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Submitted to: Moqbul Hossain Bhuiyan Chairman Dept.of Management Information Systems University of Dhaka Submitted by: Nabila Tabassum Chowdhury ID no: 20 5th Batch Dept.of Management Information Systems
TOPIC Decision Support Systems (DSS) & Executive Support Systems (ESS)
Abstract
This paper presents the way in what information system helps a firm by taking part in decision making process in middle level & executive level of firm by using Decision Support Systems (DSS) & Executive Support Systems (ESS) & description of these two. Today in large business firms, they may have several business processes to attain its goal. Here, managers need the support of Information Technology. It is very difficult to make good decisions without valid, timely and relevant information. Information system is automating those processes, collecting data from it and also from outside sources, finally process it into useful information to the users. A firm might have several business processes, and those processes determine the attribute, number, structure, uses & users of information systems. Generally, in decision making, process, here works the managers of mid level & executive level. This paper is going to look closely on how some types of information system Decision Support Systems (DSS) & Executive Support Systems (ESS) helps the middle manager & senior manager to carry out their responsibilities in decision making process.
1. Introduction
To succeed, companies need information systems that can support the diverse information and decision-making needs of their managers and business professionals. Information systems provide the managers with valid, timely and relevant information. The type of information required by decision makers is directly related to the level of management and the amount of structure in the decision situations. In middle management level computer system combines data, models, user - friendly software for semi-structured & unstructured decision making, they are generally called Decision Support Systems (DSS). It provide support primarily to analytical, quantitative types of decisions. In executive level, strategic information system designed for unstructured decision making through advanced graphics and communications generally called Executive Support Systems (ESS). It supports the informational roles of executives.
Figure 1.1: The relation between type of information required & level of management.
designed so that users can work with them directly; these systems explicitly use userfriendly software. We can also define Decision Support System (DSS) is an interactive computer-based system or subsystem intended to help decision makers use communications technologies, data, documents, knowledge and/or models to identify and solve problems, complete decision process tasks, and make decisions. Decision Support System is a general term for any computer application that enhances a person or groups ability to make decisions. Also, Decision Support Systems refers to an academic field of research that involves designing and studying Decision Support Systems in their context of use.
Figure2.1: Goal: Use best parts of IS, OR/MS, AI & cognitive science to support more effective decision
What-if analysis is the study of the impact of a change in the assumptions (input data) on the proposed solution. Goal-seeking analysis is the study that attempts to find the value of the inputs necessary to achieve a desired level of output
2.3 Taxonomy
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 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. Another taxonomy for DSS has been created by Daniel Power. Using the mode of assistance as the criterion, Power differentiates communication-driven DSS, data-driven DSS, document-driven DSS, knowledge-driven DSS, and model-driven DSS A communication-driven DSS supports more than one person working on a shared task; examples include integrated tools like Microsoft's NetMeeting or Groove. 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. 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 dataintensive.
DSS promote learning, which leads to new demands & refinement of the current application which leads to additional learning & so forth. It usually utilizes quantity models.(Standard or custom made) Advanced DSSs are equipped with a knowledge management component that allows the efficient and effective solution of very complex problem. It can be disseminated for use via the Web. It allows the easy execution of sensitivity analysis.
2.6 Classifications
There are several ways to classify DSS applications. Not every DSS fits neatly into one category, but may be a mix of two or more architectures. Holsapple and Whinston classify DSS into the following six frameworks: Text-oriented DSS, Database-oriented DSS, Spreadsheet-oriented DSS, Solver-oriented DSS, Ruleoriented 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. The support given by DSS can be separated into three distinct, interrelated categories: Personal Support, Group Support, and Organizational Support. DSS components may be classified as: 1. 2. 3. 4. Inputs: Factors, numbers, and characteristics to analyze User Knowledge and Expertise: Inputs requiring manual analysis by the user Outputs: Transformed data from which DSS "decisions" are generated Decisions: Results generated by the DSS based on user criteria
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). The nascent field of Decision engineering treats the decision itself as an engineered object, and applies engineering principles such as Design and Quality assurance to an explicit representation of the elements that make up a decision.
2.11 Applications
A growing area of DSS application, concepts, principles, and techniques is in agricultural production, marketing for sustainable development. For example, the DSSAT4 package, 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. 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. There are theoretical possibilities of building such systems in any knowledge domain. Such as Clinical decision support system for medical diagnosis. a bank loan officer verifying the credit of a loan applicant 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 dashboards 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. A specific example concerns the Canadian National Railway system, which tests its equipment on a regular basis using a decision support system. A DSS can be designed to help make decisions on the stock market, or deciding which area or segment to market a product toward.
