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9.4.2.1 characteristics of decision support



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Students learn to:

9.4.2.1 - a) characteristics of decision support systems
  • decision support systems - those that assist user(s) in making a decision
  • the interactive nature of decision support systems
  • the nature of decision support systems which enable situations to support human decision making such as the use of
    • models
    • graphs
    • charts

9.4.2.1 - b) categories of decision making
  • structured situations:
    • decisions are automated
    • decision support systems are not required
  • semistructured situations:
    • there is a method to follow
    • requirements are clear cut
  • unstructured recognised situations:
    • there is no method to reach the decision
    • judgements are required
    • requires insights into the problem
  • select and recommend situations where decision support systems could be used










  • classify situations which are structured, semistructured or unstructured

Term Explanation
decision
decision support continuum DSS Continuum
Decisions lie on a continuum.

Decision support systems are most useful when the decision lies between the extremes

The red diagonal line represents the decision.
The lower it is the more structured machine-like it is while the higher it is the more it is based on human intuition and therefore less structured.
decision support systems DSS in Business
DSSs are information systems that assist users to make a decision by providing information, models and analysis tools
Uses of DSS throughout the Business Source: Istvan Szeman,
Business Intelligence:
Past, Present and Future
SAS Institute, 2006.
assist user(s) in making a decision The purpose of a DSS is to assist the user in the decision making process, by taking input and recommending a course of action. The user can then use this input to make a decision based on their own knowledge and the DSS’ output
interactive nature of decision support systems DSS’ are designed to take in several inputs from a user and produce an answer. Therefore user interface is vital to provide a clear, understandable area where the user can operate the system
structured situations structured situations have outcomes that are automated. DSSs are not required in structured situations, e.g. robotic actions and reactions, algorithms that have automated predictable outcomes such as a maths formula or domestic machines such as toasters, vacuum cleaners and washing machines.
semistructured situations semistructured situations follow a method.
Semi-structured situations are those where the requirements that must be met to make a decision are clearly understood and well defined. Furthermore there is a recognised method or sequence of steps that can be followed to determine if the requirements for the decision have been met.
unstructured recognised situations Unstructured situations are those where requirements upon which the decision is based are less clear and there is no definitive method for reachig a decision. Such decisions require human qualities such as insight and judgements to be made. Often the resulting decision is based on available evidence, experience and understanding.
Characteristics of decision support The following seven points best describe typical characteristics of most decsion support systems. The list is based on:
Power, D., What are the characteristics of a Decision Support System? DSS News, Vol.4, No. 7, March 30 2003.
Daniel Power operates the http://dssresources.com/ website which is a valuable resource for anybody with an interest in decsion support systems.
  • facilitation
 DSS facilitate and support specific decision-making activities and/or decision processes. that is, DSS simplify and make easier the process of decision making.
  • interaction
 DDD are computer-based systems designed for interactive use by decision makers or staff users who control the sequence of interaction and the operations performed. The participants use the DSS interactively - the DSS seeks data and requires quidence during its operation.
  • ancillary
 DSS are not intended to replace decision makers rather they are tools that assist decision makers. The information output from a DSS is used as evidence to help and direct decision makers rather than being the absolute solution
  • repeated use
 DSS are intended for repearted use. A specific DSS may be used routinely or used as needed for ad hoc decision support tasks. The efforts and costs associated with the design and development of a DSS is substantial. Such costs are justifyable if the DSS can be reused.
  • task-oriented
 DSS provide specific capabilities thtat support one or more tasks related to decison making. These tasks may include intelligence and data analysis, idnetification and design of alternatives, choice among alternatuves and decision implementation.
  • indentifiable
 DSS are information systems in their own right, they have a distinct and clear purpose. DSS may be independant systems that collect or replicate data from other information systems or they can be a subsystem within a larger integrated information system.
  • decision impact
Model
Graph
Chart






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ldunphy GROUP TASK Discussion - structured / unstructured continuum 7 May 20 2010, 7:01 AM EDT by ldunphy
Thread started: May 11 2010, 9:42 AM EDT  Watch
SCENARIO 1
A business owner is trying to decide which of two products they should produce and market. Both products require an initial investment of $100K and there are insufficient funds to produce both products. It is determined that the chance of Product A failing is virtually zero, however it is also unlikely that it will make a substantial profit. Most likely Product A will make a comfortable profit. On the other hand Product B is a far riskier alternative. It has a significant chance of total failure, however it is also fairly likely that it will produce significntly higher profits than Product A.

SCENARIO 2
Doctors perform tests and examinations and they ask patients questions. They do this in an attempt to dianose (or decide on) the nature of the illness. Once the most likely is determined the doctor decides on the most suitable treatment. They may prescribe medication and suggest diet or lifestyle changes in an attempt to cure the diagnosed illness.

GROUP TASK Discussion
In terms of the structured / unstructured continuum, think about how the alternatives are or can be prioritised.
Does the level of uncertainty influence the decision? Discuss.
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Keyword tags: 9.4.2 9.4.2.1 characteristics decision support DSS
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ldunphy SET5A, Q12 - significant features of DSS 4 May 18 2010, 2:24 AM EDT by Max_Weezy:)
Thread started: May 11 2010, 11:27 AM EDT  Watch
Outline the significant features of:
a) structured situations
b) semi-structured situations
c) unstructured situations
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Keyword tags: 9.4.2 9.4.2.1 characteristics decision support DSS features of DSS SET5A textbook question
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ldunphy GROUP TASK Discussion - One and One continued 0 May 11 2010, 8:58 AM EDT by ldunphy
Thread started: May 11 2010, 8:58 AM EDT  Watch
Identify and describe the uncertainty that makes each of the answers to the previous 'One and One discussion' possible. If your decision is later found to be incorrect, does this mean your decision was wrong? Discuss.
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Keyword tags: 9.4.2 9.4.2.1 characteristics decision support Discussion DSS GROUP TASK One and One
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