Decision Support System

Decision Support System

Decision Making
Decision making is process of choosing among alternative courses of
action for the purpose of attaining a goal or goals.
According to Herbert A Simon ….Managerial decision making is
synonymous with the whole process of management.
Aspects of a typical business decision are…
o The decision may be made by a group
o There are several, possibly contradictory objectives.
o There can be hundreds or even thousands of alternatives to
consider.
o The results of making a decision today will sometimes materialize
in the future.
o No one is perfect predictor of the future, especially in the long run.
o Many decisions involve risk. Different people have different
attitudes toward risk.
o Decision makers are interested in what if scenarios.
o Experimentation with the real system is possible only for one set of
conditions.
o Changes in the decision making environment can occur
continuously.


Decision Making and problem Solving
One way to distinguish between decision making and problem solving is to
examine the phases of the decision process.
Following are four Phases.
1 Intelligence Problem Solving Decision Making
2 Design Problem Solving Decision Making
3 Choice Decision Making Decision Making
4 Implementation Problem Solving Actual implementation of recommendation


Models A model is a simplified representation or abstraction of reality.
Models are classified into three groups according to their degree of
abstraction…..
1. Iconic (scale) Models
2. Analog Models
3. Mathematical (Quantitative) Models
 Iconic (Scale) Models
The least abstract model is a physical replica of a system, usually on a
different scale from the original.
Three dimensions, such as that of an airplane, car, bridge, or production
time.
Photographs – Another type of iconic scale model – two dimensional.
Other example - Graphical user interfaces & object oriented programming
 Analog Models
This model does not look like the real system, but behave like it.
It is more abstract than an iconic model and is a symbolic representation
of reality.
Usually two dimensional charts or diagrams.
Some Examples….
o Organization chart that depict structure, authority & responsibility
o A map in which different columns represent the price movements
of stocks
o Blueprints of a machine or a house
o A speedometer
o A thermometer
 Mathematical (Quantitative) Models
The complexity of relationships in many organizational systems cannot
represent with icons or analogically, or such representation may be
cumbersome and time consuming to use.
These models are performed numerically with mathematical or other
quantitative models.

The Benefits of Models
Models enable the compression of time.
Model manipulation is much easier than manipulating the real system.
The cost of modeling analysis is much less than the actual.
The cost of making mistakes during a trial and error experiment is much
less than the real system.
With models, a manager can calculate the risks involved in specific action.
The use of mathematical models enables the analysis of a very large
numbers of solutions.
Models enhance and reinforce learning & training.