in various decision-making situations by utilizing models that allow
you to analyze information in many different ways. The models you use in a Decision Support
System depend on the decision you are making and, consequently, the kind of analysis you
require. For example, you would use what-if analysis to see what effect the change of one or more
variables will have on other variables, or optimization to find the most profitable solution given
operating restrictions and limited resources. Spreadsheet software such as excel can be used as a
Decision Support System for what-if analysis.
The model management system stores and maintains the Decision Support Systems models. Its
function of managing models is similar to that of a database management system. The model
management component cannot select the best model for you to use for a particular problem that
requires your expertise but it can help you create and manipulate models quickly and easily.
3. User Interface Management Component
The user interface management component allows you to communicate with the Decision Support
System. It consists of the user interface management system. This is the component that allows
you to combine your know-how with the storage and processing capabilities of the computer.
The user interface is the part of the system you see through it when enter information, commands,
and models. This is the only component of the system with which you have direct contract. If you
have a Decision Support System with a poorly designed user interface, if it is too rigid or too
cumbersome to use, you simply wont use it no matter what its capabilities. The best user
interface uses your terminology and methods and is flexible, consistent, simple, and adaptable.
For an example of the components of a Decision Support System, lets consider the Decision
Support System that Lands End has tens of millions of names in its customer database. It sells a
wide range of womens, mens, and childrens clothing, as well various household wares. To match
the right customer with the catalog, lands end has identified 20 different specialty target markets.
Customers in these target markets receive catalogs of merchandise that they are likely to buy,
saving Lands End the expense of sending catalogs of all products to all 20 million customers. To
predict customer demand, lands end needs to continuously monitor buying trends. And to meet
that demand, lands end must accurately forecast sales levels. To accomplish theses goals, it uses
a Decision Support System which performs three tasks:

a. Data management: The Decision Support System stores customer and

product information. In addition to this organizational information, Lands

End also needs external information, such as demographic information

and industry and style trend information.

b. Model management: The Decision Support System has to have models

to analyze the information. The models create new information that
decision makers need to plan product lines and inventory levels. For
example, Lands End uses a statistical model called regression analysis to
determine trends in customer buying patterns and forecasting models to
predict sales levels
c. User interface management: A user interface enables Lands End
decision makers to access information and to specify the models they
want to use to create the information they need.

4. Knowledge Management Component

The knowledge management component, like that in an expert system, provides

information about the relationship among data that is too complex for a
database to represent. It consists of rules that can constrain possible solution as
well as alternative solutions and methods for evaluating them.
For example, when analyzing the impact of a price reduction, a Decision
Support System should signal if the forecasted volume of activity exceeds the
volume that the projected staff can service. Such signaling requires the Decision
Support System to incorporate some rules-of-thumb about an appropriate ratio of
staff to sales volume. Such rules-of-thumb, also known as heuristics, make up the
knowledge base.

Describe the characteristics of DSS and explain

how DSS differ from ESS.
Decision-support systems (DSS) support non routine decision-making for middle
managers.
DSS provide sophisticated analytical models and data analysis tools to
support semistructured and unstructured decision-making activities.
DSS use data from TPS, MIS, and external sources, in condensed form,
allowing decision makers to perform what-if analysis.
DSS focus on problems that are unique and rapidly changing; procedures
for arriving at a solution may not be fully predefined.
DSS are designed so that users can work with them directly; these
systems include interactive, user-friendly software.
Executive support systems help senior managers address strategic issues and
long-term trends, both in the firm and in the external environment.

ESS address nonroutine decisions requiring judgment, evaluation, and

insight because there is no agreed-on procedure for arriving at a solution.