3.1 History
Traditionally, executive information systems were developed as mainframe computerbased programs. The purpose was to package a companys data and to provide sales performance or market research statistics for decision makers, such as financial officers, marketing directors, and chief executive officers, who were not necessarily well acquainted with computers. The objective was to develop computer applications that would highlight information to satisfy senior executives needs. Typically, an EIS provides data that would only need to support executive level decisions instead of the data for all the company.
Today, the application of EIS is not only in typical corporate hierarchies, but also at personal computers on a local area network. EIS now cross computer hardware platforms and integrate information stored on mainframes, personal computer systems, and minicomputers. As some client service companies adopt the latest enterprise information systems, employees can use their personal computers to get access to the companys data and decide which data are relevant for their decision makings. This arrangement makes all users able to customize their access to the proper companys data and provide relevant information to both upper and lower levels in companies
3.7 Components
The components of an EIS can typically be classified as: 3.7.1 Hardware When talking about hardware for an EIS environment, we should focus on the hardware that meet the executives needs. The executive must be put first and the executives needs must be defined before the hardware can be selected. The basic computer hardware needed for a typical EIS includes four components: Input data-entry devices. These devices allow the executive to enter, verify, and update data immediately; The central processing unit (CPU), which is the kernel because it controls the other computer system components; Data storage files. The executive can use this part to save useful business information, and this part also help the executive to search historical business information easily;
Output devices, which provide a visual or permanent record for the executive to save or read. This device refers to the visual output device or printer. In addition, with the advent of local area networks (LAN), several EIS products for networked workstations became available. These systems require less support and less expensive computer hardware. They also increase access of the EIS information to many more users within a company.
3.7.2 Software Choosing the appropriate software is vital to design an effective ESS. Therefore, the software components and how they integrate the data into one system are very important. The basic software needed for a typical EIS includes four components: Text base software. The most common form of text are probably documents; Database. Heterogeneous databases residing on a range of vendor-specific and open computer platforms help executives access both internal and external data; Graphic base. Graphics can turn volumes of text and statistics into visual information for executives. Typical graphic types are: time series charts, scatter diagrams, maps, motion graphics, sequence charts, and comparison-oriented graphs (i.e., bar charts); Model base. The EIS models contain routine and special statistical, financial, and other quantitative analysis. Perhaps a more difficult problem for executives is choosing from a range of highly technical software packages. Ease of use, responsiveness to executives' requests, and price are all reasonable considerations. Further, it should be considered whether the package can run on existing hardware. Major Commercial EIS Software Vendors - Comshare Inc. (www.comshare.com) - Pilot Software Inc. (www.pilotsw.com) Application Development Tools - In-house components - Comshare Commander tools - Pilot Softwares Command Center Plus and Pilot Decision Support Suite 3.7.3 User Interface An EIS needs to be efficient to retrieve relevant data for decision makers, so the user interface is very important. Several types of interfaces can be available to the EIS structure, such as scheduled reports, questions/answers, menu driven, command language, natural language, and input/output. It is crucial that the interface must fit the decision makers decision-making style. If the executive is not comfortable with the information questions/answers style, the EIS will not be fully utilized. The ideal interface for an EIS would be simple to use and highly flexible, providing consistent performance, reflecting the executives world, and containing help information. Telecommunication
As decentralizing is becoming the current trend in companies, telecommunications will play a pivotal role in networked information systems. Transmitting data from one place to another has become crucial for establishing a reliable network. In addition, telecommunications within an EIS can accelerate the need for access to distributed data. 3.7.4 ESS can be enhanced with: Multidimensional analysis and presentation Friendly data access User-friendly graphical interface Imaging capabilities Intranet access E-mail Internet access Modeling
3.8 Developing ESS Ease of use Facility for environmental scanning External and internal sources of information to be used for environmental scanning Developers must build a prototype that will work at the time it is tested by the user Executives must be able to learn the new system at a rapid pace. If the prototype does not perform the way the executive wants, it will be rejected. The system must be able to have access to scan the internal and external environment to spot weaknesses and opportunities.
Limited functionality, by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow, large, and hard to manage Need good internal processes for data management May lead to less reliable and less secure data
4. Conclusion
The aim of this paper was to Describe, two major types of information systems- Decision Support Systems (DSS) & Executive Support Systems (ESS). The history, the attributes, the benefits & uses, disadvantages of both ESS & DSS along their components and development has been discussed Information Systems is now taking the managing task of firm because of rapidly growing technologies.. Now it becomes a trend for prosperous digitalized firms to use different Information Systems at different managerial level. This trend allows executives of a certain level escaping from learning different computer operating systems and substantially decreases the implementation costs for companies. Because utilizing existing software applications lies in this trend, executives will also eliminate the need to learn a new or special language for the IS packages. Decision Support Systems (DSS) & Executive Support Systems (ESS) both sequentially or complementarily uses in firms determined by the need.
REFERENCES
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