What are the components of a Decision Support System?

Ans.

A DSS has four basic parts (1) User, (2) Database(s), (3) Planning Language and (4) Model Base.

1. Users:

(a) The User of a DSS is a Top/ Middle/ Operational Level Manager with an unstructured or semi-structured problem to solve.

(b) Users require a thorough understanding of the problem and the factors to be considered in finding a solution.

(c) Users, however, do not need a computer background to use a DSS. As a special planning language performs the communication function with the DSS, the User does not need extensive education in computer programming. The planning language is non-procedural, and hence the User can concentrate on decision-making, rather than the process/ program to perform at each step.

2. databases:

(a) DSS includes one or more Databases. The Users may themselves construct the Databases. These Databases contain both routine and non-routine data from both internal and external sources.

(b) External Sources provide data about the operating environment surrounding the Firm, such as economic conditions, market demand, and industry competition. External data include assumptions about variables like interest rates, market prices, and levels of competition.

(c) Data from internal sources is generated in the normal course of operations from all sources internal to the Firm, e.g. data from Financial and Managerial Accounting systems, Marketing, Production and Personnel systems.

3. Planning Languages:

Planning Language in a DSS facilitates the User to maintain a dialogue with the Model Base. DSS uses two types of planning languages:

(a) General-purpose planning languages allow Users to perform many routine tasks like retrieving data from a database or performing statistical analysis, e.g. languages in electronic spreadsheets that enable User to tackle a broad range of budgeting, forecasting and other worksheet-oriented problems.

(b) Special-purpose planning languages are used to do certain jobs better than the general-purpose planning languages, e.g. Statistical languages like SAS, SPSS and Minitab.

4. Model Base:

(a) The Model Base is the brain of the DSS because it performs data manipulations and computations with the data provided by the User and the Database.

(b) Model Bases are custom-developed, and do mathematical functions like cross-tabulation, regression analysis, time-series analysis, linear programming and financial computations.

(c) The Model Base dictates the type of data to be included in the Database and the type of data provided by the User. Even where the quantitative analysis is simple, a system that requires Users to concentrate on certain kinds of data can improve the effectiveness of decision making.

(d) The User’s decision is supported by the analysis performed by the Model Base.