ESS provide a generalized computing and communications capacity
that can be applied to a changing array of problems

ESS are designed to incorporate data about external events, such as

new tax laws or competitors, but they also draw summarized
information from information from internal MIS and DSS.
ESS are designed for ease-of-use and rely heavily on graphical
presentations of data

Describe the relationship between TPS, MIS, DSS,

and ESS.
Ideally, all four systems use the same basic data. TPS are a major source of
internal data for other systems, especially MIS and DSS. Internal data from TPS
and MIS combine with external data to provide a source of analysis for DSS and
ESS. All four systems are designed to give managers of all organizational levels
and complete, consolidated view of the firm

What is Executive Information System? Explain

its Characteristics, Capabilities and Benefits
Executive Information System / Executive Support System
An Executive Information System can be defined as a specialized Decision
Support System. This type of the system generally includes the various
hardware, software, data, procedures and the people. With the help of all this,
the top level executives get a great support in taking and performing the various
types of the decisions. The executive information system plays a very important
role in obtaining the data from the different sources, then help in the integration
and the aggregation of this data. After performing these steps the resulting
information is displayed in such a pattern that is very easy to understand.
Executive information system is a computer based system that serves the
information that is needed by the various top executives. It provides very rapid
access to the timely information and also offers the direct access to the different
management reports.
Executive Information System is very user friendly in the nature. It is supported
at a large extent by the graphics.
Executive support system can be defined as the comprehensive executive
support system that goes beyond the Executive Information System and also
includes communications, office automation, analysis support etc.

According to Watson, Executive Information System / executive support system

depends on some of the factors that can be summarized as the follows
1.

Internal factors

i.

Need for the timely information.

ii.

Need for the improved communications.

iii.

Need for the access to the operational data.

iv.

Need for the rapid status updates on the various business activities.

v.

Need for the access to the corporate database.

vi.

Need for very accurate information.

vii.

Need for the ability to identify the various historical trends.

2.

External Factors

i.

Increasing and intensifying the global competition.

ii.

Rapidly changing the business environment.

iii.

Need to be more pro active.

iv.

Need to access the external database.

v.

Increasing the various government regulations.

Characteristics of the Executive support system/ Executive Information System

1.

Informational characteristics

i.

Flexibility and ease of use.

ii.
Provides the timely information with the short response time and also with
the quick retrieval.
iii.

Produces the correct information.

iv.

Produces the relevant information.

v.

Produces the validated information.

2.

User interface/orientation characteristics

i.

Consists of the sophisticated self-help.

ii.

Contains the user friendly interfaces consisting of the graphic user.

iii.

Can be used from many places.

iv.
Offers secure reliable, confidential access along with the access
procedure.
v.

Is very much customized.

vi.

Suites the management style of the individual executives.

3.

Managerial / executive characteristics

i.

Supports the overall vision, mission and the strategy.

ii.

Provides the support for the strategic management.

iii.
risk.

Sometimes helps to deal with the situations that have a high degree of

iv.

Is linked to the value added business processes.

v.

Supports the need/ access for/ to the external data/ databases.

vi.

Is very much result oriented in the nature.

Executive Information System / Executive Support System capabilities

1.

Helps in accessing the aggregated or macro or global information.

2.

Provides the user with an option to use the external data extensively.

3.

Enables analysis of the address and the hoc queries.

4.

Shows the trends, the ratios and the various deviations.

5.
Helps in incorporating the graphic and the text in the same display, which
helps to have a better view.
6.

It helps in the assessment of the historical as also the latest data.

7.
Problem indicators can be highlighted with the help of the Executive
Information System / executive support system.
8.
Open ended problem explanation with the written interpretations can be
done with the help of the Executive Information System / executive support
system.
9.

Offers management by the exception reports.

10.

Utilizes the hyper text and the hyper media.

11.

Offers generalized computing.

12.

Offers telecommunications capacity.

Executive Information System / Executive Support System benefits

1.

Achievement of the various organizational objectives.

2.
Facilitates access to the information by integrating many sources of the
data.
3.

Facilitates broad, aggregated perspective and the context.

4.

Offers broad highly aggregated information.

5.

Users productivity is also improved to a large extent.

6.

Communication capability and the quality are increased.

7.

Provides with the better strategic planning and the control.

8.

Facilitates pro active rather than a reactive response.

9.

Provides the competitive advantage.

10.
Encourages the development of a more open and active information
culture.
11.

The cause of a particular problem can be founded